Marcos signs law extending foreign land leases to 99 years

President Ferdinand R. Marcos Jr. has signed a new law extending the period foreign investors may lease private lands in the Philippines, a move seen to boost investor confidence and long-term capital inflows into the country.

Republic Act (RA) 12252, which amends the Investors’ Lease Act of 1994 (RA 7652), was signed on September 3. It allows foreign investors to lease private lands for up to 99 years—almost doubling the previous cap of 50 years, which was renewable once for 25 years.

However, the law provides safeguards. The President may impose shorter lease terms on investors engaged in vital services or industries deemed critical to national security and development.

To qualify, foreign investors must secure approval from the appropriate investment promotion agency and strictly comply with its regulations. Any withdrawal of approved investments, or use of leased land for unauthorized purposes, automatically terminates the contract—without prejudice to damages owed to the landowner.

For tourism projects, the law sets additional conditions: leases are limited to projects worth at least USD 5 million, with 70 percent of the investment required to be infused within three years. Failure to begin the project within that period also results in automatic termination of the lease.

Meanwhile, foreigners or entities not directly investing in the Philippines remain bound by Presidential Decree No. 471 and other existing laws, which limit land leases to 25 years, renewable for another 25 years.

RA 12252 is expected to open more opportunities for foreign-backed developments in real estate, tourism, and infrastructure, while balancing national security and regulatory safeguards.