Philippines Extends Land Leases to 99 Years: What Foreign Investors Should Really Know

The Philippines had just stretched foreign land leases to 99 years. For people who build resorts, logistics parks, or factories—projects that take time, patience, and serious capital—the news landed like a green light. “Ninety-nine” is the kind of number you can model around. According to Reuters, President Ferdinand Marcos Jr. signed the reform that week, replacing the old 50-year limit (extendable once by 25 years) with a straight 99-year term for qualifying investors.

From 50 (+25) to 99: What Actually Changed

For decades, the Philippines relied on the Investors’ Lease Act of 1993 (RA 7652), which capped foreign land leases at 50 years, extendable once by 25 years—a structure that left long-horizon investments exposed to renewal risk. On September 3, 2025, the government enacted Republic Act 12252, amending RA 7652 to allow a single lease term of up to 99 years for foreign investors.

What does that mean in practice? Think of a manufacturer planning a cluster of plants or a tourism group master-planning a coastal destination. With 99 years on the clock, the timeline finally matches the asset’s useful life—and the financing. As Reuters framed it, the policy aims to create a more stable leasehold system precisely for long-term commercial and industrial projects.

The Fine Print: Conditions, Carve-Outs, and Paperwork

Here’s where your lawyer will ask you to slow down and read the details.

• Who qualifies. Long-term leases are tied to approved and registered investments (e.g., under the Foreign Investments Act or incentives regimes), and the contract must be registered with the Registry of Deeds and annotated on the land’s title to bind third parties. In short: paper it properly or it won’t travel with the title.

• National security carve-out. The President may impose a shorter lease for investors involved in vital services or critical infrastructure, on recommendation of fiscal and sector agencies. The 99-year banner headline isn’t automatic in sensitive sectors.

• Tourism threshold. For tourism projects, the law underscores a minimum investment of 5 million dollars, with 70 percent to be infused within three years from signing. Miss the start line, and authorities can terminate. That three-year clock matters for project controls and drawdowns.

• Subleasing. Unless the lease forbids it, subleases are allowed with the lessor’s consent—and must be registered too. Helpful for park-style developments and multi-tenant sites.

Why the Philippines Moved Now

Officials and business groups have long argued that the old 50-plus-25 scheme injected renewal anxiety into projects that need patience: power-hungry factories, agro-industrial estates, data centers, and destination resorts with multi-decade payback. Reuters reported that foreign direct investment was down 27 percent year-on-year by May 2025—context that sharpened appetite for reforms that remove doubt and speed up capital formation.

Senate President Chiz Escudero said pushing leases to 99 years would make the country more appealing to investors, putting it closer to regional peers that already court long-term capital with generous leaseholds.

A Tale of Two Projects: How 99 Years Changes the Math

Case 1: A logistics campus near a major expressway.

Under the old regime, a developer might lock in a 50-year term, then assume the 25-year extension. Lenders would discount that assumption, and tenants with long amortization cycles might balk. With 99 years, the sponsor can phase the site in tranches, layer in built-to-suit facilities, and spin off subleases—confident that leasehold control won’t hinge on political weather decades from now. That confidence drives down the risk premium in financing models; it also helps recruit anchor tenants who want to invest in high-spec fit-outs.

Case 2: A destination resort on a secondary coastline.

In tourism, where branding and environmental approvals take time, the three-year infusion requirement encourages disciplined execution: secure permits, sequence capex, and show shovels in the ground. If you’re planning villas, a conference center, and an air-conditioned events dome, you can now stage these with fewer doubts about land control—while still recognizing the government’s right to shorten terms for strategic, security-sensitive sites.

What Smart Investors Will Do Next

1. Map eligibility early. Confirm your investment is registered with the appropriate agency, and draft lease terms that anticipate subleasing, assignment, and financing needs. The law now permits subleases with consent—valuable for multi-tenant parks.

2. Build the three-year plan. Especially in tourism, show a credible path to 70 percent infusion within three years and a clear start to works. Tie contractor milestones and lender drawdowns to that legal clock.

3. Register, annotate, repeat. Treat Registry of Deeds annotation as a gating item, not an afterthought. It’s the operative act that protects your position against successors-in-interest.

4. Stress-test the carve-out. If you’re in or near critical infrastructure, model scenarios where the state shortens the lease—then address it through risk allocation, insurance, or JV structuring.

5. Watch the IRR. The Department of Trade and Industry’s rules will define procedures and timelines. Expect clarifications on documentation, approvals, and inter-agency coordination that can make or break your critical path.

Bottom Line

One reason this law resonates is that it feels human in its logic. Investors don’t fear rules; they fear uncertainty. A hotelier once told me he could live with a tough environmental checklist if he knew the ground rules wouldn’t shift mid-build. That’s the promise here: you bring capital, know-how, and jobs; the state offers clarity. As Reuters reported, chambers of commerce had urged a more predictable leasehold system; RA 12252 gives them something concrete to underwrite.

Yes, the Philippines has extended foreign land leases to 99 years. No, it’s not a free-for-all. It’s a calibrated attempt to swap uncertainty for time—time to build a factory cluster, time to plant trees around a resort lagoon, time to amortize heavy kit and train local teams. If you’re serious about the market, RA 12252 is a welcome bridge between vision and viability. Just remember: the bridge has toll gates—registration, compliance, timelines—and the best builders plan for those from day one.