September 5, 2025 | 4:08pm
MANILA, Philippines — International buyers in search of to do enterprise within the Philippines can now lease land for as much as a century.
In a brand new legislation signed by President Ferdinand Marcos Jr., international buyers can now lease land for as much as 99 years — a further 49 years from what the legislation beforehand allowed.
“The combination interval of the lease contract shall not exceed 99 years; offered that upon the advice of the Fiscal Incentives Evaluation Board (FIRB) or different related authorities businesses, the President of the Philippines might impose a shorter lease interval for buyers engaged in important companies or industries thought of as important infrastructure,” the Republic Act 12252 acknowledged.
The brand new legislation amends the Buyers’ Lease Act, extending the time {that a} international investor might lease land. Shorter leases can also be granted within the curiosity of nationwide safety or different functions.
The modification outlines the necessities international buyers should meet when coming into a lease contract, together with an accepted funding undertaking beneath the International Investments Act of 1991, a technical description of the property and different mandatory paperwork.
The lease contract might be terminated if the international investor fails to begin with their meant funding undertaking inside three years of signing the contract.
The legislation doesn’t seem to specify the precise most period for which a international investor can prolong their lease, nor what number of instances the lease might be renewed.
Philstar.com has sought clarification from the Palace and can replace the story upon receiving a response.
For foreigners who’re leasing land within the Philippines with out investing, the prevailing guidelines beneath Presidential Decree 471 will apply, which limits lease phrases for aliens to a most of 25 years.
Contracts that violate this legislation could also be topic to penalties starting from a superb of P1 million to P10 million or imprisonment from six months to 6 years, relying on the court docket’s determination.
Underneath the 1987 Structure, foreigners are prohibited from proudly owning land within the Philippines. Solely Filipinos or companies at the very least 60% owned by Filipinos are permitted to personal land.
Leasing land has been allowed instead, however the lease time period is proscribed to 50 years, with a one-time renewal choice for a further 25 years.
