New Law Allows 99-Year Lease of PH Lands to Foreign Investors; Sectors Air Concerns

A new law, Republic Act (RA) No. 12252, extends the lease period for foreign investors on Philippine lands in select industries from the previous maximum of 50 years, renewable once for 25 years, to up to 99 years.

Projects must be registered under RA 7042, or the Foreign Investments Act of 1991, as amended, and RA 11534, or the CREATE Act, as amended by the CREATE MORE Act. (Photo: Philippine Information Agency) 

Signed by President Ferdinand R. Marcos Jr. on August 29, 2025, RA 12252 aims to attract more foreign investment into the country.

The law amends RA 7652, or the Investors’ Lease Act, adding provisions that declare it a government policy to guarantee reliable lease contracts and foster a stable environment for investors.

Under RA 12252, foreign investors may secure long-term leases on private lands for projects such as industrial estates, factories, agro-industrial enterprises, tourism, agriculture, agro-forestry, ecological conservation, and other similar priority endeavors.

For tourism projects, the 99-year lease applies only to investments of at least $5 million, 70% of which must be infused within three years.

Projects must be registered under RA 7042, or the Foreign Investments Act of 1991, as amended, and RA 11534, or the CREATE Act, as amended by the CREATE MORE Act. Leases must also be registered with the local Registry of Deeds and annotated on the property’s title.

The law also amends Section 6 of RA 7652 on termination of lease contracts. The Fiscal Incentives Review Board (FIRB), Board of Investments (BOI), or relevant Investment Promotion Agencies (IPAs) may now require investors to explain project delays and compel implementation within a reasonable time if projects fail to commence within three years of signing.

Penalties were also increased, with fines raised from ₱100,000–₱1 million to ₱1 million–₱10 million, plus possible imprisonment of six months to six years at the court’s discretion.

Additionally, the President, upon recommendation of the FIRB or other agencies, may impose shorter lease terms for foreign investors in “critical infrastructure” sectors in the interest of national security.

Supporters say the measure aligns the Philippines with policies in Singapore, Malaysia, and Indonesia. It was identified as a Legislative-Executive Development Advisory Council (LEDAC) priority before the 19th Congress adjourned.

Concerns About the New Law

The enactment of RA 12252 has drawn concerns from farmers’ groups and advocacy organizations.

Critics argue that a 99-year lease is practically equivalent to foreign ownership of land, which is prohibited under the 1987 Constitution’s provisions on national patrimony.

They warn this could create loopholes allowing foreign entities to gain excessive control over land and resources for generations.

They further note that multi-generational leases could enable long-term dominance of strategic lands, potentially disadvantaging local enterprises that may struggle to compete with well-capitalized foreign investors enjoying long-term stability.

In addition, critics highlight the law’s “vague definition of private lands,” raising fears that public lands or even ancestral domains could be included.

They also warned that demand from foreign investors could push real estate prices sharply higher, making land unaffordable for many Filipinos.