Philippines Extends Land Leases to 99 Years to Boost Foreign Investment Attractiveness

The Philippines has extended land leases to 99 years to attract foreign investors, replacing a rule that allowed leases for up to 50 years with one extension for 25 years. This change aims to provide a stable environment for foreign investments, particularly for long-term commercial and industrial projects. The new law is expected to make the Philippines more competitive in attracting offshore funding.

The Philippines has recently amended its land lease laws to extend the lease period for foreign investors to 99 years. This significant change, which took effect on September 6, 2025, replaces the previous rule that allowed leases for up to 50 years, with one extension of up to 25 years [1].

The new law, signed by Philippine President Ferdinand Marcos Jr., aims to create a stable and long-term investment environment, particularly for commercial and industrial projects. It is expected to make the Philippines more competitive in attracting offshore funding, as other Southeast Asian countries also offer multi-decade leases but with varying terms.

The measure is part of the Philippines' broader strategy to boost its economy by encouraging the development of industrial estates, factories, tourism, and agriculture projects. According to David Leechiu, head of Leechiu Property Consultants, this change should open up significant investment capital from foreign parties and potentially propel projects such as hotels that will boost tourism [1].

The new law also grants the Philippine president the authority to impose shorter lease periods for investors engaged in vital services or industries considered critical for national security or national development priorities.

The Philippines' move to extend land leases comes at a time when net foreign direct investments into the country have fallen. From January to May 2025, net foreign direct investments declined by 26.9% to $3 billion [1].

References:
[1] https://gulfnews.com/business/economy/philippines-gives-land-lease-for-foreign-investors-to-99-years-1.500258956