Philippines extends foreign land leases to 99 years, aiming to boost long-term offshore investment

Foreign investors in the Philippines will soon be able to lease private land for up to 99 years, a move aimed at boosting the country’s competitiveness in attracting long-term offshore funding for commercial and industrial projects.

The law, signed by President Ferdinand Marcos Jr on Wednesday and made public on Friday, replaces a previous rule that allowed leases of private land for up to 50 years, extendable once for another 25 years.

“It is the policy of the State to ensure the reliability of investors' lease contracts to provide a stable environment for foreign investments,” the new legislation stated. Eligible projects include industrial estates, factories, and processing plants.

Investors had long cited uncertainty under the old law, particularly for multi-decade investments. The Philippine Constitution continues to prohibit foreign ownership of private land, making long-term leases a critical tool for securing offshore investment.

In June, foreign business chambers issued a joint statement saying an extended lease framework would create a “more stable and predictable leasehold system.”

Data from the central bank shows net foreign direct investment in the Philippines fell 27% by the end of May, dropping to $2.96 billion from $4.04 billion a year earlier. The country also trails regional peers in attracting FDI, drawing $8.9 billion in 2024 compared with $20.17 billion for Vietnam and $24.2 billion for Indonesia, according to the UNCTAD World Investment Report 2025.

(With Reuters inputs)