MANILA, Philippines – President Ferdinand Marcos Jr. has enacted a new law extending teh maximum lease period for private lands to foreign investors to 99 years, a move aimed at attracting increased foreign investment into the Philippines. Republic Act (RA) 12252, signed on September 3, 2025, amends the existing Investors Lease Act (RA 7652) to provide a more stable and predictable environment for international businesses.
The legislation allows foreign investors with registered projects to lease private lands for up to 99 years. However, the President retains the authority to shorten the lease term for projects within “vital services or industries considered as critical infrastructure,” citing national security concerns as justification. Leased land must be used solely for the approved investment project and be proportionate to its needs.
to ensure enforceability, all contracts must be registered with the Registry of Deeds and annotated on the landS title. This provision is designed to bolster investor confidence by guaranteeing the security and longevity of their investments.Registered contracts are protected from alteration or cancellation except through formal legal proceedings.The passage of RA 12252 represents a significant step towards liberalizing the Philippine economy and attracting long-term foreign capital, which officials hope will spur economic growth and job creation. The previous Investors Lease Act had limitations that some investors found restrictive, hindering larger, long-term projects. This new law seeks to address those concerns and position the Philippines as a more competitive destination for foreign investment in Southeast Asia.
