Philippines Unlocks New Investment Horizon: Land Leases Extended to 99 Years
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- September 07, 2025
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The Philippines has officially opened a new chapter for foreign investors, dramatically extending the maximum land lease period from the previous 75 years to an impressive 99 years. This landmark decision, spearheaded by President Ferdinand Marcos Jr., is a strategic move designed to significantly bolster long-term offshore investment, particularly within crucial sectors such as tourism, manufacturing, and designated industrial zones.
Previously, foreign investors could lease land for an initial 50-year term, with an option to renew for an additional 25 years, totaling 75 years.
Under the new policy, the initial 50-year lease remains, but the renewal period has been extended to 49 years, bringing the total maximum lease duration to 99 years. This extended tenure offers substantially greater stability and certainty, addressing a key concern for large-scale, capital-intensive projects that require a longer operational horizon to realize their full potential and return on investment.
The move is a cornerstone of the Marcos Jr.
administration's aggressive economic reform agenda, aimed at positioning the Philippines as a premier investment destination in Southeast Asia. This specific reform is expected to catalyze foreign direct investment (FDI), injecting fresh capital into the economy, fostering job creation, and accelerating infrastructure development across the archipelago.
This initiative builds upon a series of significant legislative reforms implemented in recent years.
These include the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Law, which rationalized corporate income tax and offered more attractive incentives for investments, as well as amendments to the Public Service Act, the Foreign Investments Act, and the Retail Trade Liberalization Act.
Together, these reforms aim to dismantle barriers and streamline processes, creating a more welcoming and competitive business environment for international players.
By providing greater security for their long-term assets, the Philippines anticipates attracting a new wave of sophisticated investors willing to commit substantial resources to projects that require extensive planning and development, such as integrated tourism resorts, advanced manufacturing facilities, and large-scale agricultural ventures.
This commitment to investor confidence signals the nation's readiness to compete globally for high-value foreign capital, promising a brighter economic future for the Philippines and its people.
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