99-Year Land Lease Philippines: Guide for Foreign Investors

For decades, one of the biggest challenges for foreign investors in the Philippines has been the constitutional restriction on land ownership. Previously, if you wanted to build a factory or a large resort, you had to rely on shorter lease agreements of 50 years, renewable for another 25. This creates significant uncertainty for multi-decade investments, as renewal terms are not a guarantee.

A new bill, recently approved by both the House and Senate, is set to change this. This bill allows foreign investors to lease private land for a single, continuous period of up to 99 years.

As of July 2025, the bill is awaiting the President’s signature to become law. 

This guide breaks down what this significant development means for you, what the requirements are, and how you can leverage it for your investments in the Philippines.

What is the 99-Year Land Lease Bill?

The core of the 99-year land bill is a direct extension of the lease term available to foreign investors. It replaces the old 50+25-year structure with a single, continuous 99-year period.

It is very important to understand that this bill concerns leasing, not ownership. Foreigners still cannot own land in the Philippines. However, by providing long-term, uninterrupted tenure, this new framework offers a level of security and predictability that was previously unavailable for major investments.

Key Features of the 99-Year Land Bill in the Philippines

A. Land Types and Usage Rights

The bill allows you to lease private land in the Philippines for specific business and development purposes, such as:

• Commercial and industrial developments (i.e., logistics hubs, factories, warehouses)
• Tourism infrastructure (i.e., resorts, retirement homes)
• Agroforestry and certain agricultural ventures (with regulatory approvals)

All land use must strictly comply with local zoning laws and land use plans with permits from agencies like the Department of Environment and Natural Resources (DENR), the Department of Agrarian Reform (DAR), or local authorities.

B. Lease Term and Conditions

The maximum lease term is now 99 years, non-renewable. In some cases, the President, through the Fiscal Incentives Review Board (FIRB), can impose a shorter lease term. Lease agreements must include:

• Performance obligations (i.e., timeline for development, investment minimums)
• Early termination clauses to prevent speculation or land hoarding

Violations such as entering into illegal or unregistered lease agreements may result in fines or criminal penalties.

C. Transfer and Succession Rights

Lease rights can be sold, transferred, inherited, or subleased, provided these actions align with the terms of your lease agreement. Subleases exceeding 25 years must be registered with the Register of Deeds. In cases of mergers, acquisitions, or corporate restructuring, you can assign leasehold interests to a new entity, subject to contract terms and regulatory approval.

99-Year Land Lease Advantages for Foreign Investors

1. Security for Long-Term Investment

Securing long-term control over land is essential if you are investing in capital-intensive sectors such as manufacturing, logistics, tourism, or infrastructure. The 99-year lease removes the risks of mid-project renewals and provides a stable foundation for developments that demand multi-decade planning.

It also reduces legal uncertainty and operational risks related to expiration or renegotiation. This gives you the confidence to commit significant capital without fear of losing access to the land.

2. Improved Access to Financing

A 99-year lease strengthens your collateral position, making it easier to secure larger loans and favourable financing terms, especially for large-scale infrastructure and real estate projects.

3. Boost for Strategic Sectors

This land lease bill supports high-impact industries that drive national growth, such as tourism, renewable energy, green tech, and industrial development. It encourages development in designated economic zones, special investment areas, and secondary cities, allowing you early access into these regions as they grow.

With strong government support in these areas, you can gain access to incentives, streamlined permits, and local support.

Eligibility and Key Considerations for the Philippines’ 99-Year Land Lease

While the 99-year lease opens new doors for foreign investors, it comes with certain requirements and responsibilities. Here’s what you need to know:

A. Who is Eligible for a 99-Year Land Lease?

The extended 99-year lease is available to foreign-owned corporations, joint ventures, and individuals with approved investments registered under laws like the CREATE Act. However, land ownership remains reserved for Filipino citizens or corporations that are at least 60% Filipino-owned.

B. Investment and Project Requirements

Leased land must be used strictly for its intended business purpose, within the area necessary for your operations, and as defined in your lease contract. For instance, if you lease land for industrial development, your usage should align with the intended investment purpose. 

Compliance with land-related laws like the Comprehensive Agrarian Reform Law and Local Government Code is essential, especially in areas that impacts agricultural land, indigenous communities, or rural livelihoods.

C. Government Endorsement and Permits

Before securing a 99-year lease, your project must go through the appropriate approval channels, which vary depending on your location and sector:

• General Investments: Department of Trade and Industry (DTI) or Board of Investments (BOI).
• Project within Economic Zones or Freeport: Investment Promotion Agency (IPA), like PEZA or SBMA.

In addition to this, a formal lease contract must be signed with the landowner (private or government), clearly defining the lease term, land area, permitted uses, and any development obligations. Standard development clearances like local permits, land conversion approvals, and Environmental Compliance Certificates (ECCs) are also required.

D. Ongoing Compliance and Reporting

Once you obtain the lease, you must comply with development timelines, land use conditions, and reporting requirements. Delays or non-compliance may lead to penalties or even lease revocation.

Optimal Use Cases for the 99-Year Lease

Not all business models require a 99-year lease, but this framework is made for you if your investment relies on long-term planning, high-capital input, and land-intensive operations like the following:

• Industrial Estates and Export Zones: If you’re in manufacturing, logistics, or any export-oriented business, setting up in designated zones with long-term land control gives you operational continuity and eligibility for incentives.
• Large-Scale Agri-Business and Eco-Tourism Projects: Projects like agroforestry, plantation farming, or eco-resorts often have long gestation periods. A 99-year lease matches these timelines, allowing you to grow sustainably without the pressure of short-term returns.
• Infrastructure or Utility Ventures: For power plants, renewable energy projects, water treatment facilities, or transport terminals, long-term land security is non-negotiable. This lease structure aligns with the multi-decade lifespan of such assets.

Tax and Financial Implications

You can optimize your lease arrangements to reduce tax exposure and improve returns if you structure it properly by keeping the following in mind:

• Lease payments are generally treated as deductible business expenses, reducing taxable income.
• Depending on your lease terms, you or the landowner may be liable for real property taxes. It is advisable to clarify this upfront to avoid local tax penalties.
• Projects registered under BOI or PEZA may qualify for income tax holidays, duty exemptions, or other fiscal incentives, which increase profitability.

How Emerhub Can Help

Emerhub helps foreign investors set up and expand their business in Southeast Asia in compliance with local laws. Our local experts in the Philippines advise you on your investment projects and handle the legal compliance on your behalf. If you are planning to secure land for your investments, here’s what we can do for you:

• Due Diligence and Legal Review: Our experts will verify land titles, check zoning compatibility, and flag any legal or regulatory issues before you commit to a lease. This reduces your exposure to future disputes and compliance failures.
• Property Search and Local Negotiation: With our localized team, we will help you identify strategic land for your proposed business activities and represent you in negotiations with landowners.
• Lease Structuring and Registration: We’ll draft lease agreements that protect your long-term interests and handle the registration process with local authorities to ensure your lease is enforceable and compliant.
• Business Setup and Visa Support: Need support beyond land leasing? We can help you incorporate your business, register for taxes, and secure the necessary investor visas so you can manage your market entry in one place.

Ready to secure your long-term investment in the Philippines? Contact our local experts to get started.