Photo Credit: Lawrence Ruiz
The Philippines has recently authorized foreigners to lease land for up to 99 years, a move aimed at attracting more long-term investments. President Ferdinand Marcos Jr signed legislation amending the 1993 law, which previously limited lease contracts to 50 years with a single renewal of 25 years. The new law encourages the development of industrial estates, tourism, and agricultural projects by offering extended lease terms.
This change enhances the Philippines’ competitiveness in the region, where countries like Thailand offer better infrastructure. Experts believe it will attract significant foreign capital, supporting projects such as hotels to boost tourism and providing longer recovery periods for investments. Despite a 26.9% decline in foreign direct investment in the first five months of the year, the law aims to make the Philippines a more appealing destination for investors.
Additionally, the law allows the president to set shorter lease periods for certain critical industries for national security or development reasons. Marcos also signed a new tax law aimed at increasing government revenue from large mining operations through a profit-based system, which miners say could attract more investment.