DTI, LRA finalize rules for 99-year land lease law

The Department of Trade and Industry (DTI) and the Land Registration Authority (LRA) have signed the Implementing Rules and Regulations (IRR) for Republic Act No. 12252, or the Investors’ Lease Act, extending foreign leasehold rights on private land from 75 to 99 years.

The ceremonial signing took place on Dec. 19 in New Clark City, with the event hosted by the Bases Conversion and Development Authority (BCDA).

DTI Secretary and Board of Investments (BOI) Chairperson Cristina A. Roque and LRA Administrator Gerardo Panga Sirios signed the IRR on behalf of their respective agencies.

The IRR operationalizes a law passed nearly 30 years ago, aiming to modernize the Philippines’ investment environment by allowing longer leasehold periods for foreign investors.

Under the new rules, foreigners may now lease private lands for an initial 50 years, renewable for up to 49 more, reaching a total of 99 years.

DTI officials said the move is a significant regulatory reform designed to attract long-term foreign direct investment (FDI), global expertise, and technological innovation into the country.

“Our goal is to establish the Philippines as a top global investment destination. This signing provides the long-term security our investors need and proves that we are serious about creating a more competitive and business-friendly nation,” Roque said.

Representing Roque during the signing, DTI Undersecretary and BOI Managing Head Dr. Ceferino S. Rodolfo said the IRR marks a major step toward responsibly unlocking new investment opportunities.

BCDA President and Chief Executive Officer, Engr. Joshua M. Bingcang, highlighted that the law enhances investor confidence by ensuring “stability and certainty” — critical factors for competing with other regional economies.

The IRR includes new administrative safeguards to protect both foreign investors and Filipino landowners.

Among the key provisions is a requirement that all lease contracts be annotated on the land title, making the lease publicly binding and legally enforceable.

In addition, the regulations establish a streamlined, time-bound process for compliance and applications, intended to reduce bureaucratic delays and improve the overall ease of doing business in the country.

BOI Governor Atty. Marjorie O. Ramos-Samaniego thanked the LRA, the Fiscal Incentives Review Board (FIRB), and multiple Investment Promotion Agencies for their joint effort in harmonizing procedures and improving clarity in policy implementation.

Speaking on behalf of the LRA, Pampanga Register of Deeds Atty. Lorna Dee said the reforms demonstrate a shared national commitment to fostering a “business environment built on trust and clarity.”

The IRR will take effect on Jan. 4, 2026, following its official publication in a newspaper on Dec. 20, 2025.