MANILA – The Department of Justice (DOJ) has officially released the Implementing Rules and Regulations (IRR) for Republic Act No. 12193, the law allowing 99-year leaseholds for foreign nationals and corporations on private lands, on December 26, 2025. The IRR provides the detailed framework for executing the landmark legislation signed by President Ferdinand Marcos Jr. in October 2025, aimed at attracting long-term foreign direct investments (FDI) in real estate, infrastructure, and industrial projects.
Justice Secretary Jesus Crispin Remulla emphasized the IRR’s balance: “This opens opportunities for economic growth while safeguarding national interests and constitutional limits on foreign land ownership.” Key provisions include:
Highlights of the IRR
- Lease Duration: Up to 99 years (initial 50 years + optional 49-year renewal), exceeding the previous 25+25-year cap under the Investors’ Lease Act.
- Eligible Lessees: 100% foreign-owned corporations, individuals, or entities for commercial, industrial, or residential development.
- Land Types: Private titled lands only (no public or agricultural classified lands).
- Restrictions:
- No subleasing to circumvent ownership bans.
- Leases must comply with zoning, environmental laws, and national security reviews.
- Priority for projects generating jobs, technology transfer, or strategic value.
- Approval Process: DOJ oversight for registration; streamlined via “green lane” for priority investments.
- Renewal Criteria: Based on compliance, economic contribution, and no national interest conflicts.
The law and IRR address constitutional prohibitions on foreign land ownership (Article XII) by treating long leases as property rights without transferring title. Proponents argue it levels the playing field with neighbors like Thailand (99 years) and Vietnam (70-99 years), potentially unlocking billions in FDI for townships, factories, and tourism estates.
Business groups like the American Chamber of Commerce and European Chamber hailed the IRR as “game-changing,” while critics (e.g., nationalist groups) warn of risks to sovereignty and land speculation.
With the IRR now effective, applications can begin—marking a new chapter for foreign participation in Philippine real estate.
Key IRR Provisions Snapshot:
| Aspect | Details |
|---|---|
| Max Lease Term | 99 years (50 + 49 renewal) |
| Eligible Lands | Private titled only |
| Foreign Ownership | 100% allowed as lessee |
| Oversight | DOJ registration; national security review |
| Prohibited | Subleasing for ownership bypass |