Philippines Property Law Foreigners Guide: What RA 12252 Changes in 2026

RA 12252 foreign investment rules changed significantly in September 2025, when President Marcos signed the law extending land leases for registered foreign investors from 75 to 99 years. This guide explains who qualifies, what project types are eligible, and what the change means for expats and investors in Cebu.

Updated: March 2026. This guide covers the key changes to Philippines property law foreigners need to understand following RA 12252 — the biggest update to foreign land leasing rules in thirty years.

For decades, the rules governing Philippines property law foreigners face has been defined by one hard ceiling: you cannot own land. That rule has not changed. But in September 2025, President Marcos signed Republic Act 12252 — and for the first time in more than thirty years, the terms of the deal got dramatically better. Foreign nationals can now lease private land in the Philippines for up to 99 years, up from a previous maximum of 75 years. For expats and investors eyeing Cebu, that is a generational shift in how Philippines property law for foreigners works in practice.

This article explains exactly what RA 12252 does, who it benefits, and what it means for your property plans in Cebu.

What Is RA 12252?

Republic Act 12252 is the updated Investor’s Lease Act, signed into law in September 2025. It replaces the previous framework established by RA 7652 (1993) and directly amends the maximum lease term that a Filipino landowner may grant to a foreign national or foreign-owned entity.

The law applies to private land leases between Filipino landowners and qualified foreign lessees. It does not affect land ownership — foreigners still cannot hold freehold title to land in the Philippines under the Philippine Constitution. What RA 12252 changes is how long, and how securely, a foreigner can hold and develop that land. This is the most significant update to Philippines property law foreigners have navigated since the original Investor’s Lease Act of 1993.

What Changed: Old Law vs. New Law

Twenty-four additional years may not sound transformative in isolation — but the structure matters as much as the number. The old system required a renewal negotiation at the 50-year mark, introducing uncertainty about whether a landowner (or their heirs) would agree to renew and on what terms.

• Before RA 12252 (RA 7652, 1993): Initial lease of 50 years + one optional renewal of 25 years = 75 years maximum
• After RA 12252 (2025): Single lease term of up to 99 years — no renewal required

Twenty-four additional years may not sound transformative in isolation — but the structure matters as much as the number. The old system required a renewal negotiation at the 50-year mark, introducing uncertainty about whether a landowner (or their heirs) would agree to renew and on what terms. A single 99-year lease eliminates that inflection point entirely.

For a foreign investor signing a lease today at age 40, a 99-year term extends well beyond their own lifetime. That is the definition of a generational asset — and it is precisely the security that development lenders and project finance banks require before committing capital.

Who Benefits from RA 12252 Foreign Investment Rules?

Under the updated Philippines property law foreigners are now working with, several categories of foreign nationals stand to benefit directly:

• Retiree-investors — Expats planning a long-term base in Cebu or the Visayas who want to develop or improve a leased lot without worrying about a 50-year cliff
• Resort and hospitality developers — Foreign-owned companies leasing beachfront or agricultural land for resort development, where project finance typically requires a lease term exceeding the loan period by 20+ years
• Condominium landowners’ partners — Developers who own the building but lease the land underneath it, a common structure in Philippine real estate
• SRRV visa holders — Retirees on the Special Resident Retiree’s Visa who are evaluating property options; a 99-year lease complements the indefinite residency the SRRV provides (see our complete guide to retiring in Cebu on the SRRV for a full breakdown of the SRRV + property combination)

It is worth noting what RA 12252 does not change: foreigners still cannot purchase land freehold. The constitutional restriction remains in place. The law is an improvement within the existing framework, not a replacement of it.

Cebu-Specific Opportunities Under the New Philippines Property Law for Foreigners

Cebu stands to benefit disproportionately from RA 12252 for one straightforward reason: the island has a significant inventory of privately held beachfront and upland land that Filipino families have been reluctant to sell but willing to lease — particularly in Mactan, Moalboal, Malapascua, and the Cebu south coast.

Under the old 75-year maximum, many of those leases were structurally difficult to finance. A bank asked to fund a 20-year resort development loan needs the underlying lease to survive well past the loan maturity date. A 50-year lease signed today expires in 2075 — cutting it closer than many project finance committees are comfortable with. A 99-year lease signed today runs to 2124, which comfortably clears any commercial lending horizon.

That bankability shift is what will move real capital. Expect foreign resort developers, boutique hotel groups, and high-net-worth individuals to revisit Cebu land opportunities that were previously difficult to structure.

For individual expats, the implications are more personal: leasing a lot in a quiet barangay and building a retirement home now comes with the confidence that the arrangement will outlast you and potentially benefit your heirs through subleasing or assignment rights, subject to the lease terms.

If you are actively looking, you can also explore how foreigners buy a condo in Cebu — including freehold condo units, which foreigners can still own outright — while you structure a leasehold strategy for land.

Action Steps: What to Do Now

RA 12252 creates the legal framework for a much better deal under Philippines property law foreigners can now rely on. Using it correctly requires professional guidance. Here is where to start:

1. Consult a licensed Philippine property attorney before signing any lease agreement. RA 12252 sets the maximum term, but the specific lease contract covenants, renewal rights, assignment clauses, and improvement ownership is where your protection lives or dies. This is not optional due diligence.
2. Understand the freehold vs. leasehold distinction. If your priority is a property you (or your heirs) can sell outright, a condominium unit remains the cleanest structure for foreigners. If your priority is land control for development or lifestyle, a 99-year lease is now the most competitive option available.
3. Plan your capital transfer early. Funding a lease deposit or construction budget from abroad involves FX transfer costs that compound quickly on larger sums. Services like Wise or Revolut typically offer significantly better exchange rates and lower fees than traditional wire transfers for moving money into Philippine peso accounts — worth comparing before your first major transfer.
4. Get oriented before you commit capital. If you are still in the research phase, start with our free Cebu investment guide — it covers the property structures available to foreigners, the visa landscape, and what due diligence looks like on the ground in Cebu.

For authoritative legal reference, the full text of Republic Act 12252 is available through the Official Gazette of the Philippines.

Bottom Line

RA 12252 is not a headline that will dominate Western financial press. But for anyone serious about Philippines property law foreigners must understand — and specifically about building something real in Cebu — it is the most significant update to the legal landscape in thirty years. A 99-year lease is not ownership. But for most investors’ practical purposes, it is close enough to plan around.

The framework is better than it has ever been. The question now is whether you have the right team in place to use it. Start with our Cebu expat guide to get the full picture on property, visas, and living in Cebu.