Land Lease Reform and the Future of Foreign Property Investment in the Philippines

The Philippines may be on the verge of a major shift in its property investment landscape.

With the passage of the 99-year land lease reform under Republic Act No. 12252, the country has taken a significant step toward making itself more attractive to foreign investors — without changing constitutional limits on land ownership.

For decades, foreign nationals have been restricted from owning land in the Philippines. While they can own condominium units (subject to the 40% foreign ownership cap per project), land ownership has remained exclusively reserved for Filipino citizens and corporations with majority Filipino ownership.

The new lease reform doesn’t change that rule — but it changes the game in a different way.

What Changed Under the 99-Year Lease Reform?

Previously, foreign investors could lease private land for up to 50 years, renewable for another 25 years.

Under the new law, qualified foreign investors can now lease land for up to 99 years — a major extension that significantly improves long-term project viability.

This applies particularly to:

• Industrial estates

• Tourism developments

• Manufacturing facilities

• Logistics hubs

• Large-scale commercial projects

In practical terms, this gives foreign companies near generational control of land use — without transferring ownership.

Why This Matters for Real Estate

Long-term leases are critical for capital-intensive investments.

A 50-year lease often limits:

• Financing options

• Return-on-investment projections

• Institutional participation

• Large-scale infrastructure development

A 99-year lease dramatically improves bankability. Investors can amortize development costs over a longer period, making major projects more financially feasible.

This reform aligns the Philippines more closely with regional neighbors that offer long-term leasehold arrangements, such as Thailand and Vietnam.

Industrial and Logistics: The Biggest Winners?

The immediate impact is likely to be strongest in the industrial sector.

The Philippines has been actively positioning itself as a manufacturing and logistics alternative in Southeast Asia amid global supply chain diversification.

Longer land leases make it easier for:

• Multinational manufacturers

• Data center operators

• Warehousing firms

• Renewable energy developers

to commit long-term capital.

Industrial real estate has already been one of the country’s most resilient sectors. The lease reform could accelerate new industrial park expansions, particularly outside Metro Manila in emerging growth corridors.

Tourism and Integrated Developments

Tourism-linked property development could also benefit significantly.

Foreign hotel chains and integrated resort developers often require long investment horizons. A 99-year lease provides greater certainty when building large-scale resort complexes, theme parks, and mixed-use tourism estates.

Areas such as:

• Subic

• Clark

• Cebu

• Palawan

• Boracay

could see renewed foreign interest if lease structures become more attractive.

What About Residential Real Estate?

While the reform primarily targets large-scale commercial and industrial projects, there may be indirect effects on the residential market.

Foreign developers participating in township or mixed-use projects may now have more flexibility to structure long-term land control arrangements.

However, individual foreign buyers are still limited to condominium ownership under existing constitutional restrictions.

So while this reform won’t suddenly open landed residential property to foreign ownership, it could stimulate broader development that supports residential growth.

Potential Risks and Considerations

Like any major policy shift, implementation matters.

Key questions include:

• How will regulatory approvals be streamlined?

• Which industries qualify for 99-year leases?

• How will local governments respond?

• Will land values in industrial zones rise quickly?

There is also the risk that speculative pricing could inflate land costs in areas expected to attract foreign capital.

If supply-side bottlenecks remain — such as permitting delays or infrastructure gaps — the full benefits of the reform may not materialize.

The Bigger Picture: A Strategic Signal

Beyond its technical details, the lease reform sends an important signal:

The Philippines is open to long-term foreign investment.

In a competitive ASEAN landscape, capital tends to flow where certainty and stability exist. A 99-year lease provides both.

Combined with ongoing infrastructure expansion, improving digital connectivity, and demographic advantages, the country may be positioning itself for a stronger industrial and commercial property cycle from 2026 onward.

Final Thoughts

The 99-year land lease reform does not alter constitutional ownership restrictions — but it meaningfully expands the tools available to foreign investors.

For developers, institutional investors, and multinational corporations, the reform enhances project feasibility and long-term planning.

For the Philippine real estate market, this could mean:

• Greater industrial expansion

• Stronger tourism-linked developments

• More institutional-grade commercial projects

• Increased foreign capital inflows

If implemented effectively, the reform could mark the beginning of a new chapter in foreign property investment in the Philippines.

The next few years will determine whether this legislative change translates into cranes on skylines — and sustained growth across key real estate sectors.

Source: Ziggurat Real Estate

The foreign owners ‘hiding’ £190bn of UK property

The ultimate owners of almost 45,000 properties worth an estimated £190 billion are hidden from public view via offshore companies, in what experts say is likely to be a mass breach of the UK’s anti-money-laundering rules put in place after the Russian invasion of Ukraine.

A new investigation reveals how these strict government rules—designed to ensure homes are not being used to launder ill-gotten money or hide cash in the case of international sanctions—are being widely ignored and not policed.

After the Economic Crime Act passed into law in March 2022, foreign owners of UK property were given until January 31, 2023, to register on the Register of Overseas Entities, managed by Companies House, and to declare the identity of the “beneficial owner”. This is defined as anyone who owns or controls an overseas company that owns property, typically by holding more than 25 per cent of the shares or voting rights.

Failure to register can result in fines of hundreds of thousands of pounds, plus criminal prosecution. The requirement applies retrospectively to overseas entities in England and Wales that bought property or land on or after January 1, 1999; in Scotland after December 8, 2014; and in Northern Ireland from September 5, 2022.

Tax Policy Associates, a legal policy think tank run by Dan Neidle, a former tax lawyer, examined a Land Registry list of 97,978 properties registered to offshore companies in England and Wales, then cross-checked how many had registered their ultimate owners with Companies House, as is legally required.

In the case of 43,401 properties (about 44 per cent), the think tank said it was impossible to find out who truly owned them. In these cases, it found that the property owners had either:

• Not registered at all (8.4 per cent, or 8,198 of the 97,978 properties);

• Registered the property but claimed to have no beneficial owner (9.5 per cent, or 9,265);

• Registered but entered another offshore company as the owner (5 per cent, or 4,942);

• Listed a trust as the owner (21.4 per cent, or 20,996).

Note: Trusts can legitimately hold property, but the people who ultimately control or benefit from them should be registered as beneficial owners—something Neidle says often does not happen, with lawyers or accountants listed instead.

The proportion of properties added to the register but claiming to have no beneficial owner has been growing since 2022. By December 2022, this group accounted for 9.1 per cent, rising to 12.4 per cent the following year and 19.2 per cent last year.

Neidle did not include Scotland or Northern Ireland in the research because of the different ways data is stored there.

Neidle says some overseas owners may not have registered simply by mistake. “Some of this will be accidental, but we think a significant proportion is likely to be intentional,” he says.

Some organisations may claim—correctly, but in rare cases—that there is no single owner with more than 25 per cent control, so none needs to be registered. This may apply to large developments run by pension funds, such as purpose-built rental developments.

As well as human error or ignorance of the rules, Neidle believes one motivation for failing to register could be to avoid paying capital gains tax when selling—non-UK residents have been required to pay it since April 2015.

By hiding their identities, it becomes harder for HMRC to track down real owners for unpaid tax, Neidle says. “It’s important we get to grips with this, from a tax-evasion perspective as well as the more obvious sanctions-busting and money-laundering ones,” he adds.

Campaigners say poor enforcement by Companies House, owing to limited resources, is encouraging a slapdash approach to the register because people believe they will not be caught. Those failing to correctly register properties face civil financial penalties of up to £50,000 per home, plus additional fines of up to £2,500 per day that the property remains unregistered, on top of possible criminal prosecution that could lead to further fines and even imprisonment.

However, last year it emerged that only 3 per cent of penalties (14 out of 444) issued to non-compliant offshore companies were collected, with £700,000 recovered from fines totalling £22.99 million. “It looks like a classic example of a policy being introduced without the enforcement resources to support it,” Neidle says.

How—and where—the money is being concealed

By far the largest number of overseas structures holding English and Welsh property recorded on the Register of Overseas Entities are based in the low-tax Crown dependency of Jersey.

Some 3,234 properties that claimed there was no beneficial owner, for example, are registered with Jersey-based companies. In addition, 6,715 of all trusts listed are financial services companies in Jersey. The island also has 1,883 properties where another offshore company is named as the owner—the highest figure in all three categories.

The country with the largest proportion of unregistered owners is Saudi Arabia, with 234 out of 252 properties (92.9 per cent) not listed. In one case, 125 properties owned by a single Saudi company are not registered with Companies House.

Notably, a number of entities in Liechtenstein, known for its strict banking privacy laws and favourable tax rates, have failed to declare a beneficial owner—107 of 468 properties (22.9 per cent).

No beneficial owner has been declared in 49.2 per cent of UK properties registered to French companies, while in the case of Denmark, the figure is 63.5 per cent.

The top five residential properties owned by trusts or overseas companies

The vast majority of properties with no overseas beneficial owners registered are in London, with an estimated:

• £38 billion worth of properties listing only trustees;

• £22 billion with no owner listed;

• £37 billion with owners listed as overseas companies;

• £10 billion not registered at all.

In total, foreign owners in the capital account for £107 billion of the £188 billion of property in England and Wales where ownership has not been properly declared.

• The most expensive home on the register is in Holland Park, west London, purchased for £53 million in 2016 by a company in the British Virgin Islands. The beneficiaries are listed as two Isle of Man trustees.

• The second-equal most valuable property is also in Holland Park and was bought for £21 million by a Bahamian company in 2016. The beneficiary is listed as a Cayman Islands trustee holding the home for an unidentified party.

• A flat on Horse Guards Avenue, near St James’s Park, was bought for £21 million by a Cypriot company in 2023. The beneficiaries are two individuals working for Cypriot firms, acting as trustees for an unknown party.

• An apartment on Grosvenor Square, near Hyde Park, was bought for £20 million by an Isle of Man company in 2021. The beneficiary is an Isle of Man trustee company.

• Finally, an apartment at Park Crescent, on the edge of Regent’s Park, was bought for £18 million in 2021 by an American company.

There is no suggestion of wrongdoing in any of the above structures.

What should be done now

Margot Mollat, a senior researcher at the anti-corruption body Transparency International UK, says enforcement must be stepped up.

“It must be remembered that the original urgency for this disclosure, after the invasion of Ukraine, was to help us understand who owns property in this country. Until we fix these transparency loopholes, we don’t have a clear picture,” she says.

Transparency International UK’s own report, Through the Keyhole, published in February 2023, found that almost 35,000 properties had missed the registration deadline. It also highlighted the proliferation of companies registered in the British Virgin Islands, Jersey, and the Middle East.

“While there has been good progress, there is still some way to go before we truly know who owns property here,” Mollat says. “As much as Companies House is trying to enforce this to the best of its ability, it is frequently chasing companies in remote jurisdictions.

“Some of these companies may have been redomiciled, changed their names, or reincorporated. So even if the property hasn’t been sold, the entity named in the register may not match the entity named on the Land Registry. That creates confusion and raises questions about the system. Enforcement is quite tricky.”

As part of an anti-corruption strategy published in December, the government has promised to review how the register operates to “better identify and verify beneficial ownership of assets, close loopholes, and ensure systems are robust against misuse”.

In a possible signal of tighter trust-related rules, it added that arguments for transparency “are finely balanced with the right to privacy, so the government must consider this matter carefully”.

Baroness Margaret Hodge, the government’s new anti-corruption champion, will lead the review, with a report expected this autumn.

The government says: “We will look at this report carefully as part of our commitment to fighting illegal financial activity through the Register of Overseas Entities. Companies House can issue warning notices and impose financial penalties on overseas entities that fail to register or comply with ongoing requirements, and these entities are prevented from selling, leasing, or raising finance against their land until they comply.”

Source: The Times

Naturalization for a foreigner married to a Filipina

The process that foreigners undergo to become Filipino citizens is called naturalization.

Naturalization is a legal process that grants foreigners full recognition as citizens of the Philippines. It gives them rights and privileges such as voting, obtaining a Philippine passport and accessing public services. As citizens, they also gain the right to legally work or run a business in the country and to receive protection from the government.

Along with these rights come responsibilities, such as paying taxes and obeying the laws of the country. The naturalization process in the Philippines ensures that those who wish to become citizens truly understand and accept the responsibilities and rights of being a Filipino.

Marriage between a foreigner and a Filipina does not automatically grant the foreigner Filipino citizenship. Section 2 of Commonwealth Act (CA) 473, or the Revised Naturalization Law, outlines the qualifications required for naturalization: "Sec. 2. Qualifications. – Subject to Section four of this Act, any person having the following qualifications may become a citizen of the Philippines by naturalization:

"First. He must be not less than twenty-one years of age on the day of the hearing of the petition;

"Second. He must have resided in the Philippines for a continuous period of not less than ten years;

"Third. He must be of good moral character and believes in the principles underlying the Philippine Constitution, and must have conducted himself in a proper and irreproachable manner during the entire period of his residence in the Philippines in his relation with the constituted government as well as with the community in which he is living;

"Fourth. He must own real estate in the Philippines worth not less than five thousand pesos, Philippine currency, or must have some known lucrative trade, profession, or lawful occupation;

"Fifth. He must be able to speak and write English or Spanish and any one of the principal Philippine languages; and

"Sixth. He must have enrolled his minor children of school age, in any of the public schools or private schools recognized by the Office of Private Education of the Philippines, where the Philippine history, government and civics are taught or prescribed as part of the school curriculum, during the entire period of the residence in the Philippines required of him prior to the hearing of his petition for naturalization as Philippine citizen."

One of the basic qualifications is continuous residence in the country for at least ten (10) years. However, according to Section 3(3) of CA 473, the required 10 years of continuous residence in the Philippines may be reduced to five (5) years if the applicant is married to a Filipina, viz.: "Sec. 3. Special qualifications.

The ten years of continuous residence required under the second condition of the last preceding Sec. shall be understood as reduced to five years for any petitioner having any of the following qualifications: x x x "3. Being married to a Filipino woman; x x x" In response to your question, your marriage did not automatically make your French husband a Filipino citizen. He still has to go through the process of naturalization.

He will need to submit an application, and it will be carefully reviewed by the court to determine whether he will be granted a Certificate of Naturalization. The effect of your marriage is that the required 10 years of continuous residence in the Philippines will be reduced. It may become only five (5) years instead of 10.

Aside from this, he must still meet the qualifications stated by law, and he must not fall under any of the disqualifications.

The disqualifications are listed in Section 4 of C.A. 473: "Sec. 4. Who are disqualified. – The following cannot be naturalized as Philippine citizens:

"Persons opposed to organized government or affiliated with any association or group of persons who uphold and teach doctrines opposing all organized governments;

"Persons defending or teaching the necessity or propriety of violence, personal assault, or assassination for the success and predominance of their ideas;

"Polygamists or believers in the practice of polygamy;

"Persons convicted of crimes involving moral turpitude;

"Persons suffering from mental alienation or incurable contagious diseases;

"Persons who, during the period of their residence in the Philippines, have not mingled socially with the Filipinos, or who have not evinced a sincere desire to learn and embrace the customs, traditions, and ideals of the Filipinos;

"Citizens or subjects of nations with whom the United States and the Philippines are at war, during the period of such war;

"Citizens or subjects of a foreign country other than the United States whose laws do not grant Filipinos the right to become naturalized citizens or subjects thereof."

Source: Manila Times