PRESIDENT Ferdinand "Bongbong" Marcos Jr. has signed into law a measure extending the lease period of private lands to foreign investors from 50 years to up to 99 years, a move seen to boost investment confidence in the country.
Republic Act (RA) 12252, signed on August 29, 2025, amends and liberalizes provisions of RA 7652, or the Investors’ Lease Act, which previously allowed foreign investors to lease land for 50 years, renewable once for 25 years.
The new law provides that leases may now last for a maximum of 99 years and affirms the government’s policy to guarantee reliable contracts to create a stable business environment.
Covered under the law are long-term leases for industrial estates, factories, agro-industrial ventures, tourism, agriculture, agroforestry, and ecological conservation projects.
Foreign investors are required to register their projects under RA 7042, or the Foreign Investments Act of 1991, and RA 11534, or the Corporate Recovery and Tax Incentives for Enterprises (Create) Act, as amended by the Create More Act.
Lease contracts must also be recorded with the local Registry of Deeds and reflected on the property title.
RA 12252 also tightened provisions on project implementation. Investors are given three years to start their projects, subject to monitoring by the Fiscal Incentives Review Board, Board of Investments, or other relevant investment agencies. Those who fail to comply may be required to explain the delay and risk termination of their contracts.
Penalties for violations were also increased, with fines raised from the previous P100,000–P1 million to P1 million–P10 million, along with possible imprisonment of six months to six years upon court order. (JGS/SunStar Philippines)