-
The new law extending the maximum lease period for private lands to foreign investors to 99 years from the previous 50 years makes the Philippines more competitive with its southeast Asian neighbors
-
Republic Act 12252 creates a more stable and clear land use policy that boosts investor sentiment, the Philippine Economic Zone Authority said
-
RA 12252, which amends the Investor’s Lease Act, was signed by President Ferdinand Marcos Jr. on August 29 and officially announced in a press statement on September 6
-
RA 12252 provides a flexible and dynamic policy on the granting of long-term leases on private lands to foreign investors for the establishment of industrial estates, factories, agro-industrial enterprises, tourism, agriculture, agro-forestry, and ecological conservation
The new law extending the maximum lease period for private lands to foreign investors to 99 years from the previous 50 years makes the Philippines more competitive with its southeast Asian neighbors and creates a more stable and clear land use policy that boosts investor sentiment, the Philippine Economic Zone Authority (PEZA) said in a statement on September 7.
Republic Act (RA) 12252, titled the Act Liberalizing the Lease of Private Lands by Foreign Investors, which amends of RA 7652 or the Investor’s Lease Act, was signed by President Ferdinand Marcos Jr. on August 29 and was officially announced in a press release on September 6.
“This landmark policy provides foreign investors—particularly those in our economic zones hosting multinational companies in manufacturing, agro-industrial processing, tourism, renewable energy, logistics, and IT-BPM—the long-term security and flexibility they need for capital-intensive projects with long gestation periods,” PEZA said.
RA 12252 provides a flexible and dynamic policy on the granting of long-term leases on private lands to foreign investors for the establishment of industrial estates, factories, agro-industrial enterprises, tourism, agriculture, agro-forestry, and ecological conservation.
“Instead of purchasing land upfront under the 60%-40% Filipino-foreign ownership rule, investors can now confidently establish brick-and-mortar facilities under a predictable long-term lease arrangement,” PEZA said. “This will help lower entry barriers, reduce investment risk, and make the Philippines a more attractive hub for global business.”
Under the law, foreign investors are required to register their projects under RA 7042, or the Foreign Investments Act of 1991, as amended; and RA 11534, or the Corporate Recovery and Tax Incentives for Enterprises Act (CREATE), as amended by the CREATE MORE Act.
The law also requires that leases be registered with the local Registry of Deeds and recorded on the property’s title.
The newly signed RA 12252 also amended Section 6 of the Investors’ Lease Act on the termination of lease contract.
The law allows the Fiscal Incentives Review Board, Board of Investments, or the relevant Investment Promotion Agency such as PEZA or other investment agencies to require investors to explain project delays and to start their projects within a reasonable time if they fail to do so within three years of signing the lease.
The law also increased penalties for violations, raising fines to P1–P10 million from P100,000–P1 million, along with possible imprisonment of six months to six years at the court’s discretion.
PEZA said it aims to “leverage this reform to further attract and retain long-haul foreign and local investments that generate jobs, exports, and sustainable economic growth.”
READ: PEZA approves 71.5% more investments in Jan-Aug 2025
Other countries within the Association of Southeast Asian Nations that have a similar land use policy include Singapore, Malaysia, Thailand, and Cambodia.
