President Ferdinand “Bongbong” Marcos Jr. has signed into law a measure extending land lease terms for foreign investors in a bid to strengthen the country’s investment climate and promote long-term economic growth.
Republic Act 12252, signed on August 29, amends the Investors’ Lease Act of 1994 (Republic Act 7652) by extending the allowable lease period for private lands from a maximum of 50 years, renewable for 25 years, to as long as 99 years.
The law liberalizes rules on leasing private lands for industrial estates, factories, agro-industrial ventures, tourism projects, agriculture, agroforestry, and ecological conservation. It declares the state’s policy to guarantee reliable lease contracts and create a stable environment for foreign investors.
Foreign investors are required to register projects with the Foreign Investments Act of 1991 (Republic Act 7042), as amended, and the Corporate Recovery and Tax Incentives for Enterprises Act (Republic Act 11534), as amended by the CREATE MORE Act.
Lease agreements must also be registered with the local Registry of Deeds and annotated on the property title.
The new law likewise introduces stricter compliance rules. Investors must begin projects within three years of signing a lease or provide an explanation to the Fiscal Incentives Review Board, the Board of Investments, or relevant investment promotion agencies.
It increases penalties for violations, raising fines from the previous P100,000-P1 million to P1 million–P10 million, with possible imprisonment of six months to six years at the court’s discretion.
