PRESIDENT Ferdinand Marcos Jr. has signed into law Republic Act No. 12252, or the Investor’s Lease Act, which would now allow foreign investors to lease private land in the Philippines for up to 99 years.
The law, uploaded on the Official Gazette on Thursday, aims to provide 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, assembly or processing plants, agro-industrial enterprises, land development for commercial use, tourism, agriculture, agro-forestry, ecological conservation, and other similar priority productive endeavors.”
It covers investment in vital services or critical infrastructure and “in the interest of national security, or in pursuit of government priorities for national development.”
For tourism projects, ventures that qualify are only those with a minimum investment of $5 million, of which 70 percent is infused within three years.
The law allows foreign investors with duly registered projects in the country to enter into lease agreements for private lands for a maximum of 99 years.
The lease period may be shortened by the president on the recommendation of the Fiscal Incentives Review Board (FIRB) or any relevant government agency.
Leased lands must be solely used for the purpose of the approved investment project. The land lease agreements will be terminated once the investment is withdrawn, or if the land is used for purposes other than what was approved.
The renewal of leases are subject to mutual agreement, but will require proof of tangible social and economic contributions to the country before it is permitted.
Prior to the passage of the new law, foreigners are only allowed to lease private lands for 50 years, and renew it once for another 25 years.
