Foreign Investors Long Term Lease Act Signed into Law

PSA notes that as of September 5, 2025, the Foreign Investors Long Term Lease Act has been signed into law by President Ferdinand Marcos as Republic Act 12252.

The measure liberalizes the lease of foreign lands from 75 years at a maximum to 99 years, aiming to extend the “stability of long-term lease contracts for industrial estates, factories, agro-industrial ventures, tourism, agriculture, agroforestry and ecological conservation.” 

Apart from extending the leasable period of lands to foreign investors, RA 12252 has the following key provisions:

• Requiring 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 (coursed through the Fiscal Incentives Review Board (FIRB), Board of Investments (BOI), or the relevant Investment Promotion Agency (IPA)); and
• Mandating the Department of Trade and Industry (DTI) through the BOI, and the Land Registration Authority to craft the implementing rules and regulations (IRR). 

The measure is expected to lure in more long-term, big-scale foreign investments in partnership with local counterparts. Its passage was expected, as it was previously identified as a priority bill during the Legislative Executive Development Advisory Council (LEDAC) meetings of the 19th Congress.