Philippines: President Ferdinand Marcos, Jr. signs amendment to Investors' Lease Act

09 Sept 2025    3 minute read

In brief

President Marcos, Jr. signed Republic Act. No. 12252 ("RA 12252") on 3 September 2025. The law amends the Investors' Lease Act by, among others, extending the maximum allowable aggregate period of a lease contract for private land by a foreign investor to 99 years, subject to certain requirements and conditions.

The Department of Trade and Industry is required to issue the Implementing Rules and Regulations within 90 days from the effectivity of RA 12252.

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Recommended actions

Clients are encouraged to consider whether RA 12252 can benefit any existing and potential projects located on leased private land. If so, clients should consider whether to avail of the long-term leases under RA 12252.

Quisumbing Torres is committed to supporting clients, providing strategic guidance and tailored compliance solutions to meet the requirements for long-term leases under this new law.

In depth

  • Section 2 of RA 12252 amends Section 4 of the Investors' Lease Act, as follows:
    • It extends the prior 75-year maximum land lease to 99 years. Upon the recommendation of the Fiscal Incentives Review Board or other relevant government agencies, the president of the Philippines may impose a shorter lease period for investors engaged in vital services or industries considered as critical infrastructure, in the interest of national security or pursuant to government-identified priorities for national development.
    • It requires the foreign investor to: (i) have an approved and registered investment under the Foreign Investments Act (as amended), the Corporate Recovery and Tax Incentives for Enterprises Act (as amended), or under other applicable laws; or (ii) have complied with the investment requirements prescribed by the relevant Investment Promotion Agency.
    • The lease contract is now required to be registered with the Registry of Deeds (RD) of the province or city where the leased area is located and annotated on the certificate of title covering the leased area, and provides the conditions for such registration with the RD.
  • Section 3 of RA 12252 provides a new Section 4-A in the Investors' Lease Act, as follows:
    • "The registration of the long-term lease contract shall be the operative act that renders the lease binding against third persons. Registration shall be made in accordance with the provisions of Presidential Decree No. 1529, as amended.

A registered lease contract shall not be subject to collateral attack. It cannot be altered, modified, or cancelled, except in a direct proceeding in accordance with law."

  • Section 4 of RA 12252 amends Section 5 of the Investors' Lease Act, as follows:
    • It includes the terms "registered investment" in the provisions relating to the withdrawal of the investment or use of the leased area to reiterate that the investment must be registered under the relevant laws, as discussed in the previous sections.
  • Section 5 of RA 12252 provides a new Section 5-A in the Investors' Lease Act, as follows:
    • "Unless there is an express prohibition in the lease contract, the lessee may sublet the property with the consent of the lessor. The conditions under Sections 4 and 5 of this Act shall apply to the sublease contract."
  • Section 6 of RA 12252 provides a new Section 5-B in the Investors' Lease Act, as follows:
    • "Sublease contracts shall be registered with the Registry of Deeds and annotated on the Certificate of Title to the land."
  • Section 7 of RA 12252 amends Section 6 in the Investors' Lease Act, as follows:
    • "In case of failure to commence the investment project within three (3) years from the signing of the lease contract, the FIRB, Board of Investments, or the relevant Investment Promotion Agency, as applicable, shall order the lessee to explain the delay and if merited, require such lessee to commence the project within a reasonable period. Failure to comply with the order and to initiate the project within the period provided may, after due notice and hearing, cause the revocation of all entitlements granted under this Act."
  • Section 8 of RA 12252 amends Section 7 in the Investors' Lease Act, as follows:
    • It increased the fines from PHP 100,000 to PHP 1 million to PHP 1 million to PHP 10 million.

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Quisumbing Torres, Manila
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ina.dominguez@quisumbingtorres.com
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