AN ACT LIBERALIZING THE LEASE OF PRIVATE LANDS BY FOREIGN INVESTORS, ESTABLISHING THE STABILITY OF LONG-TERM LEASE CONTRACTS, AMENDING FOR THE PURPOSE REPUBLIC ACT NO. 7652, OTHERWISE KNOWN AS THE "INVESTORS' LEASE ACT"

[ REPUBLIC ACT NO. 12252, September 03, 2025 ]

AN ACT LIBERALIZING THE LEASE OF PRIVATE LANDS BY FOREIGN INVESTORS, ESTABLISHING THE STABILITY OF LONG-TERM LEASE CONTRACTS, AMENDING FOR THE PURPOSE REPUBLIC ACT NO. 7652, OTHERWISE KNOWN AS THE "INVESTORS' LEASE ACT"

Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:

Section 1. Section 2 of Republic Act No. 7652, otherwise known as the "Investors' Lease Act", is hereby amended to read as follows:

"Section 2. Declaration of Policy. - It is hereby declared the policy of the State to encourage foreign investments consistent with the constitutional mandate to conserve and develop our own patrimony.

Towards this end, the State hereby adopts a flexible and dynamic policy on the granting of long-term lease on private lands to foreign investors for the establishment of industrial estates, factories, assembly or processing plants, agro-industrial enterprises, land development for industrial or commercial use, tourism, agriculture, agro-forestry, ecological conservation and other similar priority productive endeavors.

It is the policy of the State to ensure the reliability of investors' lease contracts to provide a stable environment for foreign investments."

Section 2. Section 4 of Republic Act No. 7652 is hereby amended to read as follows:

"Section 4. Coverage. - Any foreign investor investing in the Philippines shall be allowed to lease private lands in accordance with the laws of the Republic of the Philippines subject to the following conditions:

Section 3. A new Section 4-A is hereby inserted after Section 4 of Republic Act No. 7652, to read as follows:

"Section 4-A. Operative Act of Registration. - 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. Section 5 of Republic Act No. 7652 is hereby amended to read as follows:

"Section 5. Limitations. -

Section 5. A new Section 5-A is hereby inserted after Section 5 of Republic Act No. 7652, to read as follows:

"Section 5-A. Sublease. - Unless there is an express publication in the lease contract, the lessee may subject the property with the consent of the lessor. The condition under Section 4 and 4 of this Act shall apply to the sublease contract."

Section 6. A new Section 5-B is hereby inserted after the new Section 5-A of Republic Act No. 7652, to read as follows:

"Section 5-B. Registration of Sublease Contracts. - Sublease contracts shall be registered with the Registry of Deeds and annotated on the Certificate of Title to the land."

Section 7. Section 6 of Republic Act No. 7652 is hereby amended to read as follows:

"Section 6. Termination of Lease Contract. - 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 (BOI), or the relevant IPA, 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. Section 7 of Republic Act No. 7652 is hereby amended to read as follows:

Section 9. Implementing Rules and Regulations. - Within ninety (90) days from the effectivity of this Act, the Department of Trade and Industry (DTI), through the BOI, and the Land Registration Authority (LRA), shall promulgate the necessary implementing rules and regulations for the effective implementation of this Act, in consultation with the FIRB and other concerned government agencies and stakeholders.

Section 10. Separability Clause. - If any part or provision of this Act is declared invalid or unconstitutional, the other parts or provisions hereof not otherwise affected shall remain valid and effective.

Section 11. Repealing Clause. All laws, decrees, orders, issuances, rules, and regulations or parts thereof that are inconsistent with this Act are hereby repealed or modified accordingly.

Section 12. Effectivity. - This Act shall take effect fifteen (15) days following its complete publication in the Official Gazette or in a newspaper of general circulation.

Approved,

This Act, which is a consolidation of Senate Bill No. 2898 and House Bill No. 10755, was passed by the Senate of the Philippines and the House of Representatives on June 9, 2025.

Approved: SEP 03 2025

(SGD.) FERDINAND ROMUALDEZ MARCOS JR.
President of the Philippines