A bill extending the period for foreign investors to lease private land in the Philippines to 99 years has been approved in the House of Representatives, aiming to encourage long-term investments and economic growth.
House Bill No. 10755 amends Republic Act No. 7652, also known as the Investors’ Lease Act, to increase the maximum allowable lease term for foreign investors, which was previously limited to 50 years, renewable for 25 more.
Under the proposed law, foreign investors would be able to lease land for up to 99 years, provided they meet specific conditions and requirements. It also includes provisions allowing foreign investors to sublease land.
“We hope this proposal will attract new foreign investments and encourage existing investors to expand their businesses, thereby creating more job and income opportunities for our people and sustaining our economic growth,” Speaker Martin Romualdez stated.
“We want to be competitive regionally and globally in terms of enticing foreign investments,” the House leader added.
HB 10755 mandates streamlining the process for registering lease contracts with local government units and requiring lease agreements to be approved by the Board of Investments, except for lands inside economic zones or freeport areas.
Moreover, foreign investors would need to have an “approved or registered investment” under the Corporate Recovery and Tax Incentives for Enterprises Act (Republic Act No. 11534) to qualify for long-term leases.
Violations of the bill’s provisions would be penalized with fines ranging from P1 million to P10 million.
Meanwhile, opposition against the measure has been raised, particularly by Gabriela Representative Arlene Brosas, who argued that the bill’s extended lease term would effectively circumvent constitutional restrictions on foreign land ownership.
“This bill would pave the way for unrestricted and monopolistic foreign control over our land for an extended period,” Brosas said.
Under the bill, private lands are defined as those “segregated from the public domain and distributed by any form of gratuitous or onerous grant by the State.”
Brosas expressed concern that such provisions could lead to foreign investors leasing agricultural land previously granted to Filipino farmers.
However, despite concerns over its potential impact on local farmers, the proponents and supporters of the bill argue that it will help modernize the law and boost the country’s competitiveness in attracting foreign capital.
As part of the administration’s priority legislation, HB 10755 is expected to be passed into law, as a similar measure was previously approved on third and final reading in the Senate.
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