The Philippine government has taken a decisive step to attract more foreign capital by officially implementing a law that significantly extends the lease period for private lands available to international investors.
A Milestone for Investment Modernization
The Department of Trade and Industry (DTI) and the Land Registration Authority (LRA) formally signed the Implementing Rules and Regulations (IRR) for Republic Act No. 12252, the Investors' Lease Act. The signing ceremony was held on December 19 at New Clark City, hosted by the Bases Conversion Development Authority (BCDA). DTI Secretary and Board of Investments (BOI) Chairman Cristina A. Roque and LRA Administrator Gerardo Panga Sirios executed the pivotal document.
This regulatory action, arriving three decades after the original law's passage, operationalizes a major change: it allows foreign investors to lease private lands for an aggregate period of 99 years, a substantial increase from the previous limit of 75 years. The government views this as a cornerstone policy to draw long-term capital, advanced technology, and global expertise into the country.
Key Features and Administrative Reforms
Beyond the lease extension, the newly signed IRR introduces critical safeguards and process improvements. A central provision mandates the annotation of lease contracts directly on the land title. This measure makes the lease binding in the public record, offering a stronger layer of legal protection for both the landowner and the foreign lessee.
The rules also aim to streamline the investor experience by outlining a clear, step-by-step compliance process. It sets specific timelines for government agencies to act on applications, a move designed to cut through bureaucratic red tape and provide more predictability for businesses.
Building a Competitive and Trustworthy Environment
During the ceremony, DTI Undersecretary and BOI Managing Head Dr. Ceferino S. Rodolfo, representing Secretary Roque, highlighted that the IRR responsibly unlocks new investment opportunities. BCDA President and CEO Engr. Joshua M. Bingcang added that the measure provides the stability and certainty needed for the Philippines to compete effectively with other economies in the region.
BOI Governor Atty. Marjorie O. Ramos-Samaniego thanked the LRA, the Fiscal Incentives Review Board (FIRB), and various Investment Promotion Agencies (IPAs) for collaborating to harmonize policies. Atty. Lorna Dee, the Pampanga Register of Deeds representing the LRA, stated that registering these leases underscores a national commitment to a business climate founded on trust and clarity.
Secretary Roque expressed strong support for the finalized IRR, stating it enhances investor confidence through a stable and transparent regulatory framework. "Our goal is to establish the Philippines as a top global investment destination. This signing provides the long-term security our investors need and proves that we are serious about creating a more competitive and business-friendly nation," she affirmed.
This new regulatory framework was published in a newspaper on December 20 and is scheduled to take full effect on January 4, 2026.
