Eligibility and registration under Philippine law
Land leases for foreign investors can provide long-term access to Philippine private land for a factory, processing facility, tourism project, or other qualified investment. The lease supports the project while ownership stays with the landowner.
Republic Act No. 12252 amended the Investors’ Lease Act to establish a 99-year lease ceiling for qualified investments, counting any renewals toward that limit. Eligibility depends on the investment, land use, and registration requirements. Foreign parties outside its investment coverage remain subject to other applicable lease laws.[1]
Plan land leases for foreign investors around the proposed investment and site. Confirm that the proposed lessee and activity qualify, check that the land can support the project, and agree how to complete lease registration. These decisions affect the term the parties can agree on, when construction can begin, and whether a later transfer or renewal is feasible.
The statutory conditions and the limits on duration, use, and renewal are set out in Republic Act No. 12252.
Which land leases for foreign investors qualify
The investor must have an approved and registered investment under the Foreign Investments Act, CREATE as amended by CREATE MORE, or another applicable law, or meet the investment requirements prescribed by the appropriate investment promotion agency. The implementing rules identify the documents that establish eligibility.[2]
The type of enterprise helps determine which documents can establish eligibility for land leases for foreign investors. Under the implementing rules, a domestic market enterprise under the Foreign Investments Act may present the applicable certificate of incorporation, sole proprietorship registration, authority, or license. A registered business enterprise under CREATE, as amended by CREATE MORE, can present its investment registration certificate.
The rules define investing in the Philippines by reference to an equity investment through actual remittance of foreign exchange or transfer of assets, with SEC or DTI registration as applicable. When preparing land leases for foreign investors, match the investment records to the named lessee and the activity proposed for the site. Resolve any difference between the investing and operating entities before signing.
The land must be used solely for the approved investment, and its area must be reasonably required for that purpose. Agrarian reform requirements and the Local Government Code continue to apply.[3]
For a tourism project, the investment must be at least USD 5 million. The investor must infuse 70 percent of that amount into the project within three years from signing the lease. This minimum applies only to land leases for foreign investors in tourism projects covered by the Act.[4]
The implementing rules took effect on 4 January 2026. They require screening by the appropriate government agency before registration. Identify the agency with jurisdiction over the investment before preparing the application.[5]
The project location and investment registration determine who screens land leases for foreign investors. The agency assignments below follow Rule III of the implementing rules.
| Project location or investment | Screening authority |
| Outside an economic zone or freeport | Board of Investments (BOI) |
| Inside an economic zone or freeport | Investment promotion agency (IPA) administering the zone |
| Within a tourism enterprise zone | Tourism Infrastructure and Enterprise Zone Authority (TIEZA) |
| Investment registered under CREATE as amended by CREATE MORE, with capital above ₱15 billion | Fiscal Incentives Review Board (FIRB), on prior recommendation of the concerned IPA |
For a lease under the FIRB route, the concerned IPA sends the qualification notice to the Registry of Deeds. If the proposed site or project may fall into more than one category, confirm early which authority handles the filing for land leases for foreign investors.
Verify the property and the lessor
Examine a current certified copy of the title. Confirm the registered owner, the property’s technical description, and any mortgage, adverse claim, existing lease, restriction, or other annotation.
Before signing land leases for foreign investors, check the title against the site’s actual condition. Access, occupants, boundaries, utilities, zoning, environmental approvals, and agricultural land issues can affect whether the project is feasible.
Where the lessor is a corporation, verify its authority to lease and the approvals required for the transaction. Where there are several owners or marital or estate issues, establish whose consent and participation are needed before signing.
The area covered by land leases for foreign investors should reflect the footprint of the approved project. A factory may need access for heavy vehicles and space for utility lines, drainage, and fire access. If those facilities cross land outside the premises, confirm the rights needed to use them for the full project term and record who will maintain them.
Review any mortgage and related covenants for restrictions on leasing or construction. Address lender consent where required and consider how enforcement could affect possession. If a survey or consent is outstanding, agree who will obtain it and how the parties will handle deposits or early works while it is pending.
When land leases for foreign investors involve untitled sites, verify the lessor’s claim, the boundaries, and the basis for treating the site as private land. Review the tax declaration together with the supporting land records and survey. This diligence helps the parties assess whether the proposed lessor can deliver the possession promised in the contract.
Land leases for foreign investors can assign responsibility for securing project permits and set out what happens if a material approval is delayed or refused. Review the dates for permits, handover, and construction alongside the commencement obligations so that a pending approval can be addressed before a deadline passes.
Agency screening and lease registration
For titled land, the lease must be registered with the Registry of Deeds and annotated on the title.
Statutory conditions include proof of the qualified investment, definite commencement and duration terms, a clear technical description, preparatory acts for the project, and termination provisions for changed use or failure to commence within a reasonable period.
The implementing rules also require a notarized lease with mandatory provisions recognizing the agency’s authority to terminate or cancel the lease and the lessee’s commitment to social and economic contributions on renewal. For a lease over part of a property, prepare the required approved survey description.[6]
The filing set for land leases for foreign investors includes the original notarized lease and proof of the approved investment. For titled land, the registration requirements include the original owner’s duplicate title. Where the lease covers part of a titled parcel, base the technical description on the approved survey plan and use that description consistently in the contract and submission.
Document the preparatory acts the lessee has already undertaken. Depending on the project, the file might include site studies, surveys, or permit applications. Check with the screening agency on the evidence it expects for the proposed activity and retain the documents showing when the work was done.
Submit the screening application and supporting documents for land leases for foreign investors to the appropriate agency. After it sends the qualification notice to the Registry of Deeds, submit the required registration documents and pay the applicable fees. Untitled private land follows a separate recording and tax declaration annotation procedure.[7]
The agency has 15 days from submission to notify the investor of deficiencies or send the qualification notice. A deficiency notice gives the investor a reasonable period to comply. Allow time in the transaction schedule for any additional records, signatures, or survey work the agency requests.
For titled property, the Register of Deeds must annotate land leases for foreign investors within seven working days of complete submission of the registration requirements and payment of fees. Obtain the certified copy of the annotated title for the agency report and retain the entry number in the transaction file.
For untitled private land, the Registry of Deeds records the lease in the Primary Entry Book for Unregistered Lands. The investor or lessor then submits the recorded lease to the assessor for annotation on the tax declaration. Use the approved survey description required for that route.
Registration makes land leases for foreign investors under the Act binding against third persons. A direct proceeding in accordance with law is required to alter, modify, or cancel a registered lease. Completing the title and contract review before filing helps the parties address problems before they commit to the site.[8]
When financing land leases for foreign investors, allow time for agency screening and lease registration. Specify who will secure the owner’s duplicate title, cure deficiencies, and deliver the annotated or recorded instrument. Agree when possession, rent, and major construction spending will begin, with clear dates for the lease itself and a plan for any approvals still pending.
The 99-year lease ceiling and project risks
The 99-year ceiling includes renewals. A lessee’s option to renew on the original terms is construed as requiring mutual agreement, and renewal requires proof of social and economic contributions to the country. The President may impose a shorter period for specified vital services or critical infrastructure on the grounds stated in the Act.[9]
Calculate the aggregate term of land leases for foreign investors at the outset, including each proposed renewal. A 60-year initial term and two 20-year renewals would add up to 100 years. Align the contractual options with the applicable ceiling and plan when the parties will revisit rent and other terms before the initial period expires.
Address rent escalation, taxes, construction, ownership of improvements, maintenance, insurance, casualty, financing, and the property’s condition on return. Long project timelines make clear allocation of these obligations particularly useful.
Land leases for foreign investors should specify who will build and own the improvements during the lease term. Agree which items the investor may remove, what the landowner will retain, and whether the investor must restore the property. Address early termination separately if the parties intend different treatment for unfinished construction or equipment still on site.
The leasehold right may be sold, transferred, assigned, or used as loan security. If the buyer, assignee, or creditor is foreign, the Act’s conditions and limitations on use continue to apply. Financing arrangements should distinguish the leasehold from ownership of the land.[10]
Subleasing under land leases for foreign investors requires the lessor’s consent and must comply with any express prohibition in the lease. Register the sublease and have it annotated or recorded as applicable. A foreign investor sublessee follows the screening procedure. For a Philippine national sublessee, the parties must notify the appropriate agency.[11]
Coordinate lender enforcement rights with the lease and investment approvals. Plan for a project sale, financing failure, or proposed change in the approved activity.
When land leases for foreign investors support project financing, review the assignment, sublease, and default clauses together. A lender may request notice of default and a period to cure it, or a process for transferring the leasehold to a replacement operator. Align those arrangements with the lessor’s consent rights and the applicable investment conditions.
Continuing obligations under land leases for foreign investors
Withdrawal of the approved investment or unauthorized use warrants termination under the Act. The implementing rules also provide for agency action after due process and cancellation of the title annotation. Withdrawal includes three consecutive years of nonoperation or outright abandonment.[12]
The implementing rules also treat three consecutive months of both unpaid rent and nonoperation during the same period as abandonment. Keep payment and operating records together so that the parties can identify and address a prolonged interruption before it puts the lease at risk.
If the project has not commenced within three years from signing, the agency must require an explanation and, where warranted, direct commencement within a reasonable period. Failure to comply can lead to revocation after notice and hearing. The lease must still include its required commencement and termination provisions.[13]
After title annotation for land leases for foreign investors, the lessee must report to the appropriate agency within five days. Submit the investment proof, a copy of the lease containing the mandatory provisions, and a certified true copy of the annotated title. For untitled land, the reporting documents include the duly recorded lease. Confirm the filing trigger for recorded leases with the agency.
Renewals or changes that affect the mandatory lease provisions go through the screening and registration procedure. Notify the agency of other modifications.[14]
Land leases for foreign investors can outlast the original project team. Keep the lease, agency correspondence, registration evidence, and amendments in a file available to the people responsible for operating the site. Record who handles agency notices and review that responsibility whenever the project changes hands.
During the term of land leases for foreign investors, collect evidence of the project’s social and economic contributions. Records of employment, training, or other commitments tied to the approved project can help substantiate a later renewal request. Check what evidence the agency requires and allow time to secure the lessor’s agreement before the term expires.
How transitional rules apply to land leases for foreign investors
Leases approved under the earlier law remain valid for their approved terms. A renewal must meet the new conditions and count the existing term toward the 99-year ceiling. Covered leases and renewals signed from 1 October 2025 through the rules’ effectivity on 4 January 2026 have one year from effectivity to comply.[15]
Check older land leases for foreign investors against those dates using the signed agreement, approval, annotation or recording, and any renewal documents. If the transaction falls within the transitional period, identify which requirements are outstanding and schedule the agency and Registry of Deeds filings within the compliance window.
How a partial site lease works in practice
Consider a foreign manufacturer leasing the rear portion of a titled industrial site outside an economic zone. The landowner’s sketch identifies the proposed space, and trucks would reach it by a road on the retained portion. The survey, access rights, and project approval should describe a site the manufacturer can actually use.
For land leases for foreign investors covering part of a site, the parties can check the owner’s authority and title encumbrances, have the area surveyed, and agree on truck access and road maintenance. The manufacturer should confirm its screening authority and check that the project description and technical description agree with the contract before filing.
If the lender requires proof of lease registration before releasing construction funds, coordinate drawdown with the filing and annotation schedule. Set out who obtains the certified title copy and who submits the post-annotation report. The parties can then plan their construction commitments around the same dates and evidence.
Common questions about land leases for foreign investors
Who can qualify for a 99-year lease?
A foreign investor with a qualifying investment can lease the area reasonably needed for the approved project, subject to the Act and its rules. The 99-year ceiling includes renewals. A shorter cap may apply to certain vital services or critical infrastructure.
Whether tax incentives are required
A qualifying investment may be evidenced under the Foreign Investments Act, amended CREATE, or another applicable law, or through the relevant IPA’s investment requirements. Match the eligibility document to the particular investor and project when preparing land leases for foreign investors.
Applying the tourism minimum
The USD 5 million threshold and the requirement to infuse 70 percent within three years of signing apply to tourism projects covered by the Act. Track project funding and retain evidence of when capital was infused.
Leasing part of a titled property
When land leases for foreign investors cover part of a titled parcel, use the technical description based on the approved survey plan for the leased area. Deal expressly with access and utilities across the retained land so the identified premises can serve the approved project.
Recording a lease over untitled private land
The Registry of Deeds records land leases for foreign investors over untitled private land in its Primary Entry Book for Unregistered Lands. The investor or lessor presents the recorded lease to the assessor to annotate the tax declaration. Verify the lessor’s rights and use the approved survey description for the site.
Using a leasehold right as loan security
The Act allows leasehold rights under land leases for foreign investors to serve as loan security. The collateral is the leasehold interest. If the creditor is foreign, the Act’s land use conditions continue to apply. Review the financing documents and lease together.
Renewing a lease under the earlier law
The original approval governs the current term of land leases for foreign investors under the earlier law. A renewal depends on the parties’ agreement and compliance with the new conditions, including proof of contributions and the aggregate term limit. Check the execution date against the transitional rule.
Changing the approved use
Use the premises for the approved investment. If the operator wants to change the project or the area used, check the approval and lease conditions before implementing the change. An amendment affecting mandatory terms must follow the registration procedure.
Legal support for investment leases
ATL Law Firm advises on land leases for foreign investors, including site due diligence, lease drafting, lease registration, and ongoing compliance. Learn more about our corporate practice.
[1] Republic Act No. 12252 §§ 2, 4 (Sept. 3, 2025) (Phil.) (amending Republic Act No. 7652, §§ 4–5).
[2] Republic Act No. 12252 § 2; Department of Trade and Industry & Land Registration Authority, Implementing Rules and Regulations of Republic Act No. 12252 [hereinafter IRR], r. I, § 1(c) (2025).
[3] Republic Act No. 12252 § 2 (amending Republic Act No. 7652, § 4(2)–(3)).
[4] Republic Act No. 12252 § 4 (amending Republic Act No. 7652, § 5(5)); IRR, r. II, § 2(e).
[5] Board of Investments, DTI-BOI, LRA Sign IRR for 99-Year Investors’ Lease Act to Boost Foreign Investments (Dec. 26, 2025); IRR, r. III, §§ 1–2.
[6] Republic Act No. 12252 § 2 (amending R.A. 7652. 7652, § 4(5)–(6)); IRR, r. III, § 3.
[7] IRR, r. II, § 2(d); r. III, §§ 2–3.
[8] Republic Act No. 12252 § 3 (inserting R.A. 7652, § 4-A); IRR, r. III, § 4.
[9] Republic Act No. 12252 §§ 2, 4; IRR, r. II, §§ 2(c), 3(b)–(c), 4; r. VIII, § 1.
[10] Republic Act No. 12252 § 2 (amending R.A. 7652, § 4, final paragraph); IRR, r. III, § 6.
[11] Republic Act No. 12252 §§ 5–6 (inserting Republic Act No. 7652, §§ 5-A to 5-B); IRR, r. III, § 5.
[12] Republic Act No. 12252 § 4; IRR, r. I, § 1(k); r. VI, §§ 1, 3, 5.
[13] Republic Act No. 12252 §§ 2, 7 (amending R.A. 7652, §§ 4(6)(e), 6); IRR, r. VI, §§ 2–4.
[14] IRR, r. III, § 7; r. IV, § 2.
[15] IRR, r. VIII, §§ 1–2.
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