Make your own free website on


R.A. 7652 



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 estate, factories, assembly or processing plants, agro-industrial enterprises, land development for industrial, or commercial use, tourism and other similar priority productive endeavors.

Coverage - Any foreign investors 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:

  1. No lease contract shall be for a period exceeding fifty (50) years, renewable once for a period of not more than twenty five (25) years;

  2. The leased area shall be used solely for the purpose of the investment upon the mutual agreement of the parties;

  3. The leased premises shall comprise such area as my reasonably be required for the purpose of the investment subject however to the Comprehensive Reform Law and the Local Government Code.

    The leasehold right acquired under the long term lease contracts entered into pursuant to this Act may be sold, transferred, or assigned: Provided, That the buyer, transferee, or assignee is a foreign-owned enterprise, the conditions and limitations in respect to the use of the leased property as provided for under this Act shall continue to apply.


  1. Foreign individuals, corporations, associations, or partnerships not otherwise investing in the Philippines as define herein shall continue to be covered by Presidential Decree No. 471 and other existing laws on lease of lands to foreigners.

  2. Withdrawal of the approved investment on the Philippines within the period of the lease agreement entered into under this Act, or use of the leased area for the purpose other than authorized, shall warrant the ipso facto termination of the lease agreement without prejudice to the right of the lessor to be compensated for the damages he may have suffered thereby.

  3. Any lease agreement under this Act, which is renewable at the option of the lessee subject to the same terms and conditions of the original contract, shall be interpreted to mean as renewable upon the mutual agreement of the parties.

  4. In addition to the conditions for the renewal of a lease agreement after the period of fifty (50) years as provided herein, the foreign lessee shall show that it has made social and economic contributions to the country.

  5. In the case of tourism projects lease of private lands by foreign investors qualified herein shall be limited to the projects with an investment of not less that five million (5M) US dollars, seventy percent (70%)  of which shall be infused in the said project within three years  from the signing of contract.


For More Information Contact:

Rovel Realty Service
Libis Road San Pedro Puerto Princesa City 5300 Palawan Philippines
Tel: 00639195665964
FAX: 0063484345633