HOUSE APPROVED BILL EXTENDING FOREIGN LAND LEASE TO 99 YEARS

The House of Representatives approved on final reading the bill extending the land lease limits for foreign investors in the country to 99 years (Photo courtesy of ABS-CBN News)

The House of Representatives has approved on third and final reading that would extend land lease limits for foreign investors to 99 years from 75 years in the country. The period in which private land can be leased to a foreign investor, who would be allowed to sub-let the property.

House Bill 10755, which is an amendment of Republic Act 7652 or the Investors’ Lease Act, passed the lower chamber with 175 affirmative votes, three voting against, and two  abstentions. 

The bill covered lease agreements shall be subject to the approval of the Department of Trade and Industry-Board of Investments, except for lease of lands within economic zones or freeport areas, which shall be subject to the approval of the relevant Investment Promotion Agency charged with the management and administration of the said economic or freeport zones. 

The measure stated that foreigners can only lease private lands defined as “lands which have been segregated from the general mass of the public domain and distributed by any form of gratuitous or onerous grant by the state such as a deed of sale, adjustment title, special grant, or possesory information title converted into a record of ownership.” 

It allows foreign investors the option to register lease contracts with the Register of Deeds and outlines the conditions as an added protection for the foreign investor. The measure further expands the leasehold rights available to foreign investors by allowing the long-term lease contract to be pledged as a guaranty for a loan and by permitting leaseholders to sublet the leased land.

It also increases the fine for violations to within the range of P1 million to P10 million. 

“This bill is for us to attract more foreign investors to the Philippines, thereby fostering economic growth, creating jobs, and improving the overall investment climate,” the committee report,” the committee report said.

The bill is among the priority measures of the Legislative-Executive Development Advisory Council within the 19th Congress or until June 2025, in an effort to further open the economy to foreign investments.

The Philippines lags its neighbors in terms of attracting foreign investments. Despite several amendments that have liberalized some of the country's investment laws, the country continues to struggle to attract outside investors compared to countries like Vietnam, Malaysia and Thailand.

Source: Philippine Daily Inquirer 

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