Congress passes bill to extend foreign investors' land lease limits from 75 to 99 years

On Wednesday, both the Senate and House of Representatives approved bills that aim to extend foreign investors' land lease limits from 75 to 99 years in an effort to attract more foreign investments.

House Bill No. 10755 was passed by voice vote in the House, seeking to liberalize Philippine land lease policies to improve the investment climate and promote economic growth and job creation.

The bill allows foreign investors to sublet properties unless prohibited by contract and permits lease contracts to be registered with the Register of Deeds for added protection.

Covered lease agreements will require approval from the Department of Trade and Industry-Board of Investments, except for leases within economic zones or freeport areas which must be approved by relevant Investment Promotion Agencies.

The bill also outlines conditions that permit long-term lease contracts to be pledged as guaranties for loans and increases fines for violations to a range of P1 million to P10 million.

Foreign private land leases for agriculture, agroforestry, and ecological conservation are still permitted under the proposed legislation, subject to approval by the Board of Investments for lots outside economic zones or freeport areas.