Question & AnswerQ&A (Republic Act No. 7652)
The official title is the "Investors' Lease Act."
The State encourages foreign investments consistent with the constitutional mandate to conserve and develop the Philippine patrimony, adopting a flexible policy allowing long-term lease of private lands to foreign investors for priority productive endeavors.
It means making an equity investment through actual remittance of foreign exchange or transfer of assets upon registration with the Securities and Exchange Commission.
Either failure to operate the investment project for three consecutive years or outright abandonment of the project, including failure to pay lease rental for three months coupled with failure to operate.
No lease contract shall exceed fifty (50) years, which may be renewed once for not more than twenty-five (25) years.
The leased land must be used solely for the investment purpose mutually agreed upon, such as industrial, commercial, tourism, or other priority productive endeavors.
Yes, but if the buyer, transferee, or assignee is foreign, the conditions and limitations of the lease continue to apply.
The lease agreement is terminated ipso facto and the lessor may claim damages.
Any such contract is null and void ab initio, and the parties shall be punished by a fine between P100,000 to P1,000,000, or imprisonment of six months to six years, or both.
The Secretary of Trade and Industry.
They must invest at least Five million US dollars and infuse seventy percent (70%) of it within three years from contract signing.
No, they remain governed by Presidential Decree No. 471 and other existing laws on land leases to foreigners.
They must show having made social and economic contributions to the country, and renewal is subject to mutual agreement.