Republic Act No.

7652
AN ACT ALLOWING THE LONG-TERM LEASE OF PRIVATE LANDS
BY FOREIGN INVESTORS
Section 1. Title. This Act shall be known as the Investors Lease
Act.
Sec. 2. 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 of the granting of long-term lease on private lands to foreign
investors for the establishment of industrial estates, factories,
assembly or processing plants, agro-industrial enterprises, land
development for industrial, or commercial use, tourism, and other
similar priority productive endeavors.
Sec. 3. Definitions. For purposes of this Act, unless the context
indicates otherwise, the term:

(1) Investing in the Philippines shall mean making an equity

investment in the Philippines through actual remittance of foreign
exchange or transfer of assets, whether in the form of capital goods,
patents, formulas, or other technological rights or processes, upon
registration with the Securities and Exchange Commission; and(2)
Withdrawal of approved investment shall mean either: (a) the failure
to operate the investment project for any three (3) consecutive years;
or (b) outright abandonment of the investment project at any time
during the approved lease period: Provided, That failure to pay lease
rental for three (3) consecutive months coupled with the failure to
operate the investment project for the same period shall be deemed as
outright abandonment of the project.
Sec. 4. Coverage. - Any foreign investor 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 may reasonably be required for
the purpose of the investment subject however to the Comprehensive
Agrarian Reform Law and the Local Government Code.

The leasehold right acquired under long-term lease contracts entered

into pursuant to this Act may be sold, transferred, or assigned:
Provided, That when the buyer, transferee, or assignee is a foreigner or
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.
Sec. 5. Limitations. (1) Foreign individuals, corporations,
associations, or partnerships not otherwise investing in the Philippines
as defined herein shall continue to be covered by Presidential Decree
No. 471 and other existing laws in lease of lands to foreigners.
(2) Withdrawal of the approved investment in 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 that 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 lease
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 projects with an
investment of not less than five million (5M) US dollars, seventy
percent (70%) of which shall be infused in said project within three
years from the signing of the lease contract.
Sec. 6. Termination of Lease Contract. The Secretary of Trade
and Industry shall terminate any lease contract entered into under the
provisions of this Act, if the investment project is not initiated within
three (3) years from the signing of the lease contract.
Sec. 7. Penal Provision. Any contract or agreement made or
executed in violation of any of the following prohibited acts shall be
null and void ab initio and both contracting parties shall be punished

by a fine of not less than One Hundred thousand pesos (P100,000) nor
more than One million pesos (P1,000,000), or imprisonment of six (6)
months to (6) years, or both, at the discretion of the court:

(1) Any provision in the lease agreement stipulating a lease period in

excess of that provided in paragraph (1) Section 4;(2) Use of the leased
premises for the purpose contrary to existing laws of the land, public
order, public policy, morals, or good customs;(3) Any agreement or
agreements resulting is the lease of land in excess of the area
approved by the DTI: Provided, That, where the excess of the totality of
the area leased is due to the acts of the lessee, the lessee shall be held
solely liable therefor: Provided, further, That, in the case of
corporations, associations, or partnerships, the president, manager,
director, trustee, or officers responsible for the violation hereof shall
bear the criminal liability.
Sec. 8. Separability Clause. In case any provision of this Act or the
application of such provision is deemed unconstitutional, the remaining
provisions of this Act or the application of such provisions shall not be
affected thereby.
Sec. 9. Repealing Clause. All acts, rules and regulations contrary
to or inconsistent with this Act are hereby repealed or modified
accordingly.
Sec. 10. Effectivity Clause. this Act shall take effect immediately
upon its approval.
Approved: June 4, 1993