Investors’ Lease Act, Republic Act No. 7652

Attracting foreign investment has always been a strategic priority for the Philippines, yet the nation’s Constitution maintains firm restrictions on land ownership to safeguard Filipino interests. This creates a challenge: how can the country welcome global investors while protecting its most valuable resource land? The answer came with the passage of Republic Act No. 7652, signed into law on June 4, 1993.

What is RA 7652?

RA 7652, also known as the Investors’ Lease Act, allows qualified foreign investors to lease private lands in the Philippines for up to 50 years, renewable for another 25 years. It does not grant ownership but offers long-term land use rights, giving investors the security they need to establish businesses, build facilities, and develop projects.

What RA 7652 Provides

RA 7652 functions as a bridge between foreign capital and Philippine land development. Instead of granting ownership, it offers a leasing framework that encourages foreign participation in industries such as manufacturing, agro-industrial ventures, and tourism. With this stable legal environment, investors gain the confidence to pursue projects that contribute to national development while still respecting constitutional restrictions on land ownership.

To support this framework, the law lays out clear provisions. It applies only to foreign investors registered with the Philippine Board of Investments (BOI), ensuring that participation is properly regulated. Lease agreements may extend for up to 50 years, renewable once for an additional 25 years, providing long-term security for large-scale ventures. Lands covered under these leases can be developed into industrial estates, factories, agro-industrial projects, and tourism facilities, fueling growth across multiple sectors. At the same time, RA 7652 maintains a vital safeguard: land ownership remains strictly in the hands of Filipinos, preserving national sovereignty while opening the door to international capital.

Why Does RA 7652 Matter?

RA 7652 plays a vital role in linking foreign capital to Philippine land development. Allowing long-term land leases attracts international investors who bring in resources, technology, and expertise that fuel growth in industries such as manufacturing, agribusiness, and tourism. This not only generates jobs and stimulates regional economies but also ensures that national ownership of land remains protected under the Constitution. At PRIME Philippines, we recognize the importance of RA 7652 in opening the country to global opportunities while safeguarding Filipino interests, bridging international investment with local progress in a way that strengthens both business and nation-building.