PEZA (Philippine Economic Zone Authority)
PEZA is a government agency that manages economic zones (IT parks, manufacturing zones, tourism zones) throughout the Philippines. PEZA-accredited locators enjoy tax incentives. PEZA IT parks drive condo demand due to BPO worker housing needs.
📄 Overview
PEZA (Philippine Economic Zone Authority) is a government agency created under RA 7916 that manages and operates economic zones (ecozones) throughout the Philippines. PEZA-registered enterprises enjoy tax incentives and other benefits, making PEZA zones attractive for BPO companies, exporters, and foreign investors. PEZA zones are significant real estate demand drivers, particularly for office spaces, industrial facilities, and nearby residential developments.
📄 Types of Economic Zones
PEZA administers several types: IT Parks/Centers (for BPO and IT companiesu2014major office space demand drivers), Manufacturing Economic Zones (for export manufacturing), Agro-Industrial Economic Zones, Tourism Economic Zones, Medical Tourism Parks/Centers, and Logistics Services Zones. As of 2024, PEZA operates over 400 economic zones across the Philippines, with the largest concentrations in Metro Manila, Cebu, and Clark.
📄 Incentives
PEZA-registered enterprises enjoy: income tax holiday (4-7 years), 5% special tax on gross income (after the ITH period, in lieu of all national and local taxes), tax-free importation of capital equipment, simplified import-export procedures, and employment of foreign nationals. The CREATE Law (RA 11534) modified some incentives but PEZA zones remain highly attractive for investors.
📄 Real Estate Impact
PEZA IT parks drive massive office space demandu2014Metro Manila's PEZA-accredited office stock exceeds 10 million sqm. BPO companies are the primary tenants, employing over 1.3 million Filipinos. PEZA zones create demand for nearby residential properties from workers, support retail and commercial development, and boost property values in surrounding areas. Key PEZA IT parks include Eastwood City, McKinley Hill, UP Ayala Land Technohub, and Cebu IT Park.
🇵🇭 Philippine Context
PEZA operates under RA 7916 (Special Economic Zone Act) as amended by RA 8748, and the CREATE Law (RA 11534). The agency reports to the Department of Trade and Industry (DTI). PEZA is one of the Philippines' most successful investment promotion agencies, having attracted over PHP 1 trillion in investments. For real estate investors, properties near PEZA zones benefit from the stable employment base and consistent demand from BPO and export companies.
🔗 Related Topics
BPO Industry, Cebu IT Park, Eastwood City, Clark Freeport, Commercial Lot