Protection of national dominion over rural land ownership, possession and holding

As we mentioned in previous issues, we shall discuss the regulation on land purchases by foreign persons in Argentina.

Land purchases by foreign persons are limited to 15% of all national territory. Foreign natural and artificial persons of the same nationality shall not hold more than 30% of the above-mentioned 15%; landholdings owned by foreign persons are limited to 1,000 hectares (2,471 acres) in the area defined as the core zone, or equivalent area, depending on the territorial location.

Core zones are areas representing the most fertile agricultural lands and are established by section 10 of Decree 274/2012, which regulates the Law on the Protection of the National Dominion over Ownership, Possession and Holding of Rural Lands. More than 30 districts in the provinces of Córdoba, Santa Fe and Buenos Aires are listed as being part of the core zones in the decree.

For purposes of the law and all the bilateral investment treaties signed by Argentina, the purchase of rural lands will not be considered an investment. Rather, rural lands are considered non-renewable natural resources contributed by the host state.

The law also creates the National Registry of Rural Lands under the Ministry of Justice and Human Rights. The registry is tasked with generating statistics on foreign ownership of land without infringing upon provincial autonomies or federal rights, maintaining and sharing this information, improving Argentina’s legal security, and contributing to Argentina’s economic development.

María Lucía Belliz is the director of the Investors Assistance Office of the Argentina Ministry of Foreign Affairs and Worship