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Land Law: What establishes the norm that Javier Milei wants to repeal with the DNU - Clarin
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Ley de Tierras: qué establece la norma que quiere derogar Javier Milei con el DNU
La norma fue sancionada en diciembre de 2011 y modificada en 2016.Limita la compra de predios rurales a personas físicas y jurídicas extranjeras.
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The rule was approved in December 2011 and modified in 2016.
Limits the purchase of rural properties to foreign individuals and legal entities.
As it turned out, the Decree of Necessity and Urgency (DNU) that the President of the Nation, Javier Milei , will present today, will include the repeal of the so-called Land Law, strictly speaking, Law 26,737 for the Protection of National Domain over Property, Possession or Rural Land Tenure that was enacted in December 2011 and since then resisted by rural real estate companies.
The rule establishes a limit on the purchase of fields by foreigners of 1,000 hectares in the core zone or an equivalent surface area depending on the territorial location, which is determined by the Interministerial Council of Rural Lands (provided for in article 16 of the law ) based on their location, quality and proportion with respect to the municipality or province they comprise.
Likewise, it sets at fifteen percent the limit on all ownership or possession of rural land in the national territory for non-Argentine natural and legal persons. These, being of the same foreign nationality, may not, in any case, exceed thirty percent of the assigned percentage.
The law also prohibits the possession of land that borders large and permanent bodies of water. and properties located in border security zones.
In June 2016, under the government of Mauricio Macri, several modifications were introduced to said law through decree 820/2016. Among the most relevant points, it clarified the concept of foreign persons (natural or legal) as those who directly or indirectly form the majority will, regardless of their social participation and establishes a presumption of foreignness in the event that a foreign person is the owner. of 51% of the share capital of the legal entity.
It also required reporting any modification in the share package of legal entities considered foreign to the National Registry of Rural Lands. The decree also granted powers to the Interministerial Council to modify the equivalences established by the provinces so that they are reasonable from the point of view of the type of exploitation and jurisdiction.
On the other hand, it provided for the non-affection of rights acquired by foreign people who own rural land prior to the enactment of the law and that, if they want to sell them, they will be allowed to acquire an equivalent extension even if it exceeds the limit of 1,000 hectares established by the law rule.
The Land Law has been questioned for years by the Chamber of Rural Real Estate Companies (CAIR) who argue that since its sanction, due to lower investment by foreigners, there was a drop in the value of the hectare in Argentina that remained out of date with the evolution of the price of rural land in other countries, where the price increased in the last decade.
Prior to Milei's inauguration, the CAIR asked the elected candidate to repeal the Land Law or modify it by granting it rationality to promote the entry of capital. They consider it as one of the "urgent and necessary requests so that the country can move forward as soon as possible." For this reason, the chamber made its technical teams available to present proposals and concerns of the rural real estate sector.
As anticipated, today, when the President of the Nation provides the details of the megadecree with modifications and repeals of hundreds of regulations, rural real estate companies will finally hear the decision that they have been pursuing since 2011 when Law 26,737 came into force, and that, according to them, It will allow them to receive the external investments that they long for and that, due to an increase in demand, would cause an increase in the price of a hectare in the countryside.
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