Private Property Law in Argentina: A New Era in the Sale of Agricultural Land to Foreigners

The new private property law scheduled to be discussed in the Argentine Senate envisages the large-scale removal of restrictions on foreign companies purchasing agricultural land across the country. Introduced by the La Libertad Avanza Party and supported by Patricia Bullrich, this bill was brought to the table to be presented for a final vote after weeks of political disputes. According to the bill, current limitations and caps on foreign entrepreneurs acquiring rural land will be lifted, and the authority to have a say in these processes will be largely transferred to local provinces. This comprehensive package, meticulously prepared by the government's Chief Deregulation Minister Federico Sturzenegger, aims to radically change not only land sales but also expropriation processes and eviction rules. Strict provisions included in the initial draft, which also covered poor neighborhoods, were removed from the text to prevent a massive wave of evictions that could arise following the harsh reaction of the opposition and the Church.

One of the most striking articles of the law is undoubtedly the new and strict rules introduced regarding the sale of land in border regions. While the purchase of Argentine lands by foreign states or companies with foreign public capital is strictly prohibited, a double approval mechanism was introduced as an exception to this ban. In order for the aforementioned foreign entities to purchase land, the explicit and formal approval of the provincial government where the land is located and the National Executive Power will be required. Especially for potential sales taking place in the country's strategic border regions, the approval of both national and local governments is made mandatory. If no rejection decision is issued by any authority within 180 days, the administrative silence rule will come into play, and buyers will attain the status of official owners with full rights.

The new regulation also includes very serious changes in eviction rules in order to accelerate judicial processes that operate against property owners. In cases of occupied properties or individuals holding them temporarily/intentionally, judges will be able to apply the 'express eviction' (desalojo exprés) method. In this context, if the property owner proves their right with official documents such as a title deed, the judge may give the occupant a 72-hour period for eviction. For tenants who violate lease agreements and fall into debt, a requirement to send an official demand letter of at least 10 days is introduced to prevent loss of rights. Furthermore, if there is a hostage or vulnerable adult or child in the house to be evicted, the judge will notify state institutions to meet their temporary shelter needs and grant a maximum of 10 additional days during this process.

Looking at the expropriation processes, it is seen that the state's authority is reshaped and bound by clearer rules. According to the new law, the state's seizure of private property by claiming 'public interest' will be monitored much more strictly, and the reasons for this decision will have to be presented explicitly and clearly. While the government, which drafted the law, initially set no limit on compensation for damages and losses regarding expropriated properties, subsequent amendments introduced a 30 percent cap on loss of profit compensation. The interest rate to be applied when calculating compensation will be indexed to the Consumer Price Index (IPC) and the National Bank's 30-day interest rate. This step aims to prevent the state from making arbitrary expropriations and to provide a stronger guarantee for the right to private property.

Making a general assessment, it seems inevitable that this comprehensive bill will leave deep marks on Argentina's economic and social fabric. The current government is taking these deregulation steps to attract foreign capital to the country and maximize the economic potential of agricultural lands. On the other hand, opposing voices and non-governmental organizations argue that the transfer of the country's strategic lands to foreign companies could pose significant risks to national security and food sovereignty in the long run. Although the removal of strict provisions in previous versions that could have left people on the street has slightly facilitated the law's passage through the legislature, the housing crisis and eviction processes remain among society's most sensitive issues. The vote scheduled to be held in the Senate on Thursday will clearly determine the course of the country's future land and property policies.