President Macri reforms Tierras Rurales laws

President Macri, with Decree  820/2016 del 29 de junio, has modified the onerous Decree, N° 274/12, made by ex-president Christina Kirchner on December 22, 2011 that became known as “Ley de Tierras”.

While the Law of Tierras Rurales created many restrictions against foreigners owning rural land in Argentina (for example, no foreigner could buy more than 1,000 hectares, about 2,500 acres, in prime rural areas), it also created a National Registry for foreign land owners in Buenos Aires where Kirchner paid government workers (mostly managed by La Campora noquis) could just table all paperwork and let it sit forever. Further, the law placed an arbitrary 15% maximum ownership of rural land by foreigners, and intentionally created vague language so that 15% could be interpreted by the Kirchner people however they wanted; regardless of the law, or the calculations of the Provinces. Until this law passed, each Province had their own registry to register lands, including land owned by foreigners, so the law further eroded any participation or power of the Provinces.

The modifications Macri has made in the law, are just the beginning, and part of his campaign promise to encourage foreign investment in Argentina again. First, fair calculations of the 15% are being done (it turns out only 6% of rural lands are owned by foreigners), and additional decrees aim to raise or eliminate the ceiling, and also to increase the amount of rural land a foreigner can buy from 1,000 hectares, to 3,000 or more, and perhaps remove that restriction as well. Most importantly for the short term, is that Macri's decree, and his firing of the La Campora noquis (a noquis is a doughy pasta that does nothing, like the workers who were paid high salaries by the Kirchner government to do nothing), means that proper paperwork submitted by Argentine escribanos for the purchase of rural lands by foreigners will actually be processed and approved.

In short, it is now much easier again for foreigners to purchase rural lands, and a second Decree is being analyzed and prepared that will potentially take away all the speed bumps in a law that never should have been passed (it's unconstitutional). Further, Macri is traveling again throughout Latin America, the U.S., and Europe to encourage foreign investment in his country.  From a buyers or investors perspective, this is an ideal time to begin due diligence on important rural properties for purchase and development.