Argentina advances foreign rural land ownership cap increase to 25%
Argentina's government is advancing a revised bill that would raise the cap on foreign ownership of rural land from the current 15% to 25%, with a Senate vote expected around August 6, 2026. The compromise comes after the government dropped its original plan to eliminate the cap entirely and represents a concession to secure allied Senate votes. The measure is part of a broader "inviolability of private property" package and has created tension within the ruling coalition.
The revised proposal emerged after roughly seventeen rewrites, abandoning an earlier attempt to remove the 15% ceiling entirely. The compromise aimed to secure backing from allied provincial blocs for a broader private-property package.
However, the most recent Senate action saw the foreign land chapter removed before the vote, leaving the 2011 law's restrictions intact—including the 30% single-country limit, the 1,000-hectare cap in core zones, and bans near major water bodies. The rift between President Milei and Vice President Villarruel over this issue remains a key political factor.
The fluctuating legislative outcome could create uncertainty for both foreign investors and domestic rural stakeholders. A higher cap might have expanded foreign acquisition of farmland, potentially influencing local land prices and agricultural control. Conversely, retaining the 15% limit may reassure groups worried about national sovereignty over land resources. The political friction between the executive and vice president could also delay broader property reforms, affecting how rural land transactions are regulated and perceived in the near term.