On December 29, 2011, Law 26,737 establishing the Protection System of Argentine Title to or Possesion of Rural Land became effective. Its Regulatory Decree Nº 274/2012 was published in the National Bulletin on February 29, 2012 (hereinafter, altogether, the "RRL")
The enforcement authorities of the RRL created by Law 26,737 are the following: (i) the Argentine Registry of Rural Land in the ambit of the Ministry of Justice and Human Rights and formed by the Argentine Ministry of Agriculture, Cattle Breeding and Fishing; and (ii) the Inter-ministerial Council of Rural Land which shall be chaired by the Ministry of Justice and Human Rights and formed by the Ministry of Agriculture, Cattle Breeding and Fishing, the Secretariat of Environment and Sustainable Development subordinate to the President's Cabinet, the Ministry of Defense and the Ministry of the Interior, with representatives of the provinces.
Highlights of the RRL
As from the date of effectiveness of the RRL (i.e. December 29, 2011) the following provisions apply:
Foreign owners or holders of rural land, be they individuals or legal entities, as they are described under the RRL, shall report title to or possession of such land to the Argentine Registry of Rural Land no later than August 27, 2012. In addition, any change in the equity interests of the foreign legal entities must be reported to the Argentine Registry of Rural Land within 30 days following such act.
Any purchase, transfer, assignment of possession rights, irrespective of the manner, name assigned by the parties and term thereof, to be made in favor of foreign individuals or legal entities shall have to be previously authorized by the Argentine Registry of Rural Land.
The RRL provides for four limitations: (a) the limit on title ownership or possession of rural land in the Argentine territory by foreign persons is fixed at fifteen- percent; (b) such percentage shall be calculated also on the territory of the province or municipality (that is, 15% of rural land in a province or municipality is the maximum extension of rural land in such province or municipality that may be owned or possessed by foreign persons); (c) in no case may persons of one same foreign nationality exceed thirty percent (30%) of the percentage mentioned above...