Supreme Court restores limits on foreign land ownership in ruling

Argentina's Supreme Court on Friday provisionally restored a cap on foreign land ownership, suspending President Javier Milei's repeal of the ‘Ley de Tierras,’ which restricted foreign ownership of rural property.

Shortly after coming to power in 2023, Milei repealed a longstanding 15-percent cap on foreign ownership of rural land through emergency decree 70/2023.

The latest ruling came a week after the court rejected a separate legal challenge to the decree brought by CECIM, an association of veterans of Argentina's 1982 war with Britain over the Malvinas Islands, known in the UK as the Falkland Islands.

On Friday, the court suspended the effects of Article 154 of the decree, which repealed Law 26,737, pending further consideration of a challenge brought by Árbol de Pie, a civil association, and other claimants.

The court said the case concerned "matters relating to the protection against environmental damage" and justified "an interim measure, in order to ensure effective judicial protection and prevent irreparable damage."

It also criticised the handling of the case by the lower courts, saying the claimants' requests had remained unanswered, and stressed the importance of timely judicial responses and environmental protection.

The ruling does not settle the underlying legal dispute or establish that the claimants' arguments are valid. The suspension will remain in place while the competent judge considers whether the claimants have legal standing and examines their request for an injunction.

Around five percent of Argentine land – an area roughly the size of England – is owned by foreigners, according to a 2025 study. In some areas, however, foreign ownership exceeds the 15-percent limit established by the Rural Land Law.

The issue is sensitive in Argentina, where critics of liberalising the land market warn of threats to natural resources, national sovereignty and the rights of indigenous peoples.

Environmental associations and indigenous groups argued in their lawsuit that scrapping the restrictions would "negatively impact the preservation of natural and cultural heritage, as well as biological diversity."

The court's latest decision addressed those environmental arguments, which differed substantially from those raised by CECIM in its separate challenge. The Supreme Court had dismissed the veterans' case the previous week, ruling that they were not competent to act as plaintiffs.

CECIM has strongly opposed Milei's reform, accusing the President of "putting the Republic of Argentina up for sale."

Frustrated by the delays in changing the law, Milei's government also sought to raise the foreign ownership cap from 15 percent to 25 percent through legislation. It was forced to withdraw the bill after failing to secure sufficient support in the Senate.