Milei’s Land Reform Hits a Wall: Argentina’s Senate Blocks Opening Rural Property to Foreign Buyers
The libertarian president wanted to tear down restrictions on foreign ownership. Political resistance forced him to pull the proposal—but the fight over private property and national sovereignty is far from over.
Javier Milei came to power promising to dismantle Argentina’s economic restrictions and restore private property and investment incentives. One of his most controversial targets has been a law restricting foreign ownership of rural land.
This past week, however, Milei was forced to retreat.
Argentina’s Senate approved the government’s broader Law of Inviolability of Private Property by a vote of 37–33, but only after lawmakers removed the provisions that would have significantly loosened restrictions on foreign ownership of rural land. The Senate also removed another controversial section involving land affected by fires. The legislation now moves to the Chamber of Deputies.
For Milei, the vote represents a setback—but not necessarily the end of his campaign to liberalize Argentina’s property market.
Milei wanted to open Argentina’s rural land market
At the center of the controversy is Argentina’s Law 26.737, enacted in 2011 under then-President Cristina Fernández de Kirchner.
The law limits foreign ownership of rural land to 15% at the national, provincial and municipal levels and establishes additional restrictions involving nationality, land concentration and strategically sensitive areas.
Milei and his economic team have argued that such restrictions discourage investment and prevent Argentina from fully benefiting from foreign capital.
Federico Sturzenegger, the government’s minister responsible for deregulation, argued that eliminating the restrictions could potentially generate billions of dollars in new investment. Government officials have cited estimates of up to $15 billion in potential investment.
The argument is straightforward from a free-market perspective:
If a foreign investor can legally buy a factory, build a business or invest millions of dollars in Argentina, why should the government prohibit that same investor from purchasing rural property simply because he is not Argentine?
That is the argument Milei’s supporters have been making.
Critics see something very different
Opponents of the reform argue that rural land is not simply another asset.
Argentina’s enormous agricultural territory contains water resources, forests, minerals, farmland and strategically important areas, including land near international borders.
Critics therefore warn that unrestricted foreign ownership could allow large amounts of strategically important territory to become concentrated in the hands of foreign individuals, corporations or investment funds.
The debate has consequently become a proxy for a much larger question:
Where does private property end and national sovereignty begin?
The current fight is actually the second major attempt by Milei to dismantle the restrictions.
https://gatewayhispanic.com/2026/08/mileis-land-reform-hits-wall-argentinas-senate-blocks/