Categorized | International

Argentina Limits Land Ownership by Foreign Investors

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Argentina has become the latest of many nations to place restrictions on land ownership by foreign investors.

While many countries have welcomed foreign investors as a means of boosting their housing market’s performance, Argentina and other nations have acted against them in order to prevent the growth of a potential housing bubble. In the case of Argentina, the government has voted on implementing restrictions that would place strict limits on the amount of land available to foreign buyers.

The law, however, is not nearly as restrictive as those laws implemented in many Asian countries. Those that have been permanent residents in the country for ten years, or are married to an Argentinean citizen are not held to the proposed restrictions.

Those that are pushing for the law believe that it necessary to preserve Argentina’s valuable farming land, and to ensure that the land continues to be used to produce food and renewable energy.

Those in opposition, however, feel that the restrictions will cause more damage than good, and that they will limit Argentina’s economy. Others have protested the restrictions as being xenophobic, and bad for international relations.

There is no clear indication as to whether or not the land-buying restrictions will positively or negatively impact the nation’s economy. In general, however, any restrictions place on the purchase of land has caused the overall economy to decline.

While foreign investors have not nearly been as prevalent in Argentina as they have in other nations, they certainly provide a boost to the overall economy. With that said, the actions taken by the government with these restrictions indicate that the government believes that foreign investors provide little benefit to overall economic growth.

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About Nancy Raven

Nancy is the main writer for the International section of the website. Sometimes she also helps Drew out on the Finance/Mortgage section as well.

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