Federal law n. 13,986, published on April 7, 2020, result of converting the provisional measure n. 897, from October 1, 2019, which, in turn, had altered federal law n. 5.709, from October 7, 1971 - which regulates the acquisition of rural property by foreigners residing in the country or foreign legal entities - expanded the hypotheses in which the acquisition of property on rural property is allowed by foreigners.
The new law changed paragraph 2 of Article 1 of Law 5.709, introducing, in incisions II and III, new hypotheses of exception to property acquisition restrictions on rural property by foreigners. In this sense, and aiming to encourage and encourage greater foreign investment in the country, it was admitted, for example, the real guarantee constitution in favor of legal entity, national or foreign, even with the transmission of fiduciary property (cf. II of paragraph 2 of Article 1).
Inciso III, introduced by the new wording of paragraph 2 of article 1 of Law 5.709, He removed the incidence of restrictions, provided for in such a law, the receipt of rural property by legal, national or foreign, or national legal entity controlled by foreigners, due to transaction settlement, "by means of realization of real guarantee, payment of payment or otherwise".
In this way, it became allowed, in a comprehensive manner, the delivery of property as a form of transaction settlement, concluded with foreign or national legal staff controlled from abroad.
In our view, Law 13,986 significantly expands the range of assets that can be the subject of operations involving foreign parts, which would certainly represent an important stimulus to the largest offer of external investment in the country.
