On 23 April 2026, the Plenary of the Federal Supreme Court (STF) unanimously concluded the judgment on the Motion for Non-Compliance with a Fundamental Precept (ADPF) No. 342 and the Original Civil Action (ACO) No. 2,463, confirming the constitutionality of the restrictions on the acquisition and lease of rural properties by foreign individuals and by Brazilian companies controlled by foreign capital.

The central discussion revolved around on Article 1, paragraph 1, of Federal Law No. 5,709/71, which subjects Brazilian companies under foreign control to the same legal regime applicable to foreign individuals for purposes of acquiring rural estate – an understanding also applicable to the lease of rural property, pursuant to Article 23 of Federal Law No. 8,629/93.

The Supreme Court recognized the incorporation of the aforementioned Article 1, paragraph 1 into the Federal Constitution and declared null and void Opinion No. 461/12-E of the General Inspectorate of the Court of Justice of the State of São Paulo, which had exempted notaries and real estate registry officers from applying the rule.

The ruling does not extend the existing restrictions; it maintains the current legal framework while reaffirming the constitutionality of Article 1 of Law 5,709/71, so that current and future investments must continue to observe the restrictions as interpreted by AGU Opinion LA-01, of 2010.

Although the decision does not introduce new rules, it limits divergent interpretations and provides greater regulatory predictability and legal certainty for foreign investors. Nevertheless, there remains a need to analyze the proper legal structuring of business arrangements involving rural real estate.

This bulletin is for informational purposes only and should not be considered as legal advice on any of the topics discussed herein. For additional information, please contact the leaders of the Real Estate Team. CGM Advogados. All rights reserved.