The “Reglamento de Fraccionamiento y Urbanizaciones”

The “Reglamento de Fraccionamiento y Urbanizaciones” (Fractionation and Urbanization Regulations) of the “Instituto Nacional De Vivienda Y Urbanismo” (INVU National Institute of Housing and Urban Planning) latest version was approved on September 13, 2020, defines the Agricultural Parcel as follows:

“Agricultural, livestock or forestry parcel: Complete physical unit represented by a minimum portion of land, where a primary agricultural, livestock, forestry or mixed activity is carried out, which consists of land arranged for obtaining plant or animal products and includes the areas dedicated to fallow and protection zones for rivers and streams, the result of a planned process of agricultural, livestock, forestry or mixed subdivision from a mother farm.”

These fractions of land are delimited and defined by specific characteristics, that regulate the usage of the property. Below, are the most relevant characteristics that an agricultural parcel must comply with.

Measurement: The size of agricultural parcels varies depending on the location where the real estate is located:

·         Outside the metropolitan area the minimum area of the property is 5,000.00 m2.

·         Within this metropolitan area the minimum area is 7,000.00 m2.

·         When properties are facing a public street for agricultural, livestock, forestry, or mixed purposes, can be divided into areas of no less than 900 m2.

Use or Purpose: the agricultural parcel arises with the objective that these extensions of land have agricultural, livestock, forestry, or mixed purposes, as the main activity within its boundaries.

Coverage: Agricultural parcels have a maximum coverage of 25% distributed among the buildings and infrastructure that will be used for the development of the agricultural activity that is intended to be developed.

Construction Area: the total built area within agricultural parcels cannot exceed 10% of the coverage permitted by law, constructions are currently regulated as follows:

·         A single-family home (in one building) with a maximum area of 300 m2 on one or two levels.

·         Houses for workers, ranches, or warehouses.

Access: Agricultural parcels must have access through agricultural easements, which must have a minimum width of 7.00 meters.

Although the regulations for the parcels originate with the intention of agricultural use, over the years, this purpose of agricultural parcels has been modified by the people for a residential one, whether in rural or tourist villas. These residential projects have been delimited by the restrictions that are given to agricultural parcels both in the construction area and in the accesses and so on. In 2022, bill number 23.200 was submitted to the Legislative Assembly to modify Law N° 4240 and create a new category called “Parcelas Turísticas (Tourist Parcels)”, and all those properties that are in the Agricultural Parcel category and are used as residential or touristic, can migrate to the new category taking advantage of the new regulations, and flexibility in the development of infrastructure for the activity that is intended to be carried out. This bill is still being analyzed and hasn’t been approved yet.

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