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can foreigners invest in the galapagos?

This is a question that has been lingering for many years now. There is utmost confusion in Ecuador and abroad as to whether it’s possible or not for foreigners to actually invest in the Galapagos. Some people will say its simply not possible. For the purposes of this note, we’ll basically relate the purchase of Galapagos real estate to investing in the Islands.

The Galapagos were populated rather recently in human history by a diverse mix of Ecuadorian and foreigners seeking the ultimate paradise frontier. During many years, in the 40s, 50s and 60s, the government of Ecuador actually stimulated migration to the Galapagos as a strategy to make it an active territory. These efforts, thank God, did not produce any mass migrations. The Islands, after all, were and are naturally ill equipped to handle a large population. There were no mass migrations or an important real estate speculation drive, and this has, in great measure, been a blessing for the Galapagos as there were no major standards in place (there still aren’t, go figure).

A couple of decades ago, the population of the Galapagos began to grow rather fast, and with this came increased risks for the introduction and dissemination of foreign species (by far the biggest threat to the Galapagos). Environmental and social concerns prompted in 1998 the issuance of the landmark Especial Law for the Conservation and Sustainable Development of the Galapagos Province. This Law, while imperfect, did provide a very meaningful boost to Galapagos conservation and social wellbeing efforts.

In one of its final passages, this Law states that non-residents of the Galapagos may invest in the Islands provided they partner with a Galapagos resident. This is a legal requirement imposed on both Ecuadorians and foreigners (indistinctly) for them to legally invest (purchase real estate) in the Galapagos. The logic behind this provision is that Galapagos residents also benefit from investments made by non-residents.

This legal provision also states that this partnership or association will be made in accordance to by-laws that were to be issued shortly after this Special Law was published. The fact is that these by laws have not yet been issued so the association can be made in a variety of ways. The lack of by-laws does not mean that non-residents can’t invest in the Galapagos, it only means that until the by-laws are issued the association (which is a legal requirement) can be made in any legal way not prohibited by Ecuadorian legislation.

There have recently been some initiatives, however, to preclude non residents from investing in the Galapagos, as some well-meaning people or institutions believe that this promotes migration to the Galapagos (we believe that the problem lies elsewhere, in lack of better migration control and standards).

In any case, the doors for non residents of the Galapagos to soundly own real estate there may be closing and this impossibility may last some time, if not forever. Please understand that owning land in the Galapagos (doing anything there) entails a responsibility of promoting the conservation of the islands and the wellbeing of its people through high standards and more.

Owning land in the Galapagos can be very rewarding (spiritually and otherwise) and is a true privilege, but it should also be understood that being the Galapagos such a special and particularly delicate place, restrictions may be imposed in the future.

The law which currently permits these investments by non-residents has not been changed, but it may be changed soon. Nonetheless in actuality having non residents purchase land in the Galapagos does constitute a challenge due to these well-meaning initiatives that are nonetheless wrongly addressing the problem.

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