EXPROPRIATION IN BOLIVIA: LEGAL REQUIREMENTS, GUARANTEES, AND PRACTICAL CASES

Expropriation is a legal mechanism that allows the State to acquire private property for reasons of public interest. In Bolivia, this process is governed by constitutional principles, legal provisions, and jurisprudence aimed at maintaining a balance between the collective interest and individual property rights. This article outlines the conditions under which expropriation may be applied, the mandatory procedures involved, and practical examples based on Bolivian Supreme Court decisions.

WHAT IS EXPROPRIATION AND WHEN DOES IT APPLY IN BOLIVIA?

Expropriation is applied exclusively when there is a cause of public necessity or utility, properly certified by the competent authority. In addition, fair and prior compensation must be paid as an essential condition for the legality of the process. This means that the affected property owner cannot be dispossessed without first receiving the corresponding payment.

Bolivian law guarantees private property but subjects it to a social function. If this function is not fulfilled, the State may initiate reversion or expropriation proceedings, particularly in the case of land that fails to meet its economic and social use obligations.

ESSENTIAL REQUIREMENTS FOR EXPROPRIATION

For an expropriation to be legally valid in Bolivia, the following fundamental requirements must be met:

DECLARATION OF PUBLIC UTILITY FOR EXPROPRIATION

There must be a formal declaration of necessity or public utility issued by the competent authority. This declaration is the legal basis for any expropriation process.

VALUATION AND FAIR COMPENSATION IN EXPROPRIATION OF PROPERTY IN BOLIVIA

A fair value for the property must be determined, either by independent experts or through technical valuation. This value must reflect the real market price of the affected asset.

PRIOR PAYMENT OF COMPENSATION

Compensation must be paid before the State occupies or takes possession of the property. Any premature occupation without payment constitutes an illegal expropriation and may be subject to annulment.

RIGHTS AND GUARANTEES OF THE PROPERTY OWNER IN EXPROPRIATION PROCEEDINGS IN BOLIVIA

Bolivian jurisprudence has strengthened the legal framework protecting property rights. This is emphasized in Supreme Ruling 292/2011, which states that expropriation is only finalized once the expropriating authority has paid the established compensation. Otherwise, the owner has the right to reclaim the property, as any occupation without payment is unlawful.

Likewise, Supreme Ruling 731/2016 reaffirms that the procedure must comply with all legal formalities—specifically the declaration of public utility, fair valuation, and prior payment. If any of these steps are omitted, the expropriation is deemed null and ineffective.

Practical example:

If a public entity begins occupying land for a road project without completing the compensation payment, such occupation can be declared illegal. Property transfer is valid only after payment. Similarly, if it is proven that the authority took possession without a fair valuation or formal administrative resolution, the action may be declared absolutely null and the owner granted the right to recover the property.

DIFFERENCES BETWEEN EXPROPRIATION AND LAND REVERSION IN BOLIVIA

It is crucial to distinguish between these two legal concepts:

• Expropriation involves the payment of fair compensation by the State, justified by reasons of public interest.
• Reversion, on the other hand, applies when land does not fulfill its economic and social function or when land hoarding is detected. In such cases, the property reverts to State ownership without compensation.