What Does It Mean in Practice for the State to Be Able to Occupy and Requisition Private Property in Venezuela?

On June 24, 2026, in response to the earthquakes that struck the country, the Executive issued Decree No. 5,364. That Decree declared a State of Emergency throughout the national territory. Its Article 6 allows the State to occupy public and private facilities, and also to requisition essential goods and services, regardless of where in the country they are located or for how long.

Any company with facilities, land, inventory, or fleets in Venezuela falls under Decree No. 5,364, even if it is not near the earthquake zone. Any construction work carried out without authorization may give rise to criminal and civil liability, as the Venezuelan Association of Architects warned its members. For this reason, every business owner, construction professional, or owner of vacant land or property in Venezuela faces this risk directly.

What Does It Mean for a Company That the Government Used a State of Emergency and Not a State of Exception?

The Constitution only allows the State to occupy or requisition private property under a State of Exception, in its State of Alarm form, which is designed precisely for disasters. That mechanism requires approval by the National Assembly and review by the Constitutional Chamber. Decree No. 5,364, by contrast, activated an administrative State of Emergency, based on the 2001 Civil Protection Law, bypassing that oversight. The authors Alí Daniels, Joel García, and Allan Brewer-Carías argue that the Executive used the wrong legal mechanism to exercise these powers.

The Law on Expropriation for Reasons of Public or Social Utility and the Organic Law on National Security already regulated occupation and requisition. Both require identifying the affected property and paying compensation, or returning it based on its value. A company should confirm that the demand comes from the authority empowered by Decree No. 5,364 before handing over any property, record the condition of the property, and verify that the requisition is limited to what is "indispensable" for the emergency.

Affected parties may challenge such measures through administrative or judicial appeals. In practice, however, filing an appeal does not automatically suspend the challenged act (unless the affected party requests, and the authority or the judge grants, a precautionary measure), so the authority may carry out the occupation or requisition before any decision on the appeal is issued. A company protects itself best by thoroughly documenting the entire process. Who demanded the property, what condition it was in, and under what authority they acted are the details that truly matter to record. This applies differently depending on the type of company or person affected.

What Should Each Type of Company or Owner Do in Response to the Decree?

Any affected company or person should confirm that the order comes from the authority empowered by the Decree, keep documentary evidence of what is occupied or requisitioned, and verify that the measure is limited to what is indispensable for the emergency. The appropriate approach varies depending on who is affected.

Companies with facilities or ongoing construction projects, whether inside or outside the earthquake zones, face the risk that the State may temporarily occupy their property or land. Documenting the condition of the property through inspections, photographs, and independent appraisals before a possible occupation will help support a later claim for compensation.

Suppliers of transportation, machinery, construction materials, or technical services face a different risk: the requisition of their movable property or services, not the occupation of real property. Here, what protects the supplier is a record of the property delivered, its condition, and the agreed period of use.

Owners of vacant property or land face the greatest risk of occupation, precisely because an unused asset is the type of asset the State may consider available first. Keeping property titles current, along with any evidence of use or maintenance, helps document their status.

Individuals or investors purchasing property in Venezuela should anticipate this risk according to the stage of the transaction.

In an option-to-purchase agreement, it is advisable to include a clause or addendum covering what happens to the earnest money or any payment already made if the property is occupied or requisitioned before the final contract is signed—for example, providing for the return of the funds or the substitution of the property—since until that point the buyer does not hold a vested right.

If the sales contract has already been signed privately but is still pending registration, the buyer's right is likewise not enforceable against third parties, including the State, so it is advisable to consider an addendum covering that estimated period.

Foreign investors who can invoke a bilateral investment protection treaty in force between their country of nationality and Venezuela strengthen this protection by expressly referencing the treaty within the contract. Foreign investors who cannot invoke a treaty should analyze the options above as applicable to each specific case.

The Strategic Takeaway

Decree No. 5,364 keeps constitutional guarantees in force. The Executive chose an administrative mechanism instead of a State of Exception, which would have required oversight by the National Assembly and the Constitutional Chamber. That choice lets it act immediately, but in exchange it obtains an instrument with weaker legal support for intervening in private property.

That legal support, however, is not the same for everyone who holds assets in Venezuela. A Venezuelan company, a foreign buyer without a bilateral investment protection treaty, and an investor from a country with a treaty in force all face this same Decree No. 5,364 with different levels of protection. For that reason, before assuming any risk to their assets in the country, each party should identify which of these scenarios applies to them and what additional contractual protection is available.

Ágora Abogados advises companies and investors on assessing asset-related risk under Decree No. 5,364, documenting property affected by occupation or requisition, and drafting contractual protection clauses against State intervention.