Real Estate Chamber Urges President Milei and Minister Caputo to Exempt Used Properties from 5% Rate in Fiscal Package

The Argentine Real Estate Chamber (CIA) has formally sent a letter to President Javier Milei and Minister Luis Caputo requesting the exemption of used properties from the 5% rate established in the Law of Bases and fiscal package. The asset regularization regime exempts individuals declaring up to US$100,000 from paying fines, while those declaring larger amounts face progressive aliquots ranging from 5% to 15%. However, the law allows exemptions for certain destinations of money laundering, leaving it to the Executive Branch to define additional destinations that may qualify for exemptions.

Real estate companies are urging the Executive Branch to incorporate the possibility of using money laundering funds to purchase used properties into the regulation. This proposal aims to encourage productive investment in the country and promote investment by small and medium-sized businesses in less developed provinces, as well as increase credit availability. The exemption of used properties from the 5% rate would incentivize savings mobilization, stimulate cash inflows into the formal economy, expand the state’s collection base, and enhance investment capacity for property sellers benefiting from this mechanism.

Recent data showed a surge in property sales and mortgage loans, indicating a positive trend for the sector. Real estate agents believe that incorporating money laundering funds into property investments could significantly boost the sector’s activity after years of contraction and falling prices. The real estate sector is seeking to revitalize itself by exploring avenues like money laundering and the revival of mortgage credit.