- The double system that the government wants to abolish
After returning from his trip to Oslo, Norway, President Javier Milei signed the Work Modernization Project.to which has already been sent National Congress and that the ruling party hopes to receive approval in the extraordinary sessions before the end of the year.
Although the focus of the project is on “modernizing” the world of work, its development also included a Series of tax incentives to promote employment and tax relief to alleviate tax pressure.
These include two important modifications would have an impact on the real estate market, with the reduction of taxes on the sale and rental of real estate.
“Adaptations are being introduced to eliminate bias and simplify treatment applicable to humans freed -from January 1, 2026- the results of Sale of real estate and transfer of rights to real estate“, describes the regulations.
In matters Rentalssuggests the initiative exempt from income tax for the Income from the rental of real estate intended for individual accommodationa measure intended to encourage owners to sugarcoat their contracts and expand the formal housing offering for rent and thus contributes to improving access to housing for the population.
On the other hand, the project is considering specific advantages for buying and selling transactions Real estate carried out by people.
This will happen from January 1, 2026 The sale of houses, apartments and land by private individuals is exempt from profitThis eliminates a tax burden that has hindered formal transactions in the past.
The double system that the government wants to abolish
There was one until July 2024 Double taxation system For this type of transaction applies: the property transfer tax (ITI) of 1.5% for properties acquired before January 1, 2018 and the scheduled tax of 15% for properties acquired after that date.
In July 2024 the Base Law (Law 27.743) The ITI was abolishedso that properties acquired before 2018 remain tax-free, while properties acquired after that date remain tax-free They only fell under the 15% cedular system
With the new labor reform project, the government is now also proposing the abolition of the planning tax, which would hinder real estate sales completely tax free from January 1, 2026.
The project chapter, that proposes changes to various taxes also includes the Abolition of various internal taxesas applied, for example, to electronic goods or luxury goods, the redesign of the corporate tax and the creation of the medium investment incentive system (RIMI), among others.
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