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How will prices be impacted if the sale and rental of real estate is exempted from income tax? - La Nacion Propiedades
Source:
www.lanacion.com.ar
December 15, 2025
One of the reforms the Government focused on involves a total exemption from Income Tax for both the sale and rental of homes
By Candela Contreras
The Government defines it as a strategy to "ease the tax burden for citizens"Daniel Basualdo
President Javier Milei signed the so-called Labor Modernization Law on Thursday , a lengthy 71-page bill with 26 sections that has already been submitted to Congress through the Senate , according to information obtained by LA NACION . This initiative would have a significant impact on the tax system, with a particular focus on the Argentine real estate market , in addition to modifications in the labor and union sectors.
One of the reforms focuses on the Income Tax for real estate transactions . The text proposes a total exemption from this tax for both the sale and rental of homes, effective January 1, 2026. This measure is part of a government strategy to " ease the tax burden for citizens " and eliminate levies considered to have " low revenue collection efficiency and high administrative costs ."
The project seeks to alleviate the tax burdenFreepick
Sebastián Domínguez, an accountant and tax specialist, describes the changes as “ very positive for the real estate sector .” He explains that, while the Real Estate Transfer Tax (ITI) for properties acquired before 2018 was repealed last year (it was 1.5% and was eliminated with the Bases Law in July 2024), the 15% Capital Gains Tax remained for properties purchased on or after January 1, 2018. “That would be exempted, and consequently, the 15% would not be paid if someone sells a property purchased after that date,” Domínguez explains.
According to the specialist, this exemption, along with the one for rental income from residential properties, will create an “incentive to invest in real estate and to develop the construction industry .” Domínguez argued that if someone buys a property and then profits from its appreciation, they would not have to pay income tax. Likewise, if they rent it out, they would also not pay income tax on that income. “ This will help increase the supply of properties, which will give tenants greater access to rental options ,” he stated.
The tax expert also analyzes the potential long-term economic impact , noting that a "boom in real estate investment and a boom in rental housing" could generate significant competition that " could drive prices down ." While this would be "positive for tenants, because they have more options at lower prices," it could be " negative for investors because the return on investment might be low relative to the capital invested ." He indicates that market trends will determine how this dynamic unfolds.
Along these lines, César Litvin, CEO of Lisicki Litvin & Abelovich, agrees with Domínguez and adds that “this is a way to mobilize the dollars stashed under the mattress ,” because the money a person has saved “doesn't yield anything and loses value with US inflation.” But, if the law is passed, “they will be able to use the dollars under the mattress and buy real estate . ”
For his part, accountant and tax lawyer Roberto Murmis emphasized that the measures are “ an incentive to stimulate the real estate market, since the sale of properties would no longer be taxed.” Murmis described the sector as currently “very stagnant,” having “only recently begun to pick up, with low prices per square meter,” and considered that these exemptions would “revitalize” it .
Murmis, in turn, emphasizes the need to complement these reforms with a robust mortgage market . “All of this requires a mortgage market; it needs to be complemented with a financing system so that people can buy property, and that would complete the cycle for the Argentine real estate market to function,” he explained. These measures aim to revitalize the “severely depressed real estate market.”
In short, “any sale of real estate by an individual would be tax-free ,” explains Litvin. “ It combines flow and stock in the same direction , because it benefits the real estate sector through the exemption of rent – the flow – and, on the other hand, the exemption of the tax on the purchase – the stock,” he emphasizes.
In contrast, Diego Cazes, general manager of LJ Ramos, believes that the proposed changes to rental regulations would lead to greater transparency in the market : “Most people don't declare their rental income today, so more would be declared, bringing order to the situation.” He also notes that this could even attract new investors because “even though the profitability of a rental apartment is good, paying income tax significantly reduces the potential of the business.”
Regarding the changes in buying and selling, Cazes believes that all these changes tend to help to formalize the economy, and that "new sellers and new landlords of properties would appear."
For his part, Guillermo Parera, CEO of D'Aria Propiedades, welcomes these changes: “ We believe they will greatly contribute to a simpler and smoother closing of transactions , especially in a context where we were already beginning to notice more stability and a more constructive mood in the market.”
Parera adds that any measure that eases the burden on owners, buyers, and investors is a positive step , because “it restores predictability and contributes to the reactivation of the sector. And, most importantly, it puts something key back into play: the possibility of some private savings returning to real estate.”
“In a market where every sign of relief translates into movement, these measures help the real estate sector to function again as it always has in Argentina: a safe haven and an engine of activity ,” he concludes.
www.buysellba.com
Source:
Cómo impactará en los precios si se exime de Ganancias la venta y el alquiler de inmuebles
Una de las reformas en las que se centró el Gobierno implica la exención total del Impuesto a las Ganancias tanto para la venta como para el alquiler de viviendas
www.lanacion.com.ar
December 15, 2025
One of the reforms the Government focused on involves a total exemption from Income Tax for both the sale and rental of homes
By Candela Contreras
The Government defines it as a strategy to "ease the tax burden for citizens"Daniel Basualdo
President Javier Milei signed the so-called Labor Modernization Law on Thursday , a lengthy 71-page bill with 26 sections that has already been submitted to Congress through the Senate , according to information obtained by LA NACION . This initiative would have a significant impact on the tax system, with a particular focus on the Argentine real estate market , in addition to modifications in the labor and union sectors.
One of the reforms focuses on the Income Tax for real estate transactions . The text proposes a total exemption from this tax for both the sale and rental of homes, effective January 1, 2026. This measure is part of a government strategy to " ease the tax burden for citizens " and eliminate levies considered to have " low revenue collection efficiency and high administrative costs ."
What would change in the real estate market?
The project aims to alleviate the tax burden and reduce the number of taxes that the State considers to have “low revenue collection efficiency and high administrative costs.” These are:- Income Tax Exemption for the Sale of Real Estate: As of January 1, 2026, the profit derived from the sale of real estate and the transfer of rights over that real estate would be excluded from taxation .
- Income Tax Exemption for Housing Rentals: As of January 1, 2026, income derived from renting properties for residential use will no longer result in taxable income under Income Tax.
The project seeks to alleviate the tax burdenFreepick
Sebastián Domínguez, an accountant and tax specialist, describes the changes as “ very positive for the real estate sector .” He explains that, while the Real Estate Transfer Tax (ITI) for properties acquired before 2018 was repealed last year (it was 1.5% and was eliminated with the Bases Law in July 2024), the 15% Capital Gains Tax remained for properties purchased on or after January 1, 2018. “That would be exempted, and consequently, the 15% would not be paid if someone sells a property purchased after that date,” Domínguez explains.
According to the specialist, this exemption, along with the one for rental income from residential properties, will create an “incentive to invest in real estate and to develop the construction industry .” Domínguez argued that if someone buys a property and then profits from its appreciation, they would not have to pay income tax. Likewise, if they rent it out, they would also not pay income tax on that income. “ This will help increase the supply of properties, which will give tenants greater access to rental options ,” he stated.
The tax expert also analyzes the potential long-term economic impact , noting that a "boom in real estate investment and a boom in rental housing" could generate significant competition that " could drive prices down ." While this would be "positive for tenants, because they have more options at lower prices," it could be " negative for investors because the return on investment might be low relative to the capital invested ." He indicates that market trends will determine how this dynamic unfolds.
Along these lines, César Litvin, CEO of Lisicki Litvin & Abelovich, agrees with Domínguez and adds that “this is a way to mobilize the dollars stashed under the mattress ,” because the money a person has saved “doesn't yield anything and loses value with US inflation.” But, if the law is passed, “they will be able to use the dollars under the mattress and buy real estate . ”
For his part, accountant and tax lawyer Roberto Murmis emphasized that the measures are “ an incentive to stimulate the real estate market, since the sale of properties would no longer be taxed.” Murmis described the sector as currently “very stagnant,” having “only recently begun to pick up, with low prices per square meter,” and considered that these exemptions would “revitalize” it .
Murmis, in turn, emphasizes the need to complement these reforms with a robust mortgage market . “All of this requires a mortgage market; it needs to be complemented with a financing system so that people can buy property, and that would complete the cycle for the Argentine real estate market to function,” he explained. These measures aim to revitalize the “severely depressed real estate market.”
In short, “any sale of real estate by an individual would be tax-free ,” explains Litvin. “ It combines flow and stock in the same direction , because it benefits the real estate sector through the exemption of rent – the flow – and, on the other hand, the exemption of the tax on the purchase – the stock,” he emphasizes.
What the industry is saying
According to Alan Flexer, branch manager of Narvaez in San Isidro: “While declaring rental income is legally required, in practice not many landlords choose to file this income tax return, so I don't think it will have a significant impact. However, it's positive that this tax is being eliminated.” But, regarding the sales market, there could be a notable change: “I think it will have a more favorable impact, so it's great news that continues to align with other positive developments in the sector.”In contrast, Diego Cazes, general manager of LJ Ramos, believes that the proposed changes to rental regulations would lead to greater transparency in the market : “Most people don't declare their rental income today, so more would be declared, bringing order to the situation.” He also notes that this could even attract new investors because “even though the profitability of a rental apartment is good, paying income tax significantly reduces the potential of the business.”
Regarding the changes in buying and selling, Cazes believes that all these changes tend to help to formalize the economy, and that "new sellers and new landlords of properties would appear."
For his part, Guillermo Parera, CEO of D'Aria Propiedades, welcomes these changes: “ We believe they will greatly contribute to a simpler and smoother closing of transactions , especially in a context where we were already beginning to notice more stability and a more constructive mood in the market.”
Parera adds that any measure that eases the burden on owners, buyers, and investors is a positive step , because “it restores predictability and contributes to the reactivation of the sector. And, most importantly, it puts something key back into play: the possibility of some private savings returning to real estate.”
“In a market where every sign of relief translates into movement, these measures help the real estate sector to function again as it always has in Argentina: a safe haven and an engine of activity ,” he concludes.
www.buysellba.com
