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Rental income vs. fixed-term deposit: which investment yields more today - La Nacion Propiedades
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www.lanacion.com.ar
March 20, 2026
The reform is expected to have positive repercussions, such as an increase in net profit for landlords who rent out their properties.
By Manuela Viñales
The reform is expected to have positive repercussions, such as an increase in net profit for landlords who rent out their properties. Ricardo Pristupluk
The passage of the Labor Reform Law introduced changes that impacted the real estate market . Among them, it incorporated the exemption from Income Tax for income derived from rental properties and the Cedular Tax, which levied a 15% tax on profits obtained by individuals from the sale of real estate acquired since 2018.
With these measures, the Government seeks to " alleviate the tax burden for citizens " and eliminate levies considered to have " low collection efficiency and high administration costs ", in line with the official policy of tax reduction.
The Government seeks to "ease the tax burden for citizens" and eliminate levies considered to have "low revenue-generating efficiency".Daenin - Shutterstock
“The exemption on rent applies to everyone, whether it is someone who owns many properties and rents them out for housing purposes or someone who rents out only one for that purpose,” explains Sebastián Domínguez, head of the SDC Tax Advisors firm.
Under the new law, rentals are exempt from income tax, retroactive to January 1, 2026.Fabian Marelli
The report acknowledges that the reform increases the sector's profitability to encourage investment and job creation , in addition to the potential for a greater supply of rental properties due to improved profitability, and describes three cases:
The reform is expected to result in increased net profits for landlords who rent out their properties. Gentleness
While the third type of owner did not pay Income Tax, they did pay the national monotributo tax .
For example, a property valued at US$70,000, for which the owner receives $550,000 per month in rent, has a gross annual return of 6.46% . If the real estate commission is deducted from this percentage, the gross return is 5.8%.
However, this is not the final return; the impact of taxes had to be taken into account, so the net return was:
The difference in profitability between owner 1 and owner 2 was explained by the different income tax rates paid by each.
The third owner showed higher profitability because his tax burden was lower. He is a self-employed taxpayer and the only one of the three not subject to income tax.
In other words, the tax exemption improved the income obtained by self-employed owners (1 and 2), making the income of self-employed owners slightly higher than that of a monotributista (simplified tax regime taxpayer).
The income tax exemption is expected to result in higher profitability for self-employed business owners compared to those registered under the simplified tax regime. Ricardo Pristupluk
Another survey by Zonaprop clarifies that a property's location is key in determining the return on investment, detailing that the average annual gross return on a rental agreement for an apartment in Buenos Aires is 5.33%. "This means it takes 18.8 years of rent to recoup the investment, 2.3% less than required a year ago," explains Leandro Molina, director of the platform, but clarifies that this varies depending on the area.
The most attractive neighborhoods for investors seeking rental income are:
In contrast, the neighborhoods with the most expensive rents to buy are also the least profitable:
In the comparison, the IARAF study reveals that both returns, as before the enactment of the regulation, remain equal, but with a percentage that reaches 5.2%. However, if this exemption had been approved only for rentals but not for fixed-term deposits, the net annual return from rentals would be 5.2%, and that of fixed-term deposits would remain at 3.41%.
www.buysellba.com
Source:
Renta de alquiler vs. plazo fijo: qué inversión deja más hoy
Se espera que la reforma tenga repercusiones favorables, como un aumento de la ganancia neta para los propietarios que alquilan su vivienda
www.lanacion.com.ar
March 20, 2026
The reform is expected to have positive repercussions, such as an increase in net profit for landlords who rent out their properties.
By Manuela Viñales
The reform is expected to have positive repercussions, such as an increase in net profit for landlords who rent out their properties. Ricardo Pristupluk
The passage of the Labor Reform Law introduced changes that impacted the real estate market . Among them, it incorporated the exemption from Income Tax for income derived from rental properties and the Cedular Tax, which levied a 15% tax on profits obtained by individuals from the sale of real estate acquired since 2018.
With these measures, the Government seeks to " alleviate the tax burden for citizens " and eliminate levies considered to have " low collection efficiency and high administration costs ", in line with the official policy of tax reduction.
The Government seeks to "ease the tax burden for citizens" and eliminate levies considered to have "low revenue-generating efficiency".Daenin - Shutterstock
Rentals and the exemption
Regarding rental income from residential properties, which was previously subject to income tax, the tax exemption is retroactive and effective from January 1, 2026, for individuals. This also applies to legal entities for fiscal years beginning on or after that date.“The exemption on rent applies to everyone, whether it is someone who owns many properties and rents them out for housing purposes or someone who rents out only one for that purpose,” explains Sebastián Domínguez, head of the SDC Tax Advisors firm.
Under the new law, rentals are exempt from income tax, retroactive to January 1, 2026.Fabian Marelli
What impact does the law have on rentals?
This income tax exemption for owners of rented apartments will affect the profitability of a rental agreement. The Argentine Institute of Fiscal Analysis (IARAF) conducted a study on the potential increase in rental profitability with the tax exemption.The report acknowledges that the reform increases the sector's profitability to encourage investment and job creation , in addition to the potential for a greater supply of rental properties due to improved profitability, and describes three cases:
- Owner 1: Registered for Income Tax, and for the income from the rental he paid an effective rate of 13% before the enactment of the law .
- Owner 2: Registered for Income Tax with a marginal rate of 35% (has other income besides that generated by rentals).
- Owner 3: Has income solely from rentals and is a self-employed taxpayer.
The reform is expected to result in increased net profits for landlords who rent out their properties. Gentleness
What was the tax burden on a rental before the law?
Considering the three cases, before the approval of the regulation, owners 1 and 2 had to pay six taxes:- Municipal tax on the rental value
- Municipal tax on the value of the property
- Provincial Gross Income Tax on the value of the rental
- Provincial tax on the value of the property
- National Tax on Personal Assets
- National Income Tax
While the third type of owner did not pay Income Tax, they did pay the national monotributo tax .
For example, a property valued at US$70,000, for which the owner receives $550,000 per month in rent, has a gross annual return of 6.46% . If the real estate commission is deducted from this percentage, the gross return is 5.8%.
However, this is not the final return; the impact of taxes had to be taken into account, so the net return was:
- Owner 1: 4.47%
- Owner 2: 3.19%
- Owner 3: 5.17%
The difference in profitability between owner 1 and owner 2 was explained by the different income tax rates paid by each.
The third owner showed higher profitability because his tax burden was lower. He is a self-employed taxpayer and the only one of the three not subject to income tax.
How does profitability change with the approval of the exemption?
The change in profitability with the exemption from Income Tax means that the net income of the owners is practically the same between self-employed and those under the simplified tax regime, exceeding 5% ,” the report explains.In other words, the tax exemption improved the income obtained by self-employed owners (1 and 2), making the income of self-employed owners slightly higher than that of a monotributista (simplified tax regime taxpayer).
The income tax exemption is expected to result in higher profitability for self-employed business owners compared to those registered under the simplified tax regime. Ricardo Pristupluk
Another survey by Zonaprop clarifies that a property's location is key in determining the return on investment, detailing that the average annual gross return on a rental agreement for an apartment in Buenos Aires is 5.33%. "This means it takes 18.8 years of rent to recoup the investment, 2.3% less than required a year ago," explains Leandro Molina, director of the platform, but clarifies that this varies depending on the area.
The most attractive neighborhoods for investors seeking rental income are:
- Lugano: 9.6%
- Nueva Pompeya: 8%
- La Boca: 7.5%
In contrast, the neighborhoods with the most expensive rents to buy are also the least profitable:
- Puerto Madero: 3.5%
- Núñez: 4.2%
- Palermo: 4.3%
Is renting or a fixed-term deposit better?
A separate explanation is warranted for analyzing how the profitability of a real estate investment in a rental property compares to, for example, a fixed-term deposit, an option that was also impacted by the labor modernization bill with the exemption from Income Tax.In the comparison, the IARAF study reveals that both returns, as before the enactment of the regulation, remain equal, but with a percentage that reaches 5.2%. However, if this exemption had been approved only for rentals but not for fixed-term deposits, the net annual return from rentals would be 5.2%, and that of fixed-term deposits would remain at 3.41%.
www.buysellba.com
