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The changes in the labor reform project that affect the real estate market - La Nacion Propiedades
Source:
February 13, 2026
The Senate granted preliminary approval; it was passed by 42 votes in favor and 30 against.
By Manuela Viñales
The Senate gave preliminary approval to the labor reform bill, which includes modifications to the real estate market.Ricardo Pristupluk
Last Wednesday, the debate on the labor reform bill took place . The Senate granted it preliminary approval: it was passed by 42 votes in favor and 30 against. Therefore, to become law, the text still needs to be debated and voted on in the Chamber of Deputies .
In that context, doubts arise about the various modifications proposed by the official initiative , among which there will be changes that correspond to the real estate market .
Before the Labor Modernization Law entered the Senate, the bill proposed that the Ministry of Economy would be responsible for defining the effective date of the tax changes. Now, the effective date is no longer determined by the national entity. The changes will take effect upon publication of the law in the Official Gazette.
The reforms will take effect from January 1, 2026.
The sector is hoping the Chamber of Deputies will approve the legislation, as the biggest hurdle was its passage in the Senate. Once this happens, it will take effect immediately, on January 1st.
“So, the benefit would be retroactive ,” says tax expert Sebastián Domínguez, head of the firm SDC Asesores Tributarios.
Although its central focus is labor, article 188 incorporates two tax reforms related to the real estate market : the exemption from Income Tax for both those who have a property for rent intended as a residence (housing) and for individuals who sell a property .
Currently, the tax in force, and the one that the new proposal seeks to exempt, is the Cedular Tax that taxes with 15% the profit obtained in the sale of the property and in the transfer of rights over real estate on the one hand and the rental of properties for residential purposes on the other.
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.
With these measures, the Government seeks to alleviate the tax burden on citizens and eliminate levies considered to have low revenue-generating efficiency.
Among the positive repercussions is a significant increase in net profit for landlords who rent out their properties . This premise is supported by a report from the Argentine Institute of Fiscal Analysis, which investigates the increase in rental profitability if the tax exemption is approved. In numerical terms, they explain that a person currently taxed at a rate of 35% would see a 60% increase in profitability, and someone taxed at 13% would see a 17% increase.
A person who pays a tax rate of 35% will have a 60% increase in profitability.
The variation in the tax rate is explained by the scale: it is not a fixed percentage, but there is a progressive tax rate from 5% to 35% applied to the net profit and according to the amount.
In short, if the labor reform is approved in this way and the exemption on real estate investments takes effect, Domínguez explains, it “could be equated to the tax treatment of government bonds” with “zero taxes,” which would constitute a significant incentive for the sector. However, in the meantime, the wait is generating uncertainty that could dampen the market.
www.buysellba.com
Source:
February 13, 2026
The Senate granted preliminary approval; it was passed by 42 votes in favor and 30 against.
By Manuela Viñales
The Senate gave preliminary approval to the labor reform bill, which includes modifications to the real estate market.Ricardo Pristupluk
Last Wednesday, the debate on the labor reform bill took place . The Senate granted it preliminary approval: it was passed by 42 votes in favor and 30 against. Therefore, to become law, the text still needs to be debated and voted on in the Chamber of Deputies .
In that context, doubts arise about the various modifications proposed by the official initiative , among which there will be changes that correspond to the real estate market .
Before the Labor Modernization Law entered the Senate, the bill proposed that the Ministry of Economy would be responsible for defining the effective date of the tax changes. Now, the effective date is no longer determined by the national entity. The changes will take effect upon publication of the law in the Official Gazette.
The reforms will take effect from January 1, 2026.
The sector is hoping the Chamber of Deputies will approve the legislation, as the biggest hurdle was its passage in the Senate. Once this happens, it will take effect immediately, on January 1st.
“So, the benefit would be retroactive ,” says tax expert Sebastián Domínguez, head of the firm SDC Asesores Tributarios.
How has the journey been so far?
On December 11, 2025, President Javier Milei signed the Labor Modernization Law to be debated in the extraordinary sessions of Congress. The 71-page bill, comprising 191 articles, proposes reforms to the Employment Contract Law, including changes in labor and union regulations.Although its central focus is labor, article 188 incorporates two tax reforms related to the real estate market : the exemption from Income Tax for both those who have a property for rent intended as a residence (housing) and for individuals who sell a property .
These are the real estate renovations
What taxes were in effect at that time?
Until July 2024, a dual scheme applied to those who bought a property: the Real Estate Transfer Tax (ITI), for properties acquired before 2018, which has already been eliminated, and the Cedular Tax for those purchased after that date.Currently, the tax in force, and the one that the new proposal seeks to exempt, is the Cedular Tax that taxes with 15% the profit obtained in the sale of the property and in the transfer of rights over real estate on the one hand and the rental of properties for residential purposes on the other.
What would change with the new initiative?
This new initiative does not eliminate the tax but exempts it, which is why in the future another government could reinstate it by repealing the exemption.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.
With these measures, the Government seeks to alleviate the tax burden on citizens and eliminate levies considered to have low revenue-generating efficiency.
What effects could this have on the real estate market?
While tax reforms affecting the real estate market can have positive effects on the sector, the waiting time required for legislation to be processed ultimately delays the closing of sales transactions due to the uncertainty it generates. While the law's approval is delayed, there may be postponements or cancellations in real estate purchase and sale decisions , as many investors may want to wait for the law to take effect to benefit from the tax exemption. This would provide greater predictability regarding the profitability the property would generate for those who rent it. Furthermore, there are other benefits, such as exemption from income tax on sales and on rental income received by property owners.Among the positive repercussions is a significant increase in net profit for landlords who rent out their properties . This premise is supported by a report from the Argentine Institute of Fiscal Analysis, which investigates the increase in rental profitability if the tax exemption is approved. In numerical terms, they explain that a person currently taxed at a rate of 35% would see a 60% increase in profitability, and someone taxed at 13% would see a 17% increase.
A person who pays a tax rate of 35% will have a 60% increase in profitability.
The variation in the tax rate is explained by the scale: it is not a fixed percentage, but there is a progressive tax rate from 5% to 35% applied to the net profit and according to the amount.
In short, if the labor reform is approved in this way and the exemption on real estate investments takes effect, Domínguez explains, it “could be equated to the tax treatment of government bonds” with “zero taxes,” which would constitute a significant incentive for the sector. However, in the meantime, the wait is generating uncertainty that could dampen the market.
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