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The Government eliminated the COTI and relaxed controls on buying and selling properties - La Nacion Propiedades
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www.lanacion.com.ar
May 26, 2025
This measure comes into effect after Thursday's announcements to remove dollars "from under the mattress."
By Candela Contreras
It will no longer be mandatory to process the COTI to sell a property. Shutterstock
Starting this Friday, the Real Estate Transfer Offer Code (COTI) will no longer be mandatory to sell a property in Argentina. The measure was formalized with the publication in the Official Gazette of General Resolution 5697/2025 , issued by the new Customs Collection and Control Agency (ARCA), the agency that replaced the AFIP (Federal Administration of Public Administrations).
The regulations eliminate the requirement that required prior notification to the tax authorities of any real estate transaction valued at more than $66,833,000 . The certificate was an essential requirement for proceeding with the public deed. From now on, it will no longer be necessary to process it.
The resolution also repeals the complementary resolutions that regulated the COTI (2371, 2415, 2439, 2506 and 3101), in line with the deregulation policy promoted by the national government through DNU 70/2023 and Decree 353/2025.
"This means that processing the COTI (Tax Identification Number) is no longer mandatory for real estate purchase and sale transactions, regardless of the property's value," explained Fabián Narvaez, president of the Narvaez development company.
The initiative seeks to encourage the use of undeclared dollars— the so-called "cushion" —through a series of measures that, in practice, function as a "pseudo money laundering," according to tax expert Sebastián M. Domínguez.
"Whoever listed a property for sale, if it exceeded the COTI value—which is most cases—had to inform ARCA. Then, the notary public had to report the transaction with the final amount. All of that disappears with this resolution," the expert explains.
The elimination of the COTI is one of the key elements of the Plan to Repair the Historical Savings of Argentines. Shutterstock
These measures, according to industry operators, could reactivate operations that until now have been held back due to fears of tax exposure or administrative obstacles.
In other words, the notary may stop informing ARCA , but must continue to require documentation proving the origin of the money—such as sworn statements of income, personal property, or accounting certifications— to comply with anti-money laundering regulations .
The real estate sector welcomes deregulation, although it warns of the risk of confusion: "Many believe that there's no longer a need to justify anything, but that's not the case. The UIF's controls continue and are stringent," warns a source from the Notaries Association.
With the real estate market expected to further boost access to mortgage loans, and with the hope that these measures will generate more funds in banks, the government is seeking to generate incentives for informal dollars to be transferred into real estate. The question remains whether these measures will bring genuine dynamism to the sector or simply pave the way for greater informality.
www.buysellba.com
Source:
El Gobierno eliminó el COTI y flexibiliza los controles para comprar y vender propiedades
Esta medida entra en vigencia luego de los anuncios de este jueves para sacar los dólares “bajo el colchón”
www.lanacion.com.ar
May 26, 2025
This measure comes into effect after Thursday's announcements to remove dollars "from under the mattress."
By Candela Contreras
It will no longer be mandatory to process the COTI to sell a property. Shutterstock
Starting this Friday, the Real Estate Transfer Offer Code (COTI) will no longer be mandatory to sell a property in Argentina. The measure was formalized with the publication in the Official Gazette of General Resolution 5697/2025 , issued by the new Customs Collection and Control Agency (ARCA), the agency that replaced the AFIP (Federal Administration of Public Administrations).
The regulations eliminate the requirement that required prior notification to the tax authorities of any real estate transaction valued at more than $66,833,000 . The certificate was an essential requirement for proceeding with the public deed. From now on, it will no longer be necessary to process it.
The resolution also repeals the complementary resolutions that regulated the COTI (2371, 2415, 2439, 2506 and 3101), in line with the deregulation policy promoted by the national government through DNU 70/2023 and Decree 353/2025.
What changes
Previously, anyone offering a property for sale had to go to the AFIP website, enter their information, and obtain a code that certified the transaction. Without it, the deed could not be signed. With the new regulation, this procedure no longer exists. According to ARCA, there are now sufficient technological tools to monitor these transactions without relying on prior taxpayer declarations."This means that processing the COTI (Tax Identification Number) is no longer mandatory for real estate purchase and sale transactions, regardless of the property's value," explained Fabián Narvaez, president of the Narvaez development company.
The plan behind the change
The elimination of the COTI is one of the key elements of the Plan for the Historic Repair of Argentine Savings , presented by presidential spokesman Manuel Adorni, along with the Minister of Economy, Luis Caputo, the head of ARCA, and the head of the Central Bank.The initiative seeks to encourage the use of undeclared dollars— the so-called "cushion" —through a series of measures that, in practice, function as a "pseudo money laundering," according to tax expert Sebastián M. Domínguez.
"Whoever listed a property for sale, if it exceeded the COTI value—which is most cases—had to inform ARCA. Then, the notary public had to report the transaction with the final amount. All of that disappears with this resolution," the expert explains.
The elimination of the COTI is one of the key elements of the Plan to Repair the Historical Savings of Argentines. Shutterstock
The three points that impact the market
In addition to eliminating the COTI, the government's announcements include other measures that loosen controls on the real estate sector:- Notaries should no longer report any notarial activity.
- Expense payments, even if they exceed $32,000 per month, will no longer be subject to mandatory tax reporting.
These measures, according to industry operators, could reactivate operations that until now have been held back due to fears of tax exposure or administrative obstacles.
Is there any relaxation in controls?
Although the new regulations eliminate the obligation to report transactions to ARCA, the control of the source of funds remains in place . "The decree expressly clarifies that this does not mean notaries should relax their controls. They remain subject to the UIF ," Domínguez emphasized.In other words, the notary may stop informing ARCA , but must continue to require documentation proving the origin of the money—such as sworn statements of income, personal property, or accounting certifications— to comply with anti-money laundering regulations .
What's coming
The presidential spokesman summed up the new system's philosophy with a controversial phrase: " Argentines are once again innocent until ARCA proves otherwise. Your dollars, your decision ." The Executive promises to respect the principle of innocence and not penalize the holding of undeclared savings unless proven otherwise.The real estate sector welcomes deregulation, although it warns of the risk of confusion: "Many believe that there's no longer a need to justify anything, but that's not the case. The UIF's controls continue and are stringent," warns a source from the Notaries Association.
With the real estate market expected to further boost access to mortgage loans, and with the hope that these measures will generate more funds in banks, the government is seeking to generate incentives for informal dollars to be transferred into real estate. The question remains whether these measures will bring genuine dynamism to the sector or simply pave the way for greater informality.
www.buysellba.com
