Sign up for tax alert emails    GTNU homepage    Tax newsroom    Email document    Print document    Download document

March 23, 2021
2021-5334

Argentina enacts tax incentives and voluntary disclosure program to promote construction and access to housing

The new law has tax incentives for investments in real estate development projects and allows taxpayers to voluntarily declare funds in local or foreign currency that were previously undeclared.

On 12 March 2021, Argentina enacted Law 27,613, which establishes a promotional regime for construction. The regime includes two different incentives: tax incentives for construction and a voluntary disclosure program for local and foreign currency to be invested in the development of real estate projects in Argentina.

Tax incentives for real estate investors

The law establishes tax incentives to promote investment in real estate projects in the territory of Argentina that are initiated after the date of enactment (12 March 2021).

The incentives include the following:

  • Investments in real estate projects until 31 December 2022 are exempt from the personal assets tax for two tax years after the investment is effective.
  • One percent of the value of investments in real estate projects may be credited against the individual’s personal assets tax.
  • Owners that transfer real estate from 12 March 2021 to 31 December 2022 to corporations that develop projects covered by this regime will be able to defer the federal tax payment on the transfer.

Voluntary disclosure program for local and foreign currency to be invested in real estate projects

Individuals and corporations residing in Argentina may voluntarily declare before the federal tax authorities, the holding of foreign and/or local currency in Argentina and abroad, within 120 calendar days from 12 March 2021.

Individuals and corporations may temporarily use the declared funds to purchase domestic government bonds and invest in the development of real estate projects in Argentina.

  • The law imposes a special tax on the value of the declared holdings, according to the following rates:
  • 5% for funds deposited from 12 March 2021 to 60 calendar days from that date
  • 10% for funds deposited from the day after the 60-calendar-day period ends to the end of another 30 calendar days
  • 20% for funds deposited from the day following the expiration of the 30-calendar-day period above to the end of another 30-calendar-day period

Individuals and corporations that apply for this program will be exempt from the imposition of any omitted taxes and fines that may have applied to the declared funds.

_________________________________________

For additional information with respect to this Alert, please contact the following:

Pistrelli, Henry Martin & Asociados S.R.L., Buenos Aires

Ernst & Young LLP (United States), Latin American Business Center, New York

Ernst & Young Abogados, Latin American Business Center, Madrid

Ernst & Young LLP (United Kingdom), Latin American Business Center, London

Ernst & Young Tax Co., Latin American Business Center, Japan & Asia Pacific

 
 

The information contained herein is general in nature and is not intended, and should not be construed, as legal, accounting or tax advice or opinion provided by Ernst & Young LLP to the reader. The reader also is cautioned that this material may not be applicable to, or suitable for, the reader's specific circumstances or needs, and may require consideration of non-tax and other tax factors if any action is to be contemplated. The reader should contact his or her Ernst & Young LLP or other tax professional prior to taking any action based upon this information. Ernst & Young LLP assumes no obligation to inform the reader of any changes in tax laws or other factors that could affect the information contained herein.

 

Copyright © 2024, Ernst & Young LLP.

 

All rights reserved. No part of this document may be reproduced, retransmitted or otherwise redistributed in any form or by any means, electronic or mechanical, including by photocopying, facsimile transmission, recording, rekeying, or using any information storage and retrieval system, without written permission from Ernst & Young LLP.

 

Any U.S. tax advice contained herein was not intended or written to be used, and cannot be used, by the recipient for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code or applicable state or local tax law provisions.

 

"EY" refers to the global organisation, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients.

 

Privacy  |  Cookies  |  BCR  |  Legal  |  Global Code of Conduct Opt out of all email from EY Global Limited.

 


Cookie Settings

This site uses cookies to provide you with a personalized browsing experience and allows us to understand more about you. More information on the cookies we use can be found here. By clicking 'Yes, I accept' you agree and consent to our use of cookies. More information on what these cookies are and how we use them, including how you can manage them, is outlined in our Privacy Notice. Please note that your decision to decline the use of cookies is limited to this site only, and not in relation to other EY sites or ey.com. Please refer to the privacy notice/policy on these sites for more information.


Yes, I accept         Find out more