Law No. 27,802 (“Law”) expands the exemption framework under the Income Tax Law (LIG) for real estate transactions. Ambiguities regarding the eligible taxpayers may require clarification in forthcoming regulatory provisions.
Under Article 192, the Law replaces subsection (n) of Article 26 of the LIG, extending exemptions to operations involving properties intended as primary residences (“casa-habitación”).
For context, Article 83 of Decree 862/2019 defines “casa-habitación” as a property used as the unique, permanent family residence of the taxpayer.
Key Amendments
- Rental Income Exemption: Prior to the reform, only rental values and proceeds from the sale of primary residences were exempt. The Law now extends the exemption to rental income from properties used as primary residences for fiscal years beginning on or after January 1, 2026. These rents, however, are excluded from the 10% deduction under Article 85(k) of the LIG.
- Beneficiary Scope: Historically, exemptions applied only to individuals and undivided estates. The new wording, based on the “primary residence use” criterion, could extend to corporate entities renting properties as primary residences. Clarification will depend on upcoming regulations.
- Exemption for Property Transfers: The Law also exempts gains from the sale or transfer of rights over properties located in Argentina, effective for transactions occurring on or after January 1, 2026, as further detailed in future regulations. Previously, under Article 99 of the LIG, sales by individuals or undivided estates were subject to the 15% “cedular” tax.
- Foreign Taxpayers: It remains to be clarified whether the exemption applies to foreign taxpayers transferring Argentine properties, similar to the application of Decree 976/2018, which amended Article 258 of the LIG Regulatory Decree (as consolidated in 2019).
Conclusion
The operational scope and practical effect of these exemptions will ultimately depend on the regulations issued by the National Executive Power. For now, it is clear that the law broadens the reach of exemptions and is expected to act as an incentive for revitalizing the real estate market.