Argentina plans tax exemption on real estate sales and rental income
- Feb 25
- 3 min read
The Argentine government has unveiled a far-reaching tax reform proposal that could fundamentally change the real estate market. A current draft law proposes to completely exempt profits from the sale of residential properties, as well as rental income from residential properties, from income tax (Impuesto a las Ganancias) . The aim is to stimulate investment, expand the supply of rental housing, and direct more private savings into the real estate sector.
The planned regulations are scheduled to take effect on January 1, 2026 , and are part of a broader reform package that was presented to Congress as part of the so-called Ley de Modernización Laboral .
Table of contents
The goal of the reform: Lower taxes, more investments
The two key points of the planned tax reform
Departure from the previous tax system
Attractive incentives for investors and landlords
Impact on supply, prices and market transparency
Outlook: Legislative process and its significance for investors
The goal of the reform: Lower taxes, more investments
According to the government, the reform pursues two central goals:
the abolition of taxes with low fiscal efficiency and high administrative costs
the reactivation of a real estate market whose sharply increased transaction volume is still below historical averages
The real estate sector is considered one of the biggest beneficiaries of the planned changes.
The two key points of the planned tax reform
The draft law provides for the following changes in particular:
Tax exemption on the sale of real estate
From January 1, 2026, profits from the sale of real estate will be completely exempt from income tax – regardless of when the property was acquired.
Tax exemption for rental income from residential properties
Income from renting out residential properties (casa habitación) will also be tax-free in the future. This exemption applies exclusively to income from residential leases, not to income from commercial rentals, including Airbnb and similar platforms.
Both regulations are intended to apply retroactively from the beginning of 2026, subject to their adoption.
Departure from the previous tax system
Until July 2024, Argentina had a two-tiered system for real estate sales:
Property Transfer Tax (Impuesto a la Transferencia de Inmuebles - ITI) : 1.5% tax on the purchase price for properties acquired before January 1, 2018
Speculation tax : 15% tax on the capital gain on real estate purchased from 2018 onwards.
With the 2024 tax reform (Law No. 27.743), the ITI (Income Tax on Capital Gains) was abolished and sales were made tax-free. However, the 15% speculation tax remained in place.
The new reform would also completely abolish these taxes on real estate sales , thus creating a tax-free sales regime for all natural persons .
Attractive incentives for investors and landlords
The combination of sales and rental tax exemptions potentially creates a strong investment incentive:
Rental income is tax-free
Capital gains upon sale are tax-free
In many cases, there is no wealth tax , provided certain tax-free allowances are not exceeded.
additional regional tax relief (e.g., on VAT on rents)
An investor could thus acquire a residential property, generate ongoing income and later sell the property – without income tax burden at either level .
A key objective of the reform is to expand the rental market . The tax exemption could lead to:
Previously unrented properties are coming onto the market
informal tenancy arrangements are to be legalized
New investors create additional residential units
Real estate as protection against inflation and capital loss
The reform could help mobilize savings . While cash loses real value due to inflation, real estate in Argentina has traditionally been considered a long-term hedge against inflation.
Another positive effect: The abolition of the speculation tax eliminates tax distortions that previously arose during currency devaluations, when nominal profits in pesos led to real losses in US dollars.
Outlook: Legislative process and its significance for investors
The bill is currently being discussed in the relevant congressional committees. Depending on the political timeline, passage is expected in early 2026. Even if passed later, the regulation is intended to apply retroactively.
For the real estate market, the project represents a clear political signal in favor of investors, owners and project developers .
Summary: The most important points of the reform at a glance
• Full tax exemption on profits from real estate sales
Tax exemption for rental income from residential properties
Valid from 1 January 2026 (with possible retroactive effect)
Strong incentives for investment, new construction and leasing
