The Real Estate Sector in Argentina is on the brink of recovery, and real estate companies are calling on the government to provide additional support. The Argentine Real Estate Chamber (CIA) has formally requested that the purchase of used properties be exempt from the 5% rate outlined in the Law of Bases and Fiscal Package. The asset regularization regime exempts those declaring up to US$100,000 from fines, while larger amounts face progressive aliquots ranging from 5% to 15%.
The president of the CIA, Ivan Ginevra, explained that money laundering can be a potential boost for the struggling sector. He argued that specific destinations for money laundering should be exempt from taxes and urged that funds from the Asset Regularization Regime be allocated to investments in used properties. This could help reactivate the sector and provide much-needed growth.
Real estate agents also believe that money laundering could help reactivate the sector. Recent data showed a significant increase in property sales in May, and mortgage loans have also shown positive growth. With potential incentives like the allocation of funds from the Asset Regularization Regime to investments in used properties, the real estate market in Argentina could experience a much-needed revival.
In addition to addressing money laundering, real estate companies are also focusing on the return of mortgage credit to stimulate growth in the sector. With potential incentives like tax exemptions for property purchases, lower interest rates on mortgages and other financial products, real estate companies see a bright future for their industry.
