March 23, 2021
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 March 12, 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 (March 12, 2021).
The incentives include the following:
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 March 12, 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:
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.