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CABA eliminated the Stamp Tax for acquiring the first home: how much buyers can save - Infobae
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CABA eliminó el Impuesto de Sellos para adquirir la primera vivienda: cuánto podrán ahorrar los compradores
Los compradores en Buenos Aires ya cuentan con un alivio fiscal por la exención de este gravamen, que aplica a propiedades de hasta $205.332.000. Expertos analizan las barreras legales para extender esta medida al resto del territorio
www.infobae.com
January 24, 2025
Buyers in Buenos Aires already have a tax relief due to the exemption of this tax, which applies to properties of up to $205,332,000. Experts analyze the legal barriers to extend this measure to the rest of the territory
By Jose Luis Cieri
The exemption in CABA applies to properties of up to $205,332,000, equivalent to approximately 166,000 dollars (Illustrative Image Infobae)
As reported by Infobae , since the beginning of the month, first-time home buyers in CABA have had tax relief thanks to the exemption from the Stamp Tax. This measure, detailed in laws 6,805 and 6,806 that modify the Buenos Aires Tax Code and Tariff Law, the exempt amount for single-family and permanently occupied housing increases from $56,270,730 to $205,332,000 (approximately USD 166,000 at the free dollar exchange rate ), representing a saving of up to 3.5% of the value of the property in operations that meet the exemption criteria.
However, the possibility of extending this measure to the entire country faces limitations due to differences in the tax legislation of each province , since the Stamp Tax is a local authority.
This means that each jurisdiction should decide independently whether to adopt a similar policy, depending on its fiscal priorities and budgetary needs.
According to Jorge De Bártolo , president of the College of Notaries of CABA, the measure is a positive step: “This exemption will be of great help to buyers, especially to the average public, who usually have tight numbers for the acquisition of a property.”
With these changes, the real estate market in Buenos Aires could be reactivated, especially in the middle and upper-middle segment, driven by mortgage loans . The biggest beneficiaries will be those who buy their first home or sell their only property to acquire another one under this benefit.
However, properties that exceed the established figure or buyers who already own other real estate in the city will continue to face the 3.5% rate . In these cases, the amount is divided between buyer and seller. For example, a deed valued at $300,000,000 will imply that each party pays 1.75%, which is equivalent to $5,250,000 or its equivalent in dollars.
CABA vs. other provinces: comparisons
According to tax specialist Florencia Fernández Sabella , partner at LFS Tax, this adjustment confirms an uneven tax collection trend among the provinces. “ Today, CABA maintains a rate of 3.5% for properties outside the exempt margin, which makes it one of the highest compared to other jurisdictions such as the province of Buenos Aires, where this rate is 2% ,” she highlighted.He also stressed that the Stamp Duty was originally intended to be more about access to justice, but that over time it was modified exclusively for revenue-raising purposes.
Josefina Pantano , president of the Real Estate Federation of the Argentine Republic (FIRA), said: “Among the provincial taxes, the stamp tax is one of the most widespread taxes, affecting multiple economic operations such as sales, rentals or pledge contracts.”
He also pointed out that it would be beneficial to establish common criteria to avoid disparities between provinces. According to Pantano, “ setting non-taxable minimums or offering specific exemptions to encourage strategic sectors would be a powerful tool to reactivate the national market.”
Challenges in implementation and regulations
Notaries, as withholding agents, will verify that only those who meet the requirements stipulated by law have access to the benefit, explained De Bártolo.Likewise, Alejandro Moretti , a member of the board of directors of the Buenos Aires Real Estate Association, suggested that it would be ideal for “the tax base to be regularly adjusted by the exchange rate , especially in a market like Argentina where real estate transactions are usually agreed upon in dollars.”
Notaries have the challenge of verifying compliance with the requirements to access the tax benefit (Illustrative Image Infobae)
In addition to avoiding paying the Stamp Duty , some experts propose that a review of other taxes linked to the purchase and sale of homes be promoted.
As Pantano mentioned, factors such as “the current income tax are burdensome for the real estate market, especially after the repeal of the Real Estate Transfer Tax (ITI) .”
This, together with the impact of VAT on commercial rents, “ could be revised to benefit small and medium-sized enterprises (SMEs) ”, which represent a large part of the national economic engine, added Pantano.
Market projections and a look to the future
Although the update of the Stamp Tax is a step forward, specialists believe that it is not enough to transform the sector. More extensive reforms, such as unifying tax criteria between provinces or eliminating cumulative taxes, would be necessary for sustained growth.Moretti said that, although limited, these changes are a step towards a “more favourable tax framework, capable of promoting family acquisitions and revitalising the market”.
Reducing taxes such as VAT on real estate services or the presumed minimum profit, which penalise investments in real estate, would also boost the sector.
According to Fernández Sabella, the Income Tax on property sales creates problems when the values are not updated . “Companies pay on outdated values, and their profitability is affected. In several cases, they have obtained favorable rulings that recognize this imbalance,” he concluded.
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