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Rent: What annual income requires owners to pay income tax? - La Nacion Propiedades
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April 06, 2025
Income tax affects some owners who rent out their properties. Here are the keys to determining whether they are eligible to pay taxes and what deductions they can apply.
Rental income may be subject to income tax, but not all landlords are required to pay it.FreePik
When renting a property, owners must not only define the price and terms of the contract, but also consider the tax impact. In Argentina, rental income is subject to income tax , but not all owners are required to pay it. The tax only applies if the annual net profit exceeds a specific threshold, which for this year is $3,916,268.37 . However, this amount will be updated in the second half of the year.
Tax expert Sebastián Domínguez explained to LA NACION that, to calculate whether a landlord is taxed, it's not enough to consider the gross rental income; it's also necessary to subtract deductible expenses, such as real estate commission, taxes, and maintenance . He also clarified that self-employed individuals do not pay income tax on rental income.
"If you simplify it to the extreme, you would take the annual income without deductions and only deduct the taxable income. But that's not the case, because there are a number of expenses that can be deducted, in addition to considering other income the owner may have," he explained. In this regard, he emphasized that if a person has no dependents or other deductible expenses, the adjusted minimum deduction for the second half of the year would be approximately $3,096,000 annually.
Owners can deduct certain expenses, such as real estate commissions and taxes, to reduce the amount subject to Income Tax.
At the end of October 2024, President Javier Milei dissolved the AFIP and replaced it with the Customs Collection and Control Agency (ARCA) . This new entity maintains the 10% deductions for owners and up to 40% for tenants, provided that payments are supported by documentation.
Domínguez explained that Income Tax is calculated by considering several factors, such as rental income, deductible expenses (such as property depreciation and rental-related expenses), and general deductions (such as prepaid medical care and housekeeping). "If rental income is your only source of income and you have no deductions or dependents, the calculation is made by subtracting the aforementioned non-taxable income," he added.
Retirees who rent properties must declare their income as Income Tax if it exceeds the non-taxable minimum.Archive
Regarding investment income, he emphasized that interest on fixed-term deposits in pesos and government bonds are exempt , but other investments abroad may be taxed at progressive rates ranging from 5% to 35%.
Regarding the non-taxable minimum, Domínguez explained that it is updated semiannually based on inflation, as measured by the Consumer Price Index (CPI). "The projection will depend on inflation trends in the first half of the year," he noted.
Requirements for the deduction
To access this benefit, tenants must meet certain requirements, such as not owning a property and having supporting documentation. Additionally, they can verify that the owner is registered with ARCA and provide them with the corresponding receipts.How to report rental information
Retirees and employees
They must report the rental information through the tax code service SiRADIG-Trabajador and attach, for the first time, the contract in PDF format, clarifying the years covered. They must also upload payment receipts for all months. Those who do not have this service enabled can register it through the Tax Code Relationship Manager.Self-employed
Self-employed individuals must report rent on their Income Tax Return through the Personal Income and Personal Property application .www.buysellba.com
