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City lowers ABL and Gross Receipts to stimulate rental market

City lowers ABL and Gross Receipts to stimulate rental market

The head of Government, Horacio Rodríguez Larreta, presented the economic relief laws approved by the City, among which tax incentives for renting properties stand out, among others.

“Inflation forces us all the time to say no to the things we like. And that is not life. We don’t deserve it. For this reason, our greatest commitment in this context is to defend the pocket of Argentines, it is to bring them relief with concrete measures to take care of each peso and that they can use it for what is truly important, which is their quality of life”, remarked the Head of Government .

“Regarding rentals, today we have a problem that is that there is very little offer and that, also, if one finds an apartment, enter the month of deposit, the guarantee, the commissions, and all the expenses that come with the move The barrier to entry is very high. This forces many people to put their life projects on hold,” said the Head of Government, accompanied by the Minister of Government, Jorge Macri; the Minister of Finance and Treasury, Martín Mura; the Minister of Human Development and Habitat, María Migliore; the Minister of Economic Development and Production, José Luis Giusti; and the 1st Vice President of the Legislature, Emmanuel Ferrario.

The Legislature approved exemptions from Gross Income, Real Estate Tax and ABL, and the decrease in capital gains in strategic areas so that construction can begin where it is not currently being built, with the aim of expanding the supply of apartments.

“These projects, which were presented by the Juntos por el Cambio interblock through Diego García Vilas, Cecilia Ferrero, Gustavo Mola and Paola Michielotto, show us that teamwork is possible, even when within the same block there are representatives from different parties”, explained Rodríguez Larreta.

The Head of Government also explained that, as part of the package of economic relief measures promoted by the City, the Legislature approved “the amendment to the Tariff Law to eliminate 88 tax rates that cost between 1,000 and 115,000 pesos.” And he added: “Added to those that we had already eliminated in January, there are a total of 110 tax rates that no longer exist or that become free.”

Rodríguez Larreta pointed out that since the modification of the law “it is totally free to request a birth, marriage, adoption or death certificate, a certificate of coexistence or incorporation into social works” and affirmed that the measure “also benefits the sector private, because procedures such as authorizations for establishments, food handling courses for caterers, urban certificates for construction or the registration and cancellation of licenses for taxi drivers, remisionaires and transporters, are now also free”.

Incentives to rent properties

The Buenos Aires Legislature approved -with 36 positive votes and 21 negative- the Expanded Gross Income Tax Exemption for rental contracts. With the modifications, the exemption cap went from $75,000 to $220,000 and can now be applied to up to three properties.

It was also approved exemption from ABL and real estate tax to units rented for up to 36 months or the length of the contract. The benefit is for contracts registered with the City Housing Institute (IVC) that do not exceed $220,000 and are on properties with a fiscal value of up to $10 million.

In addition, it was approved -with 36 positive votes and 21 negative- the decrease in capital gains that must be paid by buildings in certain neighborhoods of the Citywith the aim of increasing the housing supply.

Finally, the Co-housing regime that allows exploring new forms of access to housing, where a community of people can live in a building without being the owners or tenants, became law -also with 36 positive votes and 21 negative votes. for a long period of time and at a price lower than the market price. The objective is to guarantee access to decent and accessible housing, maintain public ownership of the land and promote community management of properties.

These measures were approved as a result of projects promoted by Diego García Vilas, Cecilia Ferrero, Gustavo Mola and Paola Michielotto, members of the Together for Change block that works together with its 1st Vice President, Emmanuel Ferrario.

They add to the initiatives already launched by the City’s Ministry of Human Development and Habitat, through the IVC, to provide economic relief to tenants. Those programs are:

  • easier guarantee. 70% of the surety insurance is subsidized so that owners can use that insurance, which is much more reliable than an owner guarantee. The tenants, in this way, do not need the owner’s guarantee and can face the cost of the surety insurance.
  • rent easier. It is a simple credit to move. It allows to break the barrier for those who can pay a rent, but not the costs of entry.
  • easier repair. A program to finance vacant home renovations to increase supply. It allows owners to add value to their properties and rent them in better condition; and for tenants to enjoy (paying less) a house in good condition.

Source: Ambito

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