The elimination of the ITI applies to purchases made before 1/1/2018. There will be no retroactive application of the tax on individuals.
With the promulgation of the Bases Law and the fiscal package was eliminated Real Estate Transfer Tax, which established a 1.5% tax on the transfer of properties.
The Law of Bases and Starting Points for the Freedom of Argentines and the package of fiscal measures published in the Official Gazette by President Javier Milei declare a public emergency in administrative, economic, financial and energy matters for one year.
Through Decrees 592 and 593, the Executive Branch promulgated the law approved by Congress that delegated powers to the Executive Branch to carry out the reform in the State.
The elimination of the ITI for Natural Persons, Undivided Estates and people who carry out real estate transactions individually applies to acquisitions made before 1/1/2018, while properties acquired before that date will not pay any tax at the time of being sold.
The repeal of the ITI is of full and immediate application
He College of Notaries of the City of Buenos Aires issued a statement stating that “The Repeal of the ITI is of full and immediate application.”
“With the publication of Law 27,743 on “Palliative and Relevant Fiscal Measures” or “tax package” in the Official Gazette, Law 23,905, which regulated the Tax on the Transfer of Real Estate of Natural Persons and Undivided Estates, was repealed – effective as of 0 hours today, Monday, July 8, 2024,” the statement says, clarifying that “there is no retroactivity of the tax on personal property for individuals, since the reform at the end of 2017 so provided.”
Properties sold after January 1, 2018 will continue to pay the tax (15% of profits on the result of the sale less the updated cost).
The Basic Law includes the declaration of a public emergency, the reform of the State, the privatization of companies and corporations that are wholly or majority owned by the State, among other measures. It was published today in the Official Gazette, which already enables it to enter into force.
Source: Ambito
