New capital gains tax on property in Argentina

[Pensador]

LOL yeah you could sell for a loss and have to pay taxes for it. Great idea!

 

[earlyretirement]

My accountant said it's not a sure thing yet. And it doesn't apply to properties purchased before January 1, 2018 so if you purchased a property prior they seem to be exempt. The tough thing is most sellers ask you to declare a lower price so if you do that now you would get killed. The government is obviously trying to get people to declare true prices instead of false lower prices which happens many times.

They are talking about a 15% capital gains tax on any gains you have on the property when you sell it. And it is set to start some time in 2019 but again only on properties purchased after January 1, 2018.

 

[perry]

This is another punitive law by the current government that calls itself rightwing. These laws will just put another nail in the coffin for the struggling real estate market. What is grossly unfair is that impuesto de sellos will still be imposed on the deed price as well as this impunitive tax. Also to claim deductions you will need facturas for everything and it will not as liberal as the usa. This is terrible news for property owners

 

[PoorSoul]

This definitely will lower real estate prices. I would have considered buying in buenos aires, but now with this tax I will reconsider. Especially, as Perry pointed out, the increasing micromanagement by the government in things like requiring barcoded invoices to keep paper trails.

Lucky for people who bought houses before January 1. On the other hand, they will likely lose more than 15% of their gain as a result of property price declines due to this law. So, they really will end up paying the tax too one way or another. I feel bad for anyone who bought in the last 6 months.

In a way this law may be meant to de-incentivize real estate. What better way to convince people to buy the gov bonds than to make every other asset class unattractive.

 

[PaulBee]

This definitely will lower real estate prices. I would have considered buying in buenos aires, but now with this tax I will reconsider. Especially, as Perry pointed out, the increasing micromanagement by the government in things like requiring barcoded invoices to keep paper trails.

Lucky for people who bought houses before January 1. On the other hand, they will likely lose more than 15% of their gain as a result of property price declines due to this law. So, they really will end up paying the tax too one way or another. I feel bad for anyone who bought in the last 6 months.

In a way this law may be meant to de-incentivize real estate. What better way to convince people to buy the gov bonds than to make every other asset class unattractive.

I am guessing many people would move their money offshore before buying government bonds. It will be a shame if the government does anything to harm the real estate market, as it creates so much spin off economic activity.

 

[earlyretirement]

I definitely HATE any taxes but I think the government's mail goal is to encourage people not to use false and fake lower prices like many do now. They have been trying to force owners to use the true prices for many years but haven't been able to eliminate this. They made owners get a COTI permit to sell and tried to "police" owners into using real prices but most people I know have used false lower prices because the sellers have made that conditional on selling.

I'd think this would put an end to that as people won't want to list false lower prices. But most likely somehow people will still figure out a way to get out of paying these capital gains taxes. If one thing I have to say Argentines are experts at it's evading taxes. They are experts and probably one of the best in the world at it.

 

[Ceviche]

They are experts and probably one of the best in the world at evading taxes.

Can you please enlighten us, enumerating some of the methods used by them, which makes them the best in the business.

 

[sergio]

Seems the government are copying all the bad aspects of the US and none of the good. Pay more and higher taxes an what do you get? Certainly not reliable and competent police or good public schools.

 

[perry]

Seems the government are copying all the bad aspects of the US and none of the good. Pay more and higher taxes an what do you get? Certainly not reliable and competent police or good public schools.

The Imf is behind this and there will be more pain to come . Greece has been in a recession now for nearly 10 years and most people live in misery with the lowest wages of Europe . The Imf forced Greece to impose very draconian policies on their people now they have their eyes on the Argentinians .

 

[Somewhereinba]

The Imf is behind this and there will be more pain to come . Greece has been in a recession now for nearly 10 years and most people live in misery with the lowest wages of Europe . The Imf forced Greece to impose very draconian policies on their people now they have their eyes on the Argentinians .

Whats the other solution? Continue to accumulate more debt on the citizens behalf and ignore it until it goes away? This country has been run like a shit show for decades and now things are being implemented that are required to try and establish some form of stability. It will be very painful in the beginning but long term it is required if the country is to ever develop and move forward sustainably. I feel for all Argentines who have to deal with this but they should look at the previous Goverments who have mismanaged the economy for too long.