New Rental Laws Approved by the House/Diputados

[steveinbsas]

I believe it may also lay the ground down the line for an additional amendment. One proposing a tax to owners which choose to keep their rental units empty.

That would mean taxing someone for not making money...a tax on "ünreceived" rents???

If they could do that, perhaps they could also charge hotels a nightly tax on unrented rooms.

Perhaps the gov could levy a special tax on any apartments or houses that are not owner occupied, whether they are rented or not.

Another approach might be to grant a reduction of the existing property taxes for houses and apartments that are owner occupied or rented.

PS: Not renting out an apartment is not always a choice. I know this from experience.

 

[perry]

It seems to me that the spirit of this possible law is to encourage the sale of rentals, which will flood the market with properties for sale, and thus reduce prices. Why? Why would anyone want to buy an apartment and rent it out under these conditions? And if you own one, and rent it out, this proposed law will dramatically reduce the profitability of the rental.

With the current and expected inflation, being allowed to raise rents after one year is a sure way to lose money. Being forced to keep a tenant from hell for three years is a sure way to ruin your health and property. And being forced to record the contract, and thus make an owner pay the taxes on the rental income, surely removes another great incentive to own rental properties.

In sum, this law may create an overabundance of properties for sale and a resulting drop in sale prices. Good news for potential new buyers, terrible news for current owners.

I believe anyone keeping a rental property now in Buenos Aires is madness . With the terrible real estate market, falling prices, and very restrictive laws for rental what incentive does one have to lock up over 200 thousand dollars here ? There are so many better investments to make in the world that are liquid and without all this crazy bullshit

 

[gracielle]

That would mean taxing someone for not making money...a tax on "ünreceived" rents???

If they could do that, perhaps they could also charge hotels a nightly tax on unrented rooms.

Perhaps the gov could levy a special tax on any apartments or houses that are not owner occupied, whether they are rented or not.

Another approach might be to grant a reduction of the existing property taxes for houses and apartments that are owner occupied or rented.

PS: Not renting out an apartment is not always a choice. I know this from experience.

18 June 2018
HOUSING....To encourage rent, they propose to create a tax on empty apartments It is the particular initiative of a group of tenants.....

Para fomentar el alquiler, proponen crear un impuesto a los departamentos vacíos

Es la particular iniciativa de una agrupación de inquilinos. Otros representantes del sector pedirán que los certificados que se exigen para firmar el contrato sean gratuitos. Y que la garantía pueda ser un préstamo bancario.

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....According to the initiative, the tax on idle housing would be applied to those properties that are not inhabited, that are not destined for temporary rentals for tourists and that are in habitable conditions. "The idle home is checked through the services for the level of consumption. When it is shown that the property is not in use, a tax is applied that increases its value month by month," said Gervasio Muñoz, organization that drives the proposal. The money obtained from that tax would be used for the construction of public housing for rent, and not for sale as is the case with current plans. It is not the first time that a similar initiative has been proposed. In fact, the legislator Roy Cortina, of Socialist Party presented months ago a project in that regard. And last year, when the reform of the rental law was raised, this possibility was also mentioned...... Etc, etc.

 

[steveinbsas]

....According to the initiative, the tax on idle housing would be applied to those properties that are not inhabited, that are not destined for temporary rentals for tourists and that are in habitable conditions. "The idle home is checked through the services for the level of consumption. When it is shown that the property is not in use, a tax is applied that increases its value month by month," said Gervasio Muñoz, organization that drives the proposal. The money obtained from that tax would be used for the construction of public housing for rent, and not for sale as is the case with current plans. It is not the first time that a similar initiative has been proposed. In fact, the legislator Roy Cortina, of Socialist Party presented months ago a project in that regard. And last year, when the reform of the rental law was raised, this possibility was also mentioned...... Etc, etc.

Well, if "the idle home is checked through the services for the level of consumption. When it is shown that the property is not in use, a tax is applied that increases its value month by month," the sales of timers to use just the right amount of services per month to create the appearance that the home is not idle are going to skyrocket...

...at least until they start the tribunals for those who have been charged with cheating the People's Republic of Argentina..

 

[gracielle]

Well, if "the idle home is checked through the services for the level of consumption. When it is shown that the property is not in use, a tax is applied that increases its value month by month," the sales of timers to use just the right amount of services per month to create the appearance that the home is not idle are going to skyrocket...

...at least until they start the tribunals for those who have been charged with cheating the People's Republic of Argentina..

Touche! Timers work for electricity. But what about gas and water consumption?

 

[Rich One]

Well, if "the idle home is checked through the services for the level of consumption. When it is shown that the property is not in use, a tax is applied that increases its value month by month," the sales of timers to use just the right amount of services per month to create the appearance that the home is not idle are going to skyrocket...

...at least until they start the tribunals for those who have been charged with cheating the People's Republic of Argentina..

Already this criteria of utilities level is used to tax you when you sell a property ,( "the idle home is checked through the services for the level of consumption). It's presumed rented , if utilities are above "empty" status..?

 

[steveinbsas]

Already this criteria of utilities level is used to tax you when you sell a property ,( "the idle home is checked through the services for the level of consumption). It's presumed rented , if utilities are above "empty" status..?

As far as I know, and based n my personal experience, that only applies to EXTRANJEROS without a DNI.

I've sold two properties in Capital Federal with my DNI and paid no taxes based on "assumed rents" (which is based on how much time the foreign owner has spent in Argentina compared to the level of utility consumption while they are not in the country.

Foreign owners who either declare and pay taxes on rental income consistent with the utility use when they are ut of Argentina are not taxed extra when they sell, but their declarations and utility history for the entire time they have owned the property is subject to close scrutiny by AFIP prior receiving permission to sell.

 

[steveinbsas]

Touche! Timers work for electricity. But what about gas and water consumption?

Ever had a leaky faucet or a toilet that kept running?

Gas water heaters and a stove burner can be left on indefinitely.

 

[steveinbsas]

Foreign owners who either declare and pay taxes on rental income consistent with the utility use when they are ut of Argentina are not taxed extra when they sell, but their declarations and utility history for the entire time they have owned the property is subject to close scrutiny by AFIP prior receiving permission to sell.

This sentence should read as:

Foreign owners who either declare and pay taxes on rental income consistent with the utility use when they are out of Argentina, or who's utility bills drop to near zero when they are, are not taxed extra when they sell, but their declarations and utility history for the entire time they have owned the property is subject to close scrutiny by AFIP prior receiving permission to sell.

 

[Rich One]

A few couple good considerations in the proposed New Rental Law approved by Diputados. One can cancel a 3 year Rental Agreement with 30 day notice, no Penalty. The Landlord must return the 1 month deposit , actualized equal to the last rental monthly payment..! (if he believes everything is OK!)
I rented for 15 years at the end received the original deposit $500 pesos..!