Real estate agents request inclusion of used properties as targets for money laundering.

After the approval of the Law of Bases and the fiscal package, real estate companies are asking the Executive Branch to incorporate into the regulation the possibility of money laundering funds being used to purchase used properties. The Argentine Real Estate Chamber (CIA) formally sent a note to President Javier Milei and Minister Luis Caputo requesting that the purchase of used properties be exempt from the 5% rate outlined in the legislation. The asset regularization regime exempts those declaring up to US$ 100,000 from fines, while larger amounts face progressive aliquots ranging from 5% to 15%.

The president of the Chamber, Ivan Ginevra, explained that the law allows for specific destinations of money laundering to be exempt from taxes, and leaves it to the Executive Branch to define additional exempt destinations such as the acquisition of participation certificates or debt securities of productive investment trusts. The CIA urged that funds from the Asset Regularization Regime be allocated to investments in used properties, exempting them from the established aliquot.

Real estate agents believe that money laundering, along with the return of mortgage credit, could help reactivate the struggling sector. Recent data showed a significant increase in property sales in May, and mortgage loans have also shown positive growth. The sector, which has been facing contraction and falling prices for years, sees money laundering as a potential boost for recovery.

In addition to addressing money laundering, real estate companies are also focusing on the return of mortgage credit to stimulate growth in the sector. With potential incentives like the allocation of funds from the Asset Regularization Regime to investments in used properties, the real estate market in Argentina could experience a much-needed revival.