Money laundering funds could be used to purchase used properties in Argentina, according to a request made by real estate companies. The Argentine Real Estate Chamber (CIA) sent a formal note to President Javier Milei and Minister Luis Caputo, asking for the purchase of used properties to 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%. However, the president of the Chamber, Ivan Ginevra, explained that money laundering allows for specific destinations of funds to be exempt from taxes. He 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 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 has been facing contraction and falling prices for years and 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.
