The elimination of the Stamp Tax for acquiring a first home in the City of Buenos Aires has had a positive impact on activating property sales by reducing costs for buyers. Since the beginning of the month, those interested in acquiring their first home in CABA benefit from the exemption of this tax, which has increased the exempt amount for single, family, and permanent occupancy housing from $56,270,730 to $205,332,000 (approximately US$ 166,000).
"This exemption will be a great help for buyers, especially for the middle class, who usually have tight numbers for a property acquisition," highlighted Jorge De Bártolo, president of the CABA Notary Association. It is estimated that this measure will represent savings of up to 3.5% of the property's value in transactions that meet the exemption criteria, which could strengthen the reactivation of the Buenos Aires real estate market, especially in the middle and upper-middle segments driven by mortgage loans.
However, the extension of this measure at the national level is limited by the differences in tax legislation in each province, as the Stamp Tax is a local jurisdiction. Each jurisdiction will have to decide independently whether to adopt a similar policy, which will depend on its fiscal priorities and budgetary needs. The Government has urged provinces to reduce taxes, but the response may vary depending on the case.
Notaries, as withholding agents, will be responsible for verifying that only those who meet the requirements established by law can access the benefit. Additionally, some experts propose reviewing other taxes related to the buying and selling of homes, such as income tax, with the aim of benefiting the real estate market, especially after the repeal of the Property Transfer Tax (ITI). Likewise, reviewing the impact of VAT on commercial rentals could be beneficial for small and medium-sized enterprises, they suggest.
