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Argentina imposes a 15% capital gains tax on residential property sales for properties acquired after January 1, 2018.
Both residents and non-residents face this rate, though withholding mechanisms differ. Properties purchased before 2018 may qualify for a lower 1.5% transfer tax instead. Understanding these tax implications is crucial for property investors planning their exit strategy in Argentina's real estate market.
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Argentina applies a 15% capital gains tax rate on residential property sales for properties acquired on or after January 1, 2018, with both residents and non-residents subject to the same rate.
Properties purchased before January 1, 2018 may instead be subject to a 1.5% transfer tax, and primary residences can qualify for exemptions under specific conditions.
| Tax Aspect | Rate/Details | Conditions |
|---|---|---|
| Standard Capital Gains Tax | 15% | Properties acquired on/after Jan 1, 2018 |
| Pre-2018 Properties | 1.5% transfer tax | Properties purchased before Jan 1, 2018 |
| Non-resident Withholding | 13.5% on gross proceeds | When costs cannot be documented |
| Primary Residence Exemption | 0% (potential exemption) | Must meet qualifying criteria |
| Foreign Companies | 17.5% on gross price | In certain circumstances |
| Payment Deadline | Annual tax filing | Same fiscal year as sale |
| Minimum Ownership Period | None required | Based on acquisition date only |
What is the current capital gains tax rate on residential property sales in Argentina?
The current capital gains tax rate on residential property sales in Argentina is 15% for properties acquired on or after January 1, 2018.
This flat rate applies to the actual capital gain calculated as the difference between the sale price and the adjusted purchase price. Properties purchased before January 1, 2018 are subject to different tax treatment, potentially qualifying for a lower 1.5% transfer tax instead of the capital gains tax.
As of September 2025, this 15% rate remains the standard for most residential property transactions in the Argentine market. The tax applies to apartments, houses, and other residential real estate excluding commercial or industrial properties.
The rate is calculated on the net gain after allowable deductions, not on the gross sale price, making proper documentation of purchase costs and improvements crucial for tax optimization.
Are the tax rates different for residents and non-residents who sell property in Argentina?
Both Argentine residents and non-residents face the same 15% capital gains tax rate on residential property sales.
However, the practical application differs significantly between the two groups. Non-residents typically have tax withheld at source through a 13.5% withholding tax on gross proceeds when actual costs cannot be properly documented. Argentine residents file and pay the tax through their annual income tax return.
Foreign sellers can choose between taxation on gross presumed income or actual capital gain if they can substantiate all deductible costs with proper documentation. This choice can significantly impact the final tax burden.
Non-resident companies may face a higher rate of 17.5% on the gross selling price under certain circumstances, making the legal structure of ownership an important consideration for foreign investors.
What is the minimum ownership period before capital gains tax applies on a property sale in Argentina?
There is no minimum ownership period required before capital gains tax applies to property sales in Argentina.
The key determining factor is the property acquisition date rather than how long you've owned it. Properties acquired on or after January 1, 2018 are subject to the 15% capital gains tax regardless of whether you sell after one month or ten years of ownership.
Properties purchased before January 1, 2018 fall under the previous tax regime and may be subject to a 1.5% transfer tax instead of capital gains tax. This date-based distinction makes the purchase timing more important than the holding period.
This immediate applicability means that even short-term property flipping activities are subject to the full capital gains tax rate in the Argentine residential market.
How exactly is the taxable gain calculated—purchase price, sale price, inflation adjustments, and allowable deductions?
The taxable gain calculation follows this formula: Sale Price minus Purchase Price (adjusted for inflation) minus Allowable Deductions equals Taxable Gain.
| Component | Description | Treatment |
|---|---|---|
| Sale Price | Final transaction amount | Full amount included |
| Purchase Price | Original acquisition cost | Adjusted for inflation where applicable |
| Notary Fees | Purchase and sale registration costs | Fully deductible |
| Capital Improvements | Documented property upgrades | Added to purchase cost basis |
| Legal/Broker Commissions | Professional transaction fees | Deductible with proper documentation |
| Repairs/Maintenance | Routine upkeep expenses | Not deductible for capital gains |
| Inflation Adjustments | Currency devaluation compensation | Applied to purchase cost over time |
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Are there exemptions or reduced rates for selling a primary residence in Argentina?
Yes, the sale of a primary residence ("casa habitaciĂłn") by individuals may be exempt from capital gains tax under specific qualifying conditions.
The exemption typically requires reinvestment in another primary residence within a certain timeframe. There are value limits below which a main residence is exempt from wealth tax considerations, and similar exemptions may apply to capital gains tax for qualifying transactions.
To qualify for the primary residence exemption, the property must have been your main dwelling, and you must meet specific criteria regarding use and reinvestment. The exemption is not automatic and requires proper documentation and compliance with tax authority requirements.
Investment properties, second homes, and rental properties do not qualify for these exemptions and remain subject to the full 15% capital gains tax rate regardless of how long they were owned.
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What is the capital gains tax rate specifically for foreign investors selling property in Argentina?
Foreign investors typically face the same 15% capital gains tax rate as Argentine residents, but practical implementation often results in different withholding mechanisms.
Non-resident foreign sellers commonly face a 13.5% withholding tax on gross proceeds when actual cost documentation is unavailable or insufficient. This withholding approach can result in higher effective tax rates if deductions cannot be properly substantiated.
Foreign companies may be subject to a 17.5% tax rate on the gross selling price under certain circumstances, making the ownership structure choice critical for international investors in the Argentine real estate market.
The key advantage for foreign investors is the option to choose between taxation on gross presumed income or actual capital gain, provided all deductible costs are properly documented with receipts and official records.
How are improvements or renovations to the property treated in the capital gains calculation?
Capital improvements and renovations are treated favorably in Argentina's capital gains tax calculation by being added to the original purchase cost basis.
Documented capital improvements that increase the property's value are fully deductible from the taxable gain. This includes major renovations, additions, structural improvements, and upgrades that enhance the property beyond its original condition.
Routine repairs and maintenance expenses that simply keep the property in its original condition are not deductible for capital gains purposes, though they may be deductible against rental income during the ownership period.
Proper documentation is essential for claiming improvement deductions, including receipts, contracts, permits, and professional invoices. The tax authorities require clear evidence that the expenses represent capital improvements rather than regular maintenance.
Major improvements like kitchen renovations, bathroom upgrades, swimming pools, or structural additions can significantly reduce your taxable gain when properly documented and claimed.
What is the process for filing and paying the capital gains tax after a property sale in Argentina?
The filing and payment process differs significantly between residents and non-residents selling property in Argentina.
Argentine residents must declare the capital gain in their annual income tax return for the year in which the property sale occurred. Payment is made when filing the annual tax return through the standard individual tax procedures administered by AFIP (Federal Administration of Public Revenues).
Non-residents usually have tax withheld at source by the buyer's notary or real estate agent, who then remits the withheld amount directly to the tax authorities. This withholding system ensures immediate tax collection but may result in overpayment if actual deductions exceed the presumed amounts.
Both residents and non-residents must maintain detailed records of the transaction, including purchase documents, improvement receipts, and sale contracts for potential tax authority review.
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Are notary and registration fees deductible from the taxable gain in Argentina?
Yes, documented notary and registration fees are fully deductible from the taxable capital gain as part of allowable transaction expenses.
These deductions include notary fees for both the original purchase and the current sale, property registration costs, title transfer fees, and official document preparation expenses. All fees must be properly documented with official receipts and invoices.
The deductibility of these fees applies to both the purchase and sale sides of the transaction, effectively reducing the taxable gain by the total transaction costs incurred during ownership transfer processes.
Other professional fees such as legal representation, real estate agent commissions, and property valuation costs may also be deductible when properly documented and directly related to the property transaction.
What penalties or interest apply if capital gains tax is paid late in Argentina?
Late payment of capital gains tax in Argentina results in interest charges and potential monetary penalties calculated based on the unpaid amount and duration of the delay.
The penalty structure follows Argentina's general tax penalty framework, where interest accrues monthly on unpaid tax amounts. The specific interest rates are adjusted periodically by AFIP to reflect inflation and economic conditions in the Argentine market.
Additional penalties may apply for failure to file tax returns on time, even if no tax is ultimately owed. These penalties are separate from interest charges and can accumulate significantly over extended periods of non-compliance.
The penalty system is designed to encourage prompt payment and filing, with escalating consequences for longer delays. Property sellers should prioritize meeting tax deadlines to avoid these additional costs that can substantially increase the total tax burden.
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Does Argentina have tax treaties that can reduce or offset capital gains tax for foreign sellers?
Argentina has tax treaties with various countries to avoid double taxation, but not all treaties specifically provide capital gains tax reductions.
The effectiveness of treaty benefits depends on the specific language of the tax treaty between Argentina and the seller's country of residence. Some treaties may provide reduced rates or exemptions, while others focus primarily on preventing double taxation rather than reducing the Argentine tax burden.
Foreign sellers should review the specific tax treaty between Argentina and their home country to understand available benefits. Common treaty partners include major European nations, the United States, and other Latin American countries, each with different provisions.
Even when treaties exist, the application process for treaty benefits may require specific documentation and procedures that must be completed before or during the property sale transaction.
How much time do sellers have after the transaction closes to report and pay the capital gains tax in Argentina?
The capital gains tax reporting and payment deadline is generally tied to the annual tax filing for the year in which the property was sold.
For Argentine residents, the tax must be declared and paid with their annual income tax return, typically due in the first half of the following year. The specific deadline varies based on the taxpayer's identification number and AFIP's annual tax calendar.
Non-residents usually have tax withheld and paid at the time of transaction by the notary or intermediary, with reporting required to be completed promptly, usually within the same fiscal year as the sale.
Failing to meet these deadlines triggers the penalty and interest structure described earlier, making timely compliance essential for all property sellers in the Argentine real estate market.
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Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Argentina's 15% capital gains tax on residential property sales applies uniformly to both residents and non-residents for properties acquired after January 1, 2018.
Understanding the calculation methodology, available deductions, and filing procedures is essential for property investors to optimize their tax position and avoid penalties in the Argentine real estate market.