The real estate industry is urging the government to consider incorporating money laundering funds into property investments as a way to boost the sector’s activity. The industry has been struggling with years of contraction and falling prices, but recent data has shown a positive trend in property sales and mortgage loans.
In light of this, the Argentine Real Estate Chamber (CIA) has formally sent a note to President Javier Milei and Minister Luis Caputo requesting an exemption from the 5% rate established in the Law of Bases for used properties. Under the current asset regularization regime, individuals declaring up to US$100,000 are exempt from fines, while those declaring larger amounts face progressive aliquots ranging from 5% to 15%. However, the law allows for exemptions for certain destinations of money laundering, leaving it up to the Executive Branch to define additional destinations that may qualify for exemptions.
The proposal by the real estate sector aims to encourage productive investment in the country and promote investment by small and medium-sized businesses in less developed provinces. It also seeks to increase credit availability by incentivizing savings mobilization, stimulating cash inflows into the formal economy, expanding the state’s collection base, and enhancing investment capacity for property sellers benefiting from this mechanism.
Real estate agents believe that incorporating money laundering funds into property investments could significantly boost the sector’s activity after years of contraction and falling prices. By doing so, they hope to revitalize their industry and create new opportunities for growth and prosperity in Argentina’s real estate market.