The regulation formalized the exemption from Income Tax for rental contracts intended for housing and real estate sales transactions.
For years, the tax treatment of rentals has been one of the most debated points among landlords, tenants, and tax experts. In many cases, contracts were not declared to avoid the impact of Income Tax, which ended up fueling informality in a market already burdened by failed regulations and excessive tax pressure.
The Government of Javier Milei regulated the elimination of the Income Tax for the collection of rents intended for housing and for the profits obtained from the sale of real estate. The measure was formalized through a decree published in the Official Bulletin, which modified the regulations of the Income Tax Law and specified the scope of the new exemptions for rentals and real estate transactions.
The new regulation establishes that profits derived from the leasing or subleasing of properties intended for “residential housing” will be exempt from the tax for fiscal periods starting from January 1, 2026. In practice, this means that income obtained from renting permanent housing will no longer be subject to Income Tax.
The decree defines “residential housing” as the property intended for the unique, family, and permanent occupation of the person living in it. Additionally, it clarifies that the exemption is not limited to rent in the strict sense, but also includes amounts charged for furniture, accessories, or other services included in the lease agreement.
One of the most relevant points of the measure is that the benefit will apply to all units that an individual or an undivided estate rents exclusively for housing. That is, the exemption is not lost for having more than one rental property, as long as the properties are intended for residential housing.
The regulation also specifies that the benefit will apply regardless of the date the contract was signed, as long as the rents are accrued from January 2026 onwards. In this way, the Government seeks to provide legal certainty regarding the temporal scope of the measure and avoid gray areas in the application of the new scheme.
The second central change affects the buying and selling of real estate. The regulation confirms that profits obtained from the sale of properties and from the transfer of rights over properties located in Argentina will be exempt from Income Tax.
The measure applies to individuals and undivided estates, both residents and non-residents, as long as the transaction is completed from January 1, 2026, and is included within the assumptions provided by the Income Tax Law.
Furthermore, the benefit is not limited to the direct sale of a property. It also includes operations such as the assignment of purchase agreements or other similar commitments when they involve the transfer of economic rights related to a property.
With this regulation, the Government is making concrete progress in reducing taxes on the real estate sector, one of the markets most affected by years of interventions, obstacles, and tax pressure.
