Money laundering to invest in real estate: advantages and costs

03/12/2021 10:00

• Clarín.com

• Economy

Updated 03/12/2021 10:01

The Government enacted Law 27,613 that provides tax incentives for the construction sector

, including the laundering of undeclared funds abroad that may be repatriated for real estate projects.

It did so through

decree 151/2021 published this Friday in the Official Gazette.

The law, approved by the Senate on February 24, implements the Incentive Regime for Argentine Federal Construction and Access to Housing, aimed at promoting development or investment in real estate projects carried out in the country.

It is for those

new private works that start from the entry into force of the same

, such as constructions, extensions and installations, among others, and that, in accordance with the building codes or similar provisions, are subject to complaint, authorization or approval by competent authority.

The definition of new private works includes those that, as of the effective date of this law, have a degree of progress of less than 50% of the completion of the work.

Tax advantages

The law provides benefits for the investor: it exempts from the Personal Property Tax the value of investments in investment projects carried out until December 31, 2022, inclusive, in Argentina developed, directly or through third parties,

from the fiscal period in which the investment is made and until the completion of the

real estate

project

, its adjudication or the alienation of the right and / or the participation originated as a result of that, whichever occurs first, up to a maximum period of two fiscal periods.

It also establishes that the equivalent of 1% of the value of investments in real estate projects may be computed as a payment on account of Personal Assets.

It also provides that the owners of real estate or rights over real estate

will enjoy deferral of the payment of the tax on the transfer

of real estate of natural persons and undivided successions in the case of development of real estate projects.

Who can enter and what can be declared

The project aims to generate a quick declaration of funds, both in pesos and dollars.

According to article 6, will include "human persons, undivided successions and the subjects established in article 53 of the Income Tax Law (that is, the different types of companies formed in the country)", who may " Declare voluntarily before the AFIP the possession of foreign currency and / or national currency in the country and abroad, within a period that will extend from the date of entry into force of this law and until the period of 120 days has elapsed. runs since that date, both dates inclusive ”, explains the project.

According to bleaching date

:

• 5% during the first 60 days after the law is approved.

  
  

• 10% after 90 days.

• 20% after 120 days.

  
  

This tax must be determined and entered in the form, term and conditions established by the collecting body in a regulation that will be drawn up later.

What to do with declared funds

As stipulated in article 7, "the funds included in the voluntary declaration of foreign currency and / or national currency must be deposited in a 'Special Deposit and Cancellation Account for Argentine Construction' (CECON.Ar) in any of the entities included in the regime of Law No. 21,526 and its modifications, in the form and within the terms established by the AFIP and the Central Bank ".

Until the definitive investment in a construction project, whoever enters the externalization will be able to allocate the funds

"temporarily to the purchase of national public titles and immediately invested"

towards the chosen work.

Scope of bleaching

Article 11 explains that those who enter the externalization "will not be obliged to inform the AFIP (...) the date of purchase of the holdings or the origin of the funds with which they were acquired."

In addition, they will be released from “all civil, commercial, criminal tax, foreign exchange penalties, customs penalties and administrative offenses that may correspond.” Finally, they will be exempted from paying income tax, VAT, internal taxes and Personal Assets charges, among others.

Exchange rate

According to Article 9, "for the valuation of foreign currency, the buyer exchange rate of Banco Nación that corresponds to the date of its entry into the special account mentioned there must be considered," he explains.

Who will not be able to join

Those people who from 2010 onwards have held positions of president and vice president of the Nation, governor, vice-governor, chief or vice-chief of government of the City of Buenos Aires or municipal mayor, senator or national, provincial or deputy may not participate in the money laundering. the City, or municipal councilor, or Mercosur Parliamentarian, judges of the national, provincial, municipal or City Judicial Power, magistrates of the national, provincial, municipal Public Ministry, ambassadors, consuls, personnel of the armed or security forces, rectors , deans or secretaries of any university, official or employee with a category or function not inferior to that of national director or equivalent, legislative or intelligence services personnel, among others.

YN

Look also

How is the law that will benefit real estate investments.