How Has Argentina’s New Regime to Promote Real Estate Projects Been Regulated?

On April 27, 2021, AFIP General Resolution No. 4976/2021 was published in the Official Gazette regulating Law No. 27,613, in force since March 12, 2021, to promote real estate projects. Pursuant to the Resolution, a real estate project registry (“Registro de Proyectos Inmobiliarios” or REPI) is to be created to keep track of private works that began on or after March 12, 2021 or that are less than 50% complete by that date.

REPI registration on the Argentine Tax Authority’s (AFIP) website is mandatory for all individuals, undivided estates and companies who act as developers, constructors, or investment vehicles for real estate projects. 

When transactions are authorized, the website generates an identification code known locally as a “Código de Registro de Proyecto Inmobiliario (COPI).”

Investors whose invested assets have already been duly filed with the AFIP must include in their tax statements the COPI code provided by the developer, constructor, or investment vehicle.

In addition, the Resolution regulates how the voluntary statement of assets in national and/or foreign currency established by law is to be submitted.

As of May 17, 2021, taxpayers willing to register may do so through the AFIP’s website, in a web service called “Normalización de la tenencia en moneda - Ley 27.613.”

Assets must be deposited in a special bank account known as a “Cuenta especial de Depósito y Cancelación para la Construcción Argentina (CECON.Ar). Ley 27613.” Once the deposit is made, and before submitting the sworn statement, taxpayers are required to pay a special tax, the applicable rate and due date of which will depend on when the funds were deposited.

The special tax will be paid through an electronic voucher known as a VEP as of May 21, 2021. Once payment is validated by the AFIP, taxpayers will be able to submit their sworn statements.

Payment of the special tax is contingent upon the asset deposit date mentioned above as follows:

Taxpayers whose assets were deposited in May and June but who have not paid the special tax before its due date will be able to pay before July 9, 2021 with an added compensatory interest. 

Failure to pay and submit the tax statement will deprive the noncompliant taxpayer of the benefits provided under the regime. In addition, the AFIP will be entitled, in such cases, to initiate a tax audit.

Finally, once registered, the interested party is required to submit, through the AFIP’s website, the COPI code and amount invested. The statement must be submitted before March 31, 2023 or within the following six months after the investment is made.