Argentina has enacted Law No. 27,802/2026, introducing a broad package of tax reforms that include inflation-linked loss updates, new income tax exemptions for residential rentals and real estate sales, expanded VAT relief for productive investments and agro-industrial energy costs, and the outright repeal of selective taxes on insurance, mobile services, luxury goods and vehicles.
Argentina’s government has published Law No. 27,802/2026 in the Official Bulletin on 6 March 2026, which entered into force on the same day, introducing amendments to the existing income tax, VAT, excise duties, and other taxes.
Income tax
The key changes introduced to the Income Tax Law are as follows:
- Loss updates: Tax losses generated in fiscal years starting 1 January 2025, will be updated using the Consumer Price Index (IPC) between the month the loss originated and the month of the current fiscal year’s close.
- New exemptions: Starting 1 January 2026, income from residential property rentals and profits from the sale or transfer of real estate are exempt.
- Fixed-term deposits: Effective 1 January 2026, the exemption for fixed-term deposits is expanded to include those not denominated in national currency
- Residential rentals: Starting 1 January 2026, profits derived from the rental of real estate for residential purposes are exempt from income tax. This exemption also applies to the rental value of the residential home itself.
- Sale of real estate: Effective 1 January 2026, results derived from the sale or transfer of real estate or the transfer of rights over real estate are also exempt from the tax.
VAT
Key modifications to VAT focus on industrial costs and investment recovery:
- Productive investments: Under the RIMI, VAT credits generated by productive investments can be refunded after three monthly tax periods.
- Energy costs: The provision of electricity for irrigation systems in the agro-industrial sector is granted a specific tax treatment. A reduced VAT rate of 10.5% will apply to electricity services used in irrigation systems or equipment in the agro-industrial sector.
Other tax provisions
- Citizenship by investment: Foreigners who obtain Argentine citizenship through relevant investments will not be considered fiscal residents solely based on their naturalisation.
- Repealed taxes: Effective from the month following enactment, the law eliminates internal taxes on insurance, mobile telephony, luxury goods, and vehicles/boats/aircraft. It also phases out various sector-specific levies by 1 January 2027.
