Some of the innovations introduced by the mega-decree of Necessity and Urgency signed by Javier Milei upon his inauguration – and which entered into force on 29 December – are still in the “discovery” phase because the repeal of some laws causes a cascade effect on a large number of the procedures.
This is the case of rentals, where law 27,551 was repealed, which came into force in July 2020 and which started a crisis in the sector that still exists. In addition to releasing the conditions, the adjustment index and the payment currency, the DNU also eliminates the obligation to register contracts with the AFIP.
“Article 1 of the General Resolution (AFIP) 4933/2021 implemented the RELI so that real estate rental contracts can be declared before the AFIP in accordance with the provisions of article 16 of Law 27.551,” explains Sebastián M. Domínguez , CEO of DSC Asesores Tributari.
“Given that the decree of necessity and urgency No. 70/2023 repealed the law 27.551 on rents, we understand that There is no longer an obligation to register contracts of real estate rental contracts signed starting from Friday 29 December 2023 inclusive, added the specialist.
However, the registration obligation is maintained for contracts stipulated before the entry into force of the Milei regulation.
Registering the contract with the AFIP would have attracted a lot of resistance when it was launched in 2021, because it added a greater tax burden to the owner, such as the payment of gross income. It established sanctions in case of non-compliance against the lessor.
However, greater formalization of contracts was not achieved, although profit-paying tenants could deduct formalized contracts.
What are the most relevant innovations in the rental contracts with Milei DNU
Deadlines: will be established by the parties. That is, there is no minimum or maximum. The DNU repeals the times established by the current law on rents, which were 3 years for housing. From the real estate sector they said they will recommend using the times before the law in 2020, when the contracts They were celebrated for two years.
Currency: Rents may be established in legal tender currency, in pesos, or in foreign currency. In dollars or euros, for example. After signing the contract, the tenant cannot expect payment to be accepted in a currency other than that established between the parties.
Update: The fee adjustment can be monthly, bimonthly or quarterly. And it will be allowed use of any fit index. It can be public or private, for example the CPI of the GCBA (Consumer Price Index of the General Directorate of Statistics of the City of Buenos Aires). If the chosen index ceases to be published during the term of the contract, an official index with similar characteristics, published by INDEC, will be used; or the one that performs the same functions in the country that issues the agreed payment currency (whether they were dollars or euros). It can also be agreed between the parties.
Deposit and guarantee: The parties can freely determine the amounts and currency to be delivered as a security deposit or security deposit, as well as the methods with which they will be returned at the end of the rental contract. This refers to the deposit left by the tenant at the start of the security deposit, which currently is usually the equivalent of one month’s rent.
End of the contract: The tenant can withdraw from the contract at any time. To do this it is necessary to pay a fee to the owner: it will be 10% of the balance of future rents until the contract expires. The DNU does not state how much notice the tenant must give. Until now the tenant could only leave after the sixth month and also had to pay compensation.
Source: Clarin
