The key to inheritance tax, which requires a large amount of tax when a parent dies in Buenos Aires, is: Transfer real estate while maintaining the usufructthe tax burden will be reduced. It also helps in selling assets and inheriting money since it cannot be placed in a specific state.
How to avoid inheritance tax
Taxes or inheritance taxes on free transfer of assets are Valid in the province of Buenos Aires Santiago Sáenz Valiente of Sáenz Valiente & Asoc Studio points out that many people forget about its existence and the possible consequences of this unfair tax burden, yet the very high amounts are paid.
To reduce your tax burden, it is common to consider the following: Donate bare property to children or forced heirsparents maintain the usufruct of the property, whether in the city or in the countryside.
In such cases, when a person dies, only the value assigned to the usufruct is taxed. The older you get, the lower the percentage becomes. The value assigned to an asset.
When an heir plans to receive the property, Advance sales by raising funds Beneficiaries are exempt from tax unless they reside in the province of Buenos Aires. Because money has no place..
Why is there legal certainty in prepayment?
Prior to the legal reform of the Civil Code under No. 27,587, there were concerns that after receiving real estate through a donation, the beneficiary would subsequently sell the property. The acquirer was “observable”.
New legislation gives ownership of donated real estate for children. legal security they didn’t have.
This endowment also means anticipating taxes that will arise upon succession, with uncertainty playing a related role.
If you leave the tax burden defined, it will look like this: Useful for any increase Of that. No one sensibly wished this tribute to be abolished, and in the face of it it was in vain.
In particular, if the real estate is located in another state and the beneficiary is outside the state of Buenos Aires, then the donation will be excluded from tax. This is an overall benefit. If inheritance tax were widespread In all jurisdictions, as has been proposed on multiple occasions.
Who is affected by inheritance tax?
Inheritance tax affects Buenos Aires residents No matter where the product is located That imposes this tax. Whether it’s an inheritance or a donation, everything depends on the domicile of the beneficiary, and in this case the law is intended to reach wealth outside Argentina.
in Attempts were made to impose it in the state of Entre RíosHowever, it was declared unconstitutional by the local Supreme Court as it violated the principles of tax equality and forfeiture.
This tax taxes increases in wealth for free. Inheritance, legacy, donationwaiver of rights, transfer by intermediary in favor of descendants, or contribution to the enterprise in case of presumption.
This is concerning because families, through their daily labor and efforts, contribute to the generation of assets that they later receive through “inheritances and gifts,” and on such occasions they are affected by this financial burden under analysis.
How much is this tax burden?
For tax purposes Annual period 2025was established as follows.
- Tax-free minimum amount $8,488,486 For parents, children and spouses.
- Maximum application percentage after application is 7% $4,355.75 million Taxed.
- Fixed tax based on scale 276,306,851 dollars.
Real estate is subject to this tax taking into account the assessed value that qualifies the taxpayer between the tax amount, base tax amount, or market value. However, legal norms indicate that “The greatest of them all will be taken.””.
Undoubtedly, it is not easy to know the exact appraised sales price or market value as the taxpayer would need to obtain certified evidence from real estate agents in the area.
To avoid this tax burden in the province of Buenos Aires, you can rely on a usufruct transfer of property to reduce your taxes, or you can inherit the funds by selling assets that cannot be located in the province.
About The Author
