Estate and Gift Tax

Information on the estate and gift taxes due in Argentina, and specifically in Buenos Aires...

Gratuitous transfers of property on death and inter vivos transfers are not subject to any special tax, and they are considered exempt for income tax purposes.

Estate and gift taxes Buenos Aires

On September 23, 2009, Law 14044 was enacted in the Province of Buenos Aires, whereby a tax on the transfer of assets for no valuable consideration was created in that jurisdiction. This tax levies all increases in wealth for no valuable consideration, such as:

  • Inheritances
  • Legacies and devises
  • Gifts
  • Inter vivos gifts
  • Any other event resulting in an increase in wealth for no valuable consideration

It is worth noting that this tax is levied on assets located in the province (even when the owner is not domiciled in that jurisdiction) and/or transferred to individuals or legal entities domiciled in the province.

In addition, the transfer of assets for no valuable consideration is exempt when the aggregate value is equivalent to or lower than three million pesos ($3.000.000). When the value of assets is in excess of the referred amount, all the assets transferred for no valuable consideration will be levied with tax.

This tax shall be paid at a rate ranging from 5 percent to 10.5 percent, depending upon the taxable base and the relationship with the decedent or the donor.

The tax is effective as from 1 January 2010.

Information provided by KPMG Contact Adriana Laurino, e-mail, Tel: (011) 4316-5753