Argentina Mortgage Interest Deduction — Effectively Zero
Argentina's Ganancias law allows deduction up to ARS 20,000/year — a cap never indexed to inflation, now worth less than US$20. Practically no benefit.
No mortgage interest deduction for primary residences in Argentina
There is no tax benefit to calculate. See the notes below for details.
- •Nominal deduction, effectively zero: Argentine tax law (Art. 81(a) Ley del Impuesto a las Ganancias) allows deduction of primary residence mortgage interest up to ARS 20,000/year — a cap never updated for inflation.
- •With annual inflation exceeding 100%, ARS 20,000 represents less than US$20. For any typical mortgage the deduction is negligible and the calculator shows no meaningful saving.
- •Rental properties: mortgage interest on rented property is deductible as a business expense against rental income.
Argentina: Nominal Deduction, Inflation-Eroded
Argentine law (Art. 81(a) of the Ley del Impuesto a las Ganancias) technically allows deduction of primary residence mortgage interest up to ARS 20,000 per year. This cap was set years ago and has never been indexed to inflation.
With Argentina's annual inflation exceeding 100%, ARS 20,000 is worth less than US$20 at current exchange rates — a negligible benefit against typical mortgage interest costs that run into millions of ARS per year.
Why the Deduction Is Practically Zero
Argentina's tax system has struggled to keep up with inflation. Many fixed deduction caps and exempt amounts have been eroded to near-irrelevance, including the mortgage interest cap. The practical effect for any borrower with a typical mortgage is zero.
- ARS 20,000 cap × ~15% tax rate = ARS 3,000 maximum tax saving
- ARS 3,000 ≈ US$3 at market exchange rates (2024)
- Typical Argentine mortgage: millions of ARS in annual interest
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