Real Estate Revolution: Argentina's First Bitcoin Rental Agreement

Rosario, Argentina's third-largest city, has witnessed its first rental agreement where the monthly rent will be paid in Bitcoin.

by Faruk Imamovic
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Real Estate Revolution: Argentina's First Bitcoin Rental Agreement
© Getty Images/Dan Kitwood

Rosario, Argentina's third-largest city, has witnessed its first rental agreement where the monthly rent will be paid in Bitcoin. This pioneering contract, reported by the local newspaper Paginal 12 on January 11, signifies a notable shift in the nation's approach to cryptocurrency, sparked by recent legislative changes under President Javier Milei's new administration.

A New Era for Argentine Real Estate

The rental agreement in Rosario sets a new precedent for property transactions in Argentina. The tenant, an experienced cryptocurrency user, will transfer $100 worth of Bitcoin every month using Fiwind, a local crypto platform.

This innovative arrangement was made feasible by Argentina's changing legal landscape, particularly in the real estate sector. President Milei's administration, elected in November 2023 amidst soaring inflation, has been instrumental in reshaping Argentine rental law and other parts of the national legal system.

These amendments have opened the doors for broader acceptance and utilization of cryptocurrencies like Bitcoin in everyday transactions.

Policy Shifts Paving the Way for Crypto

The Argentine government's recent policy changes are not limited to real estate transactions.

In December 2023, Diana Mondino, the Minister of Foreign Affairs, International Trade, and Worship, announced a decree aimed at economic reform and deregulation. This decree explicitly permits the use of Bitcoin and other cryptocurrencies under specific conditions, marking a significant shift in the country's financial regulations.

Furthermore, the government has simplified the process of legalizing cryptocurrency holdings, even those overdue on tax declarations. Through a regularization scheme, taxpayers can declare their holdings by the end of March 2024, incurring a flat tax of 5%.

The tax rate increases to 10% from April and 15% from July until the end of September. This scheme reflects the government's commitment to integrating cryptocurrencies into the national economy while ensuring regulatory compliance.

The Impact on Argentina's Economy

The integration of Bitcoin into Argentina's real estate sector and the broader economy signals a new chapter for the country's financial landscape. As Argentina grapples with inflation and seeks innovative economic solutions, the embrace of cryptocurrencies could offer a novel avenue for growth and stability.

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