In a significant development, the city of Rosario, Argentina’s third most populous city, has witnessed the signing of a groundbreaking rental agreement involving Bitcoin. This historic contract marks the first of its kind in Argentina, made possible by recent legislative changes implemented by the new presidential administration.
A new era of rental agreements in Rosario
According to a report published on January 11th in the local newspaper Pagina 12, a local landlord and tenant have agreed that the tenant will make monthly rental payments in Bitcoin.
The rental agreement stipulates that the tenant will pay $100 in Bitcoin monthly. The tenant will use Fiwind, a local crypto platform, to facilitate these cryptocurrency transactions.
Both parties involved in this landmark contract are experienced cryptocurrency users, highlighting a growing acceptance and integration of digital currencies in everyday financial transactions.
This pioneering rental agreement became possible due to recent amendments to Argentine rental laws and other facets of the national legal system. These changes were enacted by the newly-elected President Javier Milei, who secured victory in the general election in November 2023. His election took place against the backdrop of rampant inflation plaguing the country.
President Milei’s administration has been keen on introducing economic reforms and deregulation measures to revitalize the nation’s economy. In December 2023, Diana Mondino, the Minister of Foreign Affairs, International Trade, and Worship, made an important announcement.
She revealed that a decree aimed at economic reform and deregulation would permit the use of Bitcoin and other cryptocurrencies within the country, subject to certain conditions.
Easing the path to legalizing crypto holdings
In addition to allowing rental agreements in Bitcoin, the Argentine government has also taken steps to facilitate the legalization of cryptocurrency holdings, even for individuals who have fallen behind on their tax declarations.
Under a regularization scheme’s framework, taxpayers can declare their cryptocurrency holdings with a progressive flat tax rate. Specifically, those who declare their holdings by the end of March 2024 will incur a tax rate of 5%.
This rate will increase to 10% for declarations made from April onwards and 15% for those made from July until the end of September.
These measures reflect a concerted effort by the Argentine government to create a regulatory framework that accommodates the use of cryptocurrencies while simultaneously addressing fiscal concerns.
