Due to high inflation, new legislation was enacted that limits the updating of lease contracts in 2023. On the one hand, tenants will only see housing and commercial rents updated up to a maximum limit of 2%, instead of 5.43% indexed to inflation. And, to compensate landlords for this limitation, the Executive also designed tax benefits, which will exempt from taxes between 9% and 30% of property income in terms of IRS and 13% of income in terms of IRC.
It should be noted that such limits apply if the contracts do not formally contemplate any other type of review other than inflation.
Another important issue is regarding the announced tax benefits not covering contracts signed in 2022 and tax-free property income, such as those included in affordable rental programs and low-income homeowners.
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