EFFECT OF INFLATION
When we are faced with making a relevant investment decision and we have to choose to invest between several investment options, whether they are real estate, financial assets, business assets, tangible or intangible assets, extreme caution must be used and valuation methods must be used that They allow us to contemplate, not only the financial profitability or return on investments, but also the fiscal impact and, above all and more so today, the effect of inflation on the valuation of real estate assets.
The effect of the same allows to know the profitability of an investment in real and not nominal terms, given that, in a scenario with high inflation, the flows generated by the assets can depreciate a lot if they are not reinvested at rates similar to the same inflation, and that today, only assets that incorporate a large volatility-risk component allow it.
Taxation is also very important to take into account, whether it is a natural person subject to personal income tax, with progressive rates in the taxable base of the savings tax base, or if the investor is taxed in the IRNR with a fixed tax rate ( normally 19%).