PROPERTY PURCHASING ADVICE IN ARGENTINA
Life International will help you through the detailed purchasing procedure:
Pre-Purchase
We will help you negotiate the best price and offer advice on appropriate offering prices.
Post Purchase
In order to ensure a smooth and stress free transaction, we undertake the majority of the sales process as well as provide a full liaison service between the client and the developer, their solicitors, lenders (if required) and other ancillary services.
Professional specialist help
There are various legal and tax issues involved when buying property in Argentina. Our aim is to make the process as simple as possible, minimising bureaucracy.
LAWS & TAXES
The common form of property ownership in Argentina is freehold and can be acquired and held by individuals and corporations. The Argentine constitution grants foreigners the same property rights as Argentine nationals.
The Purchase Process
The property purchasing process in Argentina normally takes between four and six weeks and is relatively straightforward. In order to complete the purchase the prospective purchaser must obtain a tax registration number, known as a CDI. You will need this number at the time of signing the Title Deed (Escritura) and open a bank account.
Sequence:
A) Offer: stating price, closing date, name of notary public selected and special conditions. Accompanied by a strong binder which should be returned doubled if the owner backed out of the deal before closing date. It is important to request updated floor plans that reflect actual construction. Failing to do this may lead the new buyer to make payment of back taxes otherwise payable by the previous owner.
B) Boleto: It is an intermediary step, usually taking place within the first fifteen days following acceptance of an offer, allowing owners to receive between 30 and 50% of the purchase price and, thus, enabling seller to secure a replacement property for the one
C) Escritura: The actual closing date where all parties get together to sign the official transfer of deed. Prior to this situation, the acting notary public must be in possession of the old title deed, have performed the necessary title searches, received a surveyors report on the property and verified debts, liens, encumbrances, etc.
When buyer and seller go straight to “Escritura”, 100% of the proceeds are delivered at the time or a transfer to a foreign bank account is set up and verified at a second meeting.
It is important to note that the payment required for the “Escritura” is not required to be made in pesos. In fact, most owners will only accept US dollar bills or transfers to their accounts held abroad. It is not required that the buyer personally be present to sign the transfer of deed. One may leave a power of attorney to a third party to sign on one’s behalf. Current banking legislation has been tightened up following pressure from the US government regarding money laundering. In this regard, local banks will require
Realtors’ fees, lawyers’ fees and other property purchase costs in Argentina
The cost of buying property varies from province to province, as the taxes and the fee regulations also vary provincially. For property in the City of Buenos Aires, the total purchase expenses may be estimated at 5 - 6% of the purchase price. For the Province of Buenos Aires the percentage may be estimated at 7 - 8%.
The following is a more precise calculation of costs. These costa can vary from State to State.
Transaction Costs and Fees and who Pays?
Realtor Fees: 3% - 4% (+21% VAT) - buyer
Notary Fees: 1% - 2% - buyer
Transfer Taxes: 1.5% - buyer
Stamp Tax: Buyer: 1.1% - 1.25%. Seller: 1.1% - 1.25% .
Owner’s Fees: 2% - 3% (+21% VAT)
Costs paid by buyer: 7.23% - 9.59%
Costs paid by seller: 3.52% - 4.88%
Taxes
Annual taxes come to no more than 1.5% of the total value of the property.
There is no capital gains tax in Argentina, which is a major advantage for individuals buying and selling property.
Argentina allows almost unrestricted land and property ownership by foreigners. The only restriction concerning foreign real estate ownership applies in the immediate vicinity of Argentina’s borders. In these cases ownership is subject to prior governmental approval.