Argentina: Purchase Process

Below is the standard purchase process in Argentina, and issues that may affect that purchase:

• This market is open to all; there are no restrictions on foreign ownership of property in Argentina. Foreigners have the same rights in this respect as nationals, except for Argentine land near a foreign border. In this scenario, some additional paperwork is required, which may take a little longer.
• As a foreigner, you will need a CDI, or tax number. The process for obtaining one is fairly easy, but personally time consuming. You must go to a local police station with your passport, fill out a form and pay a 10 peso fee. The next morning you must stay in your domicile so that the police can verify your address. They will show up and provide you with an Address Certificate.
• After finding a property and negotiating an agreeable price, the buyer typically pays a boleto or down payment of around 30%.
• The escritura is the closing date and when you sign the final papers. This is performed with the aid of a notary public, who is very important in this process.

Costs of a standard property purchase in Argentina include the following:

• Stamp Duty is typically 2.5% of the sale price, but can be as much as 4% in Buenos Aires.
• Buyers and sellers both pay agents' fees of 3%, with 1% each to the notary, and a sales tax of 3%.
• There is a net wealth tax that is levied at a rate of 0.5% on the total value of all the taxable assets.
• Rental value corresponding to real estate properties belonging to local taxpayers exceeding $ 1,500 a month is assessable with 21% VAT. Rent related to real property occupied by the tenant exclusively for dwelling purposes is exempt from VAT.