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Argentina has great real estate to offer. Whether
you fancy a stunning penthouse apartment overlooking Buenos
Aires, a chalet in Patagonia, a winery in Mendoza or just
a nice pied á terre, price are still a fraction
of what you would pay in the UK or in the US. And
the quality of what is offered is amazing: all properties
are in freehold, tiresome co-operative boards are unknown
and maintenance fees and taxes are very low.
Buying property in Argentina seems quite easy at first glance,
but after getting stuck in the Argentinean bureaucracy,
or getting to know some of the local business practices,
you will realize that in order to get your deal done smoothly
you need to bear in mind some rules:
One – There are hardly any private
offers in the market and nearly everything in the market
and nearly everything is offered via real estate agents. But
unlike in the US or in the UK, realtors are not responsible
for the accuracy of their offer, so it is always best to
double check.
Two – Never agree immediately on
the offered price. If you do so, the seller will
think he placed the offered price too low and will ask
for at least 10% more. No matter what you feel about
the price, always place a lower offer – at least
five per cent below the asking price.
Three – Cash is king: real estate
deals in Argentina are nearly always done in cash. Even
if you are paying millions, when the deed is signed the
buyer and the seller meet together in a bank to count bundles
of greenbacks.
Four – Black is beautiful. Sadly,
it is common practice to pay a part of the purchasing price
in ‘black’, that is, beneath the radar of the
tax man. But to avoid problems later on, if the amount
that figures in the deed is at least 70% of the actual
price paid or better, you should do the whole deal in ‘white’.
Five – All deals are in US Dollars,
but getting them into the country is not that easy. To
avoid speculation on the peso, Argentina introduced a law
in 2005 stating that all transfers by non-resident foreigners
are subject to a 30% withheld retention for one year unless
the purpose of the transfer is a direct investment in real
estate, production, and so on – and proving that
is a bureaucratic hassle.
Six – Make a good choice when selecting
your notary public (escribano). He or she is the
person who prepares the deed, checks all the papers and
documents and makes sure that all bills and duties are
paid. He or she is the one who finds out if there
are any legal encumbrances, liens or defects in the title,
and if there are, how they can be solved.
Seven – Argentineans are not well
known for their taxpaying discipline – but you should
be. Non-resident foreigners have to request prior
approval from the AFIP (the local version of the IRS),
before selling their property. And be prepared; these
guys are much smarter than you probably think. Not
only will they check if you have paid the municipality
duties, property and wealth taxes, but they will also look
into your utility bills, to find out if you have rented
out your apartment while not resident in Argentina.
Keep in mind these few suggestions and you will be able
to enjoy the apartment/house/estancia of your dream for
many, many years, as have done many celebrities such as
Ted Turner, Michael Douglas, George Soros, Luciano Benetton,
Maia Sworowski, and Sylvester Stallone. Happy Hunting!
Some recommended agencies
ApartmentsBA
www.apartmentsba.com
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