Länderinformation und Immobilienkauf Argentinien
Argentina South America Country Information
Argentina: The second largest state in South America. Western border to Chile is formed by the crest of the Andes. Its peak is 600 meters high. The economic core of the country is the wide, grass-covered depth of the Pampa. To the south is the dry plains of Patagonia. In the north-west is the steppe, the dry forest and the flatland of the Gran Chaco. Further north-westerly interstate of the Parana as well as the damp forest area of Misiones.
Currency in Argentina: ARS
Argentina has 23 provinces: Buenos Aires Buenos Aires city and country, Chaco, Chubut, Córdoba, Corrientes, Entre Ríos, Formosa, Jujuy, La Pampa, La Rioja, Mendoza, Misiones, Neuquén, Río Negro, Salta, San Juan, San Luis, Santa Cruz, Santa Fe, Santiago del Estero, Tierra del Fuego, Tucumán.
Argentina property purchase and sale
Language in Argentina: The official language is Spanish. English is widely spoken, German, French and Italian are spoken sporadically.
Property for Sale in Argentina: For the acquisition of Argentine real estate (land and houses) a notarial purchase contract is necessary, a so-called Boleto de Compraventa. After the end of the land purchase contract, a down payment of approx. 25% of the purchase price has to be made. Within 30-60 days is the main contract, the Escritura is completed before the notary. After the Escritura a land register has to be entered. The notary shall provide the document which he has written for entry in the land register, the public register. If the payment of the purchase price is to be made abroad, it should be noted that a foreign exchange transfer is subject to approval. It is necessary to register with the Office of the Secretary of State for Foreign Investments. When purchasing Argentine real estate, a preemption right can be respected. There are restrictions on the purchase of agricultural land. For the financing (or otherwise) the land can be charged with mortgages by registration in the land register.
New law for foreigners: A new law has been passed at the end of 2011, which drastically reduces the purchase of land by foreigners. In the future, a maximum of 15 per cent of the rural areas may be foreign owned, foreigners may only acquire a maximum of 1,000 hectares per region. The law also stipulates that bilateral investment agreements signed by Argentina exclude the acquisition of agricultural land. Land purchase is not an investment because it is a natural and non-renewable resource. In order to be able to verify in the future how much land is owned by foreigners, a countrywide land register for land areas is introduced. Here, existing and future landowners are to declare their property in order to ensure a complete monitoring of quotas. So far, it is still unclear how much of the 206,000,000 hectares of agricultural land or farmland in Argentina are actually in the hands of foreigners. Private studies, according to the government, already speak today of the maximum permitted 15%, but the official figures are currently only 6%.
Costs buying property in Argentina:
- Notary costs approx. 2%.
- Land register entry approx. 1%.
- Broker commission for the buyer 3% - 6%.
- Broker commission for the seller 3% - 6%.
- Cost of mortgage or land charges approx. 0.5%
Taxes when buying property in Argentina: There is no real estate tax in Argentina. Also, a value-added tax or sales tax, also no type of housing tax. It is important to note that Argentina has entered into double taxation agreements with some countries. You do not need to tax your own rental value in Argentina. Taxes, however, result from a resale in the case of a gain on sale: capital gains - of all kinds - by foreigners are subject to normal profit tax of 45%. Capital gains on agricultural land are taxed at 15% of the taxable amount (adjusted value according to the index). Re-investment can benefit from tax exemptions. Argentina knows a so-called profit transfer tax (Impuesto especial del utilizade de las empresas de capital extranjero). 15, Law No 21 382/1976. It is due in the following amount:
15% of the profit transfer of 12% of the investment capital,
20% of the profit transfer exceeds 15% of the investment capital,
25% of the profit transfer of the 20% of the investment capital.
After purchase, the following taxes are levied: Property tax (Impuesto immobiliario) has the cadastral value as the basis for assessment; the tax rate is 0.1% - 1.3%. The amount of the wealth tax (Impuesto sobre el patrimonio neto) is regulated by Act No. 21.282 / 76: For taxpayers it is 0.5% - 1.5%, for taxpayers 1.5% of the tax base. An inheritance tax does not exist in Argentina. Of course, an income tax is payable when income is generated from the property. The income tax rate is between 7% and 45%; there is a kick-off tariff in 19 steps. The top tax rate is due from an income of 3 million pesos. Depreciation can be depreciated on a straight-line basis, whereas a depreciation of 2% is possible on a straight-line basis. Borrowing rates may be deducted.
Other real estate purchase: A property can be rented to foreigners. If land is leased, which is not managed by itself, 1.5% of the net assets are invested. Law No 21.382 / 1976 provides for restrictions on the part of the municipalities and the State in the acquisition of immovable property by foreigners in which it establishes certain maximum limits. A resale to foreigners is also bound by this law. Further conditions may be laid down by the provinces. At the end of 2010 the provisions for the acquisition of real estate by foreigners were changed with migration. It is now necessary to invest 1,500,000 ARS to get the Residencia. Pensioners from Germany have to prove a monthly pension of over 2,500 ARS.
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