Can we help you with your search for property in Argentina?
Purchasing property for sale in Argentina is pretty simple and safe. This article is not aimed to replace any form of legal advice but as a way of providing you with information as to how the purchase process works when buying property throughout Argentina.
Over the past number of years, Argentina has become a place of great interest for those wishing to purchase investment property in Argentina as well as those wishing to purchase a holiday home in Argentina or those wishing to buy a new home in Argentina. Through our partner agents based in La Cumbre, Cordoba Province, we aim to provide you with a comprehensive portfolio of properties for sale in La Cumbre, as well as properties for sale in Argentina as a country. Our investment property portfolio in Argentina includes farms for sale in Argentina, Hotels for sale in Argentina, Vineyards for sale in Argentina as well as houses for sale in Argentina in the prettiest and most unspoilt locations. Whichever your property requirements may be, we will provide you with a bespoke property finder service tailor made for your specific requirements.
Purchasing Property in Argentina
Once you have identified the property you wish to buy in Argentina, the relevant documents relating to the status of the property must be requested from the selling party; these include a copy of the title deeds (escritura) as well as proof that all property taxes are paid and up to date. Should there be taxes outstanding on the property, this is then discounted from the sales price of the property. The vendor must also produce a registry inform which relates to any additional charges and encumbrances on the property as well as stating whether there are or aren't and judicial prohibitions on the property preventing the owner from selling it. Finally, the owner must also produce a plan of the property in which the built area, sizes and distribution of said property is explained in detail.
Placing an Offer
Once the above details have been verified and confirmed that everything is correct and in order, you may then proceed with placing an offer as well as placing a reservation deposit. Your realtor will then commence the negotiation process with the vendor in which the vendor can accept the offer, reject it or come back with a counter-offer. Should the selling and purchasing party not reach a mutually agreeable price, the deposit is of course refunded to the potential buyer.
Acceptance of Offer
Once the offer has been accepted and a mutually agreed price has been established between buyer and seller, both parties will be required to sign a Bill of Sale (Boleto de Compra venta) This contract will state date of completion, the details of the Escribano Publico (equivalent of a Notary Public)- Upon signing this Bill of Sale, the purchasing party shall pay the selling party 30% to 50% of the sales price of the property. Once this has been signed and the deposit has been paid to the vendor should the buyer not fulfill their obligations in completing on the purchase on the agreed dates, the vendor has the right to keep all monies paid. In the same way, should the vendor not fulfill his obligations in respect of completion, the purchaser is entitled to a refund of monies paid and the same amount again in lieu of compensation. Upon signing the Bill of Sale, the Escribano will be given all the documentation related to the purchase in order to be able to verify all is correct and in order. Should there be any issue which can't be rectified prior to completion, the Bill of Sale is annulled and monies paid by the potential buyer are then refunded.
Escritura (Completion)
The date of completion which would have already been set at the start of the purchase process is carried out before an Escribano Publico and it is at this stage in which the remainder of the monies due to the vendor are paid and you become the new owner of your new home or investment property in Argentina! For the completion, the selling and purchasing parties get together at the Escribano's office. However, prior to this, the Escribano must have received a copy of the escritura (tittle deed). The Escribano would have carried out the various searches regarding the legal status of the property for sale including various reports stating it is free from charges and debts. Payment for the property can be made in local currency or in U.S Dollars either in Argentina or into the selling party's foreign bank account. In the same manner as in most other countries, the purchasing party does not have to attend the completion as this can be done by a legal representative with a suitable Power of Attorney.
Property Sales in Argentina are carried out mostly in U.S Dollars and in cash, this is an important factor worth bearing in mind as you will need to have the funds readily available in order to complete the purchase. There are three main ways in which money can be brought into the country, some are more cost effective than others. Your options are:
Exchange Bureaus A currency exchange Bureau works in a similar way to a small private bank. DC Realty International have associations with various reputable exchange Bureaus and we would be delighted to assist you with this. Exchange Bureaus will require proof of origin of the money being transferred as well as your bank details in your home country. Once the money has been transferred, you will be notified that you may collect the funds from their office in Buenos Aires, this process normally takes 48 hours. The average charge for this service is in the region of 1.5% to 2.5% of the amount being transferred.
Via Bank Transfer This can prove to be an expensive option, especially for those transferring money from abroad who do not have a bank account in an Argentine Bank. The amount transferred to a Bank in Argentina will automatically be converted into local currency, bearing in mind that the currency used in most cases when purchasing property in Argentina is the U.S Dollar, the money will have to then be converted into U.S Dollars. The cost of transferring money into the bank is in the region of 1.5% of the amount, then to convert it back into U.S Dollars is a further 1.5% of the amount which means that using a bank for your transfer to Argentina will cost in the region of 3% to 4% not taking into account any fluctuation in currency values in the meantime.
Bring the money with you For obvious reasons, this is a risky way of doing it! In order to do this you need to be aware that you must declare at customs when entering Argentina any amounts higher than 10,000 U.S Dollars, in addition to this, you will need to check with customs at your home country as to what conditions apply for those wishing to take cash out of the country, this will vary from country to country.
Formalities Required in order to buy property in Argentina
Those wishing to purchase property for sale in Argentina must obtain a CDI (Clave de Identificacion) in order to do this, you must first have an address which will be used for the CDI.
In order to obtain a CDI you must first apply for a Certificate of Residence. This is a certificate of residence which must be obtained from the local Police Station local to where you will be residing or are currently residing. As this document refers to the actual address as to where a purchaser is residing at the time, a temporary address such as a Hotel can be used. Once you have applied for a Certificate of Residence, a Police officer from the local station will bring the document in person the following day. This is done in person as it is in this way in which the address of residence is verified. Please note that the certificate must be handed to the named person on the document and will not be given to any third parties.
Once you have received the Certificate of Residence, you then need to go to the A.F.I.P (Administracion de Ingresos Publicos) office local to the address used on the Cetificate of Resdience in order to apply for the CDI. You will need to show them your passport as well as providing two copies of it; in addition to this, you will need to name an Argentine resident as a representative for fiscal purposes only, this follows in accordance to Resolution General Number 1375/02. Providing all is in order, you will be issued with your CDI on the spot. More information about obtaining a CDI can be found on http://www.afip.gov.ar/english/
If your Spanish is not quite up to scratch, it is always recommended that you either ask a friend to assist you or engage the services of a professional to help you out with the relevant forms required.
Costs Involved
Money Transfers 1.5% to 2.5% if using an Exchange Bureaus or up to 4% if via bank.
Escribano Costs: 2% (plus IVA @ 21%) of the sales price normally paid 70% by the purchaser and 30% by the vendor. In the case in which the purchase is funded by a mortgage, 100% of the Escribano's cost is payable by the purchaser.
Realtor Costs: in accordance to the law, Real Estate Companies will charge selling and purchasing parties 3% (plus IVA @ 21%) equally and respectively. In the case of plots of land and sales in which land is involved, whether urban or farmland, parcels of land or fractions of land, the commission from the realtor is 5% plus IVA@ 21% being charged to purchasing and selling parties equally and respectively .
