AFIP "investigating" foreigner porperty owners?

[steveinbsas]

I recently read a post in another expat site that AFIP was looking into the sale of properties to foreigners from 2006 forward to see how the money was brought into the country and if the funds were legitimately "earned" in the first place. I have confirmed this with my escribano and my accountant (who work together).

AFIP is checking the amount declared on the escrituras against the amount of money transferred into the country. If the amount transferred is greater than the amount on the escritura there may be cause for concern if the buyer did not have residency when the transfer was executed.

They also are looking to see if the bienes pesonales taxes have been paid and, in those cases where the owners do not reside in Argentina, if they have been reporting rental income which AFIP will assume even if the property is not being rented and only being used by family and friends (unless the gas and electric usage are near zero when the owners are not in Argentina). According to my accountant, the tax rate on rental income rates for non-residents is three time greater than the rate for residents. Penalties for non payment of taxes start at 30%. Interest may also be assessed at very high rates.

AFIP is apparently contacting the escribanos involved in the original transaction if they are unable to reach the owners using the contact information provided on the escritura (usually temporary local addresses and phone numbers), though they are also calling those numbers in an attempt to reach them.

 

[MJK]

I've seen that happening with sales of properties, but remember you can legally bring in US$10,000 undeclared each time you cross into the border of Argentina, therefore if for example you have ten entrance stamps over a couple of years that is effectively US$100,000 of cash in "white" in Argentina.

 

[BlahBlah]

Transfer it to Chile then and drive over the border

If you don't have a transfer I think you will run into the same problem

 

[steveinbsas]

I've seen that happening with sales of properties, but remember you can legally bring in US$10,000 undeclared each time you cross into the border of Argentina, therefore if for example you have ten entrance stamps over a couple of years that is effectively US$100,000 of cash in "white" in Argentina.

That may be true, but AFIP still wants to know the source of the funds, especially if they were NOT transferred directly from the buyer's bank account into Argentina though the Banco Nacion. Even if a casa de cambio was used, the funds are required to come through the casa's account with the Banco Nacion.

If I understand correctly, AFIP is also focused on whether or not the amount transferred into Argentina exceeded the price declared on the escritura. There is (or at least there was) a law that the amount transferred by non-residents could not exceed the amount stated on the escitura or the law required that 30% of the overage be deposited with the Banco Nacion for one year without interest.

 

[rmartinbuenosaires]

I guess when a society, from the top down, is corrupt and unscrupulous, they assume everyone else in the world is too. ANYTHING to attempt to get even more money out of foreigners. They just continue to bite the hand that feeds them. It is pretty pathetic.

 

[soulskier]

RMartin, weren't you the one who said it didn't make sense to get residency? According to what Steve posted, it is clear residents have advantages.

 

[BlahBlah]

That is if they buy

 

[steveinbsas]

And it's an even greater advantage when they sell. I just did.

As a "resident" with a DNI who actually lives in Argentina, I was not required to provide past utility bills to prove that I did not rent my apartment nor did I have to pay any taxes on "assumed" rent. I did not have wait two to three months for permission to sell. I received the "clearance" to sell in a few days. I also have been exempt from paying bienes personales since they raised the basic exemption to 305K pesos. Without a DNI there is no exemption and the non resident tax rate is greater than the rate that a resident must pay.

If you aren't going to buy an apartment and live here at least six months a year or need a visa to work here, the reasons to get a DNI are far less compelling. Until recently, these tax issues only surfaced when selling a property, even though the tax liabilities existed all along. The point of sale is obviously the best time for the tax man to go after the unpaid taxes, penalties, and interest, especially when Argentine citizens are involved, but now it looks like AFIP may be going after this untapped source of revenue from foreign owners without waiting for them to sell.

Non-resident property owners are required to file bienes personales annually, and need an Argentine accountant to do it for them. Owners who allow others to use their apartments are creating a tax liability, even if they are not charging rent. Unless the gas and electric usage drop to near zero (uninhabited) levels when the owners are abroad, it's probably a lot more "economical" to declare some rental income and pay some tax sooner (annually) than pay a lot more later. It is very important to save all of the facturas for gas and electricity. It might also be a good idea to actually have "guests" sign short term rental agreements (in castellano, of course) that indicate the dates of their visit. If they are family (same surname) it might even be possible to justify zero rental revenue for their visit. Photocopies of passports with Argentine entry stamps are essential.

 

[rmartinbuenosaires]

I bought my apartment in 2003 and have no intention of selling especially in such a hostile environment. I do not have a DNI or care to get one. If and when I sell my apartment, I will deal with all sorts of hassles anyway so why worry about it now. The rules will change 100 times by then anyway.

 

[steveinbsas]

You're right rmartin. Worrying won't change anything. Neither will being angry so much of the time, with the possible exception of you own health and happiness.