Pericles' answer to fifila's question was great, and I would like to add what I have learned from experience. I did not meet Pericles until this year, so when I write about the real estate agents I met in 2006, please remember that he is not included in that group.
When I was shopping for an apartment in 2006 I asked every real estate agent I met about taxes. I was told about the ABL (Buenos Aires city tax) and was informed that they were very low and that the taxes would be about $200 pesos per year for the apartment I was buying in Recoleta. However, not one of more than a dozen real estate agents ever mentioned any other taxes.
In early 2007 I read about changes to the "bienes personales" tax in a newspaper article on line
http://www.casarosada.gov.ar/index.p...k=view&id=1262, so I returned to the real estate office to inquire about it. I was told that I was not liable for those taxes in 2006 (the escritura was in late October) and more or less to just "forget" about it. The agent said there was an exemption for the tax that was going to be raised in 2007 to an amount greater then the "purchase price" of my apartment and as a resident I would not have to pay them in the future, either.
If my memory is correct, the tax rate for residents was .50% for properties over $102.000 in 2006. I believe the tax rate for nonresidents at that time (from zero) was .75%. The tax is assessed to the owner of record as of December 31st and there is never a bill sent to the property owner for these taxes, either.
In 2007 the " deduction" or "exemption" for the bienes personales taxes for residents (based on the purchase price of the property as stated on the escritura) was raised form $102,000 pesos to $300,000 pesos. As the price of my apartment was less than $300,000 pesos, I thought I was in the clear, but I never asked an accountant if I needed to do anything regarding this tax. The tax actually actually applies to all personal assets, but property and vehicles are all that seem to matter. The tax rate for property owned by non residents is now 1.25% (from zero).
At a recent gathering at Captaindave's I found myself at a table with three other expat property owners who had never heard of the bienes personales tax and of course did not realize that it applied to them! Coincidentally, all three also bought their apartments in 2006. Only one of the has a resident visa and the other two come and go (and are actually living here) on perpetually extended tourist visas. The expat with residency is in exactly the same situation I was and owes the resident rate (plus the penalty for nonpayment) for 2006, but I fear the other two are liable for the nonresident rates (plus penalties) for all three years they have been the owners of record. There is no deduction or exemption for nonresidents.
Even with residency and no tax liability, my accountant told me it is still necessary to file an annual "tax return" with AFIP to be eligible for the deduction unless (worldwide) income and assets are low enough to ask to be exempt from annual filing. I read that any foreigner who lives in Argentina more than six months a year becomes a resident for tax purposes, but those who continue to live here on "extended" tourist visas do not appear to be a target of the tax man. Only those who own properties have something to worry about. Actually, there is no need to worry. Just do the math and calculate how much is owed (including the 40% penalty) then add about $400 pesos per year for the accountant to "file" the returns.
Regarding bringing money into the country, the 10,000 dollar "limitation" on funds brought into the country applies to undeclared currency. It is possible to wire funds in much higher amounts (at least from a bank the United States) directly to Argentina for the purpose of buying an apartment. All transfers over $10,000 dollars will be reported to the IRS. While it is legal for a nonresident foreigner to use a casa de camboio, I believe that the funds must be transferred into the casa de cambio's account with the Banco Nacion of Argentina. I believe the amount can exceed the value stated on the escritura by a small percentage (to cover the closing costs I imagine), otherwise (unless there have been recent changes) 30% of the excess must remain on deposit with the Banco Nacion for one year without interest.
A foreigner with residency can transfer higher amounts and avoid the 30% hold, but must be able to declare (if not document) the source of the funds in order to demonstrate they are not subject to taxation in Argentina. I also have read that it is "completely legal" for a foreign buyer to transfer funds to a foreign seller's bank outside of Argentina when buying a property here, but I haven't done it.
In addition, if the property is valued below $300,000 pesos, the seller has residency, and is buying another property, there is an exemption of the transfer tax (ITI) and the paperwork can usually be completed within a week. If the seller is a nonresident foreigner the process is far more complicated and more lengthly...up to three months. The seller must even submit utility bills for the period of ownership so that it can be determined if the apartment was rented while the owner was not in Argentina. Unless the utility consumption drops to near zero while the owners are abroad, the tax man will assume the receipt of rental income. If the apartment really is rented, it's a good idea to declare the rental income and pay tax annually to avoid additional taxes and penalties. They will even check the seller's passport to determine when they were in Argentina versus when they were abroad in ordered to "guesstimate" rentals.
Finally, as I bought an apartment in Nunez one the same day (and in the same room) as the sale of my apartment in Recoleta, I do not have any experience or information about transferring funds out of Argentina.
I hope others will add more information to this topic and update any numbers I cited in case they have recently changed or were inaccurate in the first place. I suggest anyone considering buying a property as an investment (to rent) read the following article:
http://www.globalpropertyguide.com/L...axes-and-Costs
