Capital Gains Taxes

[GS_Dirtboy]

Happy Monday, everyone!

If a foreign seller (no DNI) sells property here, what is the capital gains tax? Everything is in white. Will be working with a foreign buyer if that makes any difference.

Many thanks in advance.

GS

 

[nicoenarg]

Capital gains in Argentina is calculated just like your income tax. If you're thinking a corporation, then the tax you're looking at is 35% (I believe), and if you're an individual, I am not sure how that is calculated.

Also, it doesn't matter whether you have a DNI or not, if you have been in Argentina for more than 6 months with absences less than 90 cumulative days in the last 12 months...then you are liable to pay taxes on all of your Argentine sourced income.

If you do have a DNI, i.e. have a permanent status of some sort, then its a different story.

EDIT: I also wanted to add that as long as personal property goes, I do not think there is any tax. So it depends on what kinda property it is that is being sold.

 

[earlyretirement]

There is NO Capital gains taxes when selling a residential property as an individual. You do have ITI taxes of 1.5% of the price listed on the title deed as well as stamp taxes of 2.5%. Almost always the buyer and seller equally split the stamp tax and pay 1.25% each.

Make sure to see if the buyer has never owned any property in Buenos Aires and it's their first purchase because if so, you can get part of the stamp taxes exempt if so.

But there isn't any capital gains taxes if you're selling as an individual.

 

[earlyretirement]

FYI the ITI tax is more commonly known as a "transfer tax" in other countries in the world. And again, it's on the declared price on the title deed which can drastically differ from the actual price.

Just keep in mind that as a non-resident you will need to apply for a permit to sell from AFIP. You better be up to date on ALL of your taxes while you owned the property including rental taxes on the income you made, ABL bills and the annual asset tax.

If you're not up to date on these taxes, the penalties and interest can really add up. But these aren't anything to do with a capital gains tax. There is no capital gains tax (YET) when selling as an individual.

Maybe this will change in the future...more and more countries around the world are raising the rental taxes and the capital gains taxes. France just raised theirs and it's super hefty now.

 

[GS_Dirtboy]

Thanks. For clarification, this property is a rental property and they have declared all of their rental income as well as paid all of their taxes to date.