Enter With Dollars, Change A Substantial Amount Of Dollars

[jeff1234]

Question: with the way that dollar transactions are becoming increasingly difficult, whats the likelihood that, if he decides to sell the house in the future, he wont be able to get $USD or take them out of Argentina?

 

[SarahAnn]

I am interested in this topic as I am also looking at buying an appt., either in dollars or pesos. I have an escribano that I trust, and he says that the buyer needs to justify to AFIP the source of funds for any sum greater than US$100,000. This justification has to be provided by the buyer. For foreigners, you need to have a CDI with AFIP (just apply for it and go to the office to pick it up, no big deal). On my CDI it is shown that I am non resident, so presumably I don´t pay tax in Argentina.
The price that is written in the legal documents (on which you have to justify the source of funds) can be significantly less than the real price, how much less I don´t know (yet!).
I´m told that this is standard practice, all the escribanos do it.
This idea of buying stocks is interesting, I am going to look into that.
Good luck, Sarah

 

[lamarque]

well this depend on how long he keeps the property but no government last forever and as always in this country this kind of mesures have short legs. In any case he can just sell in dollars or pesos at blue rate and then convert them into dollars in the blue market.

 

[SarahAnn]

Or you could do this legally with contado con liquidación:

• Buy Argentine stocks abroad with dollars
  
• Transfer those stocks to a broker here
  
• Sell those Argentine stocks here for pesos

This is 100% legal, you can report it in the escritura as the source of your funds here and it will give you an exchange rate of 7.16 or so. Not bad at all.

Just make sure you have your money and accounts abroad declared to the AFIP because this operation is 100% en blanco.

Saludos!

Hi, and sorry to ask a stupid question. How do you go about declaring your account abroad to the AFIP? I am non resident, so as far as I know, I don´t pay tax, and the AFIP is not interested in my accounts. Does the declaration of the foreign account need to be done before the shares transaction? Many thanks, Sarah

 

[Fredd]

yeterday sold for 7,10 cash more than 10.000 U$S for a house sale. ( im broker)

 

[steveinbsas]

For foreigners, you need to have a CDI with AFIP (just apply for it and go to the office to pick it up, no big deal). On my CDI it is shown that I am non resident, so presumably I don´t pay tax in Argentina.

As a nonresident you do not pay taxes in Argentina on your foreign income or assets, but you are subject to bienes personales taxes on all of your personal property in Argentina, and , as a nonresident, you are taxed at a higher rate than residents...even if the value of all your property is less than $305,000 pesos. Residents who are below this threshold pay zero bienes personales. If your property is in Capital Federal you also pay ABL. If it's in the provincia Buenos Aires you pay ARBA. When you buy or sell a property you must pay some (fairly small) taxes as well.

Some nonresident property owners don't actually know about the bienes personales tax. Real estate agents rarely mention it and there is no bill sent to the taxpayer.

You also pay IVA (21%) on almost everything you buy en blanco as well as escribano's fees.

 

[steveinbsas]

Hi, and sorry to ask a stupid question. How do you go about declaring your account abroad to the AFIP? I am non resident, so as far as I know, I don´t pay tax, and the AFIP is not interested in my accounts. Does the declaration of the foreign account need to be done before the shares transaction? Many thanks, Sarah

The Argentine entity with whom you are doing buisness (selling stock or even sending money with XOOM) will ask for you bank account information and source of the funds if your transactions exceed $40,000 pesos in a year.

 

[Fettucini]

The alternative is to make several trips across the border and bring in your legal undeclarable amount of us$10,000. If when you came to sell the property the afip were to ask where this money came from, all you'd need to do is to show the amount of entry stamps in your passport equating to the amount your selling for.

 

[steveinbsas]

The alternative is to make several trips across the border and bring in your legal undeclarable amount of us$10,000. If when you came to sell the property the afip were to ask where this money came from, all you'd need to do is to show the amount of entry stamps in your passport equating to the amount your selling for.

This will not show where the money came from or how the money was brought into the country.

AFIP wants to know the source of the funds, i.e. how they were legally earned or acquired.

When it comes time to sell it's a good idea to be able to show exactly how the funds (equal to the peso value stated on the escriitura at the official exchange rate at that time) were acquired.


Bringing in amounts just under $10K USD a number of times might be useful if the buyer is paying a portion of the "real" price en negro.

 

[SarahAnn]

The alternative is to make several trips across the border and bring in your legal undeclarable amount of us$10,000. If when you came to sell the property the afip were to ask where this money came from, all you'd need to do is to show the amount of entry stamps in your passport equating to the amount your selling for.

yes, already thought of that!