Explain It To Me: Pesification and Real Estate Prices

[pmacay]

I agree with the others...people will always find a way to get paid in dollars.

The really scary thing is AFIP in some cases is asking buyers to justify where they are getting the funds to purchase. They have never done that before. But I've seen a few sales now where the deals fell apart because John Doe Porteño that is buying a $200,000 US apartment only declared $10,000 income last year. And they are questioning where the funds are coming from. And his parents also haven't declared enough funds to purchase it.

If AFIP really starts to scrutinize buyers funds/savings....the market will really suffer. Because the market lately is mostly made up of locals and not foreigners..... and the vast majority of locals don't declare all of their income. So that could be a big problem heading into the future...

This is exactly what is happening to a friend right now, he wants to sell his very beautiful 90 year old French provincial apartment, but no one can prove that they've earned enough money to purchase it because they've not been reporting their true income (to avoid paying taxes on it). He says the real estate market is essentially dead at the moment, until the real estate folks figure out a way to skirt around the new laws. His buyer was Argentine who has his account in a bank in the USA, so it would have been a USA bank to USA bank wire transfer and the money would have never had to have been physically in Argentina, however, the escribano's said the buyer still had to prove where the USA funds came from.
Even if he finds a buyer, now the problem is legally wire transferring the money out of Argentina.
I feel sorry for folks caught in this current fiasco!
Pete & Ron (2 gringos living in Argentina almost 12 years and loving it)

 

[dennisr]

And the hits just keep coming...
http://impuestos.iprofesional.com/n...-al-elegir-la-moneda-para-cerrar-la-operacin-