Foreigners with property in BA

[kre8ivelyXposed]

Is it always recommended to have a lease with a tenant? I am renting my apartment to an Argentenian friend who is just paying the monthly maintenance fees and utilities. I use the apartment periodically. As we are friends, we had not signed a lease/comodato. Although I am not really worried about any serious disagreements or repercussions later, an escribano told me that in a worse case scenario whereby my friend did not for some reason pay the utilities or the expenses, I would still be responsible for paying the bills and possibly resort to a lawyer and court should I want to have a tenant evicted. I imagine that is lengthy and cumbersome at best for a foreigner to do.
The bigger question for me is whether a tenant would ever have socalled "squatter's rights" whereby the tenant had legal right to the apartment by virtue of just living there for a long period of time without a lease or comodato and only a utility or phone line in his or her name.
Does anyone know whether apartment leases/comodatos in BA are really that necessary or enforceable?

 

[Fettucini]

The price per square meter in Puerto Madero is between 3-4,000 USD per square meter, some of the most expensive in BA. It's a real hassle for foreigners to get their money in the country now with the new anti money laundering laws. Although in the past 6 years many foreign buyers have transferred money in using private transfer houses, which are outside the central bank, they will now have problems when coming to sell with the new laws that have come into effect in the last year or so. Now when you come to sell you have to apply for a special document from the tax office which takes a few weeks, but part of it is showing how you got the money in the country. If you can't show how you got it in (ie you used a private finance house), as many foreigners won't be able to you'll most likely be fined a money laundering penalty.
So recommended to use the central bank for any property purchase, even though it is a real hassle!

 

[soulskier]

It's my understanding the AFIP approval certificate (COTI) is so the price you sell you the property for is close to the asking price. They are trying to curtial the black and white slaes. Also, I heard AFIP is now checking to see if taxes were paid on the property correctly. I never heard of them checking to see where the money came from. If I were going to buy a property again, I would certainly research this further.

 

[citygirl]

kre8ivelyXposed - you asked: "The bigger question for me is whether a tenant would ever have socalled "squatter's rights" whereby the tenant had legal right to the apartment by virtue of just living there for a long period of time without a lease or comodato and only a utility or phone line in his or her name. "


YES. A friend of mine (Argentine) was in a similar situation. She allowed a "friend" to move on to her farm. This "friend" was also working at the farm. After 3 months, it became apparent it wasn't a good situaiton & she attempted to evict the person.
It took over THREE YEARS, multiple court dates & judgements, etc to get the person out. In the meantime, the "friend" had destroyed her property and there was nothing she could do about it. She sued for damages & the friend still owes her some 60K pesos but given the friend has nothing legally in her name, she'll never collect a penny. Seriously, it is very, very difficult to evict, especially if your friend is paying bills, etc & basically establishing herself as the resident.
For your own protection ALWAYS get a lease in place. If something happens, it will be very difficult for you to handle.

 

[Fishface]

I opened an a account with HSBC - the local banks may be different - I dont know.
Transfering funds even in small amounts results in a forest of paperwork.
I understand transfers of large amounts of money *has* to be done through Banco Piano and you *have* to show provenance of funds - which is sensible anyhow.
read posts from a guy that used to post on here 'realba' - he did the whole thing bought - renovated - sold - probably the last wave of people making money in property developments and that was more than a year ago - In my opinion you are a chump if you buy anything now the bargains are long gone and the new builds are total sh1t - and almost zero or less capital growth and doing it for the 'rent', the sums just dont add up any more.
buy something because you like it, but not to be an amateur landlord.

 

[steveinbsas]

...In my opinion you are a chump if you buy anything now the bargains are long gone...

...buy something because you like it, but not to be an amateur landlord.

Well said, Fishface,
I would add: Buy something to live in (for multiples of years) or don't buy at all, unless $200,000 is only chump change to you.

In any case, I suggest anyone considering buying should rent for at least six months to see how much they "like" living here.

 

[soulskier]

Things might be changing on this front. http://dolarsi.com/news.asp?nota=3

 

[Fettucini]

...It's a real hassle for foreigners to get their money in the country now with the new anti money laundering laws. Although in the past 6 years many foreign buyers have transferred money in using private transfer houses, which are outside the central bank, they will now have problems when coming to sell with the new laws that have come into effect in the last year or so. Now when you come to sell you have to apply for a special document from the tax office which takes a few weeks, but part of it is showing how you got the money in the country. If you can't show how you got it in (ie you used a private finance house), as many foreigners won't be able to you'll most likely be fined a money laundering penalty.
So recommended to use the central bank for any property purchase, even though it is a real hassle!

Fettucini, Could you please tell us the source of this info? I read

the same info (only transfer money thorough the central bank itself) on

one real estate website, but on another, the author wrote that

money to buy property could be transfered by a foreigner using a registered change house, but only

through their account with the Banco Nacion. I think the latter assumes that the foreigner does not have a bank account in Argentina.

This is my own source as I have bought and sold several properties here myself and done the same for various clients. The laws are always changing in Argentina on property, if you sold a year or so ago as a foreigner you wouldnt be asked for so much info, but now it's changed. Now as a foreigner the tax office ask for the source of the money you used to buy the property and how you got it in the country, which a lot of people will not be able to show. They even ask to see copies of your foreign bank statements and a transfer to the Argentinean central bank! As an Argentinean you are ok on this for the time being. There are still lots of ways to get money in the country easily, but if you want to do it in white then it takes more time, which all foreign buyers should do now to avoid these problems in the future when you come to sell.

 

[CABJ]

Is this funny law still in place that requires you to transfer 30% of the amount to an account of the Argentine state and return it without interest after 12 months?

 

[Attorney]

Yes, the funny law is still in force.
With respect to the "Certificado de Retención" havent it occured to you to obtain a "residency" before selling your property to avoid having to do the filing of "Certificado de Retención" at AFIP?. With a DNI there is no reason why the "notary" should ask you to have a Certificado de Retención because you are resident .

Is this funny law still in place that requires you to transfer 30% of the amount to an account of the Argentine state and return it without interest after 12 months?