""HELP""Real Estate Mng company reference?

[george5475]

It is the law for any business to include 21% IVA in the total amount they charge for their sevices, but if they are not giving you a legal factura as a receipt for what you pay them they are not paying the tax to AFIP after collecting it.

If you receive facturas for their service, you can deduct this expense from your rental income when paying taxes on it.

Both parties are legally responsible for the facturas. (If a factura is not offered it's your responsibility to demand it.)

Steve, when you say both parties are responsible for the legal facturas, which 2 parties do you mean? the property owner and property management company?

 

[steveinbsas]

Steve, when you say both parties are responsible for the legal facturas, which 2 parties do you mean? the property owner and property management company?

Yes, and you are responsible to ask for the factura even if it is not offered. If you get a receipt that has the words "documento no valido como factura" or "presupuesto" you can be sure the IVA is not being paid to AFIP, even if you are paying it to the agent.

 

[solerboy]

Thanks solarboy for your input on this.

So let me get this right. I've had this apartment since 2007 and only now has this issue come up of paying 21% IVA to AFIP.

So prior to 2012, would I owe AFIP back IVA taxes for IVA not paid for those years?

If you have been renting you should have paid the 21% on all earnings from when you acquired the property. The full tax rate is 35% but you only need pay 21% to compensate for your running expenses. But what I am suggesting it may be is impuestos de ganancias not IVA.

 

[Raymond]

I have dealt with this agent also and continue to hear good things re his customer service, if he cannot help he will steer you to someone that can
http://remax.com.ar/AgentProfile.aspx?AgentID=181059

 

[steveinbsas]

It could be your property manager is not charging IVA but is in fact taking retenciones. This is presumed income tax for which he will give you a certificate.

A properly constituted property manager would be required to deduct and pay over the 21% to AFIP before passing the money onto a non resident property owner.

If this is the case he is doing his job correctly and will save you a fortune in late payment interest and fines which would be payable should you wish to get permission from AFIP to sell the property.

This is only a suggestion of what may be happening.

I think solerboy has shed some light here.

If the real estate agent is "retaining" 21% of the total rent this is exactly what is happening, and I hope you receive the proper certificates.

Otherwise if you sell as a non resident you will have to pay taxes, penalty, and interest on the "assumed" (undeclared) rents for the past five years.

If you become a resident before you sell you will be subject to far less scrutiny from AFIP.

And the real estate agent may also be required to charge 21% IVA for his service.

 

[steveinbsas]

So prior to 2012, would I owe AFIP back IVA taxes for IVA not paid for those years?

If you have been reporting rental income and paying AFIP the 21% tax (regardless what it's called) you have nothing to worry about.

My first post was only to let you know that the real estate agent may be required to include the 21% IVA in the total amount he charged you for his service...just like my escribanos included 21% on their fees for the escritura for the purchase of my properties.

Since then I found the following at http://internationalliving.com/real-estate/countries/argentina/taxes/

Rental Income Tax

As a non-resident, there is a withholding tax of 21% on the gross annual rent. In the case where the tenant is responsible for paying tax, the percentage is raised to approximately 26.5%.

 

[george5475]

If you have been renting you should have paid the 21% on all earnings from when you acquired the property. The full tax rate is 35% but you only need pay 21% to compensate for your running expenses. But what I am suggesting it may be is impuestos de ganancias not IVA.

I have to admit it is my fault for being silly to think I could just collect the rent and not have to pay any taxes on it. I take responsibility for that.
But I also have to say I was not advised otherwise as well from professionals in the real estate management industry.

Solerboy, to the best of your knowledge, how to I begin paying the 21% of taxes from the rental earnings from my rental property. As I mentioned I don't live in Argentina. Do I need to get a tax id number? If so, where should I start?

I have to say again, its my mistake to begin with for not researching well and letting others dictate and do things for me.

Thanks to all of you for your informative posts.

 

[steveinbsas]

I have to admit it is my fault for being silly to think I could just collect the rent and not have to pay any taxes on it. I take responsibility for that.
But I also have to say I was not advised otherwise as well from professionals in the real estate management industry.

Solerboy, to the best of your knowledge, how to I begin paying the 21% of taxes from the rental earnings from my rental property. As I mentioned I don't live in Argentina. Do I need to get a tax id number? If so, where should I start?

I have to say again, its my mistake to begin with for not researching well and letting others dictate and do things for me.

Thanks to all of you for your informative posts.

George, The two most important questions for you at this point are:

1. Are you planning on becoming a resident of Argentina in the next five years?

2. Are you planning on selling your apartment in the next five years?

If you answer yes to both questions your problems will be minimized..as long as you become a resident prior to selling.

If you answer "no" to the first but "yes" to the second your problems will be magnified.

If you answer "yes" to the first and "no" to the second, relax and have a nice evening.

If you answer "no" to both questions, relax and have a nice evening.

 

[ben]

If it's still needed, I have a family friend who does this (propiedades) for a living, and whom I'd trust with my own money. PM me if you're interested.

 

[george5475]

George, The two most important questions for you at this point are:

1. Are you planning on becoming a resident of Argentina in the next five years?

2. Are you planning on selling your apartment in the next five years?

If you answer yes to both questions your problems will be minimized..as long as you become a resident prior to selling.

If you answer "no" to the first but "yes" to the second your problems will be magnified.

If you answer "yes" to the first and "no" to the second, relax and have a nice evening.

If you answer "no" to both questions, relax and have a nice evening.

Can't begin to tell you how much I appreciate your information Steve. Thanks!!

I had no intention on selling the property in the short term but with the knowledge of how much a property owner is taxed and the issue of trustworthiness with those involved in real estate, I'm tempted to sell it before the 5 year mark. The tenant who is living in the place is a professional and intends to be there for the long term, on the condition Im the owner. She just signed a 2 year contract to continue living there.

I'm 36 now and a long way from any thoughts of retirement but my intention was at some point in the distant future.

So Steve, you reckon I should hold on tight and not make a rash decisions about selling the property unless I really need to and begin paying what owed to the AR government?