How to handle proceeds of real estate sale

[toulouse]

Lots of people have been discussing the mechanics of selling real estate in this difficult time. One question I have hasn't really been addressed, though:

Supposing you sell a property and get paid in dollars either in cash here, or by wire outside Argentina. What happens at the end of the year when you file your asset taxes? You no longer own this property, so it seems to me that AFIP is going to ask what happened to the proceeds. Of course, you could say, yes, I have the proceeds in a safe deposit box (and declare it), but you can't say that the money just disappeared.

Asset taxes in Argentina are supposed to be paid on your world-wide assets (if I'm not mistaken), so how are others handling this situation?

 

[Davidglen77]

Two complex issues here now are:
1) A buyer obtaining dollars to pay you with for the sale of your property.
2) Even if they do pay you in dollars, how are you going to wire the money out of Argentina.

I've been told there are ways to wire the money out of Argentina via transfer agents, which supposedly are legal and reliable, although I don't have any experience in doing this myself.
The good news is, you do NOT have to pay asset tax on cash money bank deposits in Argentina. The value of cash money deposited in a bank account is NOT subject to asset taxes (bienes personales) as they are called here. So if you are comfortable having your money in an Argentine bank, then you can keep it there without being levied any taxes on it, until you can figure out how to transfer it out of the country.
Good luck.

 

[solerboy]

Two complex issues here now are:
1) A buyer obtaining dollars to pay you with for the sale of your property.
2) Even if they do pay you in dollars, how are you going to wire the money out of Argentina.

I've been told there are ways to wire the money out of Argentina via transfer agents, which supposedly are legal and reliable, although I don't have any experience in doing this myself.
The good news is, you do NOT have to pay asset tax on cash money bank deposits in Argentina. The value of cash money deposited in a bank account is NOT subject to asset taxes (bienes personales) as they are called here. So if you are comfortable having your money in an Argentine bank, then you can keep it there without being levied any taxes on it, until you can figure out how to transfer it out of the country.
Good luck.

I pay asset taxes in Argentina and my accountant includes all cash deposits in my asset tax calculation.

 

[jez]

I pay asset taxes in Argentina and my accountant includes all cash deposits in my asset tax calculation.

You have to declare all cash deposits and get taxed on money in a current account but don't get taxed on money in a savings account.

 

[Davidglen77]

You have to declare all cash deposits and get taxed on money in a current account but don't get taxed on money in a savings account.

Let's be totally clear here, cash money deposited in Argentina in a savings account does NOT count towards your total assets for bienes personales (asset tax). What you mean by "current account" here is known as "checking account" in other countries (here it's called cuenta corriente). I never keep money in a checking account unless I have to write a check. I don't think many people keep any great amount of money in a checking accout here. If your accountant is calculating your taxes that way, he or she is wrong and you are paying taxes on something not required to pay tax on.
Read the tax code on the AFIP webpage or consult with another accountant.

 

[jez]

Let's be totally clear here, cash money deposited in Argentina in a savings account does NOT count towards your total assets for bienes personales (asset tax).

Is that not exactly what I said? I said it had to be declared but is not taxed....

Page 27: http://www.afip.gov.ar/genericos/documentos/ManualGananciasBienesPersCaratula.pdf

"Se deberá consignar el tipo de cuenta. Para el caso de depósitos en cuentas corrientes
y/o de ahorro se deberá consignar obligatoriamente la CBU (Clave Bancaria Uniforme),
dato que podrá encontrar en sus resúmenes de cuenta, o solicitar a su banco."

 

[Markgeezer]

So, do you have to declare amounts in an overseas current account if you are a permanent resident.... anyone ?

 

[Davidglen77]

Is that not exactly what I said? I said it had to be declared but is not taxed....

Page 27: http://www.afip.gov.ar/genericos/documentos/ManualGananciasBienesPersCaratula.pdf

"Se deberá consignar el tipo de cuenta. Para el caso de depósitos en cuentas corrientes
y/o de ahorro se deberá consignar obligatoriamente la CBU (Clave Bancaria Uniforme),
dato que podrá encontrar en sus resúmenes de cuenta, o solicitar a su banco."

Not exactly, you said "current account", which in north american english does not mean "cuenta corriente". Cuenta corriente in north american english is "checking account". Current account in north american english means an account you presently own. Just clarifying things, nothing more.

 

[jez]

Not exactly, you said "current account", which in north american english does not mean "cuenta corriente". Cuenta corriente in north american english is "checking account". Current account in north american english means an account you presently own. Just clarifying things, nothing more.

Sorry my post was written in British English being that I'm from the UK. I associate my UK current account to be a 'cuenta corriente', and my UK savings account to be a 'caja de ahorro'. Maybe I'm doing it all wrong...

So, do you have to declare amounts in an overseas current account if you are a permanent resident.... anyone ?

Yes you have to declare it but you will have ask someone else if it will be taxed... your accountant should know..

 

[toulouse]

Yes, what my accountant tells me is that if you're a temporary or permanent resident (or citizen) of Argetnina, you must declare and pay taxes on your world-wide assets. Of course, many Argentines have bank accounts outside of Argentina, but they don't declare them. I have heard that banks around the world are planning to begin to cooperate more in this realm to force their citizens and residents to pay the taxes they owe.

Until recently I don't think too many people worried about the possibility of AFIP being that interested or able to acquire this information, but I wouldn't put anything past them now.