Justification of origins of funds for real estate transaction

[Ceviche]

ceviche. well written with good information. although it doesn’t sound very argentine to me. 10% transfer fee, escribano about 3 %, and realitor at aboug 4%. thats alot of up front costs. no argentine minded person pays that.

No need to post a sarcastic laugh.

Realtor fees for buyer - 4% of Property cost
Escribano fees for buyer - 1% of property cost
If you want a AFiP invoice on their fees - 21% of 5% paid above
Federal and state Taxes - 4% plus / minus

Toral cost of a property as an example. 100 k
Final cost - 110500 k
If you got a better deal than that - congrats

 

[Ceviche]

ceviche. well written with good information. although it doesn’t sound very argentine to me. 10% transfer fee, escribano about 3 %, and realitor at aboug 4%. thats alot of up front costs. no argentine minded person pays that.

The 10% transfer fees applies if you transfer from abroad untaxed money and you want to take advantage of blanqueo and pay 10% tax in Arg to make it tax paid funds. If you have paid taxes abroad - no need to pay another 10%

Realtor fees -4%
escribano fees - 1% ( not 3%)
Federal Taxes - 4%

If an Argie wants to buy property he has to pay all that. Best he can do is lessen 4% on of Federal taxes by declaring a lesser purchase amount on paper. The escribano, realtor will charge their percentage on actual purchase amount whether declared or not.

 

[dilmah]

If you are a citizen there is a sworn declaration to fill, where you state the origin of funds

citizen of which country, Argentina or the United States?
how does citizenship affect ability to make sworn declaration?

 

[Ceviche]

citizen of which country, Argentina or the United States?
how does citizenship affect ability to make sworn declaration?

The magistrate gives a sworn dec that yr funds are clean

 

[PhillyD]

So last year we purchased a place in BA:

CABA - Percentages on the total sale value:
• Stamp duty: 1.8%
• Notary professional fees: 2% +
VAT
• Real estate commission: 4% + VAT
• Registration fee: 2%

 

[roadtrippin1]

Step 9 - Alternatively - if you have no tax records, and you have a CUIL or CDI since 2023, you may open a CERA USD denominated account in a bank here, transfer funds from usa to this account. Whatever amount you will pay to seller, add 10% taxes to it and send buy amount plus 10% to CERA. Once money is received in Cera, transfer to a usd account of same bank minus 10% left in CERA as taxes. Make transfer from this USD account to buyer on day of purchase.

Are these types of opportunities to "blanquear" funds happen frequently in Argentina? Because it seems that this CERA is no longer available.

I would be interested in purchasing a property but this "justification of origin" issue always seemed very complicated to me. What if the person does not have a single source for the funds but it is a compilation of money given by family over a long period of time, profits made in investments like stocks, crypto over a long period of time, dividends etc. Does one have to dig into ancient history and try to find documents for every transaction?

 

[Ceviche]

Are these types of opportunities to "blanquear" funds happen frequently in Argentina? Because it seems that this CERA is no longer available.

I would be interested in purchasing a property but this "justification of origin" issue always seemed very complicated to me. What if the person does not have a single source for the funds but it is a compilation of money given by family over a long period of time, profits made in investments like stocks, crypto over a long period of time, dividends etc. Does one have to dig into ancient history and try to find documents for every transaction?

You require to be a tax resident in 2023 to avail it. Its still avbl. Ask your local accountant to guide you or hire one.

 

[LuckyLuke]

citizen of which country, Argentina or the United States?
how does citizenship affect ability to make sworn declaration?

If you are an argentine citizen, you can repatriate funds from the US which is fairly straight forward process. We just had to provide bank statements to our local BNA branch showing the funds came from a "mirrored account (same owner)". We also received an email from the intermediary BNA bank in NY requesting the same documents as well as some identity type copies (DNI, Birth Cert, etc.). No apostille or translation was required. No tax returns were requested either.

The Escribano we used for our recent purchase couldn't have cared less where the funds came from as long as the seller received the amount declared in the compra-venta document.

 

[mulderfox]

citizen of which country, Argentina or the United States?
how does citizenship affect ability to make sworn declaration?

Argentinian citizen. The reply was to explain how argentinians buy property. I was trying to make the point that there is paperwork still involved. If the money is already in the country there is no bank involved.