Justification of origins of funds for real estate transaction

[dilmah]

We are working with escribania on buying a house in Greater Buenos Aires.

Now escribania is asking me to provide justification of origin of funds. And she wants it to be apostilled and translated.
Is it normal to request such documents?
What documents have you provided as such justification (if any)?

What I don't understand is why do I even need such justification if my funds are in legitimate bank account, not cash.
Another thing that I don't understand is how it's even realistic to provide justification if that's one's savings over a prolonged period of time. Do they really expect documentation of all my income over a decade? This is just unrealistic and crazy.

 

[FrankPintor]

We are working with escribania on buying a house in Greater Buenos Aires.

Now escribania is asking me to provide justification of origin of funds. And she wants it to be apostilled and translated.
Is it normal to request such documents?
What documents have you provided as such justification (if any)?

What I don't understand is why do I even need such justification if my funds are in legitimate bank account, not cash.
Another thing that I don't understand is how it's even realistic to provide justification if that's one's savings over a prolonged period of time. Do they really expect documentation of all my income over a decade? This is just unrealistic and crazy.

Are your funds in Argentina? If that's the case, I'd say talk to an accountant, it should be easy to sort out.

 

[dilmah]

Are your funds in Argentina? If that's the case, I'd say talk to an accountant, it should be easy to sort out.

no, the funds are in the US.

If they want documents from accountant, then I don't understand how they are expected to be apostilled.
Apostille is only for government documents.

 

[nikad]

no, the funds are in the US.

If they want documents from accountant, then I don't understand how they are expected to be apostilled.
Apostille is only for government documents.

The escribano needs to attest that this is legal money, so yes, you should have tax returns where it shows that money is declared in the US and get them apostilled. The escribano acts on behalf of Afip regarding origin of funds. They are public officers. Asking for this is pretty much standard. If the money is not declared in the country of origin, the escribano will choose not to work with you else he has to report it as suspicious of money laundering.

 

[jbeas176]

always. i provided a financial statement from my accountant. its not difficult. get an accountant to send a financial statement. be aware if you become a resident that amount will follow you when the world tax applies to you

 

[jbeas176]

i dont recommend sending past tax statements. too much information

 

[Ceviche]

The whole idea is that any money used for property purchase in Argentina, is used after paying taxes on it in any part of the world.

Step 1 - Ask your USA based accountant to issue you a statement. Even if you do not have a dedicated one, hire one.

Step 2. - Tell him to get it notarized. Its like his sworn declaration in front of a government rep. aka the "magistrate". That he is not lying.

Step 3 - Any notarized statement can be appstiled. The notary magistrate should be able to organize it. Apostille indicates that the attestation issued by the magistrate is real and recognized by USA govt.!

Step 4 - The apostiled statement sent from USA is ratified by ministry of external affairs in Argentina. This basically means your apostle doc from USA is aunthenticated by Govt of Arg via ministry of external affairs. Find a local third party agency to get it done, here

Step 5 - get it translated in Spanish by a govt ratified translator.

Step 6 - Get it authenticated by “colegio de traductores”. Your chosen translator will get it done. This step signifies that your translator is really recognized by the govt. of Argentina

Step 7 - hire a local Arg based accountant to issue you a statement of origin of funds basis doc generated in step 6.

Step 8 - take the statement from local accountant generated in step 7, to your chosen escribano in your original post. He will not say anything more.

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.

 

[Stephano]

The whole idea is that any money used for property purchase in Argentina, is used after paying taxes on it in any part of the world.

Step 1 - Ask your USA based accountant to issue you a statement. Even if you do not have a dedicated one, hire one.

Step 2. - Tell him to get it notarized. Its like his sworn declaration in front of a government rep. aka the "magistrate". That he is not lying.

Step 3 - Any notarized statement can be appstiled. The notary magistrate should be able to organize it. Apostille indicates that the attestation issued by the magistrate is real and recognized by USA govt.!

Step 4 - The apostiled statement sent from USA is ratified by ministry of external affairs in Argentina. This basically means your apostle doc from USA is aunthenticated by Govt of Arg via ministry of external affairs. Find a local third party agency to get it done, here

Step 5 - get it translated in Spanish by a govt ratified translator.

Step 6 - Get it authenticated by “colegio de traductores”. Your chosen translator will get it done. This step signifies that your translator is really recognized by the govt. of Argentina

Step 7 - hire a local Arg based accountant to issue you a statement of origin of funds basis doc generated in step 6.

Step 8 - take the statement from local accountant generated in step 7, to your chosen escribano in your original post. He will not say anything more.

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.

This is way convoluted!
Is this because funds are coming from abroad and/or the buyer is not an Argentine citizen?
A person I know (Argentinian) just bought a house but simply showed up at the closure date with the customary stack of dollars and divvied them up according to the agreement.

 

[mulderfox]

This is way convoluted!
Is this because funds are coming from abroad and/or the buyer is not an Argentine citizen?
A person I know (Argentinian) just bought a house but simply showed up at the closure date with the customary stack of dollars and divvied them up according to the agreement.

If you are a citizen there is a sworn declaration to fill, where you state the origin of funds. Asuming you have declared the existence of the dollars each year before in your tax statement, it's pretty simple. Still the transaction could be investigated later and a statement from your accountant could be neccesary. Here is where declaring a lower property price comes in handy. The cheaper the property the less dollars you need to account for.

 

[jbeas176]

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.