Paying Rent In US Dollars

[cruizes]

When people see their tax money used for the good of the people, when there are decent public hospitals, good public schools, good public transport, livable pensions etc then MAYBE people will be more inclined to pay their taxes. Meanwhile if you live in Argentina you need to accept the reality. If it is such a hassle for you, speak politely to the owner. Maybe you can reach an agreement. If you are so unhappy about it, why did you enter into an agreement with him in the first place?

Sounds like you are an Argentinian landlord.

 

[sesamosinsal]

We still don't know what cruizes' contract says: U$S or $ - makes it a bit difficult to give proper advice. As we all know, paying in U$S costs el locatorio trouble and money.

Google the Ley de Alquileres (applies to both temporary and long-term) in Argentina. If the dollar cannot be considered the legal tender (in some countries both the dollar and the national currency are considered such), then the landlord cannot ask for the rent in dollars. I've not found any government website that says the dollar is Argentina's legal tender in any way.

If someone was hellbent on not paying in dollars, this could be easily won in court, if indeed the dollar cannot be considered legal tender in Argentina. Nine times out of ten these landlords have their son or their daughter "renting" the apartment, and the only reason they want dollars for their overpriced apartments is to keep their mattress bank full of dollars. Heck, avoid court, and just mention "AFIP."

But yeah, too much drama for me.

 

[John.St]

Google the Ley de Alquileres (applies to both temporary and long-term) in Argentina. If the dollar cannot be considered the legal tender (in some countries both the dollar and the national currency are considered such), ...

Precisely.

I have the law, my lawyer gave me a copy last year.

Art. 1ro .- INSTRUMENTACION
Los contratos de locaciones urbanas, así como también sus modificaciones y prórrogas, deberán formalizarse por escrito. Cuando el contrato no celebrado por escrito haya tenido principio de ejecución, se considerará como plazo el mínimo fijado en esta ley y el precio y su actualización los determinará el juez de acuerdo al valor y práctica de plaza. En todos los supuestos, los alquileres se establecerán en moneda de curso legal al momento de concertarse, será nula, sin perjuicio de la validez del contrato. La cláusula por la cual se convenga el pago en moneda que no tenga curso legal. En este caso, el precio quedará sujeto a determinación judicial.
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
Not part of the law, but a general rule: En algunos casos se puede establecer el curso legal de dos monedas de distinto origen (la moneda nacional y una extranjera). Por ejemplo dólar estadounidense y moneda Nacional.

Thus I think it is open to interpretation, and the wording in the contract decides which currency is to be used - but as you write "too much drama" and four years in court

 

[elhombresinnombre]

The question was asked and answered before here... http://baexpats.org/expat-life/6493-banking-questions.html#post39343

 

[sergio]

Paying in dollars is part of the local culture so why the big fuss? When I rented, for quite a few years, I paid in dollars and didn't object. Making an issue of this with the owner would have been inconsiderate and counterproductive. No matter how hard expat renters gripe, it's unlikely that they will change the system. Now getting cheated out of a deposit, getting stuck with a bad apartment, not having heat, water, hot water etc. are things that you can rightfully complain about.

 

[sesamosinsal]

The question was asked and answered before here... http://baexpats.org/expat-life/6493-banking-questions.html#post39343

The answers provided on that page were never decisive for me because the Ley de Alquileres posted on all of the agency sites had said exactly the opposite, that the rents had to paid in "moneda de curso legal." The laws posted from the civil code by Attorney in BA are general, and could be applied to nearly any contract signed. But given the Ley de Alquileres tackles the subject directly, I always regarded its line about paying in the legal tender as having supremacy.

After reading St. John's post, I noticed that commas and periods were misplaced, which changed the meaning of the copy of the law he posted. So, I decided to go look for it on a government site, which I probably should done in the first place.

As it turns out, the second paragraph--the paragraph that talks about payment being only in the moneda de curso legal--was stricken down by the Ministry of Economy in 1993 after reviewing a law passed in 1991. Original law here.

According to Resolution 144/93, which specifically mentions rentals, landlords can use any currency they wish to use. The most important part: "Artículo 1º — Interprétase que la Ley 23.928 ha derogado el segundo párrafo del artículo 1º de la Ley 23.091, pudiendo las partes contratantes determinar la moneda de pago de los alquileres o arrendamientos que acuerden." (In other words, the second paragraph of the original law no longer applies, and now the parties signing the contract may use whichever currency of payment that they choose.)

My bad for not using official government sites to research this topic better. I think it is safe to say that it is not a general rule, St. John. It seems that it is, in fact, legal to require payment in dollars.

 

[John.St]

... My bad for not using official government sites to research this topic better. I think it is safe to say that it is not a general rule, St. John. It seems that it is, in fact, legal to require payment in dollars.

Good research, Bradly.

The copy I have (had, now replaced) is not only erratic but also outdated (Sancionada el 20/09/1984 , promulgada el 9/10 /1984 y publicada en el Boletín Oficial el 16/10/1984) - yet it says on the last page, that its origin is Unión Argentina de Inquilinos! - and I have just found the same erratic copy on the internet with the exact same text as mine (http://www.inquilinos.org.ar/leyalquiler.asp) - oh well, estamos en Argentina

Still, although it is legal to require payment in U$S, then unless Argentina is very different from the rest of the world (Hm! ), the contract must say so.

 

[elhombresinnombre]

It would be a waste if all Bradleyhale's investigative work were forgotten in a few weeks and other people had to go through it all again. For the benefit of the putative BAExpats wiki on rentals could we summarise all this?

Have I got this right?

Under Argentine law, a contract may be agreed in Argentine pesos or in any other currency and that contract may lawfully require payment to be made in pesos or in another currency. Sources: Civil Code, Book II, Section 1, First Part, Title VII, Chapter IV, articles 617 and 619.

Resolution 144/93 specifically modifies property rental law (Ley de Alquileres) to fall in with general contract law and since 1993 a contract between landlord and tenant may be expressed in a foreign currency and may lawfully require payment in that currency.

Thus advice for prospective tenants is that if they agree to a contract that stipulates currency, the landlord is entitled to receive payment in that currency. If method of payment or currency is important to a tenant, this should be negotiated before the contract is signed and the result of those negotiations incorporated in that document.

Advice for existing tenants is that a landlord is entitled to receive payment in whatever currency is stipulated in the contract they have signed.

 

[elhombresinnombre]

Still, although it is legal to require payment in U$S, then unless Argentina is very different from the rest of the world
(Hm! ), the contract must say so.

Yes indeed. The contract is everything

 

[PhilipDT]

Wait, let me get this straight, its actually legal for John.St to demand camels from his tenants?