Property tax in Argentina?

[Fettucini]

I always thought that the property tax was very low in Argentina, but now I think it seems not, although I'm not completely clear on this.
It seems you have to pay 2.5% of the value of your property every year to the tax office (at least when you come to sell it). So lets say if you have a property your selling for US$100,000 which you've owned for ten years, you will have to pay 2,500 usd x 10 = 25,000 USD ?? Does anyone know if this would be the case?

 

[perry]

Property tax is 1.25 per cent annum for non residents and any properties under 360 thousand pesos are exempt from this tax.
Residents pay 0.5 percent per annum on the value price.
To prepare your taxes you must have a qualified accountant.

 

[steve1313]

is this .5% based on purchase price?? does it go up each year?

thanks

steve

 

[steveinbsas]

Here's what I have been told: This is the "bienes raices" tax and is not the city tax (ABL). No bill is sent to property owners. The tax is actually due and payable on an annual basis. It is based on the amount shown on he escritora. There is a 30% penalty for non payment and a high interest rate can be assessed as well. There was recently a "grace period" and only the 30% penalty was levied. I don't know if it has expired. Apparently, foreigners are required to have an accountant or Argentine resident actually pay the tax, but I think residents can pay on line, transferring funds directly from their bank accounts.

I have been told by several real estate professionals that a non-resident who has not paid this tax will get the bill (including penalty and interest) when they try to sell their property. I recently met an expat who bought an apartment several years ago and had no idea this tax exists. Most real estate agents don't inform their foreign clients about this tax, fearing they might lose a sale. I think the rate for foreigners (non residents) without a DNI did increase a year or two ago. One real estate agent I know told me he never pays this tax on his own apartment!

 

[sergio]

By bienes raices are you referring to the bienes personales tax?

 

[steveinbsas]

By bienes raices are you referring to the bienes personales tax?

Yes...thanks.

 

[Fettucini]

So as a foreign owner, if the value of the property on the escritura is under 360,000 pesos you don't pay bienes personales tax and if over this amount you pay 1.25% per year?

 

[steveinbsas]

So as a foreign owner, if the value of the property on the escritura is under 360,000 pesos you don't pay bienes personales tax and if over this amount you pay 1.25% per year?

If you are a foreigner without a DNI you owe the tax from zero at 1.25% of the amount stated on the escritura. Those foreigners who have DNI's are exempt form the tax if the amount on the escritura is less than $305,000 pesos. If it's over that they pay .75% from zero (according to my accountant), but I think there also are higher tax bracket(s).

 

[kre8ivelyXposed]

The following information is what I received personally from a gentleman by the name of Simon Fawkes who wrote a book last year called "How to Buy Real Estate in Argentina". You can get it on Amazon. I also have consulted with various other websites, newspapers, and accounting professionals.

Foreigners who do not have a DNI or permanent residency must now pay 1.25% of the purchase price of their property recorded on the deed at the end of April or early May (AFIP offices have the exact dates). The rate had been .75% until last year. If you DO have a DNI you pay NO annual property taxes on property valued under 300,000 pesos. Most Argentines never pay this tax as they don't have sufficient assets. You need to pay an accountant the first time to get you all set up. The accountant should be familiar with the new 1.25% law which went into effect last year. Then, you have to get a local Argentine with a DNI to pay the tax for you. After the accountant has set you up the first year, you also have to get a local (Argentenian) to pay the tax for you every year using his/her own "clave fiscal" (fiscal passcode or key). FOREIGNERS CAN NOT PAY THE TAX THEMSELVES. I know it sounds crazy but this is the way it works. The local just has to enter the info into the computer with AFIP and then pay the tax at any bank by the respective due date. You will not receive a bill in the mail.

Failure to pay the bill will result in the hefty penalities quoted in previous posts here. You only pay the penalty when it is time to SELL the property.

Getting a lower tax rate or no tax at all is one of the main advantages to receiving your DNI if you indeed qualify for a DNI. Having the DNI qualifies you for the basic exemption for properties under 300,000 pesos.

Hope this helps.

 

[soulskier]

2GuysinPM, I sent you a PM.