Purchasing A House

[Edu R]

You can just execute a wire transfer from the US to Arg., yes. You will have to arrange with the bank with at least 24 hours' notice to withdraw large sums (depending on the branch, that might be anything upwards of 5-10k USD). Some banks will ask for supporting documentation regarding the operation, otherwise it will trigger a Suspicious Activity Report. As a general rule, don't open an account JUST to deposit the money and withdraw all of it immediately, it just pisses banks off. You're better off using your regular bank and reaching out to your executive beforehand.

There's an argument to be made that you might be better off locking the price in pesos and then bringing in that money via CCL (it'll probably be too large for WU), but that's really going to be up to what you negotiate with the seller and the spread at the time of closing.

Another issue is that real estate deals in Arg usually have a large off-the-books component, where the seller underreports the property price and expects to be paid the difference in cash in USD.

This generates issues for people bringing in money to close because they will bring in, let's say, 100k, give all of it to the seller, but their deed will state the selling price as 60k, and now there's an unexplained 40k gap that doesn't look good in your tax filings. It's also a pain in the ass if you were hoping to offset the purchase price against the US sale for income taxes. Whether you're OK with that, is up to you. It's a buyer's market so you might be able to dictate the terms on that, but in my experience, people can be irrational about this.

I would perhaps bear in mind that if you have permanent residence in Argentina, you should have been paying Bienes Personales for your worldwide assets since at least the date you got your permanent residence (perhaps even from the moment you got your precaria, but that's a can of worms best left unopened). If you're going to register the property under your name and you haven't been filing correctly, this might trigger audits down the line.

TLDR: yes, it's doable, but there's a lot of moving parts. I recommend consulting a lawyer (hopefully me, but just in general).

 

[nikad]

We bought property 6 years ago in the city. A few things that might help: The custom is that the buyer chooses the place where the transaction is carried out ( payment and deed registering ). You simply wire transfer the money to your local usd bank account: if you send dollars, you will receive dollars. Make sure you talk to your bank and know which codes to use exactly, etc. We did it with Galicia, but Santander and BBVA Frances are also friendly. It is important that you have document that support the origin of these funds and taxes paid. Get copies of that, the bank might ask, the escribano will ask as well. And lastly, make sure that your escritura states the amount you actually paid for the property. This will save you a lot of trouble if/when you decide to sell it.

 

[Utopos]

Thank-you Nikad! The information is greatly appreciated :=)

 

[FallenAngel]

You can also pay by wiring to the sellers foreign account (usually USA account). That side steps bringing money to Argentina. Most sellers have foreign accounts and most prefer a wire transfer to that foreign account rather than keeping money that will be forever imprisoned in Argentina.

 

[DomoDomo]

You can also pay by wiring to the sellers foreign account (usually USA account). That side steps bringing money to Argentina. Most sellers have foreign accounts and most prefer a wire transfer to that foreign account rather than keeping money that will be forever imprisoned in Argentina.

Or sometimes the realtor has a US bank account and US dollars in Argentina which they would like to move to the US.

 

[Alpinista]

You can also pay by wiring to the sellers foreign account (usually USA account). That side steps bringing money to Argentina. Most sellers have foreign accounts and most prefer a wire transfer to that foreign account rather than keeping money that will be forever imprisoned in Argentina.

i think the possibility / likelihood to make a foreign account transfer correlates heavily with the real estate segment you are after (if you buy a 1m usd house in tigre, there is a good chance you can do this, if you buy a 100k usd in quilmes, it will be very unlikely)

 

[JanxSpirit]

Hi!

My wife and I are seriously considering moving back to GBA and wish to buy a house, using the proceeds from our home sale here in the U.S. She has dual Argentina/U.S. citizenship, I have Permanent Resident DNI, with our funds in Schwab Bank. I've read many, many posts here regarding real estate transactions but still have some questions or wish clarification.

If we open a dollar account there (in Banco Frances, Santander Rio, Galicia, etc.) could we simply transfer the purchase amount from Schwab into that account, then withdraw the necessary dollars --- in dollars --- at closing? Is there a better way to manage getting the dollars to the seller (assuming they do not have a U.S. bank account)?

Could the closing then take place at that bank for security reasons? Would there be fees for the transfer, and use of bank? What else needs be added in besides the 4% realtor fee & 2% escribano fee (each negotiable?)? I'm trying to get an idea of the total end cost --- the purchase price + ?

A good escribano seems essential (our son there knows one he highly recommends) but what about a lawyer or accountant?

When presenting an initial offer on a property, should you go less than the asking price, perhaps 10-15%, or will the seller get insulted and raise the price 20%? In most places I wouldn't have to ask but...

Lastly, is privately shipping a small household actually such a headache as to make selling everything and starting over (again) a better option? The most concerning part from what I've read here is Aduana. Realistically, the shipping cost would be more than the value of the items, but some are of sentimental worth or are unavailable in Argentina.

Any advice would be greatly appreciated.

Thanks!

Hi! I'm in the same boat. I have a budget of around 270k for a house in BA, with my money in a Schwab account. Have you been able to transfer that to a local bank? Out of all the houses that I have checked only 1 had the owner interested in doing the transaction directly in the US, so that might not be an option for me. Thank you!

 

[Utopos]

We're moving to BsAs this week and will then begin the banking and house purchase process. As Nikad stated above, and as have other reliable sources I've contacted, we'll be able to wire transfer dollars from Schwab into a dollar Arg bank account. Those dollars can then withdrawn (in dollars) for the house purchase. Be aware, the source of the funds will need be well documented.

A quick off-topic question: I recall reading that when shipping household good into Argentina, immigration needs to stamp your passport stating to the effect that household goods are following separately. Do I remember correctly, and if so what is that stamp called? I don't want to miss something important.

Thanks!

 

[Ries]

I have bought two properties in Buenos Aires, one in 2007, one in 2019. In neither case was any mention made by anyone of off the books changing of price. The price was the price, in every discussion with everyone, in every document.
In neither case was there any mention of offshore bank accounts- neither of the sellers had anything like that.
Actual deals took place in USD, but in the first one, they were changed to pesos right then and there (we did closing at their bank, Banco Piano) and their pesos went right into their bank account. In that case, we did a direct US account to Banco Piano transfer, so our money arrived at the bank the day before the closing. No muss, no fuss. NO renting of armored cars for transporting cash, which, in 2007, was a thing, if you were argentina and seller and buyer had different banks. Not sure if that still happens, it but it used to be pretty common to hire armed guards and a truck to transport the cash from one bank to another.
Second one they actually took physical possession of the USD.
I found that with a decent escribano, its only a bit more naploeonic than a US closing.
Our most recent purchase, we booked a room at the Colegio de Escribanos on Las Heras, they do closings there all the time.

 

[HenryNisental]

If possible,never bring large sums of cash here, very dangerous.
Try to pay with a bank to bank transfer only!!!!!!!