Real Estate Tax

#1
Now that i am contemplating buying a small property here, i read in the real estate
book written for foreigners that foreign property owners must pay an
annual asset tax on their property which is approximately 0.75% of
the value. It explains that currently the govt. does not send you a
bill, but relies on an honor system. even the author is amazed at
this.

My question is, in your experience, either personal or your
acquantances, are the expats paying this tax?? Or are all of these expats who buy here, ignoring the tax?
Does anyone know of people who sell their property without difficulty without ever having paid the tax?

Is this situation about to change soon, perhaps with bills being sent
out, etc?
 
#2
JG, congratulations! Commiting to real estate in any county is a big step. Commiting to real estate here in BsAs is a VERY BIG step. Find yourself a very good advisor in terms of taxes and its application of the law to you as a foreigner. You must know by now that the laws that applies to the locals does not apply to you.
When we bought our house outside of BsAs, as a US citizen, I had to sign a paper stating that I fully understand (all docs are in spanish - HELLO!) that should I decide to sell the place, the money made to sell the house should stay in Argentina for one full year. And only the portion of the new sale price will be taxed.
When you buy a house/condo/what not there are fees that will be listed by the escribano to show the specifics of the sale - in there amongst "others" will be a fraction of the tax for this time's sale transaction. Better yet get a very good escribano - we did not need to get one in our case - we knew of one and he read the papers for us for free.
Always bear in mind that it is up to you to ask all the questions to the seller. Here in Argentina there is no mandatory FULL DISCLOSURE that we are privy to in the USA. It is the law there but here if you do not ask - no one will tell you voluntarily.
And just like in the USA, property yearly taxes are assessed and you pay that as well. If you buy a house in a fancy neighborhood - you pay the fancy cost of real estate tax there - not to mention if you have a fancy house on top of that fancy located lot. Cha-ching!
As far as I know if all is in the Up and Up no under the table transactions - if you do not have any thing to hide, you donot have anything to fear. Even AFIP said that to us. Hope this helps. Good luck!
 
#3
When I purchased my apt, the previous seller paid his tax at the time of the sale without problem or penalty. when my wife sold her apt she too paid it after the sale. i've heard you can pay yearly, but you'll have to deal with the annual hassel. It is probably safest to pay your tax yearly. its been over a year since i purchase my apt and have honestly just been ignoring the issue, I know not the smartest thing to do. I am curious what are others doing?
 
#4
It's not actually a real estate tax, it's an asset tax on all your assets in Argentina-this includes real estate and also things like cars and boats-and it's something all Argentines and foreigners should be paying. Many Argentines don't bother or just don't know it exists. Foreigners pay a flat 0.75% on all their assets. Argentines and foreign residents (with a DNI) get around us$35k tax free then 0.5% up to another limit and then 0.75% on anything over that limit.

If you don't pay it, you incur an 18% (i think, or it might be a little more) penalty per year of the amount owed. Also, if you don't pay it then when you sell your property you'll be investigated by AFIP, delaying the sale by months-something that only started to happen about a year ago. If you can show all your taxes are paid then you won't get investigated.

Keep up to date with all your taxes and you'll avoid any hassle in the future. I used San Martin Suarez & Asoc (google.com.ar them). It cost around us$120 for them to prepare and file the return. If you wouldn't dodge taxes in your home country then don't do it in Argentina.