Repatriation of funds from apt rental?

[Heather G]

wow, you guys, thanks so much for all the helpful information. (i checked back a few times and thought no one else posted because i didn't realize that i had to click on to the next page, oops)
I really appreciate all the details ndcj! and thanks for the accountant recommendation jim!!! you guys are awesome.

 

[TheBlackHand]

Try dropping a " dime " sometime. See how far it goes. Don't hold your breathe though.

or if some unhappy tenant drops a dime on the original poster to AFIP.

 

[ndcj]

Try dropping a " dime " sometime. See how far it goes. Don't hold your breathe though.

Works fabulously if the rent is more than $8000 pesos a month, because you can withhold the highest rate of tax from it and deposit it with AFIP

In other cases, depends on who you know. The problem with not having your affairs in order is you never know who you're renting to or what you leave yourself open to in the event of an (even completely unreasonable) dispute.

Aside from all this, you will run into problems obtaining a COTI (assuming it's valued over the threshold, which most properties owned by expats are) to sell the property later if your situation is irregular.

 

[solerboy]

Aside from all this, you will run into problems obtaining a COTI (assuming it's valued over the threshold, which most properties owned by expats are) to sell the property later if your situation is irregular.

If the property is being sold by an estate agent, the estate agent will be responsible for obtaining the COTI not the seller.

The biggest problem for non residents when selling thier property is obtaining a Certificade de Retenciones para Residentes del Exterior. This is a certificate issued by AFIP to prove that you have paid all taxes on the property. If you have been living in the property you will need to show your passport to prove you were in the country. If you rented the property you will need to pay the income tax and produces the rental contracts, if the property was left empty you will need to show all household bills like Electricity, Gas and Telephone to demonstrate the property was really empty. If there is electrical consumption AFIP will assume you have been renting.

Keep ALL bills, every scrap of paper. EVERYTHING. You will need it to get this Certificate.

When trying to obtain this AFIP keep moving the goal posts. It can take several months and you cant apply until you have signed a sales contract witnessed by an escribano, so you will need an extremely patient buyer.

 

[TheBlackHand]

I already said that. If it's over 8000 pesos then by law it should be declared. Good luck in any other case. You will get laughed out of the office.

It's an empty threat. Just like a landlord telling his permatourist tenant he's gonna call immigration on him. Pretty much just a cowardly blackmail attempt. Anyone who knows the law and how to manipulate it wouldn't even blink.

But keep giving people those blackmailing fantasies.

Works fabulously if the rent is more than $8000 pesos a month, because you can withhold the highest rate of tax from it and deposit it with AFIP

 

[TheBlackHand]

That's the reason why owners shouldn't even bother with short term rentals. Just rent long term to people who are citizens or legal residents and have access to a Guarantia.

Why even deal with dishonest permatourists who will try to blackmail you the first chance get. Seems pretty stupid to me.

The problem with not having your affairs in order is you never know who you're renting to or what you leave yourself open to in the event of an (even completely unreasonable) dispute.

 

[Heather G]

Wow, between the possibility of loosing so much of my rental income through taxes and the idea of having to get permission to sell (after I have a buyer?!?) if I am a non-resident it is beginning to look like selling before I leave the country (while I am a resident) is the best option.

In fact, I'm beginning to wonder why anyone who isn't a resident would want an investment property here - the numbers just don't seem to add up.

If the 35% tax is on all the rental income (ie, not just the part over 7,500 pesos per year) and then add to that the ingresos brutos and the bienes personales (on the "value" as far as ABL is concerned or "market value"?) it looks like anyone would owe almost 50% of the income as taxes. Even if you do have a few deductions, it seems ridiculous, especially if it is a long term (ie, low yeild compared to sale value) rental. Plus the stress that someone could decide to squat or that the neighborhood (or the country for that matter) could suddenly plop.....

 

[ndcj]

In fact, I'm beginning to wonder why anyone who isn't a resident would want an investment property here - the numbers just don't seem to add up.

Honestly, you're right, if you do everything by the book, as a non-resident, small scale Argentine property investment is not worth the trouble.

This is not necessarily a bad thing for the rest of society though!

 

[Heather G]

Thanks for confirming that, I was beginning to add things up and wonder.
Funny thing is, I should have known. When I first got here (2003) someone "loaned" me their apartment - I paid the expensas (insanely expensive for that year but it was a huge place and obviously way cheaper than rent for me) and they didn't have to worry about it. I think they were just waiting for the market to recover to sell and it wasn't worth renting for the trouble. And they were Argentine, no non-resident issues to deal with either.
Anyone want to buy my apt?