selling property questions

[peterp]

I own two properties in Argentina. I'm a permanent resident with DNI, my Bienes Personales and Montoributo payments are up to date. ie. I'm legal in the country and paying all taxes I owe.

I'm thinking of selling the property in Palermo. Theoretically let's say I bought the property 5 years ago for u$s 50k and selling it for u$s 100k. I am just wondering what problems I will encounter with the sale from the official side of things. My income comes from renting this property, hence Monotributo.

1: Is there Capital Gains Tax in Argentina if so how much? Am I liable, any way to reduce liability?

2: Is it possible to receive payment direct to my Argentine bank account without paying exorbitant fees, or are deals still done in cash?

3: What % fees are there for the sale?

4: Will I have problems transferring the sale proceeds from my Argentina bank account to my UK account?

Anything else I should be aware of, I've only ever bought property, this will be my first sale.

Thanks in advance.

 

[fifs2]

I own two properties in Argentina. I'm a permanent resident with DNI, my Bienes Personales and Montoributo payments are up to date. ie. I'm legal in the country and paying all taxes I owe.

I'm thinking of selling the property in Palermo. Theoretically let's say I bought the property 5 years ago for u$s 50k and selling it for u$s 100k. I am just wondering what problems I will encounter with the sale from the official side of things. My income comes from renting this property, hence Monotributo.

1: Is there Capital Gains Tax in Argentina if so how much? Am I liable, any way to reduce liability?

2: Is it possible to receive payment direct to my Argentina bank account without paying exorbitant fees, or are deals still done in cash?

3: What % fees are there for the sale?

Anything else I should be aware of, I've only ever bought property, this will be my first sale.

Thanks in advance.

On the same page Peterp and hoping perry and other experts can help out on these questions...

 

[perry]

I own two properties in Argentina. I'm a permanent resident with DNI, my Bienes Personales and Montoributo payments are up to date. ie. I'm legal in the country and paying all taxes I owe.

I'm thinking of selling the property in Palermo. Theoretically let's say I bought the property 5 years ago for u$s 50k and selling it for u$s 100k. I am just wondering what problems I will encounter with the sale from the official side of things. My income comes from renting this property, hence Monotributo.

1: Is there Capital Gains Tax in Argentina if so how much? Am I liable, any way to reduce liability?

2: Is it possible to receive payment direct to my Argentine bank account without paying exorbitant fees, or are deals still done in cash?

3: What % fees are there for the sale?

4: Will I have problems transferring the sale proceeds from my Argentina bank account to my UK account?

Anything else I should be aware of, I've only ever bought property, this will be my first sale.

Thanks in advance.

There is a tremendous amount of misinformation about selling property in Argentina as a non resident and the biggest myth is the 30 percent capital gains tax on profits of sale . THIS IS FALSE INFORMATION .

Taxes are as follows for non residents and residents alike

(ITI) Impuesto de Transferencia del Inmueble 1.5% of the sale price ( Please note if you replace your sale with another purchase within one year this tax does not apply)

Stamp Duty ( Impuesto De Sellos ) 1.25 each party seller and buyer on the sale price .

Commissions when selling are low at most 2 % with reputable agencies like Remax Argentina . Tizado, Bullrich etc etc.



When selling as a foreign citizen there is a requirement though to obtain a Certificado de Non Retencion and pay all your property taxes and rental income taxes ( bienes personales) This tax Bienes personales is high for non residents and is 27% of all declared rental incomes . The tax liabilty can be mimimised with a good accountant.

You will require a excellent accountant to obtain this Certificado del Non retencion. Please be very aware that there are many sharks out there who will charge a arm and a leg for this tramite and will delay it on purpose to obtain more monies from the unsuspecting.

This tramite should not take more than 8 weeks maximum with the right guidance of a professional.

I personally have helped many foreigners sell property here and with the transfer of monies internationally and the total costs of the ( selling process) have never exceeded 7 % of any sale price.

 

[peterp]

(ITI) Impuesto de Transferencia del Inmueble 1.5% of the sale price ( Please note if you replace your sale with another purchase within one year this tax does not apply)

Does this apply if I have two properties (and only selling one)

 

[perry]

Does this apply if I have two properties (and only selling one)

Yes you must pay that tax if you are selling in Argentina and not reinvesting the proceeds to a new purchase ( property of similar amount) .

The ITI tax is 1.5 % for the seller each time he sells even if he has one or three properties in Argentina.

 

[steveinbsas]

To the OP: remember that $ in the bank (at the end of the year) is also subject to the Bienes Personales tax.

 

[sesamosinsal]

If I was the seller (and the buyer was in Argentina with the money), I would still want the money to be paid to me in cash that I could immediately deposit a (as opposed to a bank to bank transfer). If you have the boleto at your bank (usually the seller has the choice of location), you can deposit the funds before you leave the bank. If you have escritura at the buyer's bank, all you have to do is open an account there so you can deposit the funds at that bank. Perhaps you can arrange in advance (with the buyer) to do both operations at the same bank (I did this).

Why would you still want the money to be paid to you in cash? And would you think that the "new" cheque cancelatorio is a better option for money transfers between banks in Argentina?

 

[peterp]

To the OP: remember that $ in the bank (at the end of the year) is also subject to the Bienes Personales tax.

Isn't it exempt if it's in a saving account (caja de ahorro)??

 

[2GuysInPM]

To the OP: remember that $ in the bank (at the end of the year) is also subject to the Bienes Personales tax.

Isn't it exempt if it's in a saving account (caja de ahorro)??

It is my understanding that savings accounts are exempt. But perhaps someone who knows about the subject well can clarify if this is case, and if so what other conditions may apply.