Transferring funds to buy apartment

[pedroire]

Hi guys, maybe you can help.I am Irish and my wife is Argentinian.We currently live in Ireland but intend to move to Argentina in the new few years.We wanted to buy a small apartment in Bs As as an investment and to have a base. The studio belongs to my wife's mother and we are trying to figure out the best way of transferring the money and completing the transaction.My wife is currently there on holidays and has been seeking advice on this in banks etc but she is struggling to find anyone that knows what they're talking about.I have read a lot of info on these forums regarding different methods but am still confused! Bank or Casa de Cambio? Fees etc? As it's between my wife's mother and I we wont be using a Realtor. Anyone have any advice?? Thanks in advance, and while I'm here, can I wish a Happy Holidays to everyone!

 

[perry]

You cannot transfer monies to an Argentinian bank as by law it will be changed to pesos and to obtain dollars for the real estate purchase will cost you 10 % in fees.

I can suggest a much better alternative that will cost you only 1% in dollars . The money is given to you in dollars and you can complete the transaction at the same place . For further info write to me at [email protected]

 

[pedroire]

Thanks for the replies, and thanks Perry for your offer to e-mail you.
I was aware of having to convert to Pesos and then to Dollars and incurring a double fee, also the Central Bank withholding 30%, but from what I gather via a Casa de Cambio is not 100% legal?
My wife is there until the end of January and we were hoping to do this while she is over there. As much as I read on the process, I still am somewhat confused!

 

[perry]

Most people when they buy a property do not declare the provenance of the funds . This is called doing this in the white . If this is done sending monies via a money investment firm or casa de cambio is exactly the same. You must show proof of your purchase through tax returns and bank records . These must be notarised and used to prepare the certification for your purchase.

 

[pedroire]

Thanks Perry and thanks for the e-mail. I had thought that 'in the white' was when it was done through the official channel of the Central Bank and that 'in the black or blue' was via a Cambio. You mentioned not declaring the provenance of the funds, is this not obligatory via both banks and cambios?
Who do you have to show proof of purchase, tax and bank records to? Is this separate to showing proof of how you obtained the funds for the purchase in the first place?

 

[Tangerine]

Transfer the money into a new account in Ireland.
Give the mother-in-law an ATM card for the new account.
The mother-in-law will have access to a hard currency.
The mother-in-law’s money will be a lot safer in Ireland than under the mattress in BA or worse in an Argentine bank.
Transfer just enough money into Argentina to cover fees, taxes and bribes.

 

[solerboy]

Thanks for the replies, and thanks Perry for your offer to e-mail you.
I was aware of having to convert to Pesos and then to Dollars and incurring a double fee, also the Central Bank withholding 30%, but from what I gather via a Casa de Cambio is not 100% legal?
My wife is there until the end of January and we were hoping to do this while she is over there. As much as I read on the process, I still am somewhat confused!

If you transfer money for the purchase of real estate, and the transaction is verified by the transferring bank there is no requirement for the 30% witholding.

When I purchased property the exchange was conducted in a salon of HSBC.

The purchase was done in pesos, the seller then exchanged the pesos for dollars and I the buyer covered his small loss on exchange. This was before the current restrictions of dollar purchases.

 

[davonz]

Transfer the money into a new account in Ireland.
Give the mother-in-law an ATM card for the new account.
The mother-in-law will have access to a hard currency.
The mother-in-law’s money will be a lot safer in Ireland than under the mattress in BA or worse in an Argentine bank.
Transfer just enough money into Argentina to cover fees, taxes and bribes.

I would do exactly what Tangerine recommends, or just take her US$10,000 every time you visit, or send her money when she needs/wants.

Once the money is in argentina, it will be hard to get out, or buy foreign currency.
There is also talk the peso will devalue more (it has been decreasing slowing over the last year or 2), which is pretty high, as the real has been devaluing against the US$/Euro ( mid year was around US$1=BR1.5/ now is US$1 = BR1.8 ), so i cant see how the arg peso can stay high as the arg economy is dependent on the brazilian economy ( eg: 75 percent of arg car production is exported to brazil) and they have similar exports and trading partners etc.

 

[pedroire]

Interesting idea Tangerine. Only I am actually slightly concerned about the future of Irish banks and the euro. If Ireland were to drop out of the euro and revert to our own currency as is speculated, this could mean that it would be devalued and worth less against the dollar. This means that the apartment in dollars would become more expensive for me. If that's the case it could create (further ) problems with the mother in law!
Thanks also solerboy. Would you be able to expand how the restrictions on dollar purchases might impact on me going down such a route now?
Do you mind me asking what fee was charged by HSBC for such a transaction?

 

[elhombresinnombre]

Transfer the money into a new account in Ireland.
Give the mother-in-law an ATM card for the new account.
The mother-in-law will have access to a hard currency.
The mother-in-law’s money will be a lot safer in Ireland than under the mattress in BA or worse in an Argentine bank.
Transfer just enough money into Argentina to cover fees, taxes and bribes.

With the greatest respect, right now Irish banks aren't up there in the list of top most secure places to stash your loot and I'm not certain that the Irish government's EUR100K guarantee would apply to overseas investors. I'm using wooly language because, in truth, I just don't know. I'd do an awful lot more research before I went that way myself, though.