Transferring funds to buy apartment

[pedroire]

Yep agreed elhombresinnombre. I am no expert but part of my reason for wanting to do this purchase now, sooner rather than later, was to get my money out of Irish banks

 

[solerboy]

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?

Im sorry, I am not sure of the regulations regarding the purchase of dollars from the proceeds of a property sale, the seller would have to do this, there was a monthly limit of us$5000 for foreigners when I tried to do it, that is why the seller had to do it.

The fee by HSBC Premier (my account was in the Channel Islands) for the transfer was 1%. But I had lots in my account in those days so got good rates.

Regarding the 30% retentions, you may find the following link useful

http://www.bcra.gov.ar/pdfs/comytexord/P48463i.pdf

Income from nonresident investors applied to the purchase of real estate shall be exempt from the obligation of depositing funds in so far as the funds are converted simultaniously to the signing of the deed

Most banks are unaware of this is its useul to be prepared to be able to quote the regulation.

 

[mini]

Wait, if you are buying from you mother in law why would you need Dollars? you can pay her in Pesos, so only one change from Euro to Pesos

 

[pedroire]

Thanks for that info solerboy. It could be useful.
Was the 1% for the currency conversion into pesos or is that a fee for the transfer itself?
I am taking it that you already had a HSCB account.
mini-perhaps, but I think like that she wants dollars, I guess like most argentinians.
My wife, while she did live in BsAs where the apartment is, is actually back with family in Misiones at the moment, and she has been into HSBC there and she can't find anyone that has a clue!

 

[solerboy]

Thanks for that info solerboy. It could be useful.
Was the 1% for the currency conversion into pesos or is that a fee for the transfer itself?
I am taking it that you already had a HSCB account

Before I moved to BsAs HSBC promised the world. When I got here the story was very different. The staff were unaware of the law regarding foreign transfers and my first transfer was stuck in limbo for weeks.

I had to do all my own research.

The 1% fee was for the transfer, the conversion to pesos was determined by the central bank, whom i presume pocketed the dollars. I remember it being a good rate and the conversion back to dollars was about 2 centavos difference. The exchange rate was around 3.07 to the dollar at that time.

The first time (signing the bolleto) we did the conversion from pesos the dollars the estate agent arranged for a"friend" to come to the bank. A man in a black suit with shades arrived with £20,000 stuffed in his socks and underwear, on this occasion the rate was the same as the rate given by the central bank and so didnt cost anything.

 

[Davidglen77]

Before I moved to BsAs HSBC promised the world. When I got here the story was very different. The staff were unaware of the law regarding foreign transfers and my first transfer was stuck in limbo for weeks.

I had to do all my own research.

The 1% fee was for the transfer, the conversion to pesos was determined by the central bank, whom i presume pocketed the dollars. I remember it being a good rate and the conversion back to dollars was about 2 centavos difference. The exchange rate was around 3.07 to the dollar at that time.

The first time (signing the bolleto) we did the conversion from pesos the dollars the estate agent arranged for a"friend" to come to the bank. A man in a black suit with shades arrived with £20,000 stuffed in his socks and underwear, on this occasion the rate was the same as the rate given by the central bank and so didnt cost anything.

I can relate to the comments about HSBC. I had HSBC premier in New York for years, and it was great. Never a problem. When I came to live in Buenos Aires 5 years ago, it was nothing short of a nightmare. The main branch on calle Florida and the premier account managers were generally useless. I transferred some funds here, they were "inadvertently" transferred into someone elses account, and I was pretty much told I had to figure out how to get the money back myself. I refused to move out of the manager's office, yelled and screamed until they helped me and of course I was looked at like a crazy man. Nobody ever once returned a phone call or e-mail and the only way to get anything done with them is to go yourself during the 3 or 4 hours they are working. They act like big shots in some exclusive club for being in the premier sector of the bank but of course you the customer are treated like an outsider. And get this.......the fees for the account were $120 pesos maintenance per month and a safe deposit box cost $1200 per year. All for being mistreated over and over. I complained to HSBC in the US they refunded me all of those awful fees then I closed my account at HSBC Argentina and of course they had the nerve to try and talk me out of it. My response was "Vayanse a la p__a que los pa__ió!"

 

[optcsa]

The legal way to do it is complicated, but it can be done successfully:

1) Set up in Argentina a bank account in US Dollars to recieve the transfer.
2) Set up with an Escribano (Notary) to do the transaction.
3) You must transfer to that bank account under concept: 489 Inversiones de no residentes aplicadas a la compra de inmuebles.
4) The day the money arrives at the bank, the "Escritura" (Deed) must be signed.

It's a legal condition that the money arrives the same day as the deed is signed. If that is the case the money will arrive, not be held by the Central Bank, and released in US dollars for the sale. It's a ROYAL PAIN IN THE ASS, but it can be done!

 

[Ceviche]

I would say both you and mother in law travel to Hong Kong or Singapore and open a multiple currency account in a good bank there for her. Then you transfer the agreed funds from yr account in Ireland to her new account in Hong Kong or Singapore.

Then she just transfers paper to he daughter as if she is giving her a inheritance.

speak to a competent lawyer in Argentina how to do it.

Her money in multiple currencies safe in Hk.

Your wife gets property in her name.

Mother in law has Internet banking , credit card and debit card to her money safely stored in Asia.
Everyone live happily ever after.

 

[Fabe]

Putting in my unsolicited 2 cents.
Dont trust any escribano. They are , for the most part , scum.
After I obtained an eviction to get my property back , the scoundrels that were living here were in cahoots with EVERY escribano from brandsen to longchamps. The escribanos were the ones that would forge the paperwork and the inmobiliarios were the ones that would actually sell the "posesiones" to people that were willing to buy them.
Being an escribano does not go hand in hand with being honest. Get everything in writing. If they are unwilling to give you a contract for their services or if they stall in doing so , run the other way

 

[ghost]

Thanks for the replies, and thanks Perry for your offer to e-mail you.
I assume that via FDI is the same a via a Casa de Cambio?
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!

I suggest you listen to Perry he knows the process.