Transferring money to Argentina from the US

[EricLovesBA]

There are 2 or three locals I would trust to hold property for me in their name, the primary candidate being my girlfriend. I'm considering buying a cheaper property in one of the barrios south of Capital Federal. Prices out here tend to be cheaper and priced in pesos. Of course you may argue I should not trust anyone to hold property for me, but that argument aside, are there any pitfalls to the following scenario:

1. Open a Charles Schwab account to eliminate ATM fees, as described in other threads.
2. Bring money in gradually from the U.S. via a local ATM and store the pesos somewhere safe.
3. Locate a property to purchase, hand my money over to my girlfriend to purchase the property, perhaps for us to live in or as a long term rental investment.
4. Eventually (lets say 3+ years later) she sells the property and hands the money back over to me.

I guess what I'm wondering is if that is really any simpler in the long run, or do locals have the same obligation of having to prove where the money came from when it comes time to sell? Would I be less likely to encounter some crazy tax rate upon selling the house in this scenario?

To further complicate this scenario - she was actually born in Paraguay, and is working on obtaining Argentine citizenship. Presumably she would be Paraguayan when we buy the house, Argentine when we sell.

 

[citygirl]

Well - one, I wouldn't trust anyone to hold property for me. The risk is far, far, far too high. You realize (and I don't want to be pessimistic) that if you broke up, you would have zero right to the house. Even if you buy the house and get married and something happens (divorce), she would be entitled to half the value of the house.

Why wouldn't you just buy it directly yourself? Foreigners buy property here all the time.

Second, at a maximum of 1000 pesos a day, it is going to take you an awfully long time to withdraw that money from ATMs Plus, you run the risk of the currency fluctuations, etc. (What if the peso drops to 4 to 1 or more? Prices are in dollars so now your pesos would be worth less)

 

[tez]

I've heard lots of things about using an "agente de bolsa," where the idea is you put money in a stock market fund in a branch in your home country that also has a branch here in BA. The next day you can take the money out here, in dollars, for a total fee of 2%, which in the end is usually cheaper than the double commission one pays for dollar-peso-dollar transfers. This money, however, will be in "negro," so probably not useful for buying real estate.

Another question: I've read that when transferring money to Arg through the Banco Nacional, 30% of the funds can be held for up to one year interest free. Is there any basis to this? It doesn't sound like anyone has had this problem since the money comes in and then is promptly used to buy property. Perhaps this is the case when the money isn't intended for purchasing property right away?

 

[bluesman]

The fun starts when you want to sell and take your money "out" of argentina...youll need extensive documentation about the source and legitimacy of your funds that nobody was overly concerned about when you were buying and bringing money "in"..providing fat fees and fines ...delays and maximum stress....though not as bad as most emerging countries ...application of the law is subjective in the extreme...

 

[steveinbsas]

anyone familiar with atms that dispense dollars without an unusually low limit per withdrawal

Not only am I able to get $900 peso per withdrawal with my Charles Schwab card (and can make at least two at a time), they refund all fees, including those charged by banks in Argentina.

 

[bluesman]

thanks mr steve..though this was an old request...i have resolved this and other problems by delegating my rampant incompetence to the pizza guy...who took me on his bike to a place where they let you wire in money for 25 bucks ...and up to 10k at a time...they also gave me bus change..about 15 lbs bag for actual value plus another 10 bucks....gotta love them chinese fellers...i like to go to the new machines at citibank ....up to 1k dollars at a shot..i called my bank in the states about the fees..they sent an argie to my place (just "thought" i was hiding i guess)...now ive got someone to help with everything...more time for pastries ...and dozens of those little cream cheese sanguiches with no crust...get a whole box ..like 60 at a time ...cause they go down real good with malbec....the dogs love em too ...but the resultant doggiegas can be a real dealbreaker...

 

[steveinbsas]

Well - one, I wouldn't trust anyone to hold property for me. The risk is far, far, far too high. You realize (and I don't want to be pessimistic) that if you broke up, you would have zero right to the house.

This is true. My first (and only) Argentine girlfriend tried to get me to buy a property in her name as well as mine, but would not include me on the title of the apartment she was in the process of buying (I offered to provide the funds she was getting from a bank at 18% interest per annum). Fortunately we broke up (I fled in terror) before I bought any property.

Even if you buy the house and get married and something happens (divorce), she would be entitled to half the value of the house.

I believe that if you buy a property prior to getting married its still 100% yours after a divorce unless you have minor children living in the house at the time of the divorce.

Why wouldn't you just buy it directly yourself? Foreigners buy property here all the time.

This is also true. I've done it three times in four years.

Second, at a maximum of 1000 pesos a day, it is going to take you an awfully long time to withdraw that money from ATMs Plus, you run the risk of the currency fluctuations, etc. (What if the peso drops to 4 to 1 or more? Prices are in dollars so now your pesos would be worth less)

It is easy to wire funds to buy an apartment, just ask Pericles.