Transferring money to Argentina from the US

[citygirl]

Agreed - our invoices are paid in US dollars but we have to clear it through the Central Bank which converts to pesos and then we convert back into dollars as have a dollar and peso account.

As Jez said - I believe you have to prove the provenance of the funds so if you don't do it the legal way, you can have problems if/when you go to sell your apartment. IMHO - better safe than sorry. Do it the legal way.

 

[Gringoboy]

Find a good accountant (I don't mean bent either) who knows the exchange business over here.
I've used exchange houses, but never again. Banks too, they fleece you.
I had to do the same a few years ago and there are more than 9 ways to skin a cat.

 

[Denver]

Also, keep in mind that while prices for real estate are always in US dollars, the law in Argentina syas that ALL transactions must be completed in Pesos, although with property that is often avoided, but it is the law.

Good luck. Most people skate through with no problems, but some get nailed!!

RR

I don't understand how some people get 'nailed'. Do you have any examples?

Everything is advertised in US$. My escritura for a new unit completed in 2006 states the purchase price in US$. Nestor Kirchner was just grilled in the press for buying US$ 2M, right before the value of the peso dipped. He defended himself with the argument that he was buying part of a hotel and since the transaction was in US$, he would not gain from the lower peso.

Who would get 'nailed' trying to sell a property and for what reason? If there indeed is such a law, it is openly ignored by everyone, including the ex-president. Why should someone buying a condo here have to worry?

Neil

 

[ElQueso]

Neil, from what I understand getting "nailed" means that if you have not proven how the funds came into the country and their origin before that (for example), when you go to sell your real estate you may (probably will) be charged at least 30% taxes and possibly other items as well. There may be other things that get you "nailed" for as well, but that is the most common I've heard about.

Also, I don't think you should ever compare any transaction that you (or any private person, particularly an expat) would make regarding real estate with that of trnsactions made by the president of the country. That is a bit naive to think you would be able to ignore or be ignored as they can do...

 

[Denver]

ElQueso, we read wreReynolds' post differently.I believe it was about making real estate transactions in dollars vs. pesos.
But, regarding getting funds into Argentina: What if you hand-carry the funds in and check the 'more than US$10,000'-box on your customs form? Who will you find at EZE to accept this form? If no one accepts the form and you walk in with the funds, have you then committed money smuggling?

Neil

 

[ElQueso]

ElQueso, we read wreReynolds' post differently.I believe it was about making real estate transactions in dollars vs. pesos.
But, regarding getting funds into Argentina: What if you hand-carry the funds in and check the 'more than US$10,000'-box on your customs form? Who will you find at EZE to accept this form? If no one accepts the form and you walk in with the funds, have you then committed money smuggling?

Neil

Sorry - when I wrote that I thought part of it was about proving the origin of funds as well and then selling the property and getting "nailed" at the point of sell. Reading back through, I'm not now sure why I thought that

As far as "smuggling" money in - yes, if you do not claim the money on entrance (over 10K), from what I understand you will most likely have the money confiscated and charged a 30% tax from AFIP. Of course, that is if someone catches you while you are entering the country. As I understand it, you will have the ability to prove the origins of funds later (if confiscated), go through all sorts of hoops to get your money back, etc, but I wouldn't count on the process as being easy or inexpensive and whether or not you end up paying that 30% - well, the Argentine government needs money pretty bad right now.

Of course, that's if you get caught. I know someone who has more than once brought in 20K USD and has never been stopped. He's careful about it. Always carries it on his person, for example, so that it doesn't get x-rayed, like in a backpack or coat when exiting the aduana.

As far as what kinds of issues you'd have with the aduana if you declared the money, I really don't know. My suspicion is that you would have to prove origin of funds or face the possibility of confiscation of at least the 30% tax, but I really don't know about that. I've only heard stories and rumors about that because I've never known anyone that actually claimed that money on entrance. I have also heard that it is a good way to get targeted for a robbery on your way into town - the aduana official calls ahead to a buddy and wham you're a target.

From what I understand, though, let's say you made 5 trips over a year, bringing in 20K each time, and then buy a property for 100K. Three years later you go to sell it - that's where I think you'll have issues if, for example, you've paid in cash when you bought the apartment and there was no way to trace the origin of funds.

I've always been told pay the fees to have the money sent through international wire to the banks here for real estate transactions. That way, the origin and entrance of the money is clear and at least that won't be a problem when you go to sell the property, although you'll pay a hefty fee in currency conversion and such.

As far as the form declaring the money - the aduana will happily take that form when you enter, as well as any money that is due for whatever reason. Of course, you have to present it to them as you pass through

 

[Alzinho]

Blimey! It looks like I've been extremely lucky!

My money was all 'smuggled' in. Property was bought in a mate's name. Then when it was sold I walked into a bank to open an account with the cash, told them that it came from a property sale, but that it wasn't in my name and that the cash originally came from a property sale in the UK, but that I couldn't prove it. They shrugged their shoulders and opened the account.

 

[tangobob]

I had enough trips into Argentine to justify the ammount of money I needed to purchase my property, but I still had to prove provenance with the escribano.
Nobody however asked "where did you keep the $20,000 you brought in each time?"
What I am saying is, if you can prove where the money came from originally you should be ok.

 

[gunt86]

Here is a good way to do it:
1. Have HSBC account in home country
2. Open HSBC account in Uruguay
3. Open HSBC account in Argentina

Now you have lots of options:
1. wire money from home country to HSBC URG (US$)
2. go to URG, get US$, return ARG, deposit US$ in HSBC ARG US$ account. (customs do not suspect US$ coming into ARG from URG)
3. this option involves no exchange rates and no fees, just a fun trip to URG.

Or you can wire from home country to HSBC ARG, but it will be converted to pesos and put in you HSBC ARG AR$ account. You can then transfer to US$ account instantaneously. the FX rates are fair. The only problem is that you must fill out a special form at ARG Bank in order to have the fund released for deposit in your account. If you are not in ARG, you can send the forms to your banker.

HSBC ARG ATM card is linked to both your AR$ and US$ accounts, but the only place you can withdraw US$ is at HSBC Microcentro branch.

 

[perry]

All the options above are very costly as you need to do a double exchange if you transfer monies through a Bank. A double exchange means that the dollars are converted into Pesos on arrival then you have to reconvert into dollars to buy property or other major purchases. This can cost up to 3 percent.

Bringing monies into Argentina legally should not exceed 1 percent and this can be done simply with a qualified gestor. I have helped many people bring and send monies out of Argentina and it was a simple process and not complicated as suggested by many . Please note that bringing monies into Argentina legally requires documentation proving provenance of funds .
Private me for more details if you require assistance.