Uruguay Bans Real Estate Sales In Cash

[Hybrid Ambassador]

But buyers and sellers could still do wire transfers in dollars to circumvent this? There's gotta be a work around...always is! Anyway I've always thought it was crazy bringing those piles of cash to a closing table! Takes forever to check and count the money and don't forget the sheer risk of transporting it!

This Dollar bill counter machine only cost US$169.00

 

[Ries]

Hybrid, they have the technology and logistics firmly in hand here- its just the reasoning behind it that doesnt make sense.
When you buy real estate, regardless of how your money got to the bank, for instance a wire transfer from NYC-
the final closing takes place in cash.

in a room, inside the bank, the total amount is brought out in US $100 bills, run thru the digital counting machine, and put on the table.

Then the buyer must physically push the huge pile of cash across the table, to the seller.
Dozens of papers are signed, smaller piles are pushed over to the agents, lawyers, banker for taxes, and escribano.

Then, the whole stack is run back thru the counting machine, and wheeled out.

In most cases, the seller wants pesos- so an even LARGER stack of argentine cash is wheeled out on a cart, run thru the counting machine, and presented to the seller.

Sometimes, it is then hauled off in a briefcase.
Other times, its wheeled back and "deposited" into the sellers account at the same bank.
Other times, hired armed guards take it out to a hired armored car, and it is hauled off, in cash, to ANOTHER bank.

the ways of Argentine High Finance are not like what you are used to.

This is all considered to be perfectly normal, and many parts of it are either legally or contractually required.

Welcome to the other side of the mirror.

 

[Hybrid Ambassador]

Hybrid, they have the technology and logistics firmly in hand here- its just the reasoning behind it that doesnt make sense.
When you buy real estate, regardless of how your money got to the bank, for instance a wire transfer from NYC-
the final closing takes place in cash.

in a room, inside the bank, the total amount is brought out in US $100 bills, run thru the digital counting machine, and put on the table.

Then the buyer must physically push the huge pile of cash across the table, to the seller.
Dozens of papers are signed, smaller piles are pushed over to the agents, lawyers, banker for taxes, and escribano.

Then, the whole stack is run back thru the counting machine, and wheeled out.

In most cases, the seller wants pesos- so an even LARGER stack of argentine cash is wheeled out on a cart, run thru the counting machine, and presented to the seller.

Sometimes, it is then hauled off in a briefcase.
Other times, its wheeled back and "deposited" into the sellers account at the same bank.
Other times, hired armed guards take it out to a hired armored car, and it is hauled off, in cash, to ANOTHER bank.

the ways of Argentine High Finance are not like what you are used to.

This is all considered to be perfectly normal, and many parts of it are either legally or contractually required.

Welcome to the other side of the mirror.

OK, then a doctrine to me again. How do I do it....First, bring the money thru a Cambio house in US Dollars, then converting them in Argentine blue rate to AR pesos ( advantagious for me ! ) then wheel over to the seller's meeting table then put those AR $ through the counting machine, all done, then receive the deed for the property ? What % is the tax paid to the AFIP ?

 

[PhilipDT]

In 2099 there will be no more deeds there will be no more "wheeling", rather the money will just float from one table to the other.

 

[GS_Dirtboy]

OK, then a doctrine to me again. How do I do it....First, bring the money thru a Cambio house in US Dollars, then converting them in Argentine blue rate to AR pesos ( advantagious for me ! ) then wheel over to the seller's meeting table then put those AR $ through the counting machine, all done, then receive the deed for the property ? What % is the tax paid to the AFIP ?

If you want to purchase property here your funds must be declared. You either earned the money here in Argentina in white with taxes paid or you brought your Dollars through a wire transfer to a bank. You will then need to provide AFIP with documentation on where the money came from and how you got it. You can also do a Blue Chip Swap but you must have a bank account to do that.

Either way you are getting the official rate for your transfer, not the blue rate. Sorry.

Notary Fees: 1.5% of the selling price in Pesos.
Stamp Duty: 1.8% of the selling price in Pesos.
Transfer Tax: 1.5% of the selling price in Pesos.

 

[PhilipDT]

If you want to purchase property here your funds must be declared. You either earned the money here in Argentina in white with taxes paid or you brought your Dollars through a wire transfer to a bank. You will then need to provide AFIP with documentation on where the money came from and how you got it. You can also do a Blue Chip Swap but you must have a bank account to do that.

Either way you are getting the official rate for your transfer, not the blue rate. Sorry.

Notary Fees: 1.5% of the selling price in Pesos.
Stamp Duty: 1.8% of the selling price in Pesos.
Transfer Tax: 1.5% of the selling price in Pesos.

Aren't you missing the Cedin option? Isn't that the best way for narcotraficantes expats to buy property here.

 

[GS_Dirtboy]

Yes, the Cedin option works as well (though I would do the stock swap) The point is that the funds come into Argentina through official channels. You can't bring a suitcase full of Dollars here, change at a cueva, and go buy property.

 

[PhilipDT]

Yes, the Cedin option works as well (though I would do the stock swap) The point is that the funds come into Argentina through official channels. You can't bring a suitcase full of Dollars here, change at a cueva, and go buy property.

How do you think you get the cedins? You can take a suitcase full of cash to banco ciudad and you get a cedin which the seller can then turn in to dollars (blanco tax aplicable dollars but still).

Have you ever had a client do the stock swap? I hinted at this in your other thread but there is a technical fiscal risk with inverse ccl. If it were me I would definitely go the cedin route while available.

 

[GS_Dirtboy]

I have had clients do the stock swap. Have not had anyone do the Cedin. What are the limitations to the Cedin?

 

[Alicia karr]

I have had clients do the stock swap. Have not had anyone do the Cedin. What are the limitations to the Cedin?

Ummm...maybe believing the govt. will actually make good on their word???