VAT property tax in Buenos Aires as foreigner buyer?

[helloyou]

I want to purchase a house in Buenos Aires as a foreigner. The only thing I'm confused by is VAT. Let's say if I purchase something at $100,000 and VAT is 21%. Then the total price would be around $120,000, right? Am I missing something here? This doesn't seem right and the price too high.

Here's a link to what I'm confused by: http://argentina.rica24.com/en/6-taxes-fees-argentina-real-estate.html

 

[Davidglen77]

VAT here is known as IVA (Impuesto al Valor Agregado). IVA is not levied on a house purchase as far as I know. You will pay IVA tax on the real estate comission and most of the escribano fees however.

 

[ndcj]

You will also pay IVA as part of a new construction. Though if it's a residential construction, the IVA is 10.5%, otherwise it's 21%.

There is no IVA on established houses, just like the other posters said, you only pay IVA on the professional fees.