Argentina

A spectacular country with a strong economy and excellent real estate potential"

Strong economy, with emphasis on developing tourism. Fantastic outdoor lifestyle attracts international and Argentian tourists alike. Buenos Aires is one of the cheapest developed cities in the world. Cost of property and of living is very low, and with real estate prices still to rise much profit can be gained.
Real estate market has shown strongest growth as economy recovered from slump. High rental yields, a year-round market and no restrictions on foreign ownership make for a good investment location.

Map

Summary Data


Summary Data

 

Total Area (km2)

2,766,890

Land (km2)

2,736,690

Water (km2)

30,200

Population

40,677,348

Population Density (/km2)

14.8

Capital

Buenos Aires

Religion (%)

Roman Catholic 92%
Protestant 2%
Jewish 2%
Other 4%

Time

GMT-3

Climate

Predominantly temperate;
sub tropical in the north,
arid in southeast and 
sub-Antarctic in southwest.

Geography

Argentina is situated in South America bordering Chile, Uruguay, Brazil, Bolivia, Paraguay and the Atlantic Ocean. The Landscape of Argentina is very diverse from the mountainous regions of the Andes Mountains to the west bordering Chile and the flat regions of the Gran Chaco in the North. The country's climate is very unpredictable and changes dramatically depending on the region. The Paraná River is the largest in Argentina; other major rivers include Colorado, Rio Negro and the Salado River.

Government

The Argentinean government is a Federal and Democratic Republic with President Cristina Fernandez de Kirchner as Head of State and Julio Cobos as Vice President. The country gained independence from Spain in 1816. Nester Carlos Kirchner acted as head of state before C F Kirchner took over. In his reign he managed to regain ties with neighbouring countries and in 2005 he declared the country financially independent after repaying back all of Argentina's dept to the IMF.

Language

Spanish is the official language of Argentina, English is widely spoken in most popular tourist destinations and a small minority of people speak French, Italian and German.

Electricity

220 volts AC, 50Hz. Plug fittings in older buildings are of the two-pin round type, but some new buildings use the three-pin flat type.

Passports/Visa

Valid passports are required by all nationals with a return or on-going ticket out of the country.
Visas
Visas are not required by all nationals for both business and tourism purposes for stays of up to three months, although some nationals may be able to lengthen their stay by an extra 90 days whilst in the country. Children not travelling with their parents must have the correct documents stating parental permission.
Passport/Visa Information
The Embassy of Argentina
65 Brook Street
London
W1K 4AH
Tel:             +44 207 318 1300       
Fax: +44 207 318 1301
Website: info@argentine-embassy-uk.org

Consular Section
27 Three Kings Yard
London
W1K 4DF
Tel: 020 7318 1340
Fax: 020 7318 1349
Website: clond@mrecic.gov.ar
Office hours: Mon-Fri 09.30-13.00

Airports and Airlines

(Ezeiza) Ministro Pistarini International Airport (EZE)

  • Location: The airport is located 35km (21 miles) southwest of Buenos Aires
  • Time: GMT-3
  • Contacts: Aut. Richieri S/N, CP 1802, Buenos Aires, Argentina
  • Tel: (0)11 5480 6111
  • Website: www.aa2000.com.ar
  • Terminals: 2
  • Transfer between terminals: The terminals are within walking distance of each other.  
  • Transfer to the city: Taxis and buses are available from the airport to Buenos Aires and the surrounding areas with journey times of app.45 minutes.
  • Car rental: Car rental companies including Avis, Hertz and Alamo have company desks in terminal A.
  • Facilities: There are banks, ATM's, bureau de change, a 24 hour information line, travel information desks and representatives, business facilities (fax and internet and mobile phone hire), restaurants and cafes, duty free and a pharmacy. The airport has good disabled facilities and several hotels a short distance away.
  • Parking: Parking is available.

Standard of Living

Argentina enjoys a moderate standard of living and is highly urbanised. As the country's tourist industry grows, so too does its standard of living. Argentina takes inspiration from the European lifestyle and way of living, a trend that is becoming increasingly evident the more the country develops. Argentina currently has one of the highest literacy rates in Latin America.

Principal commercial centres and towns

Buenos Aires is the capital of Argentina and is also the most populated city in the country.


Population by City/Town 2007

 

Buenos Aires

3,034,161

Chaco Province

984,446

Rio Negro

552,822

Chubut Province

413,237

Catamarca Province

334,568

Santa Cruz

196,958

Introduction

Being South Amercia's second largest and the world's 23rd economy1, Argentina certainly attracts foreign investors, including investors in the real estate sector.
The state of Argentina is a federal republic. In December 2007, Cristina Fernández de Kirchner became the president and is expected to maintain the broad policy stance of her husband and predecessor, Néstor Kirchner.2
Argentinean legal system is one of the few in the world that combines civil and common law.
In general, no restriction has been posed on foreigners. Land and immovable properties can be owned by one person as well as more than one person jointly. A full range of property rights are available in Argentina, include freehold, leasehold, easements rights, usufruct and so on.
The court system in Argentina can be slow, inefficient, secretive, and even corrupt.3  Therefore, when necessary, foreign investors may resort disputes via international arbitration.
In terms of the fiscal system of Argentina, investors need to be aware that Argentina has high tax rates. Both the top income tax rate and the top corporate tax rate are 35%. Other taxes include a value added tax (VAT) and assets tax.

Legal Guide

LAW

While the Argentina legal system is based upon the French civil code, its Constitution is modelled after the U.S. Constitution.4 In short, the legal system of Argentina is one of the few in the world that combines civil and common law.5 National Congress and Chamber of Deputies are the legislative branches and the country's judicial system is comprised of both federal and provincial courts.  The federal courts deals only with cases of a national character or those to which different provinces or inhabitants of different provinces are parties; the provincial courts deal with the cases occur within the province in question.
In respect of the real estate sector, following are some of the relevant laws:

  • Constitution
  • Civil Code
  • Law 13,512 (Propiedad Horizontal)
  • Law 24,441 (governing trust)
  • Law 25,509 (Superficie Forestal)
  • Act No. 19,724 (regulates registration of condominium properties)

OWNERSHIP & RIGHTS

In general, there are no restrictions on foreign investments. Foreign ownership of immovable properties is not restricted except in certain areas, such as frontier zones, for national security reasons, foreign investor must obtain consent of a Federal Agency for the purpose of acquiring immovable properties. Normally such consent will be granted.
The rights of immovable property are mainly defined in the Argentinean Civil Code.  Immovable property may be owned by one person or more than one person jointly.  Rights of immovable property may also be purely contractual, such as leases.  Other rights include easements, which favours a person rights over another person's land; and usufructs, which give a person the temporary rights to use and profit from another person's property.6

BUYING PROCEDURE

In general, all lands not under the public domain and related real estate rights and its encumbrances must be registered with the real estate registry of the area where the lands are situated, i.e. Provincial Cadastral Organization.  Rights of unregistered lands are not effective against third party. Having said that, certain contractual rights over property, for example, land leases do not require to be registered.
The buying procedure is in general as follows:
Reserve the property
Once you have chosen your ideal property, a reservation agreement is to be signed with the seller and a reservation deposit needs to be paid (will form part of the purchase price).
Due Diligence
Before signing the preliminary purchase contract (off-plan property) or property sale and purchase contract, it is important that to carry out a due diligence check on the seller as well as the subject property. The due diligence checklist may include:

  • the company registration certificate (if the seller is an entity) or proof of seller's identity (if the seller is a private individual)
  • proof of a personal who is duly authorised to sign all legal documents (if the seller is an entity or an attorney of the seller)
  • the title certificate for the land
  • the planning permission/consent (off-plan property)
  • the building licence (off-plan property)
  • all other relevant permissions for the commencement of the project (off-plan property)
  • any lien, debt, development finance, or encumbrances against the land and/or the project
  • at least one of bank guarantee, insurance and/or assurance ensure the completion of the project or an escrow system to provide security for the buyer's property payments (off-plan property)
  • an independent quantity surveying (QS) system during the construction period (off-plan property)

The above due diligence check is more appropriate to be done through a local law firm or conveyancing lawyer.
Exchange Contract
Before singing preliminary purchase contract (off-plan property) or property sale and purchase contract, buyers are suggested to consult a local law firm or conveyancing lawyer on analyse the risk, any unfavourable terms of the contract. Upon signing of the contract, first instalment/payment is often required.
Title Deed Transfer
Once the property is completed, following steps shall be followed in order for the seller to be able to transfer the title deed under buyer's name:

  • Seller to obtain a domain certificate and a personal annotation certificate from the Real Property Registry
  • A surveyor measures and values the property
  • Obtain a certificate issued by a surveyor describing measures, boundaries, and tax appraisal of the land and building
  • The public deed is executed by the parties with the intervention of a notary public
  • After the execution of the public deed, the notary public files the property transfer for registration with the Real Property Register7

Taxation (for non-residents individuals)8

TAXATION WHEN acquiring/purchasing PROPERTY

category 

tax/fee rate

scope/remark

Valued Added Tax

10.5% for residential building
21% for other buildings

charged on new build or refurbished buildings

Stamp Duty

a local tax and vary between provinces between 0.5% and 2.5%

jointed share between the seller and buyer

TAXATION WHEN OWNING/HOLDING PROPERTY

category 

 tax/fee rate

scope/remark

Income Tax

levied from 9% to 35%

 

Personal Assets Tax

1.25%

calculated based on the assets value on 31st December each year

 VAT

21% if rental value over $1,500 a month

 collected from tenant

 gross revenue tax

NIL if property owner is private individual

 

TAXATION WHEN SELLING/DISPOSING PROPERTY

category  

 tax/fee rate

scope/remark

Transfer of Immovable Property Tax (Impuesto a la transferencia de inmuebles “TT”)

1.5%

this is a federal tax and subject to individual who are transferring property

Capital Gains Tax (CGT) – called Income tax in Argentina

 17.5% of the 50% of the gain/profit

 effectively is 35% of the total gain/profit

Stamp Duty

a local tax and vary between provinces

 shared between the seller and buyer

Argentina has signed double taxation agreement with a number of countries. For more information on UK and Belize double taxation agreement, please refer to HM Revenue & Customs' webpage: http://www.hmrc.gov.uk/manuals/dtmanual/dt2500+.htm