Buying Property in Argentina

A guide to the property buying process in Argentina where increasing numbers of Britons, Europeans and North Americans are setting up home

Whenever real estate transactions are carried out abroad - wherever that may be - care must always be taken, and buying property in Argentina is no different.  Whilst there are proper purchase systems in place, the unscrupulous can still get around them!

In this article there are some commonsense pointers for anyone interested in buying real estate in Argentina, as well as information on the legal process involved and the taxes to be paid when buying property in this South American country.

The appeal of Argentina for property buyers is clear, it’s a stunning nation lesser explored by international buyers and investors, therefore prices for quality real estate are very low.  North Americans have already discovered the appeal of Argentina…and now Britons and Europeans are following in their footsteps.  If you too want to find out about the intricacies of the process involved in buying a home in Argentina, read on.

The first hurdle to cross when buying property is who to use to find your property.  As soon as you make it known that you’re in the market for a home you’ll be offered property by barmen, restaurant waiters and people in the street all looking for a 6% commission!  However, the best option is to use a licensed estate agent. 

In general there’s no multiple listing service for Argentinian property so you’re best off dealing with a number of estate agents.  This is one of the best ways to find out whose properties seem to be good value and whose are over-priced.  Estate agents in Argentina are called inmobiliarias, they need to be registered and have a license and in some provinces they also need to be matriculated.  The licence and matricular will go some way to proving that your Argentinian real estate agent is above board. 

Once you’ve found your property and negotiated a price – and always negotiate hard - the next player in the property game enters the scene.  The escribano is an Argentinian property lawyer, he acts in the same manner as a solicitor in the UK.  All property in Argentina must be clear of any debts, liens, mortgages, legal restrictions etc., when the title deed is transferred - and the escribano works for both buyer and seller to ensure that this happens.  His first job when recieving a property instruction will be to check the property title deed in public records to ensure there are no restrictions on the sale.

Providing that there are no restrictions you can go ahead with your purchase.  Buying property in Argentina is a relativley straightforward process and the Argentinian property transfer system is based on the Roman system found in most overseas property markets nowadays.  Title transfer usually takes no more than 30 – 40 days, there are no property chains and once a bill of sale has been signed, both parties are committed to complete the property transaction as agreed, no gazumping or gazundering here! 

Note, it’s usual to pay a fee on the signing of the ‘boleta de compra venta’ which can be lost if you pull out of the purchase process.  Other costs and fees that you need to be aware of include a 3% capital gains tax for which the vendor is responsible, a 3% estate agent’s fee and the property survey costs. 

All Argentinean property being sold must have a new survey carried out and a new plan drawn up to verify that the conditions specified in the title still exist.  The buyer also has to pay a 3% realtor’s commission.  There are a further 4% of taxes and escribanos fees to be paid and these are generally split with the seller paying 1/3 and the buyer paying 2/3, but the split is negotiable.  Fees and taxes are paid on the signing of the property title document, this is usually carried out in the bank where vast wads of cash are passed around - financing pretty much doesn’t exist in the Argentinean property market!

One final thing to bear in mind when buying property in Argentina, it’s very usual to put a lower price on the title document than that being paid, this is because government taxes are based on the amount in the title.  If you don’t feel comfortable doing this don’t and insist on the full amount being put on the title document.  If you don’t and you subsequently sell one day and your buyer insists the correct amount is put on the title deed you will pay much more tax than you need to!