Money Transfer
Regulation: the current legal atmosphere
We recommend that you demonstrate “proof of origin” for the funds (W-2 forms, 1040, etc) because the government is beginning to regulate the influx of money to Argentina. The AFIP has the authority to audit you, and you need to be careful so that you don’t have problems when you choose to sell the property in the future. Transfer fees are usually between 1-3%, depending upon how you transfer your money. You can use “money exchanges,” which are technically illegal, but used regularly by the locals and foreigners. Or, you can use the Central Bank, which is the safest way, and the most costly.
Legislation has been discussed to make all real estate purchases to be in check, bank wire or some other method, except CASH. The reason for this is that many locals buy/sell properties and change the recorded purchase price by 30-50%. This limits the amount of income taxes that people pay on the sales price and the amount of property taxes the new owner pays the government. Tax evasion is a common practice in Argentina, but Nancy Landi International does not advocate this practice due to the risks its poses for our clients.
Yes, you may save some money on your yearly property taxes, but you’re taking a large risk when the AFIP audits the sale of your property in the future.
Opening a Bank Account in Argentina
A bank account in Argentina will help you manage your property from overseas. Opening a bank account in Argentina is more difficult than most foreigners expect. By law, the requirement to open a savings account is a CID (tax ID), an address certificate and a Passport. But many banks have stricter requirements.
If you have an account with HSBC, CitiBank, BankBoston or BBV in the U.S. or Europe, they will generally open an account for you in Argentina. Or, if you’re referred to them by a current customer, they will speak with you.
Banco Nación, opens accounts to foreign non-residents requiring only the CDI (tax ID), address certificate and Passport. The minimal deposit is $50 pesos and they charge a maintenance fee of $3 pesos.
Important things to inquire about: online banking, maintenance fees, wire transfers, minimum deposits, debit/credit cards.
