Zang, Bergel & Viñes
Can anyone (including foreigners) own and occupy real estate in your jurisdiction (including shares in property owning companies)? Are there any restrictions?
Yes, as a general principle, foreigners investing in Argentina enjoy the same status and have the same rights that the Constitution and domestic laws confer on local investors for owning and occupying real estate (including shares in property owning companies). However, pursuant to Decree-Law No. 15.385/44 and its amendments, the acquisition of property located in “frontier zones” or “security zones” by foreign individuals or legal persons requires previous consent by the National Commission for Safety Areas. Additionally, “administrative easements” impose by public for utility access (e.g., water, electricity) may create limitations. Decree No. 70/2023 repealed the Rural Lands Act, removing restrictions on foreign ownership of rural land.
Are there restrictions on lending for the purchase of real estate by foreign companies? If so briefly give an outline?
There are no special restrictions that somehow may affect the possibility of financial entities in Argentina lending for the purchase of real estate by foreign companies. However, if the financial entity is local, it should comply with all the normal obligations and ordinary regulations of the Argentine Central Bank, regulations on money laundering and requirements regarding information (as Know Your Client).
Buying
Please provide a short summary of the fees and costs (including tax) relating to buying real estate in your jurisdiction.
The costs and taxes applicable range between 5.6% and 9% of the purchase price, as follows (considering that the property is in the City of Buenos Aires):
1. Stamp tax: 1.75% (the seller must pay another 1.75%, since the rate of 3.5% is in practice split by the notary public between seller and buyer). There is a tax exemption up to the amount of AR $ 205,332,000 in case of single, family housing and permanent occupation when it constitutes the only property in head of each of the acquirers. If this threshold is exceeded, this tax is applied only on the excess amount.
2. Notary public's fees: between 1.% and 2% approx. (plus 21% on the fees as VAT).
3. Notary public's expenses: between 0.6% and 1% approx.
4. Broker's fees: in practice between 2% and 4% approx. (plus 21% on the fees as VAT), although Section 77 of Law 24.441 states that said fees (i) cannot be higher than 1.5% and (ii) are not applicable for buyers in case of new homes.
Please note that except for the Stamp Tax, all other expenses and fees are subject to negotiation with the relevant counterparty (notary public, broker, etc.), causing the wide range of tax rates and costs described above.
Owning
Are there taxes applicable to owning real estate and can the burden of the taxes be passed to someone else (e.g. a tenant or an occupier - not being the owner
Ownership of real estate by foreign investors is subject to the following taxes:
1. Tax on Personal Assets (TPA): this tax is imposed on assets existing in the country and, in certain cases, assets located abroad, that are owned as of December 31 each year. For the period of 2024, the non-taxable minimum is $292,994,964,89. If the total value of the taxable assets exceeds this amount, the excess must be taxed. The house intended for home-occupation is exempt from the tax if its fiscal valuation does not exceed $1.025.482.377,13. If it exceeds this value, the excess is added to the rest of the taxable assets. The real estate should be valued at the higher value between the acquisition or entry into equity, adjusted for depreciation, or the tax valuation in effect as of December 31 of the corresponding year, updated by inflation. The applicable rate for assets in the country varies between 0,5% and 1,75%. For the assets located abroad, it varies between 0,7% and 2,25%.
In case of foreign owners, the payment must be paid by a local representative. The representative must be an Argentine resident with legal authority over the assets. Non-resident individuals pay TPA exclusively on assets within Argentina and real estate abroad owned by resident individuals and undivided states located in Argentina. All taxpayers must file an annual tax return and pay the tax liability in June of each year.
2. The real estate tax; the lighting, sweeping and cleaning tax, as well as any other tax or fees of a similar nature that may be collected by the Provincial or Municipal Tax Departments. Unlike TPA: (i) these are provincial and municipal taxes, (ii) the rates depend on the relevant jurisdiction involved, and (iii) the burden of these taxes, as well as real estate expenses, could be passed on to another person if agreed.
Tax Breaks
Are there tax breaks or other incentives for foreigners to buy real estate in your jurisdiction? If so, what are they?
We are not aware of any national tax breaks or other incentives for foreigners to buy real estate in Argentina. Nevertheless, there could be provincial or municipal tax incentives, depending on the relevant local jurisdiction.
How is the ownership of Real Estate evidenced in your jurisdiction?
The Civil and Commercial Code stipulates that all agreements for the transfer (sale or purchase) of ownership of real estate must be affected by means of a public deed. Moreover, pursuant to Law No. 17.801, said documentation for all real property (except state-owned property) must be registered with the corresponding public registries of real estate property according to each jurisdiction to be evidenced against third parties.
Is it possible to keep the identity of owners of real estate confidential in your jurisdiction?
The registries are public for those who have a legitimate interest in finding out the legal status of the property, documents, limitations or bans inscribed. Therefore, the information on ownership of real estate is publicly available in Argentina.