Estudio Bado Kuster Zerbino & Rachetti
Can anyone (including foreigners) own and occupy real estate in your jurisdiction (including shares in property owning companies)? Are there any restrictions?
There are no restrictions to own or occupy real estate in our jurisdiction. All person or company, national or foreigner, can own and occupy real estate. Our jurisdiction does not make any differences between national or foreigners, they all have the same rights.
Are there restrictions on lending for the purchase of real estate by foreign companies? If so briefly give an outline?
There are no specific restrictions on loans for the purchase of real estate by foreign companies. The foreign company must comply with the conditions established by the supplier, such as national companies.
Buying
Please provide a short summary of the fees and costs (including tax) relating to buying real estate in your jurisdiction.
The fees and costs relating to buying real estate are as follows:
Notary: 3% of the price + IVA (22%) the buyer, plus other costs related to the study of the property title, such as information from the National Registry.
Commission: 3% of the price + IVA (22%) each part, buyer and seller.
Taxes:
ITP (Property transfer tax): 2% cadastral value, each part
And seller must pay income tax:
IRPF: national natural persons, 12% of profits
IRNR: foreign natural persons and foreign companies, 12% of profits
IRAE: national companies, 25% of profits
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
Taxes applicable to owning real estate are as follows:
IP (heritage tax): national natural person and foreign natural person, both who exceeds certain taxable minimums (USD 160.000 aprox), between 0.1% and 0.2% cadastral value national persons and between 0.7% and 1.5% cadastral value foreign persons; national or foreign companies, 1.5% of the price paid. BONT 3%.
Taxes related to the property: real estate contribution, primary education tax, municipal taxes.
If the property is rented, the owner must pay income taxes:
IRPF: national natural persons, 10.5% of price or 12% of profits
IRNR: foreign natural persons and foreign companies, 10.5% of price or 12% of profits
IRAE: national companies, 25% of profits
Tax Breaks
Are there tax breaks or other incentives for foreigners to buy real estate in your jurisdiction? If so, what are they?
In general terms, there are no incentives for foreigners to buy real estate in our jurisdiction.
There could be incentives in particular matters or specific Laws.
For example, Law N° 18.795 (housing law promoted) provide tax benefits for the construction of
social housing, to both parties, constructor and buyer. Exonerates ITP (2% cadastral value to
each part), income taxes (IRPF, IRNR and IRAE) and heritage tax (IP) for the period of ten (10)
years.
How is the ownership of Real Estate evidenced in your jurisdiction?
The owner certifies the property with the property title and its background, which must be studied by the notary. This information must match with the information that emerges from the National Property Registry.
Is it possible to keep the identity of owners of real estate confidential in your jurisdiction?
No, it is not possible to keep the identity of real estate owners in our jurisdiction confidential.
Whoever wants this information can request it from the National Property Registration. To obtain the information, the property registry number is required. Our Registry does not provide information based on the owner but about the property registration number. However, it is usually easy to obtain this number.