Something important to note, as a non-resident that purchases and owns real estate in Argentina, is you must have a local individual or corporation in good standing representing you as your local tax representative.
It is very important to remember that you have an annual asset/property tax payment due each year. It is due in May of each year. The government does not send you any property tax bill. It is your responsibility and obligation to hire an accountant to prepare, file and pay this tax for you each year.
The accountant or your local representative must have a legal power of attorney (POA) document to file your tax payment and represent your tax matters here in Argentina (AFIP Tax law # 23.966). It is critical that you take the time to prepare and plan for this immediately after you purchase real estate in Argentina.
Although the tax is due in May of each year, its based on ownership of the prior year. For example, if you purchased a property on December 30, 2010, you would still be liable for the property taxes for all of 2010. Because of this, if you are planning to purchase real estate towards the end of the year, its better to wait until after January 1. If you waited until January 1, 2011, you will not owe property taxes until May of the following year or in this example May 2012.
It is important to keep all tax issues and potential liabilities in mind when you purchase real estate in Argentina. The laws are constantly changing and almost NO accountants in Buenos Aires have experience or knowledge with non-resident/foreigners tax matters. So it is extremely important to use accountants that specialize in tax matters for non-residents.
The laws are very different and distinct for residents and non-residents. Many local accountants give out false and misleading tax advice for non-residents when it doesnt apply to them and then when they go to sell, they have problems and issues and also penalties and interest payments. It is very important that you do everything properly from the moment you purchase your property and know and understand the tax laws here.
It is VERY important that you stay up to date on paying all required taxes in Argentina because if you do not, you could have issues when you go to sell your property.
It is important to remember that as a non-resident you must apply for a permit to sell your property from AFIP (our taxing authority). As long as you follow the laws and your accountant properly prepares, files and pays your taxes each year, you will avoid problems. Our firm has assisted many foreigners each year for the past 8 years sell their properties and assist them with paying their rental taxes and their property taxes. We have found that many had problems and issues because they never paid property taxes (because no one told them from the beginning). Or they did file property taxes each year but they were done improperly.
In addition to annual asset/property taxes of 1.25% of the price listed on the title deed, you also are liable for rental taxes if you rent your property out. That tax is 21% on gross income of rental proceeds.
It is essential that you are paying income taxes if you are renting your property out, as you can have problems when you go to sell your property. Remember that you must apply for a permit to sell and part of that process is hiring an accountant to get the permit for you. During the process, AFIP will ask to see copies of all your utility bills, photocopies of each page in your passport since you purchased the property and other documents.
The reason they do this? Because previous there were many foreigners lying to them saying they werent renting out their properties or they were using it themselves for personal use. Once AFIP caught on to their lies, they required seeing their passports so they could see how many days per year the owners were actually in Argentina.
We have seen many foreigners getting caught in lies with AFIP and having issues so it is important to understand the laws and deal with professionals that have extensive experience with AFIP and tax officials here.
Other times, AFIP has gone as far as going to talk to doormen in buildings to ask if the owners were renting out their properties. So its important to understand the laws and what is required when you go to sell. And also to understand how things work in Argentina.
No company in Buenos Aires has more experience dealing with non-resident tax matters than our firm. We have assisted more non-resident foreigners with tax issues and assisting them with selling than any firm in town over the past decade. We deal with the most experienced accountants that specialize in non-resident tax matters.
Even most experienced accountants in Buenos Aires that have over 20 years experience and are experts have NO experience dealing with non-resident tax issues. Who do they turn to? They turn to our firm and the guidance of the accountants that we have relationships with.
For all property owners that are buying a property in Buenos Aires, they WILL definitely need a reliable and trustworthy accountant to pay their rental taxes each month for their rentals and especially to prepare, file and pay their property taxes each year.
Rely on our trusted relationships with these expert accountants that specialize in non-resident tax issues. No one has more experience with non-resident issues dealing with buying and selling real estate than our firm.
Please contact us if you need a referral to a trustworthy accountant to assist you with paying rental taxes or paying your annual property tax in Argentina. Or especially if you need assistance selling your property and applying for an AFIP permit to sell your property. In fact, the accountants that we have relationships with have never failed to get an AFIP permit to sell for our clients.
If you cannot fly to Argentina to be here for the sale of your property, you can retain our firm to legally close for you and handle all aspects of the sale of your property. We can take a legal power of attorney and act on your behalf. See our Testimonial section for the many foreigners we have assisted.