Argentina cash transfer Process and Fees

As if the realtor’s commission and the lawyer’s fee wasn’t enough…. there is also a cost to get u$s Dollars into the country of Argentina. Short of bringing it on a carryon bag (which I do know some clients that have done that — although I CERTAINLY do NOT recommend doing this as it’s dangerous), it is impossible to get dollars into the country without some sort of fee. 

Yes, you heard that right. There is no free way of bringing u$s into the country of Argentina. And even if you try carrying it on your carry-on bag it is unlawful to bring in more than u$s 10,000 undeclared. If you get caught, the government will fine you by taking 50% of the undeclared amount. Of course, it's legal to bring in as much as you want as long as you declare it however, it's very dangerous as airport officials could call thieves to rob you on your way from the airport. 

After the devaluation, Argentina made it difficult to get U$S into the country. Over the past 20+ years the process has changed over and over.  The Argentina Central Bank makes it very difficult to get US dollars into Argentina.  

And keep in mind when you go to sell the property, you MUST show how you LEGALLY got your US dollars into Argentina.   You will have big penalties and fees if you can't show how you legally wired your funds into Argentina.  So it's very important that you do everything legally so you can show the government later how you brought funds into Argentina.

You are probably scratching your head asking yourself, “but why would you need cash”? The answer. ALMOST ALL REAL ESTATE TRANSACTIONS HERE ARE IN ACTUAL CASH with US $100 Bills. There are a few exceptions to the rule but I’ve only conducted far fewer buy/sell transactions where we used a wire transfer. Even when both parties have US or European bank accounts, the seller still prefers cash. The reason why? Because as I mentioned above, there is a cost of getting money into the country and most are using the cash to purchase something else so they would rather have you “pay” to get the u$s into Argentina. The other big reason is these locals don’t trust anything but cash.

No matter how many times I buy a property for a client, it always amazes me when the seller is sitting there counting the cash. I have purchased tens of millions of dollars in real estate here in Argentina and every single time …cash was exchanged at the table at the title deed transfer. It is an awkward site. Imagine with the technology we have these days and people are paying cash. Some transactions were as high as u$s 3.5 million and it was all in cash.

Prior to 2006 many foreigners were using private money exchange firms to wire money in for their purchases and the government did not really care how you brought the money in. Then in 2006, the government passed an anti-money laundering law and they carefully monitor how funds are brought into Argentina.

There is a LOT of paperwork involved including past tax returns in your home country, bank statements outlining where the cash is coming from, stock or real estate sales proceeds paperwork and a current resume. It is all carefully monitored. The cost of using an official money transfer firm registered through the Central Bank is the same cost to use an unofficial one for the most part, so our firm highly recommends you bring the funds in “white” and with an official money transfer firm or financial institution registered through the Central Bank.

They all charge a flat percentage rate based on the financial markets at the time of the transfer. For the past several years, it has fluctuated between 2.5% to 5% of the transfer amount. A seemingly steep amount but the safest and most reliable method. I do NOT recommend carrying your life savings on a carry on. All it takes is one phone call from the customs agent going through your bag to his friends to watch you as you go through the airport and rob you on the way to the city. Keep in mind that you are legally required to declare any cash in excess of u$s 10,000 into the country. As mentioned, the customs agent can make one phone call and your money would be in jeopardy.

Foreigners should be mindful that the government is making it more and more difficult to use private exchange houses that are not registered with the Central Bank. Although it’s very difficult and time consuming and also involves more paperwork, we recommend that you bring the money with an official money transfer firm registered with the Central Bank. It is best to go through a local authorized money exchange house so that the transaction goes through the Central Bank so you avoid problems in the future when you go to sell your property. Our firm can recommend ethical and trustworthy financial institutions that we have used for the past 15 years.

The benefit of buying a property that is owned by a foreigner is most have bank accounts in the USA or Europe and will allow you to wire directly to them saving you up to 5% in fees.