PROCESS TO SELL REAL ESTATE IN ARGENTINA

The process of selling real estate in Argentina is easier than purchasing real estate in Argentina.   However, it's essential that you understand the process in detail.  Many buyers have actual cash in Argentina so many times you still have to deal with cash at closing.  

When you go to sell your property, typically there is a seller's realtor's fee of 3% commission on the sales price.   This is due and payable once a down payment (Boleto) is paid on your property.  If a Boleto is not performed and you go straight to closing then the commission won't be payable until the closing.

Typically in Argentina the buyer pays the bulk of the legal fees. However, there will still be some closing legal fees and taxes that you can't avoid.   By law, the buyer gets to select the lawyer "Escribano" (Notary Public) to be used for the transaction.   You as the seller have no say in the selection process of the lawyer to close the transaction.

There was a transfer tax of 1.5% of the sales price but President Javier Milei got rid of this tax on July 8, 2024.  For owners that purchased before January 1, 2018 there is NO capital gains tax.  For owners that purchased after this date, there is a capital gains tax of 15% of the over the effective net income (gross sale price versus restated acquisition cost minus the expenses incurred to obtain such gain). 

There is a stamp tax of 3.6% that is split evenly between the buyer and the seller, with the exception of new construction where the buyer typically pays all of the stamp taxes.

Up until July 9, 2024  a non-resident foreigner had to get a special permit from AFIP (Argentina tax authority) to sell your property if you purchased your property prior to January 1, 2018.  You had to use a special accountant that is knowledgable about getting this permit.  Only a small handful of accountants in Argentina specialize in getting this permit.   It's very difficult for an accountant that has no experience with this.   We can't emphasize this enough.  An accountant that does not have experience and training getting this permit could jeopardize the sale as it takes a long time for them to get this permit.

Part of the permit process with AFIP involves making sure you are up to date with ALL your taxes while you have owned the property.   (Property taxes, income taxes if you've been renting your property, ABL Taxes).  They will also do a deep dive to see how you brought in your cash to purchase the property.  If it wasn't done legally you will have issues.   This is the reason it's essential that you did everything legally when you purchased the property.

*** Special note**** As of July 9, 2024, President Javier Milei has changed the law so non-resident foreigners do NOT need to get a special permit to sell their property. He has eliminated this red-tape procedure.

At the closing, you need to physically be present at the closing.  Or you can get a legal Power of Attorney to get someone to close for you.  Just keep in mind if cash is involved, you need to have someone that you can totally trust as the legal and judicial system does not work well in Argentina.  There is no room for mistakes.

If the buyer agrees, you can have them wire the funds directly to your bank account abroad avoiding having to deal with cash.  This is the safest and recommended way to close.  However, keep in mind many Argentines have physical cash that they have saved.  If this is the case, you will have to take possession of the cash and then have the funds wired to you abroad.   We can recommend trusted financial institutions if the buyer absolutely insists on paying in cash.

This is the safest and easiest method that we highly recommend.  We can help you structure the transaction so there is NO risk to you at all.  The closing needs to be done in two parts and you will need to structure it so the title deed transfer (escritura) is not valid until the funds are received and confirmed by you.