real estate & property management guide buenos aires, argentina

In my last article, ‘Buying Buenos Aires Real Estate’,we looked at the property buying process and the peculiarities of the real estate market in Argentina.

Today, as promised in that article, I update our readers with a little more detail on the ‘nitty-gritty’ – the administration and bureaucracy – of foreigners opening bank accounts in Argentina and obtaining a tax identification number the CDI (Clave de Identificacion).

Bank Accounts

Opening a bank account is not easy for non-residents. The difficulties are not because of any particular legal requirement, although in general the local bank managers cannot be bothered to get involved with anything that is out of the ordinary and they presume transients are riskier customer types.

There are a number of internationally known brands here including HSBC and Santander Rio, but you must remember that these are separate entities not directly controlled by a parent or holding company.  Banks in Argentina must be local businesses regulated by the central bank of Argentina.

Having said all that, if you have a good relationship with a bank that has local a local business here it can help you obtaining banking in Argentina.

I opted for opening an offshore account with HSBC in the Channel Islands; they were able to introduce me to their premier-banking arm in Argentina.  If you are planning to buy a property in Argentina and you consult us to help you, we will organise a referral to a bank that will open an account to allow you to buy a property.

If you are planning to buy a property and then ask someone like me to manage your property, you may not need a permanent bank account in Argentina as (me) your property manager can take care of all receipts and expenses via a clients’ account.

In such cases, we have many banks that provide temporary account facilities to enable you to transfer funds to buy your property, closing the account when the transaction is complete.

Once you find a bank that is willing to open an account, you will need to produce the following documents:

• Your passport and take a copy with you
• Proof of residence
  • If you are living in rented accommodation, it is likely that the property owner pays all of the bills, in which case the bank will accept a paid invoice (gas, electricity, telephone) in the name of your owner accompanied by a copy of your rental contract.
  • If you are in a hotel the bank may accept a Certificado de Domicilio issued by the police and a copy of your hotel bill
• Your CDI or another tax number (CUIT or CUIL) – See below

Always take two photocopies of every document you have that helps you prove who you are and where you live to every official meeting as this will speed up the process.  I still carry a few copies of everything in my briefcase.

The bank will normally give you an account in Pesos and an account in US Dollars.

There is no such thing as free banking in Argentina and there will be a monthly charge for operating your account.

Normally the bank will give you a debit card to go with the account, this will allow you to withdraw cash from the ATMs and make small purchases. The debit cards are useless abroad and for purchases online. Credit cards are only normally available for residents.

Tax Numbers – CDI – Clave de Identificacion

In order to buy property you must register with the Argentinean tax authorities – the “Administracion Federal Ingesos Publicos (AFIP)”, which is the equivalent to the Inland Revenue and the IRS.

There are several different types of tax identification.

The basic tax code necessary for foreign property investors is the CDI (Clave de Identificacion), this tax identification number is all you need to both transfer money into the country legally and buy a property.  The CDI  is simple to obtain and is all you need to complete a property buying transaction.  You do need some basic understanding of Spanish and there is some form filling but we send out our concierge early 0830AM to stand in queue for you and then you catch him up at 10AM to complete the process.

Not so important but still relevant are:

For employees, there is the CUIL (Código Único de Identificación Laboral) this is used to credit payments and deductions.

For the self-employed and businesses there is the CUIT (Código Único de Identificación Tributaria) in the future you will begin paying taxes on your property and may need a CUIT, but it is not needed to buy a property.

In order to get a CDI you will need your passport with two photocopies and a Certificate of residence (Certificado de Domicilio).

The Certificado de Domicilio is a certificate issued by the local police. We simply go along to the local police station nearest to your home or hotel in Argentina, take your passport and a photocopy, we help you complete the form and pay a fee of AR $10, the next morning a policeman will visit your home and give you the certificate.

The police issue each certificate for a specific purpose, so you may find yourself following this procedure several times if you wish to conduct business in Argentina and you do not have a permanent residence.

To obtain the CDI you must find your local AFIP office, you can do this easily by visiting the AFIP website at the following link:

http://www.afip.gov.ar/genericos/datos_de_dependencias/agencias/agencias_main.asp

Here you will just need to type in your home address (Street name) and it will tell you where you need to go.

The offices of AFIP normally open at 10am and close at 4pm, check these opening times when checking the address at the above website, there is often a queue so leave plenty of time.  I find that if I go very early, maybe 0900 and get a coffee, newspaper and a bun, it preserves my day as it can take hours otherwise.

You will need to take

1. Your passport
2. Your Certificado de Domicilio

In addition, you will need two copies of everything, though there will always be a copy shop nearby if you forget.

At the AFIP you will be required to complete a short form and declare the reason you want the CDI and then you wait whilst they process your application.  It took me about 2 hours to complete the formalities.

Once you have your CDI you will be able to give this to the escribano to process your property purchase.

Local Taxes

Once you have purchased your property you will be liable for local taxes, the most basic is the ABL which is to pay the local authority for street cleaning, rubbish collection and lighting. Once your property has been registered in your name they will begin invoicing you. You can pay the whole year in one go or in installments over the year.  If you need help paying your bills, you should contact me.

Accounting

If you are renting out a property you will need to pay taxes, non residents are required to have an accountant to act as their representative. This can cost between us$500 and us$1000 per year.  If you want property management contact us for a quote that includes the use of our in-house accountant.

Other reading:

• Property Investment – Why Argentina?

• Buying Real Estate Buenos Aires Argentina

• Buenos Aires Property Management

• Property Investment Costs & Returns

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