Buying property in Argentina as a foreigner is legally straightforward:
Real estate in Argentina is typically held, bought and sold freehold. Property can be acquired by individuals and corporations.
The only restriction concerning foreign real estate ownership applies in the immediate vicinity of Argentina’s borders, where such ownership is subject to prior government approval.
Owning Propertyin Argentina is safe for the following reasons:
Under the Argentine constitution foreigners have the same property rights as Argentine nationals.
The property market is priced in US Dollars. This provides a shelter from economic crises for locals and protects foreign investors from fluctuations of the Argentine Peso.
If you follow the well known 3L Rule (Location, Location, Location) you will not lose money. Even after the 2001/2002 crisis, real estate in prime locations in Buenos Aires recovered in less than 2 years. Prices are now more than 60 % higher than at the peak before the crisis.
But there are also some differences to real estate transactions in other countries:
Transactions are 100% in cash, paid with US Dollars over the table (locals have little trust in the financial institutions).
The purchase price stated in the deed is hardly ever the real purchasing price. Most property owners do not want to pay tax on the full amount so they record an official sale price that could be 70% (or less) of the actual purchase price. (This particular practice of tax evasion is very common in Argentina and we strongly recommend that our clients do not participate in it).
Realtors are unlike those in Europe and North America. They are not licensed in the same way, they are effectively unregulated (there are some regulations, but the authorities simply do not enforce them) and they are not liable for promises or statements they make regarding a property. There are honest, reliable realtors in the market but unfortunately questionable ethics are common. When buying property it is crucial to double-check all information provided by the realtor to avoid any unwelcome surprises later on.
In Argentina every single real estate purchase must go through a special attorney called an "escribano publico”. The escribano is crucial when buying real estate in Argentina. He has to check that the seller is registered as the owner, all taxes and duties have been paid, there is no lien on the property and that there are no existing mortgages attached. He prepares the boleto (binding pre- contract) and the deed and unlike the realtor he is fully responsible for his advice and actions.
Duration: After the sale price has been agreed it takes approximately four to six weeks until the signing of the title deed transfer (equivalent to the exchange of contracts). If you are not willing to stay in Argentina for this time period you can grant a Power of Attorney: letting the deed be signed by a person you trust.
The following chapters will explain the entire buying process.
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