Located in the southern half of South America, Argentina is a country that’s famous for tango, diverse landscapes, and incredible street art. It’s no wonder that so many expats have chosen the country as a place to call home.
How to rent property in Argentina
If you’re thinking about moving to Argentina, your first step should be to choose which area you’d like to reside in. The most popular areas amongst expats include Buenos Aires, Mendoza and Bariloche.
Property prices in these areas vary, but due to their popularity, you’ll often find that rentals operate with great flexibility. Many accommodation options operate with daily, weekly or monthly rental charges.
You can expect to pay between 550 USD and 850 USD per month for a (furnished) two-bedroom apartment, and between 900 USD and 3,000 USD per month for a (furnished) three- to four-bedroom house.
If you are looking to rent a property long-term, you may need to produce a guarantee. The guarantee must be made by somebody who lives in Argentina, owns property and is willing to co-sign the lease for you. If you’re new to the country, then it may be difficult to find someone willing to provide this. However, if you are able to pay a year’s rent upfront, this can often work in place of the guarantee.
If you are unable to pay 12 months’ rent upfront, there are still numerous accommodation options for you to choose from. For example, you could rent a unit in an apart-hotel, or stay in a hostel that has fully-equipped private apartments onsite.
It’s important to note that, if you’re planning on renting an unfurnished apartment, the law stipulates that it cannot be rented for less than two years, so be sure to choose a place you’re willing to commit to for a long period of time.
If you’re looking to rent in Argentina and are not sure where to begin, don’t worry. There are many apartment brokers in Argentina, which specialise in finding rental accommodation for foreign nationals, regardless of whether you’re looking for a long-term, short-term, furnished or unfurnished property. Alternatively, if you prefer to search for properties yourself, there are websites where you can do so, such as:
• For Rent Argentina
• Rent Apartment Buenos Aires
• Zonaprop
• Apartments Bariloche
• Rent In Buenos Aires
You’ll also find an abundance of properties advertised locally in estate agent windows, on the properties themselves, and in local newspapers.
How to buy property in Argentina
If you’re looking to buy property in Argentina as a foreign national, you can do so without restrictions. However, at present, there is still a lack of local mortgage products available for foreign nationals.
Nonetheless, outside of this, the only thing you must do prior to purchasing is seek out a CDI (tax ID) number from the government. If you’re a non-resident, you’ll also need to appoint an Argentinean representative, known as a Notary Public (Escribano), to pay the property tax on your behalf.
It’s important to note that you may face issues that restrict the transfer of foreign currency when buying property. This is because, due to the Argentine Peso being an unstable currency, middle and high-end real estate in Argentina is always sold in USD. This means that you may face additional fees when purchasing property, as withdrawals of money from the bank are taxed.
As a result, it’s possible to lose 1% to 2% of your money when transferring funds between currencies. Transferring the funds is something you can do yourself, or you can opt to use a private broker – this usually costs around 2%.
Once you have sorted out the above, the process of purchasing property in Argentina isn’t difficult, and it will take around 55 days to complete.
The first step, once your offer has been accepted, is to place a non-refundable down payment – this is known as the boleto. This is held by the real estate agent, and is usually around 30% of the property’s purchase price. It acts as a security payment to protect the buyer and the seller. If the buyer pulls out of the transaction, the down payment is not refunded. If the seller pulls out of the transaction, they’ll have to pay the buyer double the amount of the boleto.
The purchase process lasts between one and two months, and during this time all surveys and inspections should be completed. The closing of the transaction is known as the escritura, and is the date when all payments are settled and the transfer deed is officially signed.
It’s important to note that the residential transaction costs in Argentina can be very high, and taxes across Argentina can vary. However, typically, taxes when purchasing property are based on percentages of property prices.
Outside of the property’s sale price, costs you can expect to see include:
• Real estate agent’s fee: 3% to 4% (+ 21% VAT) – this is paid by the buyer
• Value added tax (VAT): between 4% and 10%.
• Stamp duty: 3.6% – this is split evenly between the buyer and the seller
• Notary fee: 1% to 1.5% – this is paid by the buyer
• Registration fee: 0.2% – this is paid by the buyer
• Transfer tax: 1.5% – this is paid by the seller