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Everything you need to know is included in our Argentina Property Pack
Argentina is a popular destination for foreigners who want to invest in real estate.
It has stunning landscapes, a vibrant culture, and welcoming people. But purchasing property in a foreign country can be complicated, particularly when it comes to the laws and regulations.
This guide is here to help foreign buyers understand how the property market works in Argentina. It covers all the information you need to know in an accessible and straightforward way.
Also, for a more in-depth analysis, you can check our property pack for Argentina.Can you purchase and own a property in Argentina as a foreigner?
If you are American, we have a dedicated blog post regarding the property buying and owning process in Argentina for US citizens.
Yes, foreigners can buy and own property in Argentina.
Foreigners have the same civil rights as Argentine citizens, including the right to own real estate, as stated in Article 20 of the Argentine Constitution.
However, there are certain restrictions on the acquisition of land by foreigners, as established by Ley N° 26737 (we give more details below).
There is no specific visa required for foreigners to buy property in Argentina. However, you'll need a CDI (equivalent to Tax ID).
Also, you can only buy property if you can prove it will be good for the local community. Most foreign investors show that they'll hire local workers and use local materials to build their house. It's usually enough. However, it can be a bit of a slow process and might take up to a year.
Buying land as a foreigner in Argentina
As mentioned before, the Ley 26.737 is a law in Argentina that says foreigners can buy rural land, if they follow some rules. This law is meant to protect rural land in the country.
These are the rules:
- Foreigners cannot buy land with important water sources or land near important water sources.
- Foreigners cannot buy land in border security zones.
- Foreigners can only own up to 15% of all rural land in Argentina.
- In each province, foreigners cannot own more than 15% of the land, and people from the same foreign country cannot own more than 30% of that 15%.
- Foreigners cannot own more than 1,000 hectares in certain areas.
The rules also apply to foreign companies when most of their owners are foreigners.
However, you must know that there are some exceptions:
- People who have lived in Argentina for 10 years continuously can still buy land.
- People with Argentine children and 5 years of continuous residence can also buy land.
- If someone is married to or lives with an Argentine for 5 years before buying land, and they have permanent residence, they can buy land too.
Also, before you can buy land as a foreigner, you need a special certificate from the National Rural Land Registry.
To apply for the certificate, you need to submit some documents online and pay a fee. If everything is in order, they will process your request, and you'll get the certificate. You must use the certificate within 120 days after buying the land, or there may be penalties.
The cost of the process is 1/1000 (0.1%) of the value of the land purchase.
Buying a property in Argentina can be risky
An increasing number of foreign investors are showing interest in Argentina. However, 90% of them will make mistakes. Avoid the pitfalls with our comprehensive guide.
Can you become a resident in Argentina by owning a property?
There is no specific residency program in Argentina that grants permanent residency or citizenship solely based on real estate investment.
However, foreigners can apply for temporary residence as investors if they present an investment project to the Dirección Nacional de Migraciones.
To apply for residency as an investor:
- You need to make an investment in Argentina of at least 1,500,000 Argentine pesos.
- You have to provide proof of the source and legality of the funds and how they were brought into Argentina through authorized financial institutions.
The Ministry of Production will review your investment project, its legal viability, and its economic and financial sustainability. They will also consider the nature of the investment.
The Ministry of Production may establish additional evaluation criteria and issue relevant rules. Once they approve your application, the National Immigration Office will grant you temporary residency and set a deadline for your investment, which is mandatory.
The temporary residency is granted for a maximum of one year and can be renewed for up to three years.
Should you buy or rent in Argentina?
It’s a question we often get from our customers.
Making the decision to buy or rent property in Argentina isn't a one-size-fits-all answer. Each situation is unique, with valid arguments on both sides.
Let's break down the scenarios.
Scenario 1: You love living in Argentina
If you genuinely enjoy living in Argentina, buying property can be a great idea.
Most people don't view Argentina as an investment opportunity as much as a place to establish a long-term residence, especially if you have access to US dollars. In such cases, buying makes sense.
Our real estate experts in Argentina, who fact-check and review our Argentina Property Pack, suggest a rule of thumb: if you plan to use the apartment for at least 3 months a year or potentially retire and live there, buying is a wise choice, even if it's not your top investment.
Conversely, if you'll use it less than 2 months a year, renting may be more suitable in Argentina.
Scenario 2: You have other investment opportunities
From a purely economic standpoint, buying property in Argentina isn't always the best idea.
Keep in mind that you'll need to pay the full property price upfront; financing options are limited, unlike in countries like the US where loans are potentially tax-deductible.
It's often more advantageous to invest your capital in countries with easier financing and lower interest rates.
In this case, the common advice is to buy property in your home country (e.g., the US), rent it out, and use the income to support your lifestyle in Argentina.
Additionally, Argentina's real estate market can be surprisingly expensive considering the country's economic instability.
Other considerations
Some areas in the north of Buenos Aires are developing rapidly, offering profit potential. Land is still being developed, and the city is expanding.
Property taxes in Argentina are typically around 1,500 pesos per month, which is relatively manageable. So it's not a factor to make a decision.
Reselling property in Argentina can be tricky. Many locals may not afford your property, and government taxes can be substantial. Repatriating funds may also be challenging.
Also, the type and location of the property matter. Apartments in desirable areas like Recoleta through Belgrano tend to sell well, especially if they have unique features like high ceilings, hardwood floors, and terraces.
Finally, you have to know that Argentinian real estate agents usually charge commissions of 4-7% on resale transactions.
What are the different steps of the buying process?
Many of you have expressed confusion about the property purchasing process in Argentina, particularly concerning fees, delays, and payments.
To address these concerns, we have comprehensively outlined the step-by-step procedure for buying real estate in Argentina in this article. Additionally, we've created a convenient summary table for your reference.
| Step | Description | Duration | Cost |
|---|---|---|---|
| Find an 'escribano' (Notary Public) |
|
|
|
| Obtain a CDI (Clave de Identificación) |
|
If obtained personally, it can be time-intensive. | Minimal cost for obtaining domicile certificate and other documents. |
| Find a Real Estate Agent |
|
Commission typically 4% of purchase price + 21% VAT. | |
| Make an Initial Offer ('reserva') |
|
Offer usually valid for a week. | |
| Purchase Agreement ('Seña' and/or 'Boleto') |
|
'Boleto' typically executed within two weeks of offer acceptance. |
|
| Title Deed Transfer ('escritura') and Payment |
|
|
How is the real estate market in Argentina?
Market indicators
You can find fresh and updated data in our pack of documents related to the real estate market in Argentina.
In Argentina, the prices of houses and apartments, especially in the capital city, Buenos Aires, have been going down in recent years.
For example, in the first three months of 2023, apartment prices in Buenos Aires dropped 5.41% compared to the previous year, costing about US$1,731 for every square meter. Argentina has faced money problems before, which hurt the housing market.
Even though experts predicted the housing market to grow by 6.6% each year from 2018 to 2024, it looks like it's not doing as well as expected.
By examining the the the GDP per capita indicator, we can see that Argentine people have become -1.3% poorer over the course of last 5 years.
If people's wealth decreases, there may be a reduced demand for real estate, and that could result in lower prices in the future.
Yields are not great either. If we check the data displayed on Numbeo, we see that residential real estate in Argentina offer gross rental yields between 1.0% and 3.7%.
Foreign investors may view these minimal rental yields as less attractive because they may not provide a significant return on investment or contribute significantly to their overall income.
The main reason for this is that Argentina's economy and financial situation have been unstable, which has had a bad effect on the housing market.
However, there is some good news. Even though prices are generally going down, some neighborhoods in Buenos Aires have seen the value of properties go up. This suggests that the market might have reached its lowest point and is now getting better.
Inflation is another important thing to think about when we talk about property prices in Argentina. The country has been dealing with high inflation, however property prices are always in $US and are then protected against inflation.
To know more, you can also read our dedicated article: is it a good time to buy a property in Argentina?
Everything you need to know is included in our Argentina Property Pack
The life as an expat
Living as an expatriate in Argentina offers a rich and diverse experience, with a fusion of cultures, lively cities, and stunning landscapes.
Actually, Argentina hosts over 60,000 expats from the United States, with nearly half of them residing in and around Buenos Aires.
Argentina is renowned for its expat-friendly atmosphere, often likened to a European lifestyle but at a much lower cost.
Argentina provides a high-quality yet affordable lifestyle, especially for those with a stable income in U.S. dollars. Many expats and retirees comfortably manage monthly expenses between $1,000 and $1,300 for individuals and around $1,500 to $1,800 for couples. The cost of everyday essentials like groceries, internet, dining out, and entertainment is typically 50 to 60% lower than in the United States.
However, adapting to life in Argentina can be challenging due to cultural disparities and language barriers. English isn't widely spoken outside major cities, and Argentinians have a distinct Spanish dialect, making learning the language beneficial for a smoother transition.
Safety is another aspect to consider. Yes, Argentina is relatively safe compared to its neighboring Latin American countries, but it still faces issues like petty crime and corruption. It's essential to take precautions, particularly in areas with higher poverty rates.
Argentina's healthcare system is noteworthy, with many expats opting for private healthcare due to affordability, shorter wait times, and higher nursing and aftercare standards. Foreigners can easily enroll in Argentinian healthcare plans.
What are the best places to buy real estate in Argentina?
It's really up to you! We will summarize to give you a quick overview. If you need more details about a city, you can contact us.
First, there is obviously Buenos Aires.
Serving as the capital, Buenos Aires is a favored destination for both locals and foreigners alike. It boasts a lively culture, diverse neighborhoods, and a thriving real estate market. The Palermo district, in particular, is hip and teeming with boutique shops, bars, and cafes, making it a top pick for expatriates.
Additionally, the suburbs of Buenos Aires, especially those in the north, present appealing real estate opportunities, featuring charming English-style houses and modern residences. Gated communities in these suburban areas can yield attractive returns for long-term rentals.
There is Mendoza. Renowned for its breathtaking scenery and vineyards, it is a sought-after spot for international investors.
Another excellent choice for real estate investment is Mar del Plata, where average prices per square meter fall between $1,200 and $2,500.
Rosario (Lionel Messi's is from there) is another city worth considering, with real estate options priced around $1,600 per square meter.
If you have more budget, consider Bariloche. Situated in the Rio Negro province, Bariloche boasts the highest square meter prices for residential properties in the interior of the country, typically between $2,000 and $4,000 per square meter.
There is also Pinamar, which holds the second spot for the most expensive real estate in Argentina.
And there are more. To make it easier for you to digest, we have made this table, which summarizes some of the best places to buy a property in Argentina.
| City / Region | Population | Average Price per sqm ($) | Strengths |
|---|---|---|---|
| Buenos Aires | ≈ 3 million | 1,000 - 3,500 | Capital city, cultural hub, vibrant nightlife, diverse neighborhoods |
| Córdoba | ≈ 1.4 million | 1,000 - 2,500 | University town, colonial architecture, vibrant arts scene |
| Bariloche | ≈ 120,000 | 1,000 - 4,000 | Mountain resort town, stunning landscapes, outdoor activities |
| Mendoza | ≈ 120,000 | 1,500 - 3,000 | Wine region, scenic beauty, outdoor recreation, cultural festivals |
| Mar del Plata | ≈ 600,000 | 900 - 2,500 | Coastal city, popular beach resort, entertainment options |
| Rosario | ≈ 1.2 million | 900 - 2,500 | Major port city, bustling commercial center, historic sites |
| Salta | ≈ 500,000 | 1,200 - 2,500 | Colonial architecture, Andean culture, natural landscapes |
Do you need an 'escribano' when buying a property in Argentina?
What is an 'escribano'?
In Argentina, when you buy property, you must hire an 'escribano' (notary public) as it's a crucial and legally required step.
These 'escribanos' in Argentina have more authority than notaries in the United States. They play a central role in real estate deals, making sure everything is legal, transparent, and properly documented.
These well-trained professionals act as neutral go-betweens for buyers and sellers, offering a wide range of services to protect both parties' interests.
Thanks to them, owning property in Argentina as a foreigner is very secure. Your property rights receive constitutional protection, just like those of an Argentine citizen.
What do they do?
'Escribanos' in Argentina aren't just witnesses; they are highly skilled legal experts who understand the country's complex legal system, property laws, and rules.
Their responsibilities include creating, reviewing, and certifying sale and purchase agreements, conducting thorough checks to confirm property ownership and uncover any potential problems, and ensuring all the necessary paperwork is in order.
Their involvement helps prevent common issues when buying property in Argentina, like unclear property titles, disputes over boundaries, unpaid debts, or undisclosed claims that could affect the deal.
Why should I get one?
In fact, in Argentina, hiring an 'escribano' is legally required for important legal and commercial transactions, such as property purchases.
One of the significant benefits of having an 'escribano' is their ability to prevent costly mistakes and safeguard the interests of both parties.
Here are some of the things an 'escribano' will do for you:
- they conduct thorough checks to confirm property ownership and prevent disputes.
- they look for unpaid taxes or claims on the property.
- they verify property boundaries to avoid future disputes with neighbors.
- they ensure all necessary paperwork is complete, accurate, and legally binding.
- they verify the identities of all parties and the legality of the transaction.
- they ensure compliance with all Argentine property laws and regulations.
- they calculate and ensure the payment of all associated fees and taxes.
- they act as neutral intermediaries, ensuring transparency throughout the transaction.
- they provide specialized legal advice relevant to property transactions in Argentina.
- they reduce the risk of future legal disputes regarding the property.
What are the risks when purchasing a property in Argentina?
Unfortunately, there is lot of mistakes that can happen when you are buying real estate in Argentina.
We have written a detailed article on the topic, based on the feedback we got from our customers and also our fact-checks who live in Argentina: the most common pitfalls when buying property in Argentina and how to avoid them.
And, since we like to make information clear and straightforward, here is another summary table.
| Pitfall | Description | How to Avoid/Protect Yourself |
|---|---|---|
| Getting the money in | Most transactions require cash in USD, so prepare for substantial cash and fees. | Ensure the seller has a US bank account or explore alternative payment methods. |
| Getting money out | Converting proceeds into USD can be complex; consider authorized market operations or intermediaries. | Work with authorized market operators, use existing USD accounts, or consider financial intermediaries. |
| Not speaking Spanish fluently | Language barriers can lead to misunderstandings; consider hiring a translator or fluent agent. | Work with a bilingual agent or hire a translator for clear communication. |
| Short-term buying and selling | High costs and political/economic instability make short-term transactions less favorable. | Focus on long-term investments to minimize impact from fluctuations. |
| Buying with your heart and not with your head | Buying for personal use can lead to poor rental income; consider tourist preferences. | Invest in properties appealing to tourists and high-income renters for better income. |
| Thinking you will get a mortgage | Mortgages are scarce due to economic challenges; be prepared for high upfront payments. | Don't rely on mortgages; prepare for substantial upfront payments. |
| Investing in a property nobody will want to buy later | Choose properties appealing to a broad range of buyers for better resale prospects. | Invest in classic properties in desirable neighborhoods. |
| Hiring the wrong escribano | Hiring a notary ensures clear titles and checks for unresolved issues; worth the fee. | Get recommendations for the best ones. |
| Working with unregulated realtors | The real estate industry lacks regulation; be cautious and seek recommendations. | Get referrals and conduct thorough research when choosing a realtor. |
| Trusting your realtors regarding prices | Realtors may not advise lower prices; aim to negotiate and research property values. | Negotiate prices and research property values independently. |
| Getting the wrong specs about the property | Property documents may have inaccuracies; verify measurements and property details. | Measure property size yourself and validate information on title deeds. |
| Not knowing that most list prices are highly inflated | List prices can be inflated; negotiate for a reduction during transactions. | Negotiate prices and be aware of inflated list prices. |
| Not accounting for repairs | Prepare for renovation costs; allocate around 30% for repairs for properties under $200,000. | Budget for repairs and seek local recommendations for renovations. |
| Being in a rush and trying to do everything online | Buying property takes time and requires in-person connections; commit 3-6 months. | Plan for an extended timeframe and rely on word-of-mouth recommendations. |
| Faking the property sale’s price on the title deed | Some sellers understate property prices for tax evasion; be cautious about such practices. | Insist on legal, transparent transactions and avoid underreporting prices. |
| Buying rural lands without thorough verification | Rural land ownership can be complex, with encroachments in some areas; research thoroughly. | Investigate the location and potential land issues before buying rural property. |
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What are the documents needed for a real estate transaction in Argentina?
Buying or selling property in Argentina may require different documents depending on your situation. Here's a condensed list of documents you might need.
We review each of these documents and tell you how to use them in our property pack for Argentina.
| Local Name | English Name | What is it? |
|---|---|---|
| Título de Propiedad | Title Deed | The official document proving ownership of the property. |
| Certificado de Libre Deuda | Free of Debt Certificate | This certifies that the property has no outstanding debts or taxes. |
| Información de Dominio | Domain Report | Confirms the legal status of the property and any liens or encumbrances. |
| Información de Inhibiciones | Restriction Report | Verifies if the seller is legally capable and authorized to sell the property. |
| Cédula Catastral | Cadastral Survey | Shows the physical boundaries and measurements of the property. |
| Certificado de Zonificación | Zoning Certificate | Indicates the permitted uses for the land (residential, commercial, etc.). |
| Certificado de No Retención de ITI | ITI Non-Withholding Certificate | A certificate showing the seller is exempt from the Transfer Tax or that it has been paid. |
| Factura de Servicios | Utility Bills | Can be used as a proof of address. |
| Avalúo Fiscal | Tax Assessment | Reflects the tax value of the property. |
| COTI | Código de Oferta de Transferencia de Inmuebles | A code required when selling a property, provided by the Federal Administration of Public Revenue (AFIP). |
| Reglamento de Copropiedad y Administración | Bylaws and Administration Regulation | If buying an apartment, this document lays out the building's rules and administration. |
| Certificado de Final de Obra | Certificate of Final Construction | Indicates that a newly built property has met all construction regulations and is approved for use. |
How can you effectively negotiate with Argentinean people?
Building a strong personal relationship and understanding the local culture are essential when negotiating the purchase of a property in Argentina.
When initiating the negotiation, take the time to establish a personal connection and build rapport with the seller or their representative. Engage in friendly conversation, showing genuine interest in their background, family, and interests. For instance, you might inquire about their favorite local soccer team or share your own experiences attending matches at iconic stadiums like La Bombonera or El Monumental.
This will help create a trusting and amicable atmosphere, especially if you can discuss recent developments in the country's soccer scene.
In Argentina, trust and credibility are highly valued in business dealings. Emphasize your trustworthiness by providing references, sharing your professional background, or mentioning any connections or affiliations you may have. Demonstrating your reliability and integrity will contribute to a successful negotiation.
Patience and flexibility are important virtues when negotiating in Argentina. The process may involve multiple discussions and revisions, and it's essential to be patient and willing to find common ground. Rushing or pushing for quick decisions may hinder the negotiation process.
Building a strong personal relationship and understanding the local culture are essential when negotiating the purchase of a property in Argentina.
When initiating the negotiation, take the time to establish a personal connection and build rapport with the seller or their representative. Engage in friendly conversation, showing genuine interest in their background, family, and interests. This will help create a trusting and amicable atmosphere.
In Argentina, trust and credibility are highly valued in business dealings. Emphasize your trustworthiness by providing references, sharing your professional background, or mentioning any connections or affiliations you may have. Demonstrating your reliability and integrity will contribute to a successful negotiation.
Patience and flexibility are important virtues when negotiating in Argentina. The process may involve multiple discussions and revisions, and it's essential to be patient and willing to find common ground. Rushing or pushing for quick decisions may hinder the negotiation process.
Finally, Argentinians appreciate respectful and polite communication. Maintain a friendly and courteous demeanor throughout the negotiations, as this will foster a positive and productive dialogue.
For example, addressing the seller with honorific titles such as "Señor" or "Señora" and using local idioms or phrases, such as "¡Che!" (a friendly way to get someone's attention) or "¿Cómo venís?" (how are you doing?), can show your respect for the culture and build rapport.
Demonstrating an understanding of the Argentine way of conducting business, including the importance of respect and courtesy, will go a long way in ensuring a successful property purchase negotiation.
Make a profitable investment in Argentina
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Can foreigners get a mortgage in Argentina?
We haven't seen a customer buying property in Argentina with a mortgage for a long time.
Getting a mortgage in Argentina is really hard because the country has a history of prices going up a lot, money losing value often, and strict rules about money exchange.
To give you an idea, in Argentina, only 1% of the country's money-making is from mortgages. But in Colombia, it's 6%, in Brazil, it's 9%, in Chile, it's 24%, and in the United States, it's a big 77%.
The mortgage business in Argentina is getting smaller because of problems with politics and money, and it's still risky.
So, in Argentina, it's almost impossible to get a mortgage.
This means that people who make a decent amount of money, and even some who make a lot, can't buy their first homes unless they inherit one. Many of them end up renting. And on top of that, the high interest rates and money problems make it even harder to get a mortgage in Argentina.
Unfortunately, financing your property with a mortgage in Argentina is very unlikely
What are the taxes related to a property transaction in Argentina?
Here is a breakdown of taxes related to a property transaction in Argentina.
| Tax | Description | Calculation | Who pays |
|---|---|---|---|
| Value Added Tax (VAT) | A consumption tax on goods and services, including some real estate transactions | 21% of the property value for new properties or properties being sold by a VAT payer | Buyer |
| Wealth Tax | Tax on assets existing as of December 31 each year | 0.25% or 0.50% of the total value, depending on the owner's profile | Owner |
| Rental Income Tax | Tax on rental income generated from the property | 9% to 35 % on all of rent income | Owner |
| Transfer Tax | A tax on the transfer of real estate property | 1.5% of the property value | Seller |
| Stamp Duty | A tax on documents executed for the transfer of property | 2% to 4% of the property value (split between the seller and the buyer), depending on the location | Seller and Buyer |
| Municipal Taxes | Local taxes imposed by municipalities on real estate properties | 1.20% for rural properties, 1.35% for sub-rural and sub-urban properties and 1.50% for urban properties | Owner |
| Capital Gains Tax | A tax on the profit earned from the sale of property | 15% on the net gain (the difference between the sale and purchase prices) | Seller |
For a deeper dive into the calculation, refer to:
- the Argentine Government's website
What fees are involved in a property transaction in Argentina?
In most real estate deals, both the buyer and the seller typically pay a 3% commission fee. However, if you buy a property directly through a newspaper ad or an open house listing without using a real estate agent, you won't have to pay this extra fee.
There are other fees to consider as well, such as a stamp fee, which can be either 3% or 4% of the property's value, and notary (escribano) costs, which are approximately 1% to 2% of the closing value.
Sometimes, there's an additional step known as "boleto." In this case, the buyer gives the seller 30% to 50% of the property's price within the first 15 days after agreeing to the sale (it's not a fee, it's a down payment). If you decide to cancel the deal, you'll lose this deposit. On the other hand, if the seller backs out, they must repay you double the boleto amount. Typically, these transactions are handled in U.S. dollars. You pay the realtor's fees when signing the boleto.
The "escritura" is the official closing date when both parties sign the deed of transfer. An "escribano" or "escribana" (a notary public) verifies property ownership, ensures all bills and taxes are paid, and updates ownership records. You will pay the rest of your payment at this moment.
Below is a simple breakdown of fees for a property transaction in Argentina.
| Fee | Description | Calculation | Who pays |
|---|---|---|---|
| Real Estate Agent Fee | Commission paid to real estate agents for their services | From 2% to 4% of the property sale price | Buyer |
| Notary Fee (Escribano) | Fees charged by the notary public for legalizing the transfer of property | Between 1.25% and 2% of the property value | Buyer |
| Registration Fee / Stamp Fee | Fee for registering the property transfer | Around 2% of the property value | Buyer |
-Buying property as a foreigner in Brazil: the guide
Buying real estate in Argentina can be risky
An increasing number of foreign investors are showing interest in Argentina. However, 90% of them will make mistakes. Avoid the pitfalls with our comprehensive guide.