Authored by the expert who managed and guided the team behind the Argentina Property Pack
Everything you need to know before buying real estate is included in our Argentina Property Pack
Are you considering investing in Argentina’s real estate market? What are the legal steps, tax implications, and cultural differences you need to understand before taking the plunge? What challenges do foreign investors typically face, and how can you overcome them?
These are the questions we hear most often from foreign investors because we’re actively connected to this market. We’ve spent time working with local agents, developers, and investors, so we know what works—and what doesn’t. That’s why we’ve written this article: to provide a clear guide that answers the questions we get asked daily.
Our goal is to help you, as a foreigner, to navigate the property buying process with confidence. If you think there’s something we missed or want more details, let us know (please do!). Your input helps us refine and improve our advice for everyone.
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1) A new law simplifies property purchases for foreign investors
Argentina has recently made it easier for foreign investors to buy property.
In 2024, the country introduced the Ley de Bases, which slashed the PAIS tax from 17.5% to 7.5%. This means that when you exchange your currency to buy property in Argentina, you pay significantly less. It's a game-changer for those looking to invest in the Argentine real estate market.
But that's not all. The law also brought in deregulation measures, making it simpler for new companies and capital to enter the market. This means fewer barriers for foreign investors, making the whole process smoother and more appealing.
Another exciting development is the Régimen de Incentivo para Grandes Inversiones (RIGI), also launched in 2024. This program offers tax stability and legal protection for foreign investments, which is a huge plus if you're looking for a secure environment to invest in.
RIGI also reduced the corporate income tax from 35% to 25% for qualifying investments. This makes it financially beneficial for foreign investors, as you get to keep more of your earnings.
These changes are designed to attract more foreign capital, making Argentina a more attractive destination for property investment. With these new laws, investing in Argentina has never been easier.
2) Milei eliminated the 1.5% real estate tax in July 2024, reducing buyer expenses
In July 2024, Javier Milei scrapped the 1.5% real estate tax, slashing costs for property buyers in Argentina.
This move was part of a larger plan called the Bill of Palliative and Relevant Fiscal Measures, introduced in May 2024, aiming to eliminate the Tax on the Transfer of Real Estate from January 1, 2024. The goal was to ease financial burdens on property transactions, making it more attractive for buyers.
The real estate market felt the positive impact almost immediately. According to BBVA Research's Real Estate and Construction Outlook 2024, the market was already benefiting from the repeal of the Rent Law and a resurgence of mortgage loans. While the report didn't specifically mention the tax removal, it suggested that cutting taxes could further energize the market.
Data from the Investment Opportunity: The Real Estate Market in Argentina in 2024 report showed a remarkable increase in property transactions. In April 2024, Buenos Aires saw a 32.2% rise in real estate purchase deeds compared to the previous year, with the total transaction amount skyrocketing by 345.4%. This surge underscored the tax cut's positive effects on the market.
For those considering buying property in Argentina, this tax removal means lower upfront costs and a more dynamic market environment. The changes have made it easier for both local and international buyers to invest in Argentine real estate.
With these fiscal measures, Argentina is becoming a more attractive destination for property investment, offering a more favorable financial landscape for buyers. The government's efforts to reduce taxes are clearly paying off, making it a prime time to explore real estate opportunities in the country.
Sources: Allende & Brea, JJ Group, BBVA Research
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Argentina versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you’re planning to invest there.
3) Investors now have more options as rent can be set in USD or Bitcoin
Argentina is now offering more flexible rent payment options, including USD and Bitcoin.
Thanks to new rental laws from December 2023, tenants can pay rent in foreign currencies like USD or even cryptocurrencies. This change is a big deal because it allows payments in currencies not traditionally recognized in Argentina.
In January 2024, Rosario saw the first-ever Bitcoin-based rental contract, with rent set at 100 Tether (USDT), equivalent to $100. This move highlights the growing role of digital currencies in Argentina's real estate market.
The devaluation of the Argentine peso has nudged both landlords and tenants towards more stable currencies like USD and Bitcoin. This shift is gaining traction, as seen in news and social media discussions.
International investors are taking notice, drawn by the secure and stable payment options in the Argentine real estate market. Paying rent in USD or Bitcoin offers a fresh alternative to traditional assets.
Sources: Business Insider, The Dales Report, Benzinga
4) Milei’s government scrapped rent controls, increasing listings by 184% and reducing rents by 40% in real terms
In 2023, Argentina's rental market was in a tough spot, with many homes empty and people struggling to find places to rent.
Rent control laws were a big part of the problem, as they limited landlords' ability to adjust prices, causing a drop in available rentals. When President Milei's government stepped in and ended these controls, it was a game-changer.
This policy shift was a hot topic, with news articles and real estate reports buzzing about the change. Landlords were suddenly more willing to list their properties, leading to a 184% jump in rental listings by June 2024, according to Zonaprop, Argentina’s largest property site.
With more rentals on the market, the average rent prices, when adjusted for inflation, dropped by 40%. This was a big deal for residents, making housing more affordable and easing the financial burden on many families.
The increased availability of rentals and the stabilization of rent prices were widely discussed, with multiple news articles highlighting the positive impact of the policy change on the rental market.
Sources: Rio Times Online, Reason, Inter-American Law Review
5) Consider hiring a translator for property deals in Argentina, as they are conducted in Spanish
In Argentina, property transactions are conducted entirely in Spanish.
When buying property, you'll encounter the 'escribano público' or Notary Public, who plays a key role in the process. They handle all the legal paperwork, and their work is not just a formality—it's a legal necessity. This means their expertise in Spanish is crucial for ensuring everything is done correctly.
For foreign buyers, navigating these transactions can be tricky without a good grasp of Spanish. The legal jargon and detailed requirements can be overwhelming, making it essential to have someone who can translate and explain the nuances.
Many international buyers find themselves needing a translator to help with the process. Clear communication is vital to avoid any misunderstandings and to ensure that the transaction goes smoothly.
It's not just about understanding the language; it's about understanding the culture and the way business is done. Having a translator can bridge that gap and make the experience much more manageable.
So, if you're considering buying property in Argentina, be prepared to engage with the process in Spanish, and consider hiring a translator to help you navigate the complexities.
Sources: Lawyers Argentina, Kier Joffe, 4Rent Argentina
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6) Expect to pay a commission when buying property in Argentina, unlike in other countries
In Argentina, buyers pay a commission when purchasing property, unlike in some other countries.
This commission is typically a percentage of the property's value, ranging from 4% to 6%. It's a standard practice here, deeply rooted in the local real estate market. The legal framework in Argentina clearly outlines these responsibilities for buyers, so it's something you should expect when buying property.
Interestingly, this commission structure has been consistent over the years. Even in 2023, the average commission rate hovered around 5%, mirroring previous years. This stability highlights how ingrained the practice is in the Argentine property market.
For those unfamiliar with the Argentine market, this might seem unusual. In many other countries, buyers often don't pay such fees, as the seller typically covers the agent's commission. However, in Argentina, it's a shared responsibility, reflecting the unique dynamics of the local real estate scene.
Understanding this can help you navigate the buying process more smoothly. It's not just about the property price; factoring in the commission is crucial to avoid surprises. This insider knowledge can be a game-changer for potential buyers.
So, if you're considering buying property in Argentina, remember that commission fees are part of the deal. It's a well-established norm, and being prepared for it can make your buying experience much more straightforward.
Sources: The Wandering Investor, Global Property Guide
7) Prove a “legitimate interest” to access property registries in Argentina
In Argentina, you need to show a "legitimate interest" to access property registries.
This requirement is due to specific legal processes, like getting a certificate of ownership and a certificate of good standing from the Real Property Registry. These certificates don't last long, so proving legitimate interest ensures you get accurate and timely information.
Starting in 2024, the Beneficial Ownership Registry will make it even more important to justify your access. This new system is the government's way of keeping tabs on who can see sensitive property information.
When buying or selling property, notaries are key players. They verify the Real Estate Reference Value (VIR) and make sure all the right certificates are in place. This step helps prevent undervaluation and unauthorized access, making legitimate interest crucial.
So, if you're thinking about buying property in Argentina, be prepared to navigate these legal waters. It's all about ensuring that only those with a real stake can access the details.
Sources: Kier Joffe, Vital Law
8) The peso's 40-44% drop in five years makes Argentine property cheaper for foreign buyers
The Argentine peso has dropped significantly, losing 40-44% of its value in five years, making property cheaper for foreign buyers.
Imagine buying a charming vineyard or a cozy apartment in Buenos Aires at a fraction of the cost. The peso's decline against the U.S. dollar has made this possible, with the dollar's value rising sharply from January 2023 to January 2024. This shift has opened up opportunities for those looking to invest in Argentina's real estate market.
Experts like Bank of America foresee the peso weakening further, predicting it could hit 1,193 pesos per dollar by the end of 2024. This potential drop means that properties in Argentina could become even more affordable for international buyers, making it an attractive option for those looking to invest abroad.
Recent changes in Argentina's real estate laws have also played a role. The repeal of the rent control law has led to a 40% reduction in real rental costs when adjusted for inflation. This has increased the number of rental listings, providing more options for potential investors and renters alike.
These favorable conditions have sparked interest from foreign buyers, who are reshaping the market dynamics. With the peso's decline and changes in rental laws, Argentina's real estate market is becoming a hotspot for savvy investors looking to capitalize on these trends.
Whether you're dreaming of a city apartment or a countryside retreat, now might be the perfect time to explore Argentina's property market. The combination of a weakened peso and evolving market conditions offers a unique opportunity for those ready to invest.
Sources: The Rio Times, Voronoi App
We have made this infographic to give you a quick and clear snapshot of the property market in Argentina. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
9) Expect property transactions in Argentina to be conducted in US dollars, not pesos
In Argentina, most property deals are done in US dollars instead of pesos.
The Argentine peso has been on a rollercoaster, especially since 2019, with devaluation hitting hard. By August 2024, the exchange rate was a staggering ARS 922.4 to USD 1. This wild ride makes both buyers and sellers lean towards US dollars to keep their investments safe from the peso's unpredictable swings.
Real estate agencies and financial experts often highlight that the peso's instability makes US dollars the go-to choice. In a market where economic surprises are the norm, the dollar offers a comforting sense of security. Plus, government moves like the central bank's April 2023 decree tightening foreign exchange rules have only made the dollar more crucial in property deals.
Talk to any real estate professional, and they'll tell you there's a clear preference for US dollars. This isn't just a trend; it's a strategy to protect investments from the peso's high inflation and devaluation. US dollars are seen as a safer bet for real estate transactions.
In the bustling property market, US dollars are king, offering a shield against the peso's volatility. This preference is not just about currency; it's about peace of mind in a financially turbulent environment.
So, if you're thinking of buying property in Argentina, remember that deals are likely to be in US dollars, reflecting a broader trend driven by economic realities.
Sources: Global Property Guide, Rebecca and the World
10) Mortgages are rare in Argentina, but changes might be on the horizon
In Argentina, mortgages have been incredibly rare due to high interest rates and inflation.
Imagine trying to buy a home when the mortgage interest rate once hit 130.6% in December 2023. Even when it dropped to 29.28% in September 2024, it was still steep compared to the rest of the world. This makes it tough for anyone to consider a long-term loan.
Inflation is another big hurdle. Back in March 2024, inflation skyrocketed to nearly 288%, making it hard for banks to offer stable mortgage options. This kind of inflation eats away at the value of loans, leaving both banks and potential homeowners hesitant to dive into mortgage deals.
But there's a glimmer of hope. President Javier Milei's administration is shaking things up with plans to cut interest rates and boost the mortgage market. Banks are now offering home loans with rates between 3.5% and 8.5%, plus inflation adjustments. This has sparked a lot of interest from people eager to buy homes.
These changes are making waves, and many are watching closely to see if this could be the start of a more accessible mortgage market in Argentina. The buzz is real, and potential buyers are lining up to see if they can finally get a foot on the property ladder.
Sources: The Global Economy, World Economic Forum, Buenos Aires Times
11) Pay property taxes on time to avoid issues when selling
Unpaid property taxes can seriously complicate selling a property, so it's crucial to stay on top of them.
In Argentina, if you don't pay your property taxes, you might face significant delays or even cancellations when trying to sell. Buyers often hesitate to purchase properties with outstanding tax liabilities, which can make the whole process a headache.
Legal penalties for unpaid property taxes in Argentina can be quite harsh. In the past, property owners have faced fines ranging from ARS 200 to ARS 400 for not filing tax returns, and up to 100% of unpaid taxes for tax omission. These fines can quickly add up, making it even tougher to sell your property.
The real estate market in Argentina is already under pressure due to high inflation and government regulations, which have caused property prices to drop. Any extra issues, like unpaid taxes, can further reduce your chances of a successful sale.
Keeping your property taxes up to date is essential to avoid these complications. It ensures a smoother selling process and helps you avoid the pitfalls of a struggling market.
Sources: PwC Tax Summaries, Global Property Guide
Don't buy the wrong property, in the wrong area of Argentina
Buying real estate is a significant investment. Don't rely solely on your intuition. Gather the right information to make the best decision.
12) Rising building permits by 49.5% indicate increased construction and investor interest
In Argentina, building permits have jumped by 49.5%, signaling a boom in construction and investment.
This surge is partly due to a massive USD 220 million investment in road projects back in 2023, which boosted confidence in the construction sector. The buzz around construction equipment like forklifts and concrete mixers is palpable, especially in bustling urban areas where both residential and commercial projects are on the rise.
The government has been consistently pouring about 5% of GDP into infrastructure each year, which keeps the construction industry thriving. This steady investment is a magnet for investors, offering a solid base for growth in key areas like transportation and energy.
Real estate insiders are buzzing about the market's activity, hinting at increased investor interest in the real estate scene. This aligns with the uptick in building permits, painting a picture of a vibrant and expanding market.
For those eyeing property in Argentina, this construction boom is a promising sign. The government's commitment to infrastructure and the bustling demand for construction equipment are clear indicators of a thriving sector.
Sources: Trading Economics, GlobeNewswire, Leading Market Research
13) Be cautious of squatters in Argentina, as they can be difficult to evict, particularly if children are involved
Squatters can be a real headache because getting them out often means long legal battles.
In 2024, Human Rights Watch pointed out that evictions get delayed a lot due to procedural slip-ups, like not notifying every family member, especially when kids are involved or someone is sick. This makes the eviction process even more complicated and time-consuming.
Even though squatting is technically a crime, many places treat it like a landlord-tenant issue. The Pacific Legal Foundation says this approach drags out the process and costs property owners a lot. They've also noticed a big jump in squatting cases in Argentina since 2019, showing it's becoming a bigger issue.
Argentina's property laws are tough, requiring squatters to pay taxes and energy bills for 20 years to become legal owners. There's talk of cutting this to three or five years, but for now, the laws often side with squatters on private property, making it hard for owners to get their places back.
Sources: HRW Report 2024: Argentina, Pacific Legal Foundation Report: Locking Squatters Out: How States Can Protect Property Owners
14) Expect cash transactions for property sales in Argentina, though this is gradually changing
In Argentina, most property sales have traditionally been done in cash, but this is slowly changing.
Historically, Argentina's economic ups and downs made people cautious about using banks, so cash was king. But now, mortgage options are becoming more attractive. For instance, interest rates have plummeted from a staggering 130.6% in December 2023 to a much more manageable 29.28% by September 2024. This drop has opened the door for more people to consider financing their home purchases.
Government actions are also nudging this trend along. When President Milei repealed the rent control law, it led to a flood of rental listings, which in turn made buying with a mortgage more appealing. Plus, the government's push to stabilize the economy has made it easier for folks to get loans.
Real estate agents are noticing these changes too. Experts like Soledad Balayan have seen a shift towards financing, thanks to better mortgage availability and supportive economic policies. This shift is a big deal because it shows how the market is evolving.
While cash is still common, the landscape is changing. More people are exploring financing options, and this is reshaping how property deals are done. It's a sign that the market is adapting to new economic realities.
Sources: Global Property Guide, Coatings World
We made this infographic to show you how property prices in Argentina compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
15) Foreigners are limited to owning 30% of the 15% foreign ownership cap on rural land
In Argentina, the Rural Land Law of 2011 set limits on how much rural land foreigners could own.
This law capped foreign ownership at 15% of the country's rural land, and within that, no more than 30% could be owned by people from the same country. It was a way to keep things balanced and diverse.
Then came Decree 820/2016, which helped clarify what a "Foreign Legal Entity" meant. This was part of the effort to make sure foreign ownership stayed within those limits, keeping a fair share for everyone.
Even though the Rural Land Law was repealed in 2023, it showed how much Argentina cared about controlling foreign ownership. The idea was to stop any one nationality from taking over too much land, which was seen as a way to protect national interests.
These rules were not just about numbers; they were about making sure that Argentina's rural land remained diverse and that no single foreign group could dominate.
So, if you're thinking about buying property in Argentina, it's good to know that these historical regulations were all about keeping things fair and balanced.
Sources: WSC Legal, WSC Legal, UNCTAD
16) Hire an escribano for any property transaction in Argentina, as they are essential
In Argentina, having an escribano is a legal must for any property deal.
These professionals are key players in the property market, especially in bustling areas like Buenos Aires, where property transactions have surged. They ensure everything is in order, from clear property titles to resolving boundary disputes, making the process smooth and secure.
For foreign buyers, escribanos are invaluable. They help navigate the complex Argentine property laws, ensuring that your ownership is protected under the constitution. This is crucial for anyone unfamiliar with the local legal landscape.
Escribanos also bridge the language gap, as all documents must be prepared and registered in Spanish. Their expertise ensures compliance with both local and national laws, which can be a maze for outsiders.
Without an escribano, you risk running into legal issues that could jeopardize your investment. They are the ones who make sure that every detail is checked and double-checked, providing peace of mind.
In short, if you're considering buying property in Argentina, an escribano is not just a formality; they are your guide through the entire process, ensuring everything is done by the book.
Sources: Kier Joffe, WSC Legal
While this article provides thoughtful analysis and insights based on credible and carefully selected sources, it is not, and should never be considered, financial advice. We put significant effort into researching, aggregating, and analyzing data to present you with an informed perspective. However, every analysis reflects subjective choices, such as the selection of sources and methodologies, and no single piece can encompass the full complexity of the market. Always conduct your own research, seek professional advice, and make decisions based on your own judgment. Any financial risks or losses remain your responsibility.