If you're considering investing in property in Argentina, understanding the payment stages is crucial.
Whether you're buying your dream home or a vacation getaway, knowing when and how much to pay can make the purchasing process smoother and more predictable.
Here's a breakdown of the essential payment stages in the Argentine property market.
1. Reserva (Initial Offer)
At this preliminary stage
- A deposit is made to demonstrate genuine interest in the property.
- This deposit can range from $1,000 to $10,000, depending on the property's asking price.
- It serves to prove your commitment to the purchase.
2. Seña / Boleto (Purchase Agreement)
The next step is the formal purchase agreement.
Here:
- A small down payment of $5,000 is usually required.
- The seller must refund this amount and double it should they decide to back out.
- If you're buying a more high-priced property, a significant down payment, usually between 30-40% of the agreed price, becomes necessary.
- Again, if the seller backs out after this agreement, they must refund the entire amount.
- If a Boleto is in place, you'll pay the realtor's fee (around 3-6% of the agreed price) at that stage.
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3. Escritura (Title Deed Transfer)
This is the final stage where:
- You pay the remaining 60-70% of the agreed price to complete the property purchase.
- If the Boleto (purchase agreement) wasn't signed earlier, you would also need to pay the realtor’s fee at this point, typically between 3-6% of the agreed price.
- Additionally, the escribano's fee, which is between 1.5%-3% of the agreed price, is settled at this stage.
- The escribano is a notary public essential in the property transaction process in Argentina.
Everything you need to know is included in our Argentina Property Pack
How do you bring money in Argentina to pay for a property?
In Argentina, the prevalent practice is to conduct transactions predominantly in cash, with a preference for US $100 bills. Although this might seem outdated, it is the prevailing method.
Transactions here often necessitate payment in U.S. dollars, particularly for real estate purchases, as property values are uniformly quoted in US dollars.
An exception exists when the property seller possesses an offshore bank account.
Some international clients who have purchased our Argentina Property Pack reported that their funds remained in the United States. This was due to the sellers either having existing U.S. accounts or opening new ones, to which the money was transferred—streamlining the process significantly.
Nevertheless, if the seller does not have a U.S. bank account, it is imperative to consider alternative modes of payment.
Upon signing a reservation agreement, the subsequent step involves coordinating a meeting with the seller and a notary on a mutually agreed date.
At this juncture, you are obligated to present the purchase amount in USD and execute the property purchase agreement.
You are then presented with the choice to either pay in cash or to employ a financial service to secure the requisite USD in cash, although this option involves a service fee.
Thus, if you are contemplating a purchase, be prepared for the likelihood of transporting a substantial sum of U.S. dollar bills into the country, possibly amounting to as much as $250,000. While this is feasible, it is crucial to acknowledge that the process is intricate, and a commission fee will be applicable.
In instances where cash payment is selected, the use of money counting machines becomes probable.
Additionally, engaging in a cash transaction necessitates providing a detailed explanation of the money's origin to AFIP (Administración Federal de Ingresos Públicos) via a local accountant. UIF (Unidad de Información Financiera) will almost invariably seek information from both transaction parties about the source of the funds.
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