[BUYING AND SELLING REAL ESTATE IN ARGENTINA]
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date”). If the real estate property was acquired after the date, individuals are taxed at a 15% tax rate over net income (sale price minus acquisition cost). The transference of any rights over real estate property is also taxed at a 15% tax rate (net income) if such rights were also acquired after the date (this includes the transfer of participations in real estate trusts). b) Corporate Income Tax (CIT). Local companies selling real estate must pay CIT over the sale of real estate property at a progressive tax rate over the net income, according to the following criteria (for the period 2024): a) if the net income of the company does not exceed ARS 34,703,523.08 in the fiscal year, a 25% tax rate applies; b) if the net income exceeds ARS
registered value of the property, whichever is higher. The tax rate varies in each local jurisdiction. Usually, this tax is borne in equal parts by the seller and the buyer. V. AGENTS. Real Estate agents may be used by either buyer or seller of real estate property, but their participation in real estate transactions in not mandatory. The agent fees are not determined by law and may differ from one jurisdiction to another. Usual fees range from 3 % to 4 % of the purchase price. VI. SPECIAL CASES. a) Frontier Securities Zone Act (Decree 15,385/44 as Amended) (“FSZA”). The FSZA regulates the acquisition by foreign individuals or foreign companies of rural real estate assets and certain urban real estate assets located in frontier zones. It also regulates the acquisition of shares in companies which own said real estate assets, as well as corporate restructuring operations of said companies. The regulation of the FSZA considers the following to be foreign companies: (i) companies incorporated abroad from Argentina, (ii) companies incorporated in Argentina, in which foreign companies or individuals hold the majority stake or have sufficient votes to make decisions in shareholders’ meeting; and (iii) companies in which foreign shareholders own more than 25% of the corporate capital. Under the FSZA, all acquisitions of real estate assets located in frontier zones or shares of companies which own said assets require clearance from
34,703,523.08 but is less than ARS 347,035,230.79, a fixed amount of ARS 8,675,880.77 must be paid, plus a tax rate of 30% over the income exceeding ARS 34,703,523.08; and c) if the net income exceeds ARS 347,035,230.79, a fixed amount of ARS 102,375,393.08 must be paid plus a tax rate of 35% over the income exceeding ARS 347,035,230.79.
c) Stamp Tax. This is a tax levied by each of the provinces in Argentina and the City of Buenos Aires which in broad terms applies over the purchase price or the
ILN Real Estate Group – Buying and Selling Real Estate Series
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