Article by: Joaquin Cristobal info@jdcpropiedades.com.ar Published: 21/05/2008

Property Federal Tax.

Federal Revenue Tax.

There is in Argentina a Federal Tax to Personal Assets. This tax is charged on yearly basis over the property, funds a stocks that the non-resident has in Argentina (In case of Argentines and permanent residents it charges over the assets they own worldwide).

The rate of the tax is 0,5% yearly for total assets from $ 100.000 to $ 200.000 argentine pesos, and 0,75% when the total assets are over the $ 200.000 argentine pesos.

This tax can be declared and paid over the internet, once you charge download the program from the AFIP, and you install and charge your info for the first time, it will take no more than 15 minutes a year to present your tax declaration and to pay it online

Federal Revenue Tax:

Revenue tax rate in Argentina is 35%. If you are not a resident and you earn yearly more than the non taxable minimum, you should declare and pay this tax every year over the revenues generated in the country only.

If you are relocating, and consequently you will apply to get a permanent residence you have to take in mind that according to Argentine Tax Law you would be required to pay this tax over all the revenues you generate Worldwide (this may include a foreign pension).

Only in the case you already paid taxes in other country over the same revenue, the State accepts you can compute part of what you already paid, so you don't pay two times over the same revenue (double taxation).

Buenos Aires is a paradisiacal destination in many aspects, but for sure not in tax issues. Of course many locals does not pay the taxes here, but when investing, if you want a secure your investment, you have to calculate the ROI after paying all taxes.

Otherwise you are adding an extra risk to the investment, the risk of being caught by the Tax Agency avoiding taxes.

Insurances.

When you deposit money in a Bank, you previously check that you have FDIC insurance, to reduce the risks.

When investing in real estate one of the main -but very improbable risk- is that a fire destroys your apartment / building.

For this reason is a must to hire a fire insurance to protect your investment.

By Law all apartment buildings have to hire an obligatory fire insurance over the common areas (hall, entrance, elevators, exterior walls, etc). This insurance will be included in the home association fee (expensas).

You don't need to hire this, or worry about this insurance, the home association Manager will hire and pay it every month.

Additional to the common areas building insurance you should hire a fire insurance for your private unit. The main local banks will sell you this insurance, and it is usually not very expensive. You can also hire it from the most important local Insurance Companies.

Having both fire insurances, the obligatory for the common areas and the private one for your apartment or unit, with major Insurance company or bank will mainly protect your investment.

Article Link: http://www.property-partnership.com/overseas-property-guides/overseas-property-guide.cfm?id=143

Please contact the author at info@jdcpropiedades.com.ar for more information.