Transfer of Money from abroad
TRANSFER OF MONEY FROM ABROAD
Transferring money from abroad can become a need and a problem in the process of buying a property in Argentina. Therefore, this guide offers you some suggestions to help you trough this stage.
First of all it is very important to acknowledge that all transactions in Argentina are 100% cash.
If the seller does not have a bank account outside Argentina (most of the times), you will have to transfer the purchase value to Argentina through an Exchange Bureau (“Casa de Cambio”). 3% of the total amount will be charged to you as the Exchange Bureau fee. In the process, the Exchange Bureau will provide you with an account number in a US Bank so that you (the buyer) can transfer there the purchase amount. Same amount will be available in Buenos Aires for the seller 24 to 48 hours later.
Legal consultancy and the help of a Public Notary is recommended so as to prevent a Central Bank 30% withholding annual tax applicable to any sums entering Argentina, unless performed for capital expenditures (such as buying a property). This legal support will also help to avert future claims of the Argentinean tax authorities in income coming from the purchase amount.
Among the documentation to be supplied under Argentinean Law for the Exchange Bureau you (the buyer) will be required to fax to either the Exchange Bureau or your lawyer, the buying documentation, a copy of your pay slip, a report of your work background in your current position, and eventually your last two tax return forms.
Due to money laundry policy in Argentina, you (the buyer) will also be asked to show "proof of origin" of the funds used in the purchase (W-2 forms, 1040, etc). Money coming from stocks and bonds are considered as cash. When probing the origin of the funds there will have to be a compelling proportion between the transferred amount and the source of income.
