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

Payment / Transferring the money.

Tax ID (CDI).

Transferring the money is one of the most complicated parts of the process.

In some cases the constructor or seller will have a bank account in U.S., and you will be able to wire the money from your bank.

In this case you have to sign two different escrituras one before the money is transferred and you sign the second escritura after (both with the Public Notary -Escribano-).

This is very simple and will save you the cost of transferring the money abroad. The major project builders will allow you to pay them in their bank accounts abroad. You sign two escrituras but that doesn't increase the escribano fee.

If the seller doesn't have a bank outside Argentina (most of the times), you have to transfer the money to the country using a Casa de Cambio (Exchange Bureau).

One of the most established and traditional casas de cambio in Argentina is Casa Piano, they do this type of operation all the time.

The cost to transfer money to the country is 2% of the amount. If you are buying a property what they do is to give you their account number in Bank Of America and details so you transfer the money there.

The money will be available in Buenos Aires 24 to 48 hs. later in Buenos Aires.

Casa Piano will open you an argentine pesos savings account and they will exchange the dollars to pesos at the markets rate. Then they will sell the dollars to the seller of the apartment at the same rate.

The international transfer has some requirements to prevent money laundering. Before doing the operation you have to prove the Casa de Piano the origin of the funds.

You can fax them the selling papers of a house or apartment, or copy of your salary receipt plus a resume stating how many years have you worked in a similar position, or they can ask you your last two years tax declarations.

The prove of the origins will differ depending where the money is coming from. Stocks and bonds are considered the same that cash, you have to prove where the money to buy them comes from.

There has to be a proportion between the money you are transferring and the source of the income.

Tax ID (CDI).

To sign the "escritura", transfer money to Argentina, and open a bank account you need first to get a Tax ID in the AFIP (Agentine Federal Tax Agency). The process is simple but you can spend one morning to get it.

The first thing you have to do is to go to the Police Station of the area you are staying, and ask for a "Certificado de Domicilio" (Address Certificate).

The Police will charge you 10 pesos, and the next day they will visit your apartment or hotel from 7 AM to 12 PM to give you the certificate. This doesn't take more than 10 minutes, but next morning you have to stay in your apartment to wait the policeman certify you live there and give you the certificate.

To know which Police Station you have to go, ask your tenant or concierge. You can find the complete list of Police Stations (Comisarías) in the Federal Police Website.

The next day, when you already have the address certificate you should go to the AFIP Tax Agency that corresponds to the address of the certificate. To find which is the Agencia and the address where it is located visit the AFIP Website.

You will see a screen like the following (click the thumbnails below to watch samples of the screens you will see):

In the "Calle / Localidad" box write the name of the street you are staying. (Tip: If you do not find it, write the four or five first letters of the street), press "Confirmar" button.

A new page will show the results for that street. You have the different numbers of that street and the Agency that corresponds to it. If you click over the Agencia N X you will get the address.

Before you go to the "Agencia" get 2 photocopies of the first pages of your passport. When you arrive to the "Agencia", you have to go to the orientation / info counter.

Ask for de "Formulario CDI" (most people in AFIP won't speak English). They will give you 2 copies of a form you have to fill them both with the same info. The form is in Spanish but with basic knowledge of Spanish you should be able to fill it.

Before filling the form proceed to the "Mesa de Entradas" (Entries Desk) and get a number. Now you will have to wait they call your number, numbers are called at loud voice, and there is not an electronic clock in most agencias (ask someone if you don't understand the numbers). Now you just have to wait.

When it is your number, give the form to the employee, the photocopies of your passport, and show him/her your passport. If you filled the form correctly, they should give you your CDI TAX ID Number in 5 minutes.

Basically they write the number in one of the copies of the form, they stamp it and give it back to you, and they will keep the other copy.

Congrats, you are registered tax payer now!

External Article Link: http://www.property-partnership.com/overseas-property-guides/overseas-property-guide.cfm?id=140

Article Link: http://www.property-partnership.com/overseas-property-guides/overseas-property-guide.cfm?id=140

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