When you purchase property here in Argentina your first step is to get what is called a CDI number. The CDI number is the equivalent to our Social Security number in the USA. It's a tax ID number that is required to purchase property here in Argentina if you are not a resident. Your lawyer can get it for you but you can obtain this yourself.

Getting your CDI number is fairly easy but time consuming. You first need to make a photocopy of your passport and go to the local police station. You need to bring your actual passport as well. You tell them you want to apply for a CDI number. You fill out a form and you pay a very small fee of less than $10. You must give them an address of the hotel or apartment you are staying in. The following day, they will send an officer to verify that you are staying there. He/she will give you a paper that you must take to the AFIP office. The AFIP is the equivalent to our IRS office in the USA. It's the tax authority here in Argentina.

Make sure you have 2 photocopies of your passport with you. They take both photocopies of your passport and then they give you a paper that is basically your CDI application. They simply handwrite in your CDI number on the paper and then they stamp it with their official AFIP stamp. Voila! You now have a CDI number and can purchase property in Argentina.


A MAJOR difference here in Argentina vs. many places around the world is they charge the BUYER a commission to purchase property here. The standard commission is 3%-4% + vat taxes (21% on that 3-4%) of the purchase price.  So if you purchase an apartment for $100,000 then you would pay a realtor's commission of $3,630 ($3,000 + $630 in taxes as professional service fees have a vat tax on them).  Some trendy areas like Palermo Soho have a realtor's commission as high as 5%.   Also, typically on buildings that are zoned apartment/professional the commissions are 4% or higher.

Compared to realtors in the USA and Europe they just don't compare here in Buenos Aires. Also, you will never hear a realtor say, "don't buy this..it's priced too high". Realtors are given a percentage of the purchase price when you buy so it's in their best interest for you to pay the highest price possible. I've found that many "realtors" don't have much experience.  Most that I have seen were secretaries or working in a totally different profession and came to work as a realtor because they could speak English. .

Basically, property in Buenos Aires is priced for the most part by the square meter. (1 sq. meter = 10.76 sq. feet). That price per sq. meter will go up or down based on what part of town you are buying, the type of building (new construction vs. older), the floor the apartment is on, view/no view, etc. Mainly though property is priced by the sq. meter. New construction is priced high compared to existing buildings. Property in places like Puerto Madero is as high as $3,000 a sq. meter while property in Barrio Norte can be found for around $1,200 - $1,500 per sq. meter. Property in many areas of Recoleta is selling for around $1,600 - $2,400 per sq. meter.

It's a strange process here going around seeing listings. Unless the realtor is the same for the buyer and seller you almost always have your realtor, the seller's realtor and many times also the owner. The realtor's are all very guarded in their listings. It's very primative.

Another thing is that each apartment you look at usually has a spec sheet that details the number of sq. meters, the floor, the address, the monthly expenses of the apartment, etc. It also has things like a "luminosity scale" that measures the amount of natural sunlight. Guess what? The seller's agent is the one filling out that 1 out of 10 rating. What her idea of 10 and a normal person is rarely correct. Also, the number of sq. meters is many times incorrect on these sheets. The number of actual sq. meters is listed on the title to the property. Since property is priced by the sq. meter, it's important that you have an accurate size.

You find your dream apartment. What next? You make an offer (reserva). Typically, most properties are priced a bit high so there is room to negotiate. For example, if an owner wants $100,000 -- they will try asking for $107,000 to give room to negotiate and get their $100,000. Again, it all comes down to knowing the property prices in each respective part of town.

You need to place a deposit with your offer. Typically $1,000 is enough. If it's a really expensive property they will ask you to put more. Keep in mind the seller isn't getting that money. It's held in trust by your realtor. It basically shows that you are serious about purchasing the property. Once you make the offer the seller has 3 options. (1) accept your offer; (2) reject your offer or more commonly (3) counter-offer. I usually offer under the asking price unless the asking price is already fairly priced (which is rare here in Argentina).

You usually give the seller a few days to a week to think about it. Your offer (reserva) has an expiration date. They must respond by that expiration date. Here is something important to remember. Until the seller comes back with a rejection, they can't show the apartment. If your offer price is too low, the seller's realtor can refuse to take it to their client.  Also, remember that ethically they are supposed to take the property off the market but many do not.  A good test is you can have a local call from a payphone and call the seller's realtor to see if they are still taking offers on it or willing to show the property.  Many times the realtors are unethical and are still shopping it on the open market.  Also remember that the deal can fall apart until a "boleto" is done which basically locks both sides in.

Once you agree on a purchase price after negotiations you have two options. There is something called a "boleto" which is basically a down payment of the total purchase price. Typically it is 30% of the total purchase price of the property. If the sales transaction is scheduled many months down the road the seller will ask for a "boleto". The boleto is basically the point of no return for both the buyer and the seller. If the buyer backs out, you lose that 30% down payment. If the seller backs out, not only do they have to return that 30% but they have to double it and return another 30%. They do this to prevent an owner to cancel and accept a higher offer. The offer had better be much much higher or it wouldn't make sense.

You pay all realtor's fees at the time of the boleto. The seller is paid and a date is set for the final title deed transfer which is called the "escritura". The "escritura" is when the title is actually transferred to your name. The legal fee is paid at the time of the "escritura".

If both parties can close fairly quickly then they will forego the "boleto" and they will go straight to escritura. Typically though, they will ask you to do a "Sena". A Sena is not a full blown boleto but typically $5,000 to $10,000. It works the same way as the boleto. If you back out as the buyer you lose this money. If the seller backs out they will need to refund your sena and double it.

I still recommend that you use a "sena" to lock in the seller into selling. The last thing you want to happen is a seller to change their mind and lose out on a deal you might have spent a lot of time and money looking for. The sena helps prevent the owner from changing their mind in the form of not only returning your sena but they must return it doubled. If you can avoid the boleto and use a sena that is the best option as the realtor does not have to be paid until at least a boleto is performed. The realtor will help keep things on track as they have a big incentive in the form of their commission.

The process is not easy buying here and it's an expensive process. You should note there is NO free way to get u$s into the country of Argentina so it's expensive. You need to pay a fee. I'll go more into this in the "Money Transfer Fee" section. Keep in mind that virtually ALL property purchases here are in cash. Literally. Wire transfers to the owner or cashier's checks are almost non-existent here. The locals do not trust anything but cash. Every single purchase I have made for myself or my client was in cash with the owner sitting across the table from me at closing counting out the money. Mortgages here are very rare for the most part.  However, as I first publicly predicted several years ago, I foresee them becoming more mainstream in the future which will further drive up demand which will cause real estate prices to rise.  Anywhere in the world where credit and financing is introduced it causes more interest which causes higher prices.   As of now, the terms are not good.  Loans can be as high as 15% per year with 50% down payments over only 10 years.  Mortgages are non-existent for foreigners so be prepared to pay cash for your purchase.

The buying process is very different than anywhere in the world.  It does not matter if you are an expert in real estate in other parts of the world. Argentina is another world and so is the real estate buying process here.  Just about every single thing is different here than many places.  Also, remember that even after the process things aren't as easy as they are in the USA/UK.  When you go to furnish your property you can't just expect to purchase furniture in a store and have it ready.  Most furniture stores have nothing in stock.  You must order it, pay 50% deposit and then they start making it.  Often times it takes up to 50 days to make the furniture.   There are so many things in Argentina that are different than other parts of the world.

Another thing that you will often encounter is the seller in many instances will want to record a false lower price on the title deed.  Unfortunately this is a common practice here.  The seller's want to not only avoid taxes but also they don't want AFIP snooping into their business on how they got the money in the first place to purchase their property and what they are going to do with the proceeds from the sale.  We always push for "white" deals but the truth remains that many sellers refuse to sell their properties unless you record a false lower price.   Also, on many new constructions projects, they refuse to sell the property to you unless you go along with prices as low as 50% of the original prices you are paying.   We advise our clients against this practice.   There are reputable realtor firms that are involved with new construction that are advising their clients to record 50% of the title deed and we strongly advise against going that low. 

In fact, AFIP is trying to get new legislation starting in March 2007 where they will make sellers and realtors register with the City to sell the property and record the true price.  This is a good thing.  It will clean up the system and actually these kind of steps are needed if the mortgage industry is going to become mainstream here.   No one wants to admit this goes on here and everyone looks the other way but it will be better if this new legislation gets put in place.

Although the process is expensive, the property itself is very affordable compared to major world class cities around the world.  I believe that property prices in upscale areas like Recoleta will continue to appreciate over the next several years. 

Please keep in mind this information above pertains to buying real estate in Buenos Aires.  Other cities and areas have different procedures and laws.  Do NOT assume that the laws are the same in each city in Argentina.  For example, in cities like Bariloche, a foreigner cannot purchase real estate without getting a special permit.  That process can take a long time.  Be aware of the laws and regulations of each city that you are buying in.