New Regulation For The Purchase Or Sale Of Real Estate

Author:Ms María Castro
Profession:Moore Stephens
 
FREE EXCERPT

With the object of having greater control and reducing tax

evasion in the purchase and sale of real estate in Argentina, the

tax authorities (AFIP) have created a register of real estate

operations which exceed RA $300,000 (approx. USD $84,000).

Real estate operations carried out after 1 March 2008 require

the intervening notary public and real estate brokers to act as

information agents. The latter must make public the properties it

has on sale, its asking value, the final price of the operations,

as well as the identity of the seller and purchaser.

In this way the AFIP is seeking to control the sub valuation of

real estate operations which reduces the asset tax which property

owners must pay, as percentage of the assets declared and valued at

the purchase price or declared land tax, whichever is higher.

Therefore, those persons or Companies that wish to put a

property on the market for sale and its value exceeds RA $300,000

must obtain the ¨Real Estate Transaction Offer (COTI), which

must be shown to the real estate broker and the notary public, the

latter, once the sale has been agreed upon.

The COTI represents a central control tool for the AFIP as the

sale operation cannot be registered in the respective property

registry.

The notary public who necessarily intervenes in documenting the

sale operation needs to verify its authenticity and validity of the

COTI.

With this addition to the current regulations of the AFIP, those

wishing to enter to...

To continue reading

REQUEST YOUR TRIAL