Taxes Capital Gains Taxes

[MDirtBoy]

Hello everyone!

If a foreign seller (no DNI) sells property here, what is the capital gains tax? Everything is in white. Will be working with a foreign buyer if that makes any difference.

Many thanks in advance.

 

[NicolaiSegundo]

In Argentina, capital gains tax is computed similarly to your income tax. If you're considering a corporation, the tax rate is around 35%, and for individuals, the calculation method might differ (exact details may vary).

It's worth noting that having a DNI (Documento Nacional de Identidad) doesn't necessarily affect your tax obligations. If you've been in Argentina for more than 6 months, with absences totaling less than 90 days in the last 12 months, you're required to pay taxes on all income sourced within Argentina. Permanent status with a DNI may introduce different tax considerations.

Regarding personal property, there might not be a specific tax on the sale, but this could depend on the type of property being sold.

Keep in mind that tax laws are subject to change, and it's advisable to consult with a tax professional for the most accurate and up-to-date information.

 

[earlyretirement]

There is NO Capital gains taxes when selling a residential property as an individual. You do have ITI taxes of 1.5% of the price listed on the title deed as well as stamp taxes of 2.5%. Almost always the buyer and seller equally split the stamp tax and pay 1.25% each.

Make sure to see if the buyer has never owned any property in Buenos Aires and it's their first purchase because if so, you can get part of the stamp taxes exempt if so.

But there isn't any capital gains taxes if you're selling as an individual.

 

[earlyretirement]

FYI the ITI tax is more commonly known as a "transfer tax" in other countries in the world. And again, it's on the declared price on the title deed which can drastically differ from the actual price.

Just keep in mind that as a non-resident you will need to apply for a permit to sell from AFIP. You better be up to date on ALL of your taxes while you owned the property including rental taxes on the income you made, ABL bills and the annual asset tax.

If you're not up to date on these taxes, the penalties and interest can really add up. But these aren't anything to do with a capital gains tax. There is no capital gains tax (YET) when selling as an individual.

Maybe this will change in the future...more and more countries around the world are raising the rental taxes and the capital gains taxes. France just raised theirs and it's super hefty now.

 

[MDirtBoy]

Thanks. For clarification, this property is a rental property and they have declared all of their rental income as well as paid all of their taxes to date.