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Money laundering: what are the real estate investments that can be used to invest in the money transferred abroad? - Infobae
Source:
www.infobae.com
August 15, 2024
The disclosure of funds is viewed favorably by the sector as a key tool to give a new boost to the recovery of the real estate market in general. How to join
By Jose Luis Cieri
Money laundering allows undeclared funds to be regularised and used for real estate projects. Adequate advice is essential to ensure regulatory compliance and maximise tax benefits.
With the aim of reactivating the real estate market and encouraging investment in construction projects , the developer sector is confident that this measure will allow investors to allocate laundered money to buildings in the pipeline , an option that offers tax advantages in the current economic context for those who have savings and wish to realise them.
The possibility of investing in housing in a pit is positioned as an attractive strategy, especially at a time when construction continues to be one of the key drivers for the Argentine economy.
In addition to contributing to the growth of the sector, this money laundering gives investors the opportunity to enter the market at competitive prices, taking advantage of the initial stage of the projects, where prices are usually more accessible. Compared to a brand new unit, values can be up to 30% lower than the listing price.
The last money laundering during the previous government raised more than $47 billion until the middle of last year , but now a larger sum is expected. In the clearing up that lasted between 2022 and 2023, the most marketed homes in construction were those with 2 and 3 rooms.
“It is advisable to approach the bank you are working with and request the opening of a special account, while consulting an accountant for assistance with the necessary filings, which require specialized intervention,” Litvin said.
For rent, people usually look for apartments with one to two bedrooms, end users usually go for units with one to 3 bedrooms (Adrián Escandar)
In addition, it exempts you from potential exchange rate penalties for the purchase and sale of foreign currency in the blue market.
Litvin advised: “It is also important to select a real estate project that is to your liking and that meets the conditions required by the regime regarding the progress of construction.”
It is a great benefit that an investor can purchase a property worth up to USD 100,000 without incurring tax expenses. In addition, there will be no fines or penalties for not having declared said money previously.
Sabrina Zapico , from SZ Canning Properties, pointed out that the acquisition can be made through sales contracts, transfers, contributions or adhesions to trusts, or effectively writable properties. This offers flexibility to investors to choose the modality that best suits their needs and facilitates their integration into the formal market without incurring additional costs.”
To obtain the tax extension benefit with the money laundering, the investment in developments must be maintained until December 31, 2025
Litvin clarified: “Other funds, laundered or previously declared, can be used to add to the investment for amounts greater than this sum, or partially used for amounts less. The important thing is to know that any laundered amount no longer needs to be immobilized in an account if it is invested in this type of project.”
The procedure consists of, first, declaring the adhesion. For example, for the first stage the adhesion manifestation is until September 30, and the advance payment of 75% if applicable tax. And then, until the first stage, until November 30, the sworn declaration is presented. This sworn declaration will only be available after the closing of each adhesion stage.
The Affidavit form will be available from the following dates, depending on each stage:
The law also regulates the possibility of advancing the payment of Personal Property Tax from 2023 to 2027 with a rate of 0.45% per year, which exempts the taxpayer from filing the sworn declaration until 2028 and grants fiscal stability, that is, higher rates cannot be charged during that period on their assets.
For rent, they usually ask for units with 1 to 2 bedrooms , while for end users, apartments with 1 to 3 bedrooms are the most requested in Buenos Aires neighborhoods or consolidated areas of Greater Buenos Aires, such as Vicente López or San Martín, among others. 2 and 3 bedroom houses under construction in private neighborhoods are also sought after.
"This benefit has a short period of time, during which investors must select the alternatives and decide on the most convenient option quickly and quickly," Zapico added.
As for locations and developments in particular that are generating more interest among buyers using whitewashing, Zapico added that “the Canning area in particular has seen a boom in temporary rentals due to its proximity to the airport, innovative, modern spaces and new developments. The variety of gastronomy makes people choose Canning for temporary accommodation.”
Apartments and houses under construction in private neighborhoods also qualify for whitewashing
This leads investors to purchase 1 to 3 bedroom apartments, duplexes or well-equipped properties.
In the city of Buenos Aires there were considerable movements in demand, Puerto Madero, Palermo, Caballito, La Paternal, Núñez, Villa Crespo, Almagro, Chacarita, among other areas increased the number of inquiries.
Gabriel Brodsky , from Predial, concluded that the money laundering, together with mortgage loans, awakened the market. “It is likely that before the end of the year the sector will experience full growth compared to the last five years, during which the sector went through an extensive crisis, and that housing prices will appreciate again.”
www.buysellba.com
Source:
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El sinceramiento de fondos es visto con buenos ojos por el sector como una herramienta clave para darle un nuevo impulso a la recuperación del mercado inmobiliario en general. Cómo adherirse
www.infobae.com
August 15, 2024
The disclosure of funds is viewed favorably by the sector as a key tool to give a new boost to the recovery of the real estate market in general. How to join
By Jose Luis Cieri
Money laundering allows undeclared funds to be regularised and used for real estate projects. Adequate advice is essential to ensure regulatory compliance and maximise tax benefits.
With the aim of reactivating the real estate market and encouraging investment in construction projects , the developer sector is confident that this measure will allow investors to allocate laundered money to buildings in the pipeline , an option that offers tax advantages in the current economic context for those who have savings and wish to realise them.
The possibility of investing in housing in a pit is positioned as an attractive strategy, especially at a time when construction continues to be one of the key drivers for the Argentine economy.
In addition to contributing to the growth of the sector, this money laundering gives investors the opportunity to enter the market at competitive prices, taking advantage of the initial stage of the projects, where prices are usually more accessible. Compared to a brand new unit, values can be up to 30% lower than the listing price.
The last money laundering during the previous government raised more than $47 billion until the middle of last year , but now a larger sum is expected. In the clearing up that lasted between 2022 and 2023, the most marketed homes in construction were those with 2 and 3 rooms.
Main legal aspects
In another scenario and with some modifications to the mechanism in force until 2023, César Litvin , a tax expert at Estudio Lisicki, Litvin & Asoc., told Infobae that “interested parties must have undeclared funds in cash, deposit them in a special account in the country before September 30, 2024, and choose a new real estate project that at the beginning of July 2024 had a progress level of less than 50%; the funds may be used for the purchase agreement, the deed, or the contribution to construction trusts.”Best practices
There is no need to wait to make the decision to enter into money laundering, as there are very short operating times and any delay can mean the loss of a great opportunity.“It is advisable to approach the bank you are working with and request the opening of a special account, while consulting an accountant for assistance with the necessary filings, which require specialized intervention,” Litvin said.
For rent, people usually look for apartments with one to two bedrooms, end users usually go for units with one to 3 bedrooms (Adrián Escandar)
Advantages
At a very low cost, it allows the use of funds not declared in the formal circuit without questions about the taxes that had to be paid to obtain them (income tax, VAT) or for their possession in previous years (tax on personal assets).In addition, it exempts you from potential exchange rate penalties for the purchase and sale of foreign currency in the blue market.
Risks and challenges
It is crucial to complete the formal steps (account opening, deposit of funds, submissions to AFIP) in a very short time.Litvin advised: “It is also important to select a real estate project that is to your liking and that meets the conditions required by the regime regarding the progress of construction.”
How to avoid future problems
It is essential to make a quick decision, to have specialized advice to comply with the requirements of the regime, and to plan both the assets and taxes in the medium and long term. “Choosing an accountant is as decisive as choosing a cardiologist,” advised Litvin.Relevant aspects
According to the new regulations issued, in the first instance, well investments turned out to be the enabled alternatives and, consequently, those with the greatest demand.It is a great benefit that an investor can purchase a property worth up to USD 100,000 without incurring tax expenses. In addition, there will be no fines or penalties for not having declared said money previously.
Sabrina Zapico , from SZ Canning Properties, pointed out that the acquisition can be made through sales contracts, transfers, contributions or adhesions to trusts, or effectively writable properties. This offers flexibility to investors to choose the modality that best suits their needs and facilitates their integration into the formal market without incurring additional costs.”
Amounts
The law provides for a tax exemption on money laundering for up to USD 100,000. Investments in real estate projects may be of a higher or lower value.
To obtain the tax extension benefit with the money laundering, the investment in developments must be maintained until December 31, 2025
Litvin clarified: “Other funds, laundered or previously declared, can be used to add to the investment for amounts greater than this sum, or partially used for amounts less. The important thing is to know that any laundered amount no longer needs to be immobilized in an account if it is invested in this type of project.”
Deadlines
The demonstration of support for the regime is active from July 18 to March 31, 2025.- Stage 1: until September 30, 2024, a 5% rate is paid on the surplus of USD 100,000.
- Stage 2: until December 31, 2024, the rate is 10%.
- Stage 3: until March 31, 2025, the rate rises to 15%.
The procedure consists of, first, declaring the adhesion. For example, for the first stage the adhesion manifestation is until September 30, and the advance payment of 75% if applicable tax. And then, until the first stage, until November 30, the sworn declaration is presented. This sworn declaration will only be available after the closing of each adhesion stage.
The Affidavit form will be available from the following dates, depending on each stage:
- Stage 1: October 7, 2024.
- Stage 2: January 2, 2025.
- Stage 3: April 1, 2025.
The law also regulates the possibility of advancing the payment of Personal Property Tax from 2023 to 2027 with a rate of 0.45% per year, which exempts the taxpayer from filing the sworn declaration until 2028 and grants fiscal stability, that is, higher rates cannot be charged during that period on their assets.
Types of housing
In developers and real estate agencies, a considerable increase in enquiries and, consequently, in purchase reservations was noted.For rent, they usually ask for units with 1 to 2 bedrooms , while for end users, apartments with 1 to 3 bedrooms are the most requested in Buenos Aires neighborhoods or consolidated areas of Greater Buenos Aires, such as Vicente López or San Martín, among others. 2 and 3 bedroom houses under construction in private neighborhoods are also sought after.
"This benefit has a short period of time, during which investors must select the alternatives and decide on the most convenient option quickly and quickly," Zapico added.
As for locations and developments in particular that are generating more interest among buyers using whitewashing, Zapico added that “the Canning area in particular has seen a boom in temporary rentals due to its proximity to the airport, innovative, modern spaces and new developments. The variety of gastronomy makes people choose Canning for temporary accommodation.”
Apartments and houses under construction in private neighborhoods also qualify for whitewashing
This leads investors to purchase 1 to 3 bedroom apartments, duplexes or well-equipped properties.
In the city of Buenos Aires there were considerable movements in demand, Puerto Madero, Palermo, Caballito, La Paternal, Núñez, Villa Crespo, Almagro, Chacarita, among other areas increased the number of inquiries.
Gabriel Brodsky , from Predial, concluded that the money laundering, together with mortgage loans, awakened the market. “It is likely that before the end of the year the sector will experience full growth compared to the last five years, during which the sector went through an extensive crisis, and that housing prices will appreciate again.”
www.buysellba.com
