{"id":141,"date":"2011-05-28T05:07:25","date_gmt":"2011-05-28T05:07:25","guid":{"rendered":"https:\/\/kierjoffe.com\/news\/?p=141"},"modified":"2018-07-19T15:40:01","modified_gmt":"2018-07-19T18:40:01","slug":"argentina-real-estate-law","status":"publish","type":"post","link":"https:\/\/www.kierjoffe.com\/news\/lawyer-argentina-attorney-buenos-aires-law-firm\/argentina-real-estate-law\/","title":{"rendered":"Argentina Real Estate Law"},"content":{"rendered":"<ol id=\"olCountryChapters\">\n<li>\n<div>1 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0<strong>Argentina Real Estate Law<\/strong><\/div>\n<div>\n<div>\n<p>1.1\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Please briefly describe the main laws that govern real estate in Argentina.\u00a0 Laws relating to leases of business premises should be listed in response to question 10.1.\u00a0 Those relating to zoning and environmental should be listed in response to question 11.1.<\/p>\n<\/div>\n<p>The Federal Constitution and Treaties on Human Rights expressly provides for the right to private property.\u00a0 Real estate in Argentina is governed by the Argentine Civil Code and by other specific laws (i.e. Law 13,512 on\u00a0<em>Propiedad Horizontal<\/em>\u00a0and Law 24,441 governing trusts).\u00a0 Law 26,737 imposes limits on the ownership or possession of rural land by foreign individuals or legal entities.<\/p>\n<div>\n<p>1.2\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 What is the impact (if any) on real estate of local common law in Argentina?<\/p>\n<\/div>\n<p>This is not applicable in Argentina<\/p>\n<div>\n<p>1.3\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Are international laws relevant to real estate in Argentina?\u00a0 Please ignore EU legislation enacted locally in EU countries.<\/p>\n<\/div>\n<p>No, international laws are not relevant to real estate in Argentina, with the exception of the Treaties on Human Rights (please refer to question 1.1) and general rules provided by investment protection treaties.<\/p>\n<\/div>\n<\/li>\n<li>\n<div>2\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <strong>Ownership<\/strong><\/div>\n<div>\n<div>\n<p>2.1\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Are there legal restrictions on ownership of real estate by particular classes of persons (e.g. non-resident persons)?<\/p>\n<\/div>\n<p>According to Law 26,737, foreign ownership of rural land shall not exceed 15% of the total amount of \u201crural lands\u201d in the Argentine territory.\u00a0 This percentage is to be calculated also in relation to the territory of the province or municipality where the relevant lands are located.\u00a0 In addition, ownership by the same foreign owner (i.e. foreign individuals, foreign entities or local entities controlled by a foreign person) shall not exceed 1,000 hectares of the \u201ccore area\u201d, or the \u201cequivalent surface\u201d determined according to the location of the lands.\u00a0 Furthermore, foreign investors may not own more than 15% of the real property in the country, province or municipality and the same foreign owner shall not exceed 1,000 hectares of the \u201ccore area\u201d, or the \u201cequivalent surface\u201d determined according to the location of the lands.\u00a0 The Interministerial Council of Rural Lands (<em>Consejo Interministerial de Tierras Rurales<\/em>), the enforcement agency of the new law, shall define the location of the \u201ccore area\u201d.<\/p>\n<p>Likewise, under security zone regulations, foreign ownership in certain areas of national security, such as frontier zones, requires prior consent of a Federal Agency, which is normally granted.<\/p>\n<p>In principle, acquisition of real property in the city of Buenos Aires by a foreign entity (in particular, when more than one asset is being acquired) may require the registration of a branch of such foreign entity before the public registry (\u201cIGJ\u201d).<\/p>\n<\/div>\n<\/li>\n<li>\n<div>3\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <strong>Real Estate Rights<\/strong><\/div>\n<div>\n<div>\n<p>3.1\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 What are the types of rights over land recognised in Argentina?\u00a0 Are any of them purely contractual between the parties?<\/p>\n<\/div>\n<p>The types of rights over land are outlined in Laws passed by the Federal Congress, mainly in the Civil Code, which include ownership, co-ownership, usufruct and easements, among others.\u00a0 Additionally, Law 25,509 of<em>Superficie Forestal<\/em>\u00a0allows separation of ownership of land and forestry.<\/p>\n<p>Some significant real estate transactions are of a purely contractual nature, such as leases.<\/p>\n<div>\n<p>3.2\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Are there any scenarios where the right to a real estate diverges from the right to a building constructed thereon?<\/p>\n<\/div>\n<p>No.\u00a0 As a general rule, any buildings or constructions are attached to the real estate in question, in other words, they are incorporated in the real property forming an indivisible unit.<\/p>\n<\/div>\n<\/li>\n<li>\n<div>4\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <strong>System of Registration<\/strong><\/div>\n<div>\n<div>\n<p>4.1\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Is all land in Argentina required to be registered?\u00a0 What land (or rights) are unregistered?<\/p>\n<\/div>\n<p>In general, all land and related real estate rights over such property (and its encumbrances) must be registered with the local real estate registry.<\/p>\n<div>\n<p>4.2\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Is there a state guarantee of title?\u00a0 What does it guarantee?<\/p>\n<\/div>\n<p>There is no title insurance system in Argentina.<\/p>\n<div>\n<p>4.3\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 What rights in land are compulsory registrable?\u00a0 What (if any) is the consequence of non-registration?<\/p>\n<\/div>\n<p>Real estate rights over land which are not registered are not effective against third parties.<\/p>\n<div>\n<p>4.4\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 What rights in land are not required to be registered?<\/p>\n<\/div>\n<p>Certain contractual rights over property (for example, leases) do not need to be registered.<\/p>\n<div>\n<p>4.5\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Where there are both unregistered and registered land or rights is there a probationary period following first registration or are there perhaps different classes or qualities of title on first registration?\u00a0 Please give details.\u00a0 First registration means the occasion upon which unregistered land or rights are first registered in the registries.<\/p>\n<\/div>\n<p>This is not applicable in Argentina.<\/p>\n<div>\n<p>4.6\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 On a land sale, when is title (or ownership) transferred to the buyer?<\/p>\n<\/div>\n<p>Ownership is transferred to the buyer upon the date that the notarial deed of conveyance is executed.\u00a0 Possession by the acquirer is required for the conveyance of legal title.<\/p>\n<div>\n<p>4.7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Please briefly describe how some rights obtain priority over other rights.\u00a0 Do earlier rights defeat later rights?<\/p>\n<\/div>\n<p>Priority against third parties is obtained through timely registration of the notarial deed with the relevant real estate registry.\u00a0 Priority among different registrations is granted by the date and order number of the notarial deeds given by the real estate registry at the time of the filing.<\/p>\n<\/div>\n<\/li>\n<li>\n<div>5\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <strong>The Registry \/ Registries<\/strong><\/div>\n<div>\n<div>\n<p>5.1\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 How many land registries operate in Argentina? \u00a0If more than one please specify their differing rules and requirements.<\/p>\n<\/div>\n<p>There is one real estate registry for each Argentine province and another one for the city of Buenos Aires.\u00a0 Each real estate registry has its own particular rules.<\/p>\n<div>\n<p>5.2\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Does the land registry issue a physical title document to the owners of registered real estate?<\/p>\n<\/div>\n<p>The Land Registry of the applicable jurisdiction issues a certificate stating that the title has been duly registered.<\/p>\n<div>\n<p>5.3\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Can any transaction relating to registered real estate be completed electronically? What documents need to be provided to the land registry for the registration of ownership right? Can information on ownership of registered real estate be accessed electronically?<\/p>\n<\/div>\n<p>Transactions cannot be completed electronically but the follow up of certain filings may be accessed online.\u00a0 Broadly speaking, information on ownership is not available online; in the city of Buenos Aires\u2019s registry, it is possible to obtain the identity of the owners of a given property online, though.\u00a0 For purposes of requesting registration, a copy of the public deed together with a formal petition shall be furnished to the land registry.<\/p>\n<div>\n<p>5.4\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Can compensation be claimed from the registry\/registries if it\/they makes a mistake?<\/p>\n<\/div>\n<p>Yes, compensation can be claimed under general rules of tort liability.<\/p>\n<div>\n<p>5.5\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Are there restrictions on public access to the register?\u00a0 Can a buyer obtain all the information he might reasonably need regarding encumbrances and other rights affecting real estate?<\/p>\n<\/div>\n<p>There are no restrictions on public access to the register, but the petitions can only be signed by certain professionals (lawyers, notary publics, engineers, accountants, surveyors or real estate brokers).<\/p>\n<\/div>\n<\/li>\n<li>\n<div>6\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <strong>Real Estate Market<\/strong><\/div>\n<div>\n<div>\n<p>6.1\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Which parties (in addition to the buyer and seller and the buyer&#8217;s finance provider) would normally be involved in a real estate transaction in Argentina?\u00a0 Please briefly describe their roles and\/or duties.<\/p>\n<\/div>\n<p>(a)\u00a0\u00a0 Selling and purchasing agents (or realtors)<\/p>\n<p>A real estate broker may intervene as an intermediary on behalf of either the seller or the purchaser.<\/p>\n<p>(b)\u00a0\u00a0 Lawyers<\/p>\n<p>Legal advice is recommended in connection with the negotiation or execution of any binding document.\u00a0 Lawyers usually provide tax and foreign exchange advice for transactions involving any international parties.<\/p>\n<p>(c)\u00a0\u00a0 Notaries<\/p>\n<p>The deed of conveyance (<em>escritura p\u00fablica<\/em>) has to be executed before a notary public, who is responsible for verifying that the seller has good title on the property.<\/p>\n<p>(d)\u00a0\u00a0 Others<\/p>\n<p>A surveyor (<em>agrimensor<\/em>) should check that the boundaries of any property outside city centres as described in the real estate registry correspond to the parties\u2019 understanding of same on the ground.<\/p>\n<div>\n<p>6.2\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 How and on what basis are these persons remunerated?<\/p>\n<\/div>\n<p>Some of the persons detailed above, such as notaries, may have regulations on fees depending on local rules and regulations, although, in many cases, these regulations are not followed by the parties involved.\u00a0 In general, fees are agreed as a percentage of the transaction\u2019s price.<\/p>\n<div>\n<p>6.3\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 How has the real estate market in\u00a0Argentina\u00a0recovered or reacted following the global credit crunch and worldwide recession in 2008\/2010?\u00a0What were the most important real estate transactions in\u00a0Argentina\u00a0in the past year? \u00a0Please include both local and international investors in your answer.<\/p>\n<\/div>\n<p>During the crisis, real estate transactions declined significantly for both local and international investors.\u00a0 In addition, in recent months, some real estate transactions have been adversely affected by foreign exchange restrictions, mainly, as a consequence of a general restriction pursuant to which the ability of Argentine residents to acquire foreign currency for this type of transaction has been suspended indefinitely. \u00a0The impact by this new regulation has been significant on the market, since, historically, real estate transactions involving the acquisition of real property are denominated and paid in a foreign currency. \u00a0The market has not yet recovered from these restrictions.<\/p>\n<div>\n<p>6.4\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Is there a trend in\u00a0Argentina\u00a0towards the investment in retirement homes \/ nursing homes due to the increased ageing of the population?<\/p>\n<\/div>\n<p>After the 2001 turmoil and current inflation, real estate transactions are considered a safe shelter for investors; consequently small apartments are the trend.\u00a0 Although no particular trend towards retirement homes or akin has developed locally yet, there are signs of new investment in this sector, mainly focused on foreign residents, who could take advantage of a well-developed private health care system in Argentina.<\/p>\n<\/div>\n<\/li>\n<li>\n<div>7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <strong>Liabilities of Buyers and Sellers in Real Estate Transactions<\/strong><\/div>\n<div>\n<div>\n<p>7.1\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 What (if any) are the minimum formalities for the sale and purchase of real estate?<\/p>\n<\/div>\n<p>Execution of the deed of conveyance between the buyer and seller and registration of such deed with the local real estate registry is required to transfer real estate.\u00a0 Beforehand, parties may execute a preliminary contract (<em>Boleto de Compraventa<\/em>).\u00a0 Recent regulations state that sellers must inform the tax authority about every offer, negotiation or transfer involving an immovable property for an amount exceeding AR$300,000 (approximately US$62,000).<\/p>\n<div>\n<p>7.2\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Is the seller under a duty of disclosure?\u00a0 What matters must be disclosed?<\/p>\n<\/div>\n<p>Yes.\u00a0 Under the general duty of good faith common to any contract, the seller should reasonably disclose any encumbrance or hindrance which may impede the buyer from fully enjoying the property.\u00a0 Besides, these kinds of representations and warranties are contractually agreed, whereby the seller ensures he or she has good title.<\/p>\n<p>In addition, disclosure is required by the consumer protection law.<\/p>\n<div>\n<p>7.3\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Can the seller be liable to the buyer for misrepresentation?<\/p>\n<\/div>\n<p>Please refer to question 7.4 below.<\/p>\n<div>\n<p>7.4\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Do sellers usually give contractual warranties to the buyer?\u00a0 What would be the scope of these?\u00a0 What is the function of warranties (e.g. to apportion risk, to give information)?\u00a0 Are warranties a substitute for the buyer carrying out his own diligence?<\/p>\n<\/div>\n<p>Real estate transactions are customarily negotiated on an \u201cas is\u201d basis.\u00a0 However, the Argentine Civil Code provides for certain implied warranties on a sale granted by the seller to the buyer.\u00a0 These warranties consist of the following: (i) that the seller has good title and the property is free of encumbrances (<em>Garant\u00eda de<\/em><em>evicci\u00f3n<\/em>) (see question 7.5); and (ii) that the property has no hidden defects (<em>Garant\u00eda por vicios redhibitorios<\/em>).<\/p>\n<div>\n<p>7.5\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Does the seller warrant its ownership in any way?\u00a0 Please give details.<\/p>\n<\/div>\n<p>The Civil Code provides for an implied warranty to title in all sale contracts. \u00a0Although parties may include a contractual provision restricting or waiving this implied warranty, it is a widespread practice to include a clause pursuant to which the seller declares that it has good title to the property and that it is free from any charges or encumbrances.<\/p>\n<div>\n<p>7.6\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 What (if any) are the liabilities of the buyer (in addition to paying the sale price)?<\/p>\n<\/div>\n<p>There are certain legal charges attached to immovable property relating to municipal and provincial taxes, expenses and maintenance of building common areas and the charges levied by the utilities companies.<\/p>\n<\/div>\n<\/li>\n<li>\n<div>8\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <strong>Finance and Banking<\/strong><\/div>\n<div>\n<div>\n<p>8.1\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Please briefly describe any regulations concerning the lending of money to finance real estate.\u00a0 Are the rules different as between resident and non-resident persons and\/or between individual persons and corporate entities?<\/p>\n<\/div>\n<p>Since 2002, foreign exchange controls impose restrictions on persons (or entities) to borrow from foreign persons (or entities), or make payments of principal or interest thereto.\u00a0 Furthermore, Central Bank registrations and approvals may be necessary.<\/p>\n<p>The repatriation of funds may also be subject to restrictions.\u00a0 In principle, foreign residents investing in Argentina are subject to a one-year deposit equivalent to 30% of the total funds introduced into the Argentine exchange market.\u00a0 There are certain exceptions, including foreign direct investments, which include, with certain limitations, investments in real property.<\/p>\n<p>Cross-border financings to Argentine residents -as a general rule- carry the obligation to repatriate and liquidate the funds into the foreign exchange market as well as the maintenance for a one-year minimum term and, unless an exception applies, are also subject to the 30% mandatory deposit.\u00a0 Note that there is an exception commonly used for financing the acquisition of real estate that requires the loan to have an average term (considering the repayment schedule for principal payments and interests) of not less than 2 years and the investment of 100% of the proceeds in fixed assets or inventory.<\/p>\n<p>Also, during the last semester of 2011, new foreign exchange regulations have limited the ability of local residents to purchase foreign currency to the extent the amounts in question are not consistent with their tax returns.\u00a0 This has limited the number of real estate transactions being closed since most of the real estate market uses foreign currency as a payment method.<\/p>\n<div>\n<p>8.2\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 What are the main methods by which a real estate lender seeks to protect itself from default by the borrower?<\/p>\n<\/div>\n<p>Mortgages and trusts are the most common collateral in connection with real estate.\u00a0 A mortgage remains in full force and effect until all secured amounts have been paid in full or the mortgage is otherwise cancelled by mutual agreement.\u00a0 However, unless extended, the registration of a mortgage will automatically expire 20 years as from the registration date.<\/p>\n<div>\n<p>8.3\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 What are the common proceedings for realisation of mortgaged properties? Are there any options for a mortgagee to realise a mortgaged property without involving court proceedings or the contribution of the mortgagor?<\/p>\n<\/div>\n<p>Mortgages may be realised by judicial or private procedures.\u00a0 Regarding judicial procedures, the mortgagee may commence an ordinary declaratory trial, an expedited trial, a mortgage expedited trial or a provincial foreclosure trial.<\/p>\n<p>If the debtor issues mortgage letters (\u201c<em>letras hipotecarias\u201d<\/em>), the mortgagee may realise it by private procedure without the contribution of the debtor.\u00a0 The mortgagee may: a) request directly to the register the issuance of a second copy of the deed; or b) require the payment of the debts that exist on the property regarding ordinary expenses, taxes and fees that weigh on the property.\u00a0 Should the debtor not pay the debt within ten (10) business days from the request, the mortgagee may auction the property as if debt free. \u00a0In that case, the lender will order itself, without court intervention, a public auction sale of the property, by an auctioneer appointed by and with the usual conditions of that place.\u00a0 Notices shall be published.\u00a0 The base of the auction will be the amount of debt at the time of the sale.<\/p>\n<div>\n<p>8.4\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 What minimum formalities are required for real estate lending?<\/p>\n<\/div>\n<p>None, except for the registration with the relevant real estate registry of mortgages or trusts over land.<\/p>\n<div>\n<p>8.5\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 How is a real estate lender protected from claims against the borrower or the real estate asset by other creditors?<\/p>\n<\/div>\n<p>Trusts are also widely used as security devices.\u00a0 A trust will be formed upon the transfer of ownership in trust of a property by a settlor to a trustee who will undertake to exercise the rights in respect of it for the benefit of certain beneficiaries.\u00a0 The trust property forms a separate estate from both the trustee or the settlor\u2019s estate (except fraud).\u00a0 The trust\u2019s duration may not exceed thirty years.\u00a0 The benefits of the trust in guarantee over the mortgage include: the property remains bankruptcy remote from the debtor\u2019s assets; out-of-court foreclosure is allowed; and rotation of beneficiaries is easier.<\/p>\n<\/div>\n<\/li>\n<li>\n<div>9\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <strong>Tax<\/strong><\/div>\n<div>\n<div>\n<p>9.1\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Are transfers of real estate subject to a transfer tax?\u00a0 How much?\u00a0 Who is liable?<\/p>\n<\/div>\n<p>a) \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Income tax<\/p>\n<p>Non-resident individuals or legal entities without a permanent establishment in Argentina are taxed only on income from Argentine sources; income arising from assets placed or used in Argentina is deemed to be from an Argentine source.\u00a0 The corporate tax rate applicable in Argentina is 35%, whereas the tax rate for individuals ranges from 9 to 35%.\u00a0 Income Tax Law provides certain particular rules applicable to real estate transactions such as a roll over alternative in order to defer the income allocation (<em>venta y reemplazo<\/em>).\u00a0 Income tax treatment must be analysed on a case-by-case basis.<\/p>\n<p>b)\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Tax on Presumed Minimum Income<\/p>\n<p>This tax applies to all assets of Argentine companies and other entities, such as trusts, common investment funds, permanent establishments of foreign entities and individuals in Argentina or foreign individuals who own rural immovable property.\u00a0 This tax applies, at a 1% rate, should the total assets value exceed AR$200,000 (around US$52,000) at the end of the financial year.\u00a0 Any tax payable hereunder is allowed as a credit towards normal corporate income tax.<\/p>\n<p>c)\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Personal assets tax<\/p>\n<p>The Personal Assets Tax Law provides that all individuals residing in Argentina are subject to a tax upon their worldwide assets, while individuals not residing in Argentina are only liable for this tax upon their assets located in Argentina.\u00a0 In general, the tax on personal assets goes from 0.5% to 1.25% depending on the total value of tax assets as of 31 of December of each relevant fiscal year.\u00a0 A tax rate of 1.25% is applicable to non-resident individuals holding assets subject to this tax.<\/p>\n<p>d)\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Transfer of immovable property tax<\/p>\n<p>A federal tax upon the transfer of immovable property (<em>Impuesto a la transferencia de inmuebles,\u00a0<\/em>\u201cTT\u201d) is applicable to individuals who transfer real property if certain requirements are met.\u00a0 The current rate is 1.5% of the transfer value of the property.<\/p>\n<p>e)\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Stamp tax<\/p>\n<p>Stamp tax is a provincial tax levied on public or private instruments executed in Argentina, or, if executed abroad, when negotiated assets are in Argentina or have effects in Argentina.\u00a0 In general, this tax is calculated on the economic value of the agreement and the parties who executed the document (and the notary public if applicable) are severally and jointly liable for its payment.<\/p>\n<div>\n<p>9.2\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 When is the transfer tax paid?<\/p>\n<\/div>\n<p>TT becomes due when the immovable property is deemed to be transferred (i.e. the time a preliminary contract is executed and possession is granted, or at the time the public deed of conveyance is executed; whichever occurs first).<\/p>\n<p>Income Tax is payable on a yearly basis for Argentine residents.<\/p>\n<p>Non-residents pay the Income Tax by means of withholding.<\/p>\n<p>Personal Assets Tax and Tax on Presumed Minimum Income are payable on a yearly basis.<\/p>\n<p>Stamp tax must be paid within a number of days as from the date the document is executed (usually 10 or 15 days).<\/p>\n<div>\n<p>9.3\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Are transfers of real estate by individuals subject to income tax?<\/p>\n<\/div>\n<p>Please refer to the answer to question 9.1.<\/p>\n<div>\n<p>9.4\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Are transfers of real estate subject to VAT?\u00a0 How much?\u00a0 Who is liable?\u00a0 Are there any exemptions?<\/p>\n<\/div>\n<p>VAT is applicable only to certain immovable property transactions, such as sales of new buildings and sales of refurbished buildings.\u00a0 In the case of sales of new buildings, VAT is payable (10.5% for residential buildings and 21% for other buildings) upon that proportion of the price which relates to the new building, and in the case of refurbished buildings, on the proportion of the sale price which relates to the refurbished parts of the building.<\/p>\n<div>\n<p>9.5\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 What other tax or taxes (if any) are payable by the seller on the disposal of a property?<\/p>\n<\/div>\n<p>Please refer to the answer to question 9.1.<\/p>\n<div>\n<p>9.6\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Is taxation different if ownership of a company (or other entity) owning real estate is transferred?<\/p>\n<\/div>\n<p>Yes.\u00a0 The sale of shares of an Argentine corporation by a non-Argentine resident is exempt from Argentine income tax.\u00a0 In contrast to this, in principle, an assets sale performed by an Argentine resident company would be subject to Argentine income tax at a rate of 35% on the difference between the sale price and the residual tax value of the asset. \u00a0During 2012, the Government disclosed its willingness to modify this regime and provide some form of taxation to stock transfers but, as of today, no amendment to the existing regime has been passed.<\/p>\n<\/div>\n<\/li>\n<li>\n<div>10\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <strong>Leases of Business Premises<\/strong><\/div>\n<div>\n<div>\n<p>10.1\u00a0\u00a0\u00a0\u00a0\u00a0 Please briefly describe the main laws that regulate leases of business premises.<\/p>\n<\/div>\n<p>Leases are governed by the Argentine Civil Code and by the Urban Leases Law (\u201cULL\u201d).\u00a0 Certain law provisions (the bulk of them aimed to protect the lessee) are considered public policy and therefore mandatory for the parties.\u00a0 Lease contracts need only be in writing without requiring notarial deed or any registration, yet.<\/p>\n<div>\n<p>10.2\u00a0\u00a0\u00a0\u00a0\u00a0 What types of business lease exist?<\/p>\n<\/div>\n<p>The types of business leases that exist are urban leases, rural leases and commercial leases, each of which are governed by a different set of rules.<\/p>\n<div>\n<p>10.3\u00a0\u00a0\u00a0\u00a0\u00a0 What are the typical provisions for leases of business premises in Argentina regarding: (a) length of term; (b) rent increases; (c) tenant&#8217;s right to sell or sub-lease; (d) insurance; (e) (i) change of control of the tenant; and (ii) transfer of lease as a result of a corporate restructuring (e.g. merger); and (f) repairs?<\/p>\n<p>a)\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Length of term<\/p>\n<\/div>\n<p>The ULL provides for a minimum term of three years for urban business (commercial) leases.\u00a0 Any lease contract entered into for a shorter term than the legal minimum will be considered as executed for the minimum term irrespective of its actual provisions.\u00a0 Lease agreements are also subject to a maximum term of 10 years.\u00a0 Recent case law has allowed longer terms though. \u00a0A maximum term of 50 years for this type of leases is contemplated in the Bill to Reform the Civil and Commercial Codes (the \u201cBill\u201d). The Bill has not yet been passed but is expected to be approved during 2013.<\/p>\n<p>b)\u00a0\u00a0\u00a0 Rent increases<\/p>\n<p>Parties are free to agree staggered price mechanisms unless this implies some way of indexation (for example, a rent increase by means of a clause taking the inflation index into account would be void).<\/p>\n<p>c)\u00a0\u00a0\u00a0\u00a0 Tenant\u2019s right to sell or sub-lease<\/p>\n<p>A tenant may sub-lease in whole or in part the leased premises unless otherwise agreed.\u00a0 It is customary, though, that an express prohibition to sub-lease is included in the agreement.<\/p>\n<p>d)\u00a0\u00a0\u00a0 Insurance<\/p>\n<p>Usually, parties agree that the tenant must insure the property.<\/p>\n<p>e)\u00a0\u00a0\u00a0\u00a0 (i) \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Change of control of the tenant<\/p>\n<p>There are no mandatory provisions on this matter under applicable law.<\/p>\n<p>e)\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 (ii) \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Transfer of lease as a result of a corporate restructuring (e.g. merger)<\/p>\n<p>There are no mandatory provisions on this matter under applicable law.<\/p>\n<p>f)\u00a0\u00a0\u00a0\u00a0 Repairs<\/p>\n<p>The regulation of this matter is generally left to the parties but the general principle reflected in the Civil Code is that the tenant shall be responsible for carrying out minor repairs and regular maintenance of the leased property.\u00a0 The tenant is also responsible for those repairs arising from the tenant\u2019s fault or wilful acts. \u00a0Any defects in the structure of the property or more serious repair works must be borne by the landlord.<\/p>\n<div>\n<p>10.4\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 What taxes are payable on rent either by the landlord or tenant of a business lease?<\/p>\n<\/div>\n<p>VAT is applicable to rentals of all types of immovable property (other than that used for the lessee\u2019s personal housing), if the rental exceeds AR$1,500 (approximately US$400) per month.\u00a0 However, there are some exemptions and the tax treatment must be analysed on a case-by-case basis.\u00a0 For other taxes, please refer to question 9.1 above.<\/p>\n<div>\n<p>10.5\u00a0\u00a0\u00a0\u00a0\u00a0 In what circumstances are business leases usually terminated (e.g. at expiry, on default, by either party etc.)?\u00a0 Are there any special provisions allowing a tenant to extend or renew the lease or for either party to be compensated by the other for any reason on termination?<\/p>\n<\/div>\n<p>In addition to usual termination clauses (term expiration, default, breach of contract, etc.), termination of the lease is triggered by the total destruction of the leased property.\u00a0 In all cases where the termination is not caused by the fault or wilful misconduct of the parties, such termination will not result in any obligation for compensation, except for the repayment of all sums paid in advance.\u00a0 Notwithstanding the minimum terms indicated in the answer to item (a) of question 10.3, after the first six months of the lease have elapsed, the tenant has a legal right to terminate the lease prior to the expiry of the minimum contractual term.\u00a0 In order to benefit from this right, the tenant must give the landlord notice of its decision to terminate the lease at least 60 days prior to the date on which it intends to vacate the property.\u00a0 Should the tenant exercise this right during the first year of the tenancy, it is also obliged to compensate the landlord in the amount of one and a half month\u2019s rent.\u00a0 This compensatory payment is reduced to one month\u2019s rent after one year of tenancy.<\/p>\n<div>\n<p>10.6\u00a0\u00a0\u00a0\u00a0\u00a0 Does the landlord and\/or the tenant of a business lease cease to be liable for their respective obligations under the lease once they have sold their interest?\u00a0 Can they be responsible after the sale in respect of pre-sale non compliance?<\/p>\n<\/div>\n<p>The fact that title to the freehold property is transferred does not affect the underlying lease; the lease contract remains in full force and effect against the new owner of the property.<\/p>\n<div>\n<p>10.7\u00a0\u00a0\u00a0\u00a0\u00a0 Green leases seek to impose obligations on landlords and tenants designed to promote greater sustainable use of buildings and in the reduction of the &#8220;environmental footprint&#8221; of a building.\u00a0 Please briefly describe any &#8220;green obligations&#8221; commonly found in leases stating whether these are clearly defined, enforceable legal obligations or something not amounting to enforceable legal obligations (for example aspirational objectives).<\/p>\n<\/div>\n<p>Green leases are not common in Argentina.\u00a0 However, parties are free to agree such kinds of obligations.<\/p>\n<\/div>\n<\/li>\n<li>\n<div>11\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<strong> Public Law Permits and Obligations<\/strong><\/div>\n<div>\n<div>\n<p>11.1\u00a0\u00a0\u00a0\u00a0\u00a0 What are the main laws which govern zoning and related matters concerning the use and occupation of land?\u00a0 Please briefly describe them and include environmental laws.<\/p>\n<\/div>\n<p>Urban development in Argentina is basically governed by provincial and municipal zoning regulations and building codes; therefore, they differ in each jurisdiction.<\/p>\n<p>The federal government sets the minimum environmental standards for the protection of the environment, and the provinces and municipalities establish specific standards and implementing regulations.\u00a0 The Argentine Constitution forbids the introduction of hazardous waste into the country.\u00a0 Federal laws relate to various environmental issues such as industrial and waste management and disposal, air, land and water pollution, etc.\u00a0 Provinces have also enacted environmental laws requiring companies to prepare and file environmental impact statements in order to obtain the relevant permits.<\/p>\n<p>Certain provinces such as Buenos Aires and Santa Fe have enacted specific regulations for the so-called \u201clarge commercial areas\u201d which apply to supermarkets, malls, shopping centres and department stores (large retailers).<\/p>\n<p>The right to private property is guaranteed by the Federal Constitution.\u00a0 However, both the federal State and the provinces are empowered to governmental taking (<em>expropiaci\u00f3n<\/em>) providing the following requirements, among others, are met: (i) the Federal Congress (or the provincial legislature as the case may be) must enact a law declaring the public interest triggering the taking; and (ii) prior and due compensation must be paid to the owner.\u00a0 The compensation may be judicially determined should the parties fail to agree on it.\u00a0 In principle, loss of profits is not compensated though case law has loosened this restriction in certain special circumstances.<\/p>\n<div>\n<p>11.2\u00a0\u00a0\u00a0\u00a0\u00a0 Can the state force land owners to sell land to it?\u00a0 If so please briefly describe including price mechanism.<\/p>\n<\/div>\n<p>National and local governments may force a land owner to sell land to it.\u00a0 According to national proceeding, the land should firstly be declared as of \u201cpublic use\u201d.\u00a0 After that, declaration starts an administrative procedure to determine the scope of the compelled sale and to value the property.<\/p>\n<p>If the land owner does not agree with the conclusions of such procedure, the government must fill in a judicial claim to force the sale.\u00a0 The judicial decision will only rule on the price of the land.\u00a0 The price only includes the \u201cobjective price\u201d of the property and direct damages of the expropriation; personal circumstances or lost profits are not taken into account.<\/p>\n<div>\n<p>11.3\u00a0\u00a0\u00a0\u00a0\u00a0 Which bodies control land\/building use and\/or occupation and environmental regulation?\u00a0 How do buyers obtain reliable information on these matters?<\/p>\n<\/div>\n<p>Control of proper zoning, land use, building codes and other restrictions are carried out by provincial and municipal authorities.<\/p>\n<p>Environmental compliance is controlled at the federal, provincial and municipal level.\u00a0 The provinces have recently begun to work actively on these matters.\u00a0 Buyers usually obtain reliable information on environmental matters through due diligence on existing administrative or judicial cases and from any claims initiated before administrative authorities.\u00a0 Further, prospective buyers usually inspect the property on site.<\/p>\n<div>\n<p>11.4\u00a0\u00a0\u00a0\u00a0\u00a0 What main permits or licences are required for building works and\/or the use of real estate?<\/p>\n<\/div>\n<p>It is not possible to provide a complete list of permits and licences required for the use of real estate because there may be as many regulations as the number of Argentine provinces and municipalities.<\/p>\n<div>\n<p>11.5\u00a0\u00a0\u00a0\u00a0\u00a0 Are building\/use permits and licences commonly obtained in Argentina? Can implied permission be obtained in any way (e.g. by long use)?<\/p>\n<\/div>\n<p>Building or use permits are regularly obtained, although it may take some time.\u00a0 The cost of and timing for the issuance of building or use permits have to be analysed on a case-by-case basis.<\/p>\n<div>\n<p>11.6\u00a0\u00a0\u00a0\u00a0\u00a0 What is the appropriate cost of building\/use permits and the time involved in obtaining them?<\/p>\n<\/div>\n<p>Please refer to the answer to question 11.3.<\/p>\n<div>\n<p>11.7\u00a0\u00a0\u00a0\u00a0\u00a0 Are there any regulations on the protection of historic monuments in Argentina? If any, when and how are they likely to affect the transfer of rights in real estate?<\/p>\n<\/div>\n<p>There are national and local regulations on the protection of historic monuments.\u00a0 In general, the declaration of \u201cpublic use\u201d of a particular property only limits its use, but should the conservation of the historic monument be jeopardised, the government may compel the sale.<\/p>\n<div>\n<p>11.8\u00a0\u00a0\u00a0\u00a0\u00a0 How can e.g. a potential buyer obtain reliable information on contamination and pollution of real estate? Is there a public register of contaminated land in Argentina?<\/p>\n<\/div>\n<p>Argentina has no national register on pollution or contamination.<\/p>\n<div>\n<p>11.9\u00a0\u00a0\u00a0\u00a0\u00a0 In what circumstances (if any) is environmental clean up ever mandatory?<\/p>\n<\/div>\n<p>If damage to the environment is determined, clean up (or remediation) will be mandatory.<\/p>\n<div>\n<p>11.10\u00a0\u00a0\u00a0 Please briefly outline any regulatory requirements for the assessment and management of the energy performance of buildings in Argentina.<\/p>\n<\/div>\n<p>The Federal Government has taken some general measures in order to reduce electricity and gas consumption by means of charging higher tariffs when consumption increases are detected.<\/p>\n<\/div>\n<\/li>\n<li>\n<div>12\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <strong>Climate Change<\/strong><\/div>\n<div>\n<div>\n<p>12.1\u00a0\u00a0\u00a0\u00a0\u00a0 Please briefly explain the nature and extent of any regulatory measures for reducing carbon dioxide emissions (including any mandatory emissions trading scheme).<\/p>\n<\/div>\n<p>Argentina is not a party to Annex 1 of the Kyoto Protocol, so there are no mandatory reduction targets applicable to activities held in our country.<\/p>\n<div>\n<p>12.2\u00a0\u00a0\u00a0\u00a0\u00a0 Are there any national greenhouse gas emissions reduction targets?<\/p>\n<\/div>\n<p>Please refer to the answer to question 12.1.<\/p>\n<div>\n<p>12.3\u00a0\u00a0\u00a0\u00a0\u00a0 Are there any other regulatory measures (not already mentioned) which aim to improve the sustainability of both newly constructed and existing buildings?<\/p>\n<\/div>\n<p>No, there are no rules of general application on this matter.<\/p>\n<p>The proven Buenos Aires \u2013 Argentina lawyer professionals at the\u00a0<a title=\"Kier Joffe - Attorneys at Law\" href=\"https:\/\/kierjoffe.com\">Kier Joffe law firm<\/a>\u00a0have experience working with foreign clients involved in all kind of cases\u00a0in Argentina.\u00a0<a title=\"Buenos Aires Lawyer Argentina Attorneys\" href=\"https:\/\/www.kierjoffe.com\/people\/index\">Buenos Aires Argentina attorney<\/a>\u00a0professionals are knowledgeable in almost all the practice areas of law, to service its international cases in Buenos Aires Argentina. International clients will have the confidence of knowing that the case is being handled by an experienced and knowledgeable Buenos Aires \u00a0lawyer in Argentina.<\/p>\n<p><a title=\"Kier Joffe - Attorneys at Law\" href=\"https:\/\/www.kierjoffe.com\/\">www.kierjoffe.com<\/a><\/p>\n<\/div>\n<\/li>\n<\/ol>\n","protected":false},"excerpt":{"rendered":"<p>1 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0Argentina Real Estate Law 1.1\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Please briefly describe the main laws that govern real estate in Argentina.\u00a0 Laws relating to leases of business premises should be listed in response to question 10.1.\u00a0 Those relating to zoning and environmental should be&hellip;<\/p>\n","protected":false},"author":6,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3,4],"tags":[12,7,11,8,9,6,10,18],"class_list":["post-141","post","type-post","status-publish","format-standard","hentry","category-english","category-real-estate","tag-argentina","tag-attorney","tag-buenos-aires","tag-law-firm","tag-law-office","tag-lawyer","tag-legal","tag-real-estate-2"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.2 - 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