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1. Is perpetual fee simple ownership of real property permitted? If not, what are the\u00a0principal forms of ownership, or other principal form of ownership, of real property?<\/p>\n
Yes, perpetual fee simple ownership of real property is permitted.<\/p>\n
2. What instruments are used to convey fee simple ownership, or other principal form of\u00a0ownership, of real estate?<\/p>\n
Although a private contract of sale of a property (“Boleto de Compraventa”) will contain\u00a0valid and binding obligations as between the parties under Argentine law, it will not be\u00a0accepted for registration in the relevant Land Registry (\u201cRegistro de la Propiedad\u00a0Inmueble\u201d), unless the terms of transfer have been included in a deed of conveyance\u00a0\u201cescritura p\u00fablica\u201d executed before a notary public.<\/p>\n
3. How in this jurisdiction is the ownership of real property recorded or searched? Who\u00a0generally performs the search?<\/p>\n
In the City of Buenos Aires the deed of conveyance must be presented for registration at the\u00a0Land Registry within a period of 45 days (40 days in the case of the province of Buenos\u00a0Aires) after its execution before a notary. If it is presented later, it may be subject to any\u00a0charges or encumbrances that have been presented in the meantime. In addition the notary is\u00a0responsible for checking the title deeds to the property and ensuring that there are no charges\u00a0or encumbrances over the property of which the purchaser is unaware. The customary time\u00a0period of ownership that is searched in Argentina is 20 years.<\/p>\n
4. What assurances of ownership are available to purchasers of real property (e.g., title\u00a0insurance or title opinions)? What is the cost of obtaining such assurances?<\/p>\n
There is no title insurance system in Argentina. The Land Registry registers ownership of\u00a0real property, and such registration is effective vis a vis third parties.<\/p>\n
5. What are the most common forms of investment vehicles? What are the most common\u00a0entities employed to own investment real estate in a tax efficient manner?<\/p>\n
An Argentine corporation (sociedad an\u00f3nima), an Argentine limited liability company\u00a0(sociedad de responsabilidad limitada), or an Argentine trust are the most common forms of\u00a0entities used.<\/p>\n
6. Has this jurisdiction adopted, or is it considering, legislation permitting the creation of\u00a0real estate investment trusts or similar entities?<\/p>\n
Although there are specific REIT regulations for publicly offered REITS, they have not been\u00a0used in practice. However, several other Argentine entities may be used to form an entity\u00a0similar to a REIT, such as an Argentine corporation (sociedad an\u00f3nima), an Argentine\u00a0limited liability company (sociedad de responsabilidad limitada), or an Argentine trust.<\/p>\n
7. What state or local transfer, stamp or similar taxes are levied generally on sellers or\u00a0buyers upon the direct transfer of real estate?<\/p>\n
The provincial stamp tax (“Impuesto de sellos”) is a local tax levied on monetary acts,\u00a0contracts or transactions which are evidenced in writing. While each provincial jurisdiction\u00a0and the City of Buenos Aires has its own particular legislation, their provisions are very\u00a0similar.<\/p>\n
In principle, the tax is imposed on contracts executed in the relevant provincial jurisdiction.\u00a0In the case of real estate, if the contract is executed in a different jurisdiction from the\u00a0location of the real estate, in principle tax will be due both in the jurisdiction where the real\u00a0estate is located as well as the jurisdiction of execution of the contract, unless there is\u00a0provision for the avoidance of double taxation in the relevant provincial jurisdiction. Care\u00a0must therefore be taken when dealing with real property to ensure that any contractual\u00a0documentation is executed generally only in the jurisdiction where the property is located.\u00a0In practice, provincial stamp tax is normally borne in equal parts by the parties, however in\u00a0as far as the tax authorities are concerned they may claim the full amount of the tax from any\u00a0of the parties to the transaction.\u00a0The transfer of real property is subject to stamp tax on the higher of the values resulting from\u00a0the value of the property in the deed of acquisition and the fiscal value as established in the\u00a0provincial (in the City of Buenos Aires the municipal) cadastral records. The applicable rate\u00a0in most provincial jurisdictions is 4% and 2,5% in the City of Buenos Aires (usually 1% is\u00a0paid at the time the preliminary sale contract (“Boleto de Compraventa”) is executed and the\u00a0remaining balance is payable upon the execution of the notarial deed of conveyance).<\/p>\n
8. What state or local transfer, stamp or similar taxes are levied generally on sellers or\u00a0buyers upon the transfer of interests in entities which own real estate?<\/p>\n
As stated above, the provincial stamp tax (“Impuesto de sellos”) is a local tax levied on\u00a0monetary acts, contracts or transactions which are evidenced in writing. While each\u00a0provincial jurisdiction and the City of Buenos Aires has its own particular legislation, their\u00a0provisions are very similar in many respects. However, no stamp tax applies to transfers of\u00a0interests in entities which own real estate in the City of Buenos Aires.<\/p>\n
9. How significant is local regulation and taxation of real estate? How significant is the\u00a0variation of real estate law among political subdivisions of this jurisdiction?<\/p>\n
The provincial stamp tax may be applicable. See prior answers for additional information.<\/p>\n
10. Must ultimate beneficial owners of entities which own real estate be disclosed as a\u00a0matter of public record?<\/p>\n
No.<\/p>\n
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