Purchase Process

InvestProperty Group structures investment partnerships that allow the individual investor to forgo the complicated and somewhat troublesome process of purchasing property in Argentina's alluring real estate market. Our experienced network of legal and real estate professionals have forged a path for foreign investors by assuming the responsibilities entailed in procuring Argentine real estate investments. IPG makes it easy.

Although owning property in Argentina is very safe for foreign investors, there are several painstaking steps involved in acquiring a property on your own, and real estate experts caution any individual investor looking for a quick and easy buy. The purchase process in Argentina is very different from anywhere else in the world.

For foreign investors looking to diversify their portfolio and expand into the Argentine real estate sector, the complexity and confusion of investing in an unfamiliar market can be daunting. By partnering with IPG you can avoid the arduous elements of Argentine real estate investment, and share our ultimate goal of reaping the financial rewards of a steadily appreciating market.

IPG opens Argentina's real estate market to individual investors by providing access to institutional quality investment opportunities, the like of which were previously reserved for high net-worth individuals or mammoth corporations.

By investing with us you are investing directly with the real estate developer. IPG's current properties include a luxury hotel in Recoleta, Buenos Aries' most exclusive neighborhood, as well as a world-class boutique winery and 1,800 acre wine & golf estate development in San Rafael, Mendoza; Argentina's very own Napa Valley. These properties are still in development and we are actively pursuing other exciting leads in-and-around these locations for future repositioning, renovation, and development.

In order to discuss or offer you any of our upcoming projects, we must begin our relationship and qualify you as an accredited investor. Please contact us now by following the links provided.

Properties in Argentina are always priced in US dollars (U$D). Since financing is by and large unavailable to foreigners and wire transfers and cashier's checks are almost never accepted, in almost all cases real estate transactions are paid 100% in cash. Getting large amounts of cash into the country can be very expensive. Real estate experts agree that the best way to get cash into the country is through an official money transfer firm registered with Argentina's Central Bank. However the bank will charge a percentage fee to convert the U$D into ARD and then another percentage fee to convert it back again into U$D. The combined fees may average anywhere from 2% to 3%, depending on financial markets at the time of transfer.

The first step in the purchase process is to obtain a CDI number, this is imperative for any nonresident looking to buy property. Your CDI number serves for tax identification purposes and is very much like a US social security number. You can obtain a CDI number from the local police department with passport documentation and other required paperwork, as well as a nominal fee. Once you've applied, an officer will be sent to your temporary address to verify your current accommodations. After verification, you must register with the Argentine tax authority AFIP, which is the equivalent to the US IRS. This involves even more paperwork, and after completion you will be granted your CDI number.

The next step in the process is to find yourself a trustworthy and knowledgeable real estate agent. Contrary to the US purchase process, Argentina charges a buyer's commission of 3% to 4%, and in some of the more exclusive neighborhoods may even go up as high as 5%. This fee will be added to the realtor's own VAT tax fee, which is charged for their professional services.

Once you've decided on a property, you must make a deposit, or "reserva", to indicate the legitimacy of your offer. The reserva typically ranges between 1,000 to 10,000 U$D, depending on the property's value, and will be held in escrow while the seller considers your offer.

If the offer is accepted, the buyer must then put down a "boleto", or down payment. The boleto is typically 30% of the property's agreed-on value. If the buyer ends up backing out for any reason, the boleto is forfeited to the owner. However, if the owner were to back out, the penalty is also 30% of the property's value, so that the buyer would get back his (or her) initial boleto plus an additional equal amount from the owner. All realtor fees are due at the time of the boleto, and then a final date for the "escritura", or final deed transfer, is set.

Once again, all real estate transactions are made over the table in 100% cash. Lawyer and legal fees are also due at the time of the escritura. Real estate experts very strongly stress that a trustworthy lawyer, or "notary public", who speaks fluent English (for those foreigners who don't speak fluent Spanish) be found. This may be the most important step in the purchase process. A good notary public typically charges between 2.5% to 3% of the purchase price.