Complete Guide to Property Buying Costs in Buenos Aires | Urri Narvaja

Complete Guide to Property Buying Costs in Buenos Aires

Understanding every expense for foreign investors

Purchasing property in Buenos Aires, Capital Federal, involves more than just the property price. As a foreign investor, understanding all associated costs is crucial for accurate budgeting and successful investment. This comprehensive guide breaks down every expense you’ll encounter when buying property in Buenos Aires.

Total Investment Overview

When budgeting for a property purchase in Buenos Aires, plan for approximately 8-10% additional costs on top of the property price. For a USD 200,000 property, expect total costs between USD 216,000 and USD 220,000.

Breakdown of Buying Costs

3.25% Transfer Tax (Impuesto de Sellos)

This is the primary tax on property transfers in Capital Federal. The rate is 3.25% of the declared property value (typically the sale price).

Example: For a USD 200,000 property, the transfer tax would be USD 6,500.

Note: This tax is usually paid by the buyer, though it can be negotiated.

3-4% Real Estate Agent Commission

Real estate commissions in Buenos Aires typically range from 3% to 4% of the purchase price. This fee is negotiable and covers the agent’s services in finding the property, negotiating, and managing the transaction.

Example: For a USD 200,000 property at 4%, the commission would be USD 8,000.

Important: In some cases, the commission is split between buyer and seller, or paid entirely by one party. At Urri Narvaja, we provide full transparency on commission structures.

1-2% Legal Fees (Escribano)

The “escribano” (notary public) is essential in Argentina’s property transactions. They verify legal documents, ensure clean title, draft the purchase deed, and register the property. Legal fees typically range from 1% to 2% of the property value.

Example: For a USD 200,000 property at 1.5%, legal fees would be USD 3,000.

What the escribano does:

Conducts title searches and verifies property ownership
Checks for liens, debts, or legal issues
Prepares and signs the purchase deed (escritura)
Registers the property in your name at the Property Registry
Ensures all taxes and fees are properly paid

Variable Property Registry Fees

These are administrative fees for registering the property transfer. Costs vary but typically range from USD 200 to USD 500 depending on the property value and complexity.

Variable Property Survey and Inspection

A professional property inspection is highly recommended, especially for older buildings. Costs typically range from USD 300 to USD 800.

What’s included:

Structural assessment
Electrical and plumbing systems evaluation
Identification of potential issues or repairs needed
Verification of property boundaries and measurements

Additional Considerations

Currency Exchange Considerations

Property transactions in Buenos Aires are typically conducted in USD, but some fees and taxes may need to be paid in Argentine pesos. Exchange rate fluctuations can impact your total costs.

Tip: Work with a real estate partner who understands currency exchange dynamics and can guide you through optimal timing for conversions.

Utilities Transfer and Setup

When purchasing a property, you’ll need to transfer utilities (electricity, gas, water, internet) to your name. Budget approximately USD 200-400 for connection fees and deposits.

Ongoing Monthly Costs (Expensas)

While not a purchasing cost, it’s important to budget for monthly building expenses (expensas), which can range from USD 50 to USD 300+ per month depending on the building’s amenities and services.

For Foreign Investors: CDI Registration

As a foreign investor, you’ll need a CDI (tax identification number) to purchase property in Argentina. This process typically costs USD 100-200 and takes 1-2 weeks.

What you need:

Valid passport
Proof of foreign address
Declaration of the reason for requesting the CDI

At Urri Narvaja, we handle this process for our clients as part of our end-to-end service.

Example: Total Costs Breakdown

For a USD 200,000 property in Capital Federal:

Item	Cost (USD)
Property Price	200,000
Transfer Tax (3.25%)	6,500
Agent Commission (4%)	8,000
Legal Fees (1.5%)	3,000
Registry Fees	400
Property Inspection	500
Utilities Setup	300
TOTAL INVESTMENT	218,700

Why Work with Urri Narvaja Real Estate?

Navigating property purchases in Buenos Aires as a foreign investor can be complex. At Urri Narvaja Real Estate, we provide end-to-end support throughout your investment journey:

Complete Cost Transparency: We provide detailed breakdowns of all costs before you commit
Legal Support: We work with trusted escribanos and coordinate all legal requirements
CDI Processing: We handle your tax ID registration and documentation
Currency Guidance: Expert advice on timing and methods for currency exchange
Post-Purchase Support: Assistance with utilities, property management, and ongoing needs
Family Business Approach: Personalized attention from our experienced team

Ready to Invest in Buenos Aires?

Let our experienced team guide you through every step of your property purchase. We’ll ensure you understand all costs and make informed investment decisions.