How to Buy Property in Buenos Aires as a Foreign Investor

What it is: CDI (Clave de Identificación) is Argentina’s tax identification number, required for all property transactions. Foreign buyers need a CDI before they can purchase real estate.

Process: You can apply at any AFIP (Argentina’s tax authority) office in Buenos Aires, or an Argentine consulate in your home country. If applying in Argentina, you may need to make an appointment online first.

What happens: This is where you define your investment criteria, view properties, and select the right opportunity. Duration varies based on how specific your requirements are and market availability.

Key activities:

• Define your investment goals (rental income, appreciation, personal use)
• Set your budget (including transaction costs)
• Choose target neighborhoods
• Schedule property viewings
• Review property documentation and building information
• Analyze rental potential and ROI projections

Questions to ask during viewings:

• What are the monthly building expenses (expensas)?
• Are there any upcoming major building renovations or special assessments?
• What’s included in the sale (appliances, furniture, fixtures)?
• How long has the property been on the market?
• Is the seller motivated? Any reason for selling?
• What’s the building’s policy on rentals (especially short-term)?

What happens: Before making an offer, conduct thorough due diligence to verify the property’s legal status and physical condition. This critical step protects you from future problems.

Legal due diligence (performed by escribano):

• Title search: Verify clean title and rightful ownership
• Lien check: Ensure no outstanding debts or mortgages
• Building debt verification: Confirm no unpaid building expenses
• Tax clearance: Check property taxes (ABL) are current
• Zoning verification: Confirm permitted uses
• Legal proceedings check: Ensure no pending lawsuits

Physical inspection (performed by professional inspector):

• Structural integrity assessment
• Plumbing and electrical systems evaluation
• Roof, walls, and foundation condition
• Humidity/water damage detection
• Window and door condition
• Identification of needed repairs and estimated costs

What happens: Once due diligence confirms the property is sound, make a formal purchase offer. In Argentina, offers are typically made through your real estate agent who presents it to the seller’s agent.

Offer considerations:

• Market value: Use comparable sales data to determine fair price
• Property condition: Adjust offer based on needed repairs
• Motivation: Understand seller’s urgency and flexibility
• Terms: Consider payment timeline, included items, closing date

What happens next:

• Seller reviews offer (usually 24-48 hours)
• Seller accepts, counters, or rejects
• If counter-offered, you can accept, counter again, or walk away
• Once terms agreed, move to reservation agreement

What it is: The “Boleto de Reserva” is a binding reservation agreement that takes the property off the market and commits both parties to the sale. This is the first formal contract.

What’s included:

• Property details and agreed purchase price
• Reservation deposit amount (typically 5-10% of purchase price)
• Timeline for signing the final deed (escritura)
• Conditions and contingencies
• Penalty clauses for contract breach

Timeline established: The reservation agreement specifies when the final deed signing will occur, usually 30-45 days from reservation. This gives time to prepare final documentation and arrange payment.

What is an escribano: In Argentina, the escribano is a specialized attorney who acts as a neutral third party, ensuring the legal validity of the transaction. They’re essential—no property transfer is valid without an escribano.

The escribano’s role:

• Verify seller’s ownership and authority to sell
• Conduct comprehensive title search (verificación de dominio)
• Check for liens, mortgages, and encumbrances
• Verify all property taxes are current
• Verify building expenses are paid
• Draft the purchase deed (escritura de compraventa)
• Coordinate the signing ceremony
• Register the property in your name at the Property Registry
• Obtain and deliver your property title

What your escribano will request from you:

• Passport and CDI number
• Proof of funds/payment source
• Power of attorney (if not signing in person)
• Marital status documentation (if applicable)

Payment methods in Argentina: Property transactions in Buenos Aires are typically conducted in US dollars. You have several options for payment:

1. Cash Dollars (Most Common)

• Wire transfer USD to your Argentine bank account
• Withdraw physical USD cash (banks require advance notice for large amounts)
• Present cash at closing in a secure briefcase
• Pros: Preferred by sellers, no delays, no conversion issues
• Cons: Security concerns with large amounts, logistics

2. Bank Transfer

• Direct USD wire transfer between bank accounts
• Requires both parties to have Argentine USD accounts
• Pros: Secure, traceable, no cash handling
• Cons: Some sellers prefer cash, may face transfer restrictions

3. International Wire Transfer

• Transfer USD directly from foreign bank to seller’s account
• Pros: No need to bring money into Argentina first
• Cons: Subject to Argentine banking regulations and potential delays

The big day: This is the formal closing where ownership officially transfers. The signing takes place at the escribano’s office with all parties present (or represented by power of attorney).

Who attends:

• Buyer (you) or your legal representative
• Seller
• Both escribanos (buyer’s and seller’s if different)
• Real estate agents (optional but common)

What happens:

1. Final review (15-30 min): Escribano reviews all documentation, confirms everything is in order
2. Deed reading (20-40 min): Escribano reads the entire escritura aloud—this is legally required in Argentina
3. Payment exchange (10-30 min): You transfer/deliver funds to the seller. If cash, bills are counted in presence of all parties
4. Signing (10 min): All parties sign the deed. Your escribano witnesses and stamps the document
5. Key handover: You receive the property keys—congratulations, you’re now a property owner in Buenos Aires!

Costs paid at closing:

• Remaining purchase price (after reservation deposit)
• Transfer tax (3.25% in Capital Federal)
• Escribano fees (1-2%)
• Real estate commission (if not paid separately)
• Registry fees

What happens: After signing, your escribano submits the deed to Buenos Aires’ Property Registry (Registro de la Propiedad Inmueble) for official recording. This makes your ownership publicly recorded and legally complete.

Registration process:

• Escribano submits signed deed and supporting documents to Registry
• Registry reviews and verifies all documentation
• Registry records the transfer in official books
• Registry issues registered title deed (título de propiedad)
• Escribano retrieves and delivers your title to you

During this waiting period:

• You already have possession and keys to the property
• You’re the legal owner (the signed escritura proves this)
• Registration is an administrative formality for public record
• You can move in, renovate, or start renting the property

Final steps to complete your investment: With ownership secured, you need to set up utilities, services, and ongoing management.

Essential tasks:

• Transfer utilities to your name: Electricity, gas, water, internet
• Set up building payments: Arrange automatic payment of monthly expensas
• Property insurance: Obtain coverage for fire, theft, liability (recommended)
• Property tax registration: Ensure ABL (property tax) bills come to you
• Security: Change locks and security codes

If renting the property:

• Decide: short-term (Airbnb) or long-term rental
• Hire property management company (if managing remotely)
• Furnish and stage the property
• Create rental listings with professional photos
• Screen tenants thoroughly
• Draft rental contracts (required by law)