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

Complete Guide to Property Selling Costs in Buenos Aires

Understanding taxes, fees, and net proceeds for property sellers

Selling property in Buenos Aires, Capital Federal, involves several costs and tax considerations that can significantly impact your net proceeds. Whether you’re a foreign investor or local owner, understanding these expenses is essential for accurate financial planning. This comprehensive guide covers all costs associated with selling property in Buenos Aires.

Overview: What to Expect

When selling property in Buenos Aires, total costs typically range from 5% to 8% of the sale price, depending on your residency status, holding period, and capital gains. The main cost components are agent commissions, capital gains tax, and legal fees.

Primary Selling Costs

3-4% Real Estate Agent Commission

The seller typically pays the real estate agent’s commission, which ranges from 3% to 4% of the final sale price. This is the most significant cost when selling property.

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

What’s included:

Property marketing and advertising
Property showings and open houses
Buyer screening and qualification
Negotiation assistance
Transaction coordination

Note: Commission rates are negotiable and may vary based on property value and market conditions.

1-1.5% Legal Fees (Escribano)

The escribano (notary public) handles the legal aspects of the sale. While the buyer typically pays most legal fees, sellers may have additional legal costs for document preparation and verification.

Example: For a USD 200,000 property, seller’s legal fees might be USD 2,000-3,000.

Seller’s legal responsibilities:

Providing clear title documentation
Clearing any liens or debts on the property
Certificate of debts (Certificado de Libre Deuda)
Building debt clearance certificate (if applicable)
Municipal tax clearance

Tax Considerations

⚠️ Capital Gains Tax: Critical Information

Capital gains tax is one of the most important considerations when selling property in Buenos Aires, and rates vary significantly based on your residency status and holding period.

Variable Capital Gains Tax (Impuesto a las Ganancias)

Capital gains tax applies to the profit from selling your property. The rate and calculation method depend on several factors:

For Argentine Residents:

Tax Rate: 15% on capital gains

Calculation: Sale price minus purchase price (adjusted for inflation using official INDEC indices) minus selling costs.

Exemptions:

Primary residence sales are exempt from capital gains tax if you’ve owned and occupied the property for at least 12 months
You can only claim the primary residence exemption once every two years

For Non-Residents (Foreign Sellers):

Tax Rate: 15% on gross sale price (not just the gain)

Critical Difference: Non-residents are taxed on the entire sale amount, not just the profit, unless they can demonstrate residency status or meet specific requirements.

Example: For a USD 200,000 sale, a non-resident could pay USD 30,000 (15% of USD 200,000), while a resident might pay USD 7,500 (15% of a USD 50,000 gain).

Reducing Non-Resident Tax Burden

Foreign sellers can reduce their tax liability by:

Demonstrating “temporary residency” status in Argentina
Providing documentation of the original purchase price
Working with an accountant to claim allowable deductions
Structuring the sale through an Argentine entity (in some cases)

Important: This requires careful tax planning and professional guidance. Urri Narvaja Real Estate works with experienced tax advisors to help minimize your tax burden legally.

1.5% ITI Tax (Impuesto a la Transferencia de Inmuebles)

This is a municipal transfer tax in Ciudad Autónoma de Buenos Aires (CABA), paid by the seller.

Rate: 1.5% of the higher value between the sale price or the fiscal valuation

Example: For a USD 200,000 property, ITI would be USD 3,000.

Note: This tax is specific to Capital Federal and doesn’t apply in Buenos Aires Province.

Additional Costs and Considerations

Certificate of Debts (Certificados)

Sellers must obtain several certificates proving the property is free of debts:

Building Debt Certificate: USD 50-150
Municipal Tax Certificate: USD 30-100
Utility Bills Clearance: Current bills must be paid

Total estimated cost: USD 100-300

Outstanding Expenses (Expensas)

All building expenses must be paid up to date before closing. If you’re behind on expensas, these will be deducted from your sale proceeds.

Property Improvements for Sale

While not mandatory, many sellers invest in property improvements to maximize sale price:

Professional cleaning: USD 100-300
Minor repairs and touch-ups: USD 500-2,000
Professional photography: USD 150-300
Staging (optional): USD 500-2,000

Example: Net Proceeds Calculation

Scenario 1: Argentine Resident

Sale Price: USD 200,000

Purchase Price (2 years ago): USD 150,000 (adjusted for inflation: USD 160,000)

Item	Cost (USD)
Sale Price	200,000
Agent Commission (4%)	-8,000
ITI Tax (1.5%)	-3,000
Legal Fees	-2,500
Capital Gains (15% of USD 40k gain)	-6,000
Certificates & Misc.	-500
NET PROCEEDS	180,000

Total Costs: USD 20,000 (10% of sale price)

Scenario 2: Foreign Non-Resident Seller

Sale Price: USD 200,000

Purchase Price (2 years ago): USD 150,000

Item	Cost (USD)
Sale Price	200,000
Agent Commission (4%)	-8,000
ITI Tax (1.5%)	-3,000
Legal Fees	-2,500
Capital Gains (15% of gross sale)	-30,000
Certificates & Misc.	-500
NET PROCEEDS	156,000

Total Costs: USD 44,000 (22% of sale price) – significantly higher than residents!

Strategies to Maximize Net Proceeds

            For Foreign Sellers: Tax Optimization
            Obtain Temporary Residency: Even temporary residency status can significantly reduce your tax burden
Document Everything: Keep all records of purchase price, improvements, and holding costs
Work with Tax Specialists: Professional tax planning can save tens of thousands of dollars
Consider Timing: Tax regulations change; timing your sale strategically can impact your obligations
Structure Through Entities: In some cases, selling through an Argentine company can reduce taxes

        

Negotiate Commission Rates

While 4% is standard, commission rates are negotiable, especially for higher-value properties or motivated sellers. However, remember that quality marketing and representation often justify the investment.

Timing Your Sale

Market conditions in Buenos Aires can significantly impact both sale price and time on market. Working with experienced agents who understand market cycles can help you maximize proceeds.

Why Work with Urri Narvaja Real Estate?

Selling property in Buenos Aires, especially as a foreign owner, requires expert guidance to navigate complex tax regulations and maximize your net proceeds. At Urri Narvaja Real Estate, we provide:

Tax Planning Expertise: We connect you with specialized tax advisors to minimize your tax burden legally
Residency Guidance: We help you understand how residency status affects your sale and can guide you through the residency process if beneficial
Complete Documentation Support: We ensure all certificates and clearances are obtained efficiently
Strategic Pricing: Market analysis to price your property competitively while maximizing proceeds
Professional Marketing: High-quality marketing to attract serious buyers quickly
Negotiation Expertise: Skilled negotiation to get you the best possible price
End-to-End Management: We handle every aspect of the sale from listing to closing
International Experience: Deep understanding of foreign seller needs and concerns

Ready to Sell Your Buenos Aires Property?

Our experienced team will guide you through every step of the selling process, ensuring you understand all costs and maximize your net proceeds. Let’s discuss your property sale strategy.