Real Estate Buenos Aires
PROPERTY TRANSACTIONS
The implementation of real estate value of reference (VIR according to its abbreviation in Spanish).
It is a modification of the Fiscal Code of the City of Buenos Aires under Resolution 67/2010, CABA which sets a real estate value of reference for every act, contract or transactions that are taxable with the tax of stamps and to be performed by a notary . This update was implemented according to what was published in ten neighborhoods, and will soon cover the rest. The Government Administration of Public Revenue (AGIP according to its abbreviation in Spanish) will annually update the values.
This is a new obstacle that when purchasing a property it is added to higher costs when evaluating the investment and act in reverse to the intended effect that is clearly collecting money.
Let’s take an example; if a unit is sold at a price of $ 480,000, at the time of giving the deed of sale, we enter in the page of AGIP for them to report the VIR. To do this you enter the appropriation number of the property in question, which may arise not available (in the case that in that neighborhood is not in force VIR yet) or reports that the VIR is $ 400,000, in which the stamp tax (2.5%) is paid over $ 480,000, which is the price of the transaction and it is the higher value. It adds that the AGIP can inform that the VIR of such property is $ 520,000, i.e higher than the operation, in which case the stamp tax is paid on the latter value, because it is the highest to consider.This consult is valid for 10 working days, period in which the deed can be given, and if the same one is put back for any reason, you must reapply for VIR. There are also certain amounts of the buying-selling deed which are also calculated on this higher value. In the deed it shall be recorded the amount of the VIR or not available (because the neighborhood has no current resolution).
