Foreign investments in Argentina aNY QUESTIONS EMAIL ME, ENJOY.bOB fRASSINETTI
It is worldwide known by now that Argentina devaluated it's over rated peso during the first months of 2002, after one of the worst political and economical crisis in it's late history. Most foreign businessmen still have the picture of an extremely expensive country in which to invest their hard earned money. The 90s were the days of the one to one, peso and dollar were worth the same, at least for the over 27 million Argentineans. Those were the days of travelling abroad and importing almost everything, from computers to toilet paper. But the 90s are part of our past now. Today the peso rates 3 to 1 Dollar and 4 to 1 Euro, traveling abroad is an expensive alternative, and touring throughout this gorgeous country has become more and more appealing to locals as well as foreigners who very much appreciate the exchange rates. Moreover, it has become appealing to invest in Argentina thanks to the new political decision of treating foreign companies the same way -in legal terms- as the local ones. The local government through this policy aims to encourage foreign capitals to invest productively in Argentina in long term projects. Through means of the Decrete from the executive power, number 1853/93, the law 21.382 states that there won't be any special requirement for foreign companies to invest in Argentina, at the same time they'll be entitled to relocate their liquid and productive profits at any desired time. The simplicity of the procedures as well as the reduced requirements and paperwork make these sort of investments even more appealing in the expansionist economic process Argentina is going through. In order to carry on a productive project in Argentina, the foreign investor or investors' group would have to contact the local authorities regarding the basic documentation and requirements in order to start off. In this way it's highly recommended to work with a bilingual staff to carry on with all the legal and social requirements and in this way avoid any misunderstanding. Even more it has become very common to carry on joint ventures or mix companies with local contacts that can work on the follow up on the spot without any restrictions of language, time or space.
These mix companies or projects that we're talking about are specially important and interesting for it has appeared to be clear that there are many locals with outstanding projects and ideas, and many other people who happen to live abroad and are willing to invest in potentially good projects. That combination has proven to be brilliant. The particular case of Alan Faena a local designer and bright mind joint the outstanding Philippe Starck to bring back into life an old -nonetheless gorgeous early 1900s building and transform it into the El Porteño hotel and condominium located in one of Buenos Aires most preferential areas: Madero Docks. This is just a mere example of the combination of the local and foreign brightness and ability to foresee a fantastic future.
Argentina has a tourist and cultural potential that hasn't yet been developed to it's highest exponent. The possibilities within this market are immense, and the fact that the country has now reached an economical and social stability result in a prosperous and propitious investment moment.
My name is Alex Vandool, and my family and I are thinking of buying a small hotel in Buenos Aires or on the coast near Mar de Plata.
I am an Irish citizen.
Could you tell me what the main difficulties I will have to overcome with respect to visas, transfer of hotel license, taxation and setting up as an employer, et cetera.
I have been given conflicting information on a number of these subjects from different sources, including the argentinian embassies in London and Dublin, and am trying to establish a definitive viewpoint before continuing with my investment.
Hello Alex, As far as I know, no Visas ...... as to where or what you buy, its best first to do a research on what kind of propierteis are best and where, have you done this? LMK if I can help. Bob Frassinetti
Without a doubt, putting your money into bricks is indeed one of the best possibilities of profiting from savings without great inconveniences. Usually the counterpart to this “safe” investment is the low return and a clear roof to the profiting. However, in the case of investing in Argentina this is not the case. The 2001-2002 crack, and the subsequent drop of the local currency (Argentine Peso) to four and then stabilizing in three pesos to one dollar, opened a fantastic real estate market with fast returns and a high growth rate. One of the best ways to picture this momentum are official index numbers issued by the Argentine statistics Institute (INDEC) expressing that during these first years, the costs for construction have been 32% beneath the historical average. Then 2003 showed that same tendency within the real estate market (both for new and old properties). The options have broaden even more, in terms of “bricks investments” if we include in this picture properties owned by banks pursuant to a foreclosure. The prospects are indeed interesting and encouraging. Nonetheless, all bright side has a counterpart that should be considered in order to take the best out of each and every option. This way, after considering pros and cons, the decision making process will be much more productive and the trend of the investment quite more foreseeable. As follows we’ll explore each of the options and highlight the essential aspects to be carefully considered when looking for a real estate investment in Argentina. The language barrier is one of the very first inconveniences you might bump into. In spite of the fact that a great portion of Argentineans understand English, an important percentage of them speak what it’s know as Spanglish (a mix of English and Spanish) that can be helpful and suitable for directions and general information, but it’s not enough for business transactions. Don’t hesitate to work with bilingual experts, it may seem a bit more expensive at the beginning, but it’ll sure pay off in the end.
Purchasing properties already built in Buenos Aires has true advantages at this point for their market price has not yet recovered completely and the square meter cost in dollars is –in the most sophisticated areas of the city of Tango- very competitive, if we compare it with the areas historical average or internationally to similar locations world wide. For we’re still operating in a recovering market the possibilities of negotiating a fare price is a true possibility. It’s important that if you decide in advance what kind of investment are you aiming for, whether it’s commercial (restaurant, hotel, etc), industrial, cultural (museum, show room) or residential (for housing or renting, recycling and selling at a better price when the market fully recovers). The reason is that not all areas in Buenos Aires are suitable for all of these purposes. Keeping a sharp eye it’s very important with brokers, request for certified documentation that states the availability of the area in which you are to buy the property. These can be checked in public offices. And to the minimum language barrier (similar terms or indications that aren’t clear to your understanding) check with bilingual brokers and public translators. It’s very important that the property you are into buying is –previously to the transaction- checked by architects, electricians, etc, some times dream renovation houses have root problems that are not evident or specified and when the purchase is done there’s no going back. Check with specialists, also the fact that the property is not indebted for tax payment or that it has any kind of mortgage over it.
Buying a property for profitable investments in Argentina is indeed an option, though not something to do lightheaded. For its necessary some field work, research, capital flow, good contacts, detailed information. I’ll be posting more information on the matter, nonetheless feel free to email me on any particular question or matter.
According to the London paper The Sunday Times "Buenos Aires offers some of the finest properties in the world". Following that line of thought is an article published by Austrialian Magazine International Living, who ranked BA 10th in their best quality of life cities -the survey took into account 193 cities around the globe-.
Originally posted by frassinetti: According to the London paper The Sunday Times "Buenos Aires offers some of the finest properties in the world". Following that line of thought is an article published by Austrialian Magazine International Living, who ranked BA 10th in their best quality of life cities -the survey took into account 193 cities around the globe-.
Bob Frassinetti
OKAY, OKAY, OKAY - you've convinced me you know your onions. We should probably talk. Feel like a little co-operation?
Originally posted by frassinetti: According to the London paper The Sunday Times "Buenos Aires offers some of the finest properties in the world". Following that line of thought is an article published by Austrialian Magazine International Living, who ranked BA 10th in their best quality of life cities -the survey took into account 193 cities around the globe-.
Bob Frassinetti
Took me about 15 seconds to find who I suspect is the Bob I am now attempting to communicate with. Forgive me Bob I am a phillistine - now little or nothing about your field and probably it's safer I keep it that way. I assume the tours and the art is the same Bob? If you don't wish to communicate personally - I'll respect that and not bother you. Just let me know through this means if you wish to be contacted or not.
Hello and Hi Vonriesa, Yes, I am a licensed agent, form way back in the early 80’s, today I work more as a consultant for foreign private investors, giving my personal experience as an opinion, I‘m updated regularly on any changes and new ideas and I have been seeing the whole country growing since our last 2001 crisis, even the locales are all running to invest in “bricks or land”. Prices are way behind international and so I’m seeing a bright future with all the knowledge that we still will have our ups and downs…..feel free to ask any questions in English or for any tips and advice and suggestions as well……. I also deal in Art and Antiques, and anything related to foreign investment of any kind as long as legal here in the south of South America, Best wishes from this side of the lake, and I hope I'm not shy!
