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he exact location is in Ongamira, 30

km from Capilla del Monte, 60 km


from Jesus Maria, north of the city of
Cordoba, in a center of the country.
is one hour an a half from the
international airport.

For the moment we are using the


property as a family holiday place
there are 3 people working in it.
I live in Buenos Aires.

Argentina is a vibrant and diverse country;


the second largest country in South America and
the eighth largest in the world. The capital
city, Buenos Aires, is one of the most cosmopolitan
and friendly cities you will come across, with
a fantastic selection of restaurants and bars, all of
which are exceptionally good value for money.
Elsewhere there are the increasingly popular wine
producing regions, world class ski resorts,
exclusive golf and country clubs,
Patagonia’s breathtaking lake-district and the awe
inspiring
glaciers at the Southern tip of the continent.
Most Argentines are of European origin, and
despite foreign tourist numbers greatly increasing, it
is the
Argentines themselves that are driving the
local property and tourism boom, with many buying
second homes in country and polo clubs or
making weekend trips to the ski resorts and
beaches.
The quality of life in Argentina is incredibly high.
Argentina also benefits from rich natural
resources, a highly literate population, an export-
oriented
agricultural sector and a diversified industrial base.
AT the quality of life in Argentina is incredibly
high. Argentina also benefits from rich natural
resources,
a highly literate population, an export-
oriented agricultural sector and a diversified
industrial base.
ltural sector and a diversified industrial base.
Argentina is particularly interesting as the growth
and demand for real estate has
stemmed mostly from the local population, despite
large increases in foreign tourism and investment.
In addition, this growth is occurring without any
bank financing which indicates that the foundations
for the
expected real estate boom are solid and genuine
and not based on foreign, highly leveraged
speculation.
An important influence on the property market,
is that the country has a large percentage of
wealthy
people, who cannot only afford to buy property, but
they can also afford to pay decent amounts
of money to stay in good hotels and
resorts throughout the country. They are also
increasingly
keen to own a second home or weekend retreat.
This means that the rental market for resort
or country retreats is already very strong. Increased
demand from foreigners is an additional bonus.
Argentina has a wide variety of assets that appeal to
tourists from all countries, near and
far. Attractions from unspoilt scenery and
nature reserves to rich and diverse urban centres
have
made Argentina the second most popular tourist
destination in South America, behind Brazil.
The Economist reports that it is one of the
few nations in South America which has not been
adversely affected by the weakened currency of the
USA. Argentinean tourism is a sector
which is best-placed to take advantage of this
competitive currency that it now holds.
They also claim that the number of foreign visitors to
the country has been on the increase year
on year, plus more and more Argentineans
are deciding to holiday within their own country.
This
has increased revenue from foreign tourism to
$3.3 billion in 2006 a dramatic increase of 21% over
2005.
The country received 4.3 million visitors in
2006. The future looks rosy with more and more
tourists
from Europe expected to visit as they take
advantage of the strong exchange rate and with
China officially
placing Argentina on it’s list of countries its’
people are allowed to visit - with the sheer pace of
China’s
growth this could be highly beneficial to the country.
Tourism Facts and figures:
In 2004 investment in hotels reached
US$685 million.
The tourism sector is responsible for 1.6 million jobs
and makes up 7.4% of the economy.
The aviation industry plan to invest US$350 million
to upgrade all major airports.
Over 4.2 million people visited Argentina in 2006, a
50% rise since 2002.

Córdoba is the provincial capital city, and


the second biggest in Argentina. It is also the most
important region in central Argentina. The area is a
popular tourist destination steeped in history and
surrounded by impressive landscapes, Córdoba has
attractive and surprising places for the visitor,
plus it is only one hour’s flight from Buenos Aires.
Córdoba is called La Docta due to the fact that there
are important universities here and also “Ciudad
de las Campanas” (The City of the Bells)
because both Franciscans and Dominicans built up
many
churches. There is a exciting blend of
colonial architecture and modern buildings in
addition to
charming green areas such as Parque Sarmiento,
which was designed at the end of the XIX Century.
Córdoba is also an important industrial centre where
there is a strong production in the
metallurgical branch including the military factory of
planes and Renault and Fiat factories.
Only a few kilometres away from Córdoba
City, tourists can go on quad excursions,
mountain bike rides or practice paragliding in one of
the most beautiful regions of
Argentina. It’s a city to be fully enjoyed.
Local area
The Ongamira Valley is dominated by
‘Mont Charalqueta’ or Colchequin as it is known
today.
This land was inhabited by a group of
Nomadic Aborigines that belonged to the
“Ayampitin” culture.
From within the park the Pajarillo, Aspero
and Colchiquin mountains may be observed.
Alongside
the Los Terrones which are sandy, reddish-colour
hills that have unusual forms, magnificently shaped
by the winds and the erosion produced by the rain.
Jesuitical Farms
The Santa Catalina Convent and “The
Huts”: founded in 1622 and declared “Cultural
Heritage
of Humanity” by UNESCO, is the largest among the
group of the “Society of Jesus” Farms as well as
the most picturesque. It comprises a church with an
imposing baroque façade of central European
influence, the three-yard residence, the huts,
the dam and the cemetery. There are many other
such
interesting and beautiful farms in the region.
Ischillin
Ischillin is an 18th century dreamy village where
our Lady of the Rosary Church can be seen; one of
the
most beautiful architectural pieces of work of
the colonial times of Argentina
Stamp Duty
Stamp Duty is 1.5% in Argentina.
Legal Costs
Estimated to be approximately 1-2% of the
purchase
price.
Notary Fees
Notary fees are expected to be around 2% of the
purchase price.

Taxation
Taxes are levied in Argentina by the National
Government, the Provinces and the local Town Hall
authorities. Most taxes are levied as indirect
consumer taxes as they are easier to collect.
Traditionally Argentine Tax Law was based on the
principle of taxation at source. A considerable
reform of the tax system in April 1992 abandoned
this principle by establishing the taxable
transactions on an international basis. Therefore,
individuals and companies resident in Argentina
are liable for taxes on a worldwide income and
profit basis. Corporate Income
Tax The tax rate applicable to the taxable
income of Argentine corporations is 30%. The
same rate applies to the silent equity of stock
issuing partnerships. The distribution of dividends
is not taxed further. There is no provincial income
tax in Argentina. The income tax rate for branches
and other permanent establishments belonging to
foreign companies or non-residents is 30% of their
taxable income. There are no differences between
the tax treatment of branches and that of
corporations. Limited liability partnerships are
required to report their taxable income, showing
its allocation to the partners, who must bring it into
their personal income tax returns and pay tax
thereon at the progressive rates applicable to
them. The same treatment applies to the active
equity of stock issuing partnerships. Argentina
adopted the worldwide taxation; therefore,
Argentine corporations are now required to report
their taxable income on a worldwide basis, and are
granted relief from Argentine income tax in respect
of foreign income taxes paid. A number of income
tax withholdings apply to business entities; these
must be made by customers, banks and other
parties, in respect of sales, interest, rent and lease
payments, and so forth. Income Tax on
Individuals A calendar year basis is used
for individual taxpayers. Individuals who have been
resident in Argentina at least six months of the
year may claim personal allowances. For
determining their taxable income, individuals may
also recognize deductions in respect of their
contributions to social security funds and medical
plans, life insurance premiums (up to a maximum
annual limit), funeral expenses (subject to an
annual limitation), contributions to retirement
plans (up to an annual limit), fees paid to health
and medical funds (up to an annual limit), and
donations (up to an annual limit), as well as
financing expenses for the purchase of assets or
services connected with the obtainment of certain
types of taxable income. Resident individuals are
required to report their taxable income on a
worldwide basis. In this connection, they may claim
a tax credit for any related foreign income taxes
paid. This tax credit is limited to the corresponding
increase in their tax liability. Resident individuals
are taxed at progressive rates, ranging from 11 to
30%. There is no provision for filing joint returns,
so husband and wife must keep their incomes
separate and file separate returns. Salaries and
wages are subject to income tax withholding at
source. Amounts collected for the sale of goods or
rents, interest, fees, commissions, etc. above
certain limits are subject to income tax
withholding. Non-resident individuals working
temporarily in Argentina (i.e., those who spend less
than 6 months of a given calendar year in the
country) are entitled to a flat expense allowance
equivalent to 30% of their Argentine source
income. They are taxed at a straight 30% rate on
the excess, so their effective tax rate is 21%.
Instead, a 1.5% tax on the selling price of real
estate transfers effected by individuals has been
Income Tax on Non-
introduced.

ResidentsDividends distributed by
Argentine companies are not subject to
withholding tax. As in the case of dividends, the
remittance of profits by branches or other
permanent establishments belonging to foreign
companies is not subject to any tax or
withholdings. Any other Argentine source profits
paid to non-resident beneficiaries (including those
collected in Argentina whilst the beneficiaries have
not established permanent residence in this
country) are subject to a flat 30% income tax
withholding if they are of Argentine source and are
not covered by any other special provision. Under
the special provisions covering payments to non-
resident beneficiaries, royalties covering technical
assistance, engineering or consulting services
rendered in Argentina but not otherwise available
here are subject to an effective withholding rate of
18%, provided the underlying contracts fulfil the
requirements of the technology transfer law, while
royalties for operating patents and other types of
consideration covered by contracts fulfilling the
requirements of this law are subject to an effective
withholding of 24%. Royalties paid to non-residents
under copyrights registered with the National
Copyright Board are subject to an effective
withholding of 10.5%. Interest payments to non-
residents are in general subject to an effective
withholding tax at the rate of 12%. Social
Security Taxes The main social security
rates levied in Argentina are:

EMPLOYER
EMPLOYEE
CONTRIBUTION
WITHHOLDINGS
S
PENSION FUND 16 % 11 %
FAMILY SUBSIDY
9% ---
FUND
HEALTH SCHEME 6% 3%
PENSION
2% 3%
INSTITUTE
TOTAL 33 % 17 %
A Federal Covenant has effected a reduction of
employers contributions of up to 60% depending
on jurisdiction, on the following sectors: primary,
industry, construction and tourism. An obligatory
legal bonus [NOTE: "aguinaldo"], equivalent to one
month's salary per year, is also subject to similar
contributions. Professionals, researchers, scientists
and technicians engaged abroad to work in
Argentina for one tour of duty not exceeding two
years may apply for exemption from Argentine
pension fund withholdings and employer
contributions provided they have not taken out
permanent residence here, and that they are
covered against the contingencies arising from old
age, disability and death in their country of
nationality or permanent residence. When the
exemption is granted, it applies as from the date of
Value Added Tax
filing. V.A.T. ("IVA")
has a very broad scope, as it is levied at all stages
of importation, production and trading, including
retailing, as well as on a wide range of services
(including bank charges and interest). The
standard rate is 18% (temporarily raised to 21%
for a year beginning March 1995). [NOTE: no sign of
falling ... ]All sales of movable assets on the
domestic market (as well as imports thereof) are
taxed unless specifically exempt under the law.
Practically the only exemptions regarding movable
assets concern publications (books, pamphlets,
periodicals, magazines, and so forth), shares and
other securities, and sales of bread, milk and
common water in its natural state to consumers as
well as sales of medicines for human use by
wholesale druggists and chemist stores (i.e., their
sale by the laboratories that manufacture them is
taxed). Property sales are taxed (including the
value of the land) only when undertaken by
building companies (when the full or partial
construction or sale of the property is undertaken
with a profit motive) or companies that had
earmarked the properties for activities subject to
V.A.T. and had recognized fiscal credits for the
construction thereof in the last ten years. The
leasing and rendering of services is in general
subject to V.A.T. as well, with very few exceptions.
The latter include life insurance, retirement
insurance, passenger transport, property rentals,
most educational and health services, stock
exchange transactions, admissions to sporting
events and artistic events or performances, the
services of directors and syndics of corporations,
employees' salaries, news agency services, radio
and TV broadcasting and media advertising space.
Exports are not subject to V.A.T., and exporters
may in addition obtain a refund on the tax credit
for V.A.T. billed to them for the goods exported.
Imports are subject to V.A.T. at the rates
corresponding to the items involved.Parties liable
for V.A.T. whose income has been below $ 144,000
(for the resale of goods) or $ 96,000 (for other
activities) in the previous calendar year have the
option not to register. Registered taxpayers or the
Customs House are required to bill and collect from
their purchasers (or importers) who are liable but
not registered for V.A.T. an excess tax equivalent
to 18% of a flat estimated profit of 50%; i.e. 9% in
addition to the standard 18% tax. It is compulsory
for all business concerns (whatever their nature
and size) to issue vouchers (invoices, receipts,
cash sales slips, work certificates, etc.) showing
the place and date of issuance, name and address
of the issuer and the buyer; the issuer's tax
registration numbers; a reference to whether the
issuer is held responsible (liable) or not for V.A.T.,
with a similar reference concerning the recipient of
the voucher, and a detailed description of the sale
or service involved. These invoices must be
prenumbered sequentially. There are penalties for
breaches of the related regulations, which cover a
very wide scope and can even extend to the
closure of the issuing company (there are a few
exceptions, such as banks, insurance companies,
admission tickets, passenger tickets, fuel sales to
the public, sales under a minimal limit, etc.). Their
purpose is to contribute to the avoidance of tax
Tax on Personal Non-
evasion.

Productive Net Worth Individuals


and undivided estates are subject to an annual
wealth tax of 0.5% on personal non-productive net
worth over $ 100,000 at December 31. Shares,
negotiable bonds, government securities, time
deposits and savings account deposits with
domestic banks should be included when
calculating the taxable amount for this tax.
Stamp Duty This tax was largely
suppressed in the Federal Capital (City of Buenos
Aires) effective February 1, 1993, since when it is
only levied on deeds covering the transfer of title
to real estate (at rates ranging from 0.75% to 2.5%
of the price set for the transaction). Stamp duty is
levied by the provinces on documents supporting
legal transactions, such as deeds, mortgages,
contracts, letters accepting proposals, etc. The
rates and rules for assessment are determined in
each jurisdiction. Sample rates in the province of
Buenos Aires are 1% for contracts, recognitions of
liabilities, promissory notes, bills of exchange and
instruments purporting the recognition of
commitments to deliver funds, and 4% for
conveyances of real estate. There are exemptions
for documents instrumenting financial transactions
and those connected with foreign trade or which
are a consequence of such transactions, including
pro forma bills of exchange. There are rules
designed to avoid double taxation in some cases
involving instruments supporting transactions
taking effect in other jurisdictions. Excise
Taxes These nationwide federal taxes are
levied on the manufacturers or importers of
tobacco, spirits, alcoholic beverages, tyres, fuel
and lubricants, and on the manufacturers,
importers, bottlers, packagers, and finishers
(including the persons for whose account such jobs
are undertaken) of toiletries, luxury articles (such
as jewellery and furs), soft drinks, syrups, extracts
and concentrates, television sets, tape recorders,
record players, radiograms, automobiles, magnetic
tapes, phonograph records, and photographic
plates and film, etc., as well as on insurance
companies in respect of the premiums they
charge. Excise taxes are paid on the basis of sworn
returns or through stamps affixed to the products
sold: rates vary considerably, ranging up to 66% of
the retail selling price (including the tax itself) in
the case of cigarettes. The excise taxes previously
incident on fuel, natural gas supplied through
networks (17%) and telephone services (24%)
were suspended on January 7, 1991. In April 1991
excise taxes on tyres were reduced, (their current
level is 13.5%) and those on some electronic goods
Tax on the
were suspended.

Transfer of Liquid Fuels and


Petroleum and Natural Gas
By-Products This is a tax on the transfer
(for valuable consideration or free of charge) of
liquid fuels and other petroleum and natural gas
by-products, which is applied to only one stage of
the traffic in them. The parties responsible for
paying it are oil refiners, importers and traders.
Transfers between refiners and traders are not
taken into account. The tax is settled on the basis
of unit amounts per liter or cubic meter. Exports
are exempt from this tax. The tax rates vary
according to the type of fuel or by-product (e.g.
55% for premium petrol, etc.). Payments are made
on set dates (7 times a month), and tax returns are
filed monthly.Crude Oil Royalties
Companies engaged in crude oil extraction are
subject to a fixed royalty per km2, as well as a
12% provincial royalty on the well-head price of
the oil, less transportation expenses (the latter are
limited to a maximum that is equal to 4% of the
aforementioned well-head price). Incidentally, the
gross revenue tax rate applicable to oil exploration
companies is much lower than the standard rate of
Taxes on Gross
this tax.

Revenue This tax, originally levied by the


provinces and the city of Buenos Aires on gross
receipts, has been repealed in most jurisdictions
for primary, manufacturing, construction and
tourism activities. Deductions from gross sales are
usually allowed for discounts, returns and excise
taxes; the non-recognition of V.A.T. is also allowed.
Export transactions and trading in government
securities are exempt in the city of Buenos Aires
and most of the provinces. Banks and other
financial entities may deduct interest payable on
deposits for purposes of determining the tax basis.
The rates vary from one province to another.
Tax on the Transfer of Real
Estatefor Valuable
Consideration This is a national (=
"federal") tax. The rate is 1.5% and it is levied on
the selling price of property sales effected by
individuals when it is not subject to income tax.
Land and Property TaxesLand
and property taxes are levied by the provinces and
the Municipality of Buenos Aires, based on the
assessed valuation of the property. Rates vary
from one jurisdiction to another, but its amount as
a rule is negligible (is never considered in tax

Taxes on Motor
planning).

Vehicles (License)These taxes are


levied by the provinces and the city of Buenos
Aires, based on a variety of guidelines (model,
Corporation
weight, etc.).

Inspection Tax This annual tax is levied


on all corporations registered in the National
jurisdiction. It comprises an organization tax
payable in the year in which a corporation is set
up, and thereafter an annual assessment based on
Exemptions and
a sliding scale.

Incentives The following individuals and


entities are exempt from income tax: diplomatic
representatives if reciprocal treatment is given to
Argentine diplomats, cooperatives, religious
institutions, trade unions, and educational,
charitable and scientific institutions, that apply for
and are specifically granted such exemption, etc.
The following types of income are exempt: interest
on fixed-term deposits and savings accounts with
banks and finance companies; income from
government securities and negotiable bonds and
gains on their sale; and so forth. These exemptions
do not apply to companies. Dividends paid by
companies organized under Argentine law are not
subject to income tax here, regardless of whether
the shareholder is an individual or a legal entity. In
the case of export transactions, the various
domestic tax refunds or reimbursements collected
by the exporters are exempt from income tax.

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