Selling a property in Argentina and bringing the money to Spain is not easy, but it can be done. It is a complex operation, plagued with bureaucratic hurdles, but, sooner or later, unavoidable for Argentines who decide to emigrate to Spain.
The process of selling a property and the taxes you have to pay can change when the seller lives abroad. If that's your situation, this post explains what you need to do. We always recommend that our clients sell before emigrating, or while they are still registered as residents of Argentina. Don't hesitate to ask us; we are a firm specializing in property tax and real estate relocation.
The decision to sell or not to sell a property in Argentina is not an easy one, because there is usually an emotional factor at play. Selling one's habitual residence before emigrating to Spain is like burning one's ships. If the project of emigrating does not work out, returning is more difficult. Besides, many times we feel attached to that house where we have lived experiences that marked our lives.
But it is common for selling to be the right decision because money is needed to settle in Spain. Or, because it has already been decided that there is no return to Argentina and it is better to sell an unprofitable asset, which loses value as the country deepens its crisis.
The sale of a property in Argentina to bring the money to Spain has four facets to be solved: selling, transferring the money, proving its origin and paying taxes.
Sell the property in Argentina
If you live in Argentina, the sale process is the same as usual. It does not change due to the fact that you are going to emigrate taking the money from the sale with you. If you live in Spain, the situation may change regarding some taxes. We explain it at the end of this post.
How to bring money to Spain
One of the most difficult steps is to take the money from Argentina to Spain. In theory, it is possible to make a bank transfer abroad under certain requirements. In the real world is not so easy due to restrictions on transfers abroad.
The regulations state that bank transfers abroad are authorized when they are "mirror accounts". In other words, the account in Argentina and the account in Spain belong to the same person. In reality, when you want to make a transfer, difficulties appear: bureaucratic obstacles, blockages, and cross blaming. Sometimes it can be transferred, and many others do not authorize it. You have to ask, insist again and again. If your bank in Argentina tells you that it cannot make the transfer, ask another bank.
The bank transfer is the ideal option to bring the capital from the sale of a property. Due to the amounts involved, other remittance alternatives require more time. In any case, sometimes there is no choice but to use other systems. We explain it to you in our post 10 ways to take money out of Argentina and bring it back to Spain.
Demonstrate the origin of the funds
If you want to deposit the money from the sale of your property in Argentina in the Spanish banking system, you will have to prove the origin of the funds. This is required by anti-money laundering regulations. In fact, from a certain amount -which can be as much as 10,000€- your Spanish bank can immobilize these funds until you prove its origin.
The fact that you are already living in Spain or that you are going to settle in Spain does not change this requirement. The origin of the funds is proved with the deed of sale of the property. That is why it is important to deed the sale for the correct amount. If, as is usual in Argentina, the deed is deeded for less than the real price, the difference cannot be received in a Spanish bank.
What about taxes?
If at the moment of selling the property you are still resident in Argentina, you will have to pay the usual taxes for these operations. On the other hand, if you do not live in Argentina the situation changes and you may have to pay the following taxes:
- Personal Property: the property to be sold by the foreign resident may have been subject to the payment of Personal Property, according to the valuation in accordance with the Law. In this case, a representative in Argentina of the resident abroad will be in charge of filing the Affidavits and paying the resulting balances.
- Profits: if the property had been rented, the process is even more complicated. In this case, the tenants must withhold a percentage of the rent and pay it to the Argentine State. The withholding varies according to the period in question. If the tenants did not do so, the percentages owed must be calculated and paid.
- VAT: And as if all this were not enough, if the rental of the property were subject to VAT (e.g. commercial halls, sheds, agricultural establishments, etc.), this tax could also be required by ARCA before authorizing the sale.
Regarding taxes payable in Spain, will depend on where you lived at the time of the sale. If it was in Argentina, you will not have to pay taxes in Spain because you were not yet a tax resident. You can emigrate to Spain taking all the money you have, as long as you can prove its origin.
If you were a tax resident in Spain when you sold your property in Argentina, you may have to pay taxes. If the sale price was higher than the purchase price (established in euros, of course), it is considered a gain. It must be included in the annual income tax return and the tax must be paid. If this is your case, we recommend you to consult a tax lawyer of our firm. You will need it to know if you have to pay taxes and if so, how much.
Spain and Argentina have signed an agreement to avoid double taxation. It means that you will not be charged in one country a tax that you have already paid in the other. More information in our post Guide to avoid getting lost with taxes between Argentina and Spain.
Declaring assets in Argentina in Spain
If you already live in Spain, keep in mind that there is the obligation to declare assets abroad if it exceeds €50,000. And that there is a time limit to do so, once you acquire or receive such assets. This means that if the property you sold in Argentina was not declared in Spain, you will have to pay a fine when you bring the money back. The declaration is known as Model 720. More information on the subject in our post Why do you have to declare your assets in Argentina if you live in Spain?
We are a law firm specialized in services to Argentinians. Our main office is in Barcelona and we also offer video conference appointments. We provide consulting and management services. If you need help, feel free to contact us by email or Whatsapp. You explain your case to us, and if we can give you a direct answer, we'll do so free of charge. Perhaps your situation is more complex. If so, a lawyer will analyze your case in detail during an appointment. The consultation is conducted via videoconference or in person and lasts 45 or 60 minutes. The fees are €115 and €150, respectively.
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Frequently Asked Questions (FAQs) / Selling in Argentina and bringing money to Spain
- Is it better to sell my property before or after moving to Spain?
Our recommendation is to sell before emigrating or while you are still registered as a tax resident in Argentina. Selling real estate while residing abroad is more bureaucratically complex and can trigger different tax obligations in both countries. - How can I transfer the money from the sale to a Spanish bank account?
The ideal option is a bank transfer using "mirror accounts" (where the account holder in Argentina and Spain is the same). However, due to banking restrictions, this process often presents obstacles. More information in our post 10 ways to take money out of Argentina and bring it back to Spain. - What documentation will the bank in Spain require for me to receive the money?
To comply with anti-money laundering regulations, you must prove the origin of the funds. The key document is the property purchase agreement. - What happens if I registered the sale for a value lower than the actual value in Argentina?
This is a common mistake. The Spanish bank will only allow you to deposit the amount officially stated in the deed. - If I already live in Spain, do I have to pay taxes for selling my house in Argentina?
If you are already a tax resident in Spain (you live here more than 183 days a year), the capital gain obtained from the sale must be included in your income tax return (IRPF) in Spain. - What is Form 720 and how does it affect me?
If you already reside in Spain and own a property in Argentina valued at over €50,000, you are required to declare it using Form 720. Failure to declare this asset before selling it and bringing the money back can result in significant fines when depositing the funds into the Spanish banking system. - What taxes do I have to pay in Argentina if I sell as a resident abroad?
If you no longer reside in Argentina, the transaction may be subject to Personal Assets Tax and, in certain cases, to Income Tax or VAT withholdings (especially if the property was rented).
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