The "stamp tax” in Buenos Aires' lease contracts

When a person celebrates a lease contract in Buenos Aires, whether it is private or commercial, that person should check if he/she has to pay the Stamp Tax (“Impuesto al sello”, in Spanish). This tax applies for those within the City of Buenos Aires.

The Stamp Tax should be paid when one of these situations happen:

-The lease or sub-lease contract has a commercial purpose and said property is within the City of Buenos Aires.

- The lease or sub-lease contract is for furnished apartments/houses that have a touristic purpose (and also is within the City of Buenos Aires).

Those who have to pay the Stamp Tax will have to pay 0.5% of the agreed price of the rent during the lease.

The payment of the Stamp Tax over the lease contracts is easy. In order to do it, the landlord or the tenant has to enter the website of “Rentas de la Ciudad de Buenos Aires” (Income website of the City of Buenos Aires). Here, the landlord or the tenant should register in the “AGIP” (Administración Gubernamental de Ingresos Públicos – Income Administration of the City of Buenos Aires) in order to get the payment talon (of the Stamp Tax). Once the landlord or the tenant manages to complete all the information, the talon will be done, and same will have to be paid in a branch of the “Banco Ciudad” (Bank).

Remember that the Stamp Tax should be paid within 15 days after the lease contract has been signed. If you fail to pay it within said period, interests will begin to sum.

If you have any questions on the Stamp Tax, you may find more information on the “AGIP” website, where you will also find a guide on the payment procedure.

How to start the eviction of a tenant who breaches a contract

One of the biggest problems that a person may go through when renting his/her apartment is that the tenant does not pay rent or that he/she breaches the lease contract. Even though nobody likes to go through this situation, the truth is that if the tenant does not comply with his/her duties, the landlord will have to end up filing a court order for eviction.

For those who are in a situation like this in Buenos Aires, and who may have to get an eviction order from Court, here are some tips and steps to follow.

First of all, it is always recommended that you get advice from a lawyer, since he/she will help you and tell you what you should (and shouldn’t) do in your special situation. Otherwise, you may end up having more problems if you make a mistake, like getting your tenant to sue you.

Generally, the steps to follow when trying to get an eviction order for a tenant that breaches a contract is more or less the following in Buenos Aires:

-    First, you should probably send a legal notice where you inform the tenant that if he/she does not comply with his/her obligations, you will be forced to file an order for eviction (you should detail the cause of the notice, like lack of payment, termination of the lease contract, etc.)

-    If the tenant fails to answer, you will then probably have to file an order for eviction. Due to the new legislation in the City of Buenos Aires (law no. 684 bis), there is a faster way of getting the eviction order. Before this law came into effect, the landlord may have to wait years in order to get his property back. This new type of procedure only applies in those cases where the tenant fails to pay rent for a couple of months, or if the lease contract has expired. After proving that the landlord is right (and that he/she is not lying or hiding information), the eviction order should come out quickly.

In order to prove that the tenant is not complying with the lease contract, the landlord will have to file documentation on the matter. Within the proof the owner may file we can mention the lease contract, the bank account details (if the tenant used to deposit rent) or the receipts of the landlord (showing the landlord has not paid during the last few months), etc.

As we have mentioned at the beginning, it is always recommended that you ask a specialist who may assist you so you don’t have more problems and you solve the situation faster.

Property prices per square meters in pesos in the City of Buenos Aires

Even though the mind of several Argentines is still set in “dollar” mode, nowadays it is normal to find prices in Argentine pesos. The “pesificacion” (the way they call the process of changing the methods -or currency- of payment from dollar to pesos) for the real estate business was planned in order to unlock the selling-buying transactions, especially after it became harder to get dollars.

According to the media, in July 2013, it was estimated that the selling price of properties in Buenos Aires rounded the 500.000 argentine pesos. Moreover, in June 2013, the average sale price on the real estate transactions was of 575.000 argentine pesos.

Still, these are just statistics, since some specialists also comment that since there is not much demand or supply in the real estate market, there aren’t prices at all, and in general, prices tend to stay the same. This was explained by the President of the “Camara Inmobiliaria Argentina” [Real Estate Organization in Argentina], Roberto Arevalo. He also added that those owners who need to sell their property and who are tired of waiting, usually tend to lower the prices.

Other data that was collected on the price per square meters in the City of Buenos Aires and on the number of title deeds that have been closed during 2013 showed that the number of deeds on more expensive properties has risen. Still, the highest percentage of transactions on the Real Estate market signed in the City of Buenos Aires round the 250.000 and 500.000 Argentine pesos.

To conclude, the price per square meter in the City of Buenos Aires over properties has kept steady during the first half of 2013, especially due to the freeze on the sales that the Real Estate business has gone through. Nonetheless, in the end, each sale price will depend on each property and on the agreement that the buyer and the seller reach at the moment of closing the deal.

Selling an apartment with a lease contract in force

In many forums over the Web, one question seems to appear over and over again: may an owner sell his/her property if a lease contract is in force in Buenos Aires, Argentina?

The answer to this question is: Yes. Now, what the owner can't do is to throw the tenant out of the apartment, since it would breach the lease contract. Still, if the tenant agrees to leave, an arrangement could be made, but it is generally not the case. So, unless the tenant agrees to it, the landlord cannot tell him/her to leave, and the tenant may stay until the lease ends.

So, those who want to sell his/her property with a lease contract in force, may deal with the new buyer of the property so that they agree to buy it and continue with the lease contract until it comes to an end, and he/she will also have to obey the terms and conditions of said lease. Once the buyer agrees to this, the sale of the apartment may be made.

Once the sale is done, the tenant should be notified of the new owner of the apartment, together with the changes relating to the payment of the rent (who the tenant will have to pay to, where, etc.)

So, if you are thinking of selling your apartment and there is a lease contract in force, you should first tell the buyer of these conditions so that he/she keeps complying with the contract, and then you should notify the tenant once the sale has been made. Still, if you have any doubts, you should ask a lawyer or a specialist who can give you some advice on the matter.