THE LAW REVIEWS
There are three main ways that an investor (either a physical person or a legal entity) may participate in the real estate market in Argentina:
a. Ownership of the real estate property: the ‘real estate property right’ is one of the limited in rem rights in Argentina. Although property rights have no time limits, they have to be exercised according to the terms and conditions set out in the Argentine Civil and Commercial Code (the Code).
b. Participation as a shareholder in a company that owns real estate: this is the typical way to participate in the ownership of a property with a long-term commercial purpose (e.g., hotels, shopping centres, office buildings).
c. Participation in a real estate trust: is a common way of temporarily participating in the ownership of real estate, for example, during the construction of the project. Trusts are generally meant as vehicles to guarantee parties’ interests on real estate projects. In fact, in Argentina, trusts have been the most frequently used structures to counter the lack of banking finance in the past few years. It is worth noting that real estate investment trusts (REITs) do not yet exist in Argentina, at least, not in the same way as they are known in other countries (for example, offering tax benefits).
Palabras clave: Real Estate e Inversiones Hoteleras
Reproducido con el permiso de Law Business Research Ltd. Este artículo se publicó primero en marzo 2019. Para más información, por favor contactar a [email protected]