If you own assets in Argentina or are expected to inherit assets in the country, it is important to understand the legal and tax implications involved in the inheritance process. Each province in Argentina has different laws regarding how inheritance tax is imposed, causing many taxpayers to become confused—especially when assets are transferred between different provinces or when the asset owners are located in multiple jurisdictions.
A basic understanding of local law, early planning of a will, residency, and lifetime gifts, may significantly reduce exposure to tax payments during intergenerational asset transfers. Additionally, inheritance tax planning can prevent legal disputes, delays in the inheritance process, and unexpected demands from various authorities.
What is the difference between inheritance tax and estate tax?
Estate Tax – This tax is imposed on the deceased’s assets before they are transferred to the heirs.
Inheritance Tax – This tax applies to all assets received by the heir.
Inheritance Tax in Argentina – What Should You Know?
Each province in Argentina has separate laws regarding the imposition of inheritance tax. Currently, inheritance and gift taxes are imposed only in Buenos Aires province. The tax is levied on the heirs based on the location of the assets, the residence of the deceased, and the familial relationship to the deceased.
The tax is progressive—rates increase with the value of the inheritance—but they also depend on the family relationship between the decedent and the heir.
Inheritance tax in Buenos Aires applies to heirs residing in the province, or those living outside the province who receive assets located within it.
The tax rate ranges from 1.6% to 8.75% for the fiscal year 2023, depending on the relationship between the beneficiary/heir and the deceased or donor, as well as the value of the inheritance.
Inheritance Taxation in Israel Compared to Argentina
In Israel, unlike Argentina, there is no estate tax or inheritance tax. However, in certain cases, tax may still be imposed on the full value of the received inheritance; for example, capital gains tax when the inherited asset is sold.
Argentina and Israel have not signed a treaty to prevent double taxation.
Drafting a Will in Argentina – The Key to Tax Savings and Preventing Disputes
Inheritances do not always pass smoothly to the heirs. Sometimes, complex procedural steps are required to obtain a probate order or authorization to realize the assets.
Drafting a proper will is not just a matter of personal wishes—it is an integral part of estate tax planning. A detailed will can ensure that assets are transferred smoothly and efficiently to the heirs.
The will should reflect the wishes of the deceased while also complying with legal requirements to ensure its validity is not undermined.
At the stage of drafting the will, it is often possible to choose the applicable law, and this choice can have a significant impact on inheritance planning and its future implementation.
Without prior planning—i.e., inheritance without a will—the applicable law on the deceased’s assets will be the law of their last and primary place of residence.
If you own assets in Argentina, our recommendation is to draft a will to ensure that asset transfers occur as smoothly as possible. A will can prevent misunderstandings or prolonged legal proceedings and ensure that the process is handled in an orderly manner even after the deceased’s passing.
Received an Inheritance in Argentina? 7 Steps for Properly Realizing an Inheritance from Argentina
1. Clarify the Factual and Legal Background
First, examine the type of asset to be inherited, its location, the identity and legal status of the heirs, the asset’s value, and more.
2. Review Local Legislation
It is recommended to understand the tax rules in the relevant province to ensure proper and efficient management of the inheritance and gifts, and to minimize unnecessary tax consequences.
3. Check the Timing and Location for Realizing the Inheritance
It’s important to assess whether it is advisable to realize the asset now—and if so, where: in Argentina or in Israel?
4. Regulatory and Banking Aspects
Check the costs of transferring funds, whether an account needs to be opened in Argentina or another country for the transfer, what approvals are required, etc.
5. Planning the Asset Transfer
Consider whether to transfer the asset itself or its monetary value, and what the implications are in terms of taxes, exemptions, deductions, and so forth.
6. Examine Future Implications for the Asset
It’s recommended to assess future implications—for example, the future sale of the asset may be subject to capital gains tax in Israel. Note that there is no tax treaty between Argentina and Israel.
7. Transferring the Asset to Israel
Carry out all necessary actions: submit documents, handle matters with banks in both Argentina and Israel, and execute the transfer of the asset.
How Can We Help?
The goal is to transfer the inheritance to heirs in Israel in the most tax-efficient manner, while addressing legal issues in both Israel and Argentina, as well as banking and regulatory matters. For example: Is it better to realize a specific asset in Argentina or transfer it to Israel; How should inherited funds be transferred to a bank account in Israel; How can different exemptions available to heirs be used; Should gifts be made during the lifetime of the testator; Should a trust be established; Strategic planning, in accordance with the law and applicable tax treaties, is essential to minimize tax liabilities.
The firm Nimrod Yaron & Co. has extensive experience in personally and professionally assisting Israelis with assets or inheritances in various countries around the world—including Argentina—starting from the initial planning stage, through dealings with authorities in both Argentina and Israel, and all the way to the transfer of inheritance funds to the heir’s bank account.
We collaborate with all relevant professional parties in Argentina and Israel and provide customized legal solutions, both in terms of taxation and banking—tailored to the specific circumstances of each case.
If you have inherited an asset or intend to leave assets in Argentina in the future, our team of experts specializing in international taxation and inheritance law will be happy to advise you—contact us for an initial consultation.
Q&A
Is tax payable in Israel on property inherited from Buenos Aires?
No. There is no inheritance tax in Israel. However, capital gains tax may apply after selling the property. It is important to determine the recommended timing for selling inherited property.
Why are there differences in tax rates between provinces in Argentina?
Each province separately defines their inheritance tax laws. Each province determines whether to impose inheritance tax, the tax rates, exemption thresholds, and calculation methods according to the province’s needs, which leads to significant differences between the provinces.
Why is it important to plan intergenerational asset transfers in advance?
Transferring assets between generations from abroad is not just a family matter—it is also a tax and financial issue. Early planning, considering legal aspects both in Israel and abroad, can save substantial amounts of money and prevent legal complications.
How can one best realize an inheritance and save on taxes?
To realize an inheritance in the most optimal way and avoid unnecessary tax payments, all tax options should be examined, including utilizing exemptions, planning gifts, setting up companies, trusts, and more.
How can inheritance tax liability in Buenos Aires be reduced?
By early tax planning, including drafting a will, utilizing exemptions, giving gifts during one’s lifetime, and more—it is possible to significantly reduce the tax liability.
Is it better to gift a property during one’s lifetime or bequeath it?
The choice between gifting and bequeathing depends on the specific circumstances. Sometimes a gift is taxed similarly to an inheritance. Therefore, the legal and tax implications should be examined before making a decision.
What occurs if there is no will?
In the absence of a will, the inheritance will be distributed among the legal heirs according to the local inheritance laws.
What documents are required to realize an inheritance in Argentina?
To realize an inheritance in Argentina, documents such as a death certificate, a will (if one exists), photocopies of the heirs’ identification documents, property ownership documents, bank account confirmations, and more are required.
How long does the inheritance realization process take in Argentina?
It should be noted that the inheritance realization process in Argentina can take from several months to a year or more, depending on the complexity of the estate, the number of heirs, whether a will exists, and other factors.
