Buenos Aires is apparently developing into one of the world's great cities, on a par with L.A. and Madrid...

People who invested in Spain years ago have made a fortune both in rental yields and capital appreciation, but as Spain's downturn in popularity continues and the other countries attract more and more of the sun-chasers, shrewd property investors should be on the look-out for the next Spain, and that could well be Argentina, claims Liam Bailey of David Stanley Redfern.

Mr Bailey commented: “Buenos Aires is becoming ‘a smaller version of Hollywood’. After the economic boom, the city began to rival Madrid and Toronto as a low cost but fantastic location for film and T.V sets, consequently attracting many T.V. and Movie production companies.

“The bulk of that action has centred on Palermo Viejo, which is now known as Palermo Hollywood and even has its own Soho. Those knowledgeable in the area's property market compare Palermo Viejo to Manhattan's lower east side, as it develops into one of the most ‘hip’ districts in Buenos Aires, with things like Tango dance clubs, smart boutiques, and coffee shops that could also bring comparisons to Venice”

Living costs are far lower in Argentina than in Spain which means tourists can have a far cheaper holiday. Rental yields are already around the 10% mark, and capital appreciation is conservatively estimated at 15%.

Mr Bailey concluded: “There are no restrictions on foreign ownership other than needing a tax number. Speaking of which, Argentina has excellent tax benefits: no Capital Gains Tax and no inheritance or gift tax. Rental tax is 21% of the gross annual income for non-residents, and an additional 21% if monthly income exceeds 1500 Argentina Peso's (approx £250)”.