Expat Guide to Argentina Taxes
by alephdao@gmail.com
free 15 minute consults: https://calendly.com/alephdao/15
Overview
Disclaimer: for informational purposes only. We highly encourage you to comply with Argentine laws. Examples of non-compliance are for informational purposes only. failure to comply could result in serious consequences. Do not consider this legal, financial or tax advice. We encourage you to speak with professionals.
This guide is for expats who are Argentine residents (or are considering residency) who would like to understand the tax situation. We discuss what the Argentine laws are and common approaches expat residents take.
Argentina has a large expat as well as digital nomad community. Most of them live on tourist visas and never pay Argentine taxes. I have met dozens of people who have overstayed their tourist visa for years. Those expats as well as several lawyers have said that Argentina will never deny re-entry for overstaying. Pay your overstay fine and you'll be welcomed back when you return. Even if you overstayed by 10 years.
Many people, however, want Argentine residency. Perhaps as a path to citizenship. Perhaps just to be compliant with Argentine law.
The great news is by becoming an Argentine resident it will be much easier to cease being a tax resident of your native country. Even US citizens benefit by excluding up to $130,000 in annual income via the Foreign-Earned Income Tax Exclusion and housing exclusion. See IRS guide (works even for W2s of US companies)
**Use this link to schedule a free 15 minute consult for preliminary help. https://calendly.com/alephdao/15min. Note the consult is not professional guidance.
Argentine Taxes
If you are a legal resident of Argentina and spend 183 days (or more) in Argentina during a calendar year, then you are a tax resident of Argentina. All of your worldwide income is subject to Argentine taxes. PWC consulting maintains a guide on current Argentina tax laws. In addition to income taxes, to be tax compliant you need to charge your clients a ~20% VAT tax on all of your services/invoices. That's the legal way to do it. Between the VAT and the income tax, it's potentially a very high tax rate if if you're able to stop paying to your native country.
Most of the Argentines and expat residents I've met in are not actually compliant with these tax rules. They keep their banking offshore (eg US banks) or use crypto. They invoice their companies or clients using those methods. They don't charge a VAT tax on their services and they don't report much income to Argentina. Those people are evading taxes. We have yet to hear of any of these people being contacted by Argentina about unpaid taxes though. Despite the risks and the importance of being compliant with the law, tax evasion is widespread in Argentina.
Argentina is able to access the (non-US) banking info of their residents without the consent or knowledge of those residents. This has happened to friends who have EU bank accounts. I have never heard it happening to someone with a US bank account.
Legally Cease Tax Residency in Native Country
Everyone (except US Citizens)
Every single country has its own requirements that you must meet to cease being a tax resident. These laws change rapidly. Some countries, like Australia, are particularly strict. US citizens can never stop being tax residents all they can do is use the foreign-earned income tax exclusion to legally lower their federal tax burden.
For citizens of most countries the process to cease being a tax resident of their native land involves some or all of the following conditions (exact criteria vary substantially):
- you can't have spent ~180 days in that country during the calendar year
- you have legal residency in a different country
- you are a tax resident of another country
- you filed a tax return in another country
Those aren't that hard to meet. Even strict countries are not that difficult to cease being a tax resident of with some advanced planning. You will need to check with a professional regarding the exact details for your native country. We are happy to refer you to one.
US Citizens
See my guide about the IRS delete that lets you exclude up to ~$130,000 from federal taxes even if you work for a US company.