Argentina's New Tax On Residents Global Wealth

[Alby]

Ok, but I think we are confusing the two taxes here. Gustavo was pointed to the bienes personales tax and that is what he was asking about. The (supposed) one-off millionaire's tax is a separate issue altogether (which, I agree, does start at a much higher threshold), which emerged long after this thread on the bienes personales tax began. The bienes personales has the much much lower thresholds.

 

[gustavomoretto]

Ok, but I think we are confusing the two taxes here. Gustavo was pointed to the bienes personales tax and that is what he was asking about. The (supposed) one-off millionaire's tax is a separate issue altogether (which, I agree, does start at a much higher threshold), which emerged long after this thread on the bienes personales tax began. The bienes personales has the much much lower thresholds.

Thank you guys for this thread!
Indeed the "As per the article Gracielle attached above, the tax first kicks in at 3 million pesos (about US$ 36,000 at the current official exchange rate)" scenario is the one that seems almost surreal. It hits anybody with a modest savings account.

The question I also have is: if you guys are not registered as financial entities in Argentina (because you don't make a living there or are not retired with a local retirement plan, or don't own property, etc.) how does the government know you exist as a tax payer?
This maybe the completely wrong question to ask, but why would anybody who is not a life-long tax payer in Argentina have to declare assets overseas?

 

[Alby]

Fortunately, at the lower thresholds the alicuotas are much lower (0.7% at the 3 million pesos threshold). It seems you are in pretty good shape in regards to the bienes personales.

You will need to find your accountant to resolve all the other details and how you might manage your return to Argentina.

But do follow the whole thread; you will find the answers to many of your questions here.

(I like your analogy: they charge even people with modest means an annual rent to live here. If it seems surreal, ask your friends in Argentina why they vote the way they do.)

 

[gustavomoretto]

Fortunately, at the lower thresholds the alicuotas are much lower (0.7% at the 3 million pesos threshold). It seems you are in pretty good shape in regards to the bienes personales.

You will need to find your accountant to resolve all the other details and how you might manage your return to Argentina.

But do follow the whole thread; you will find the answers to many of your questions here.

(I like your analogy: they charge even people with modest means an annual rent to live here. If it seems surreal, ask your friends in Argentina why they vote the way they do.)

I would get 45.000.000 DIFFERENT answers: all of them RIGHT : )

 

[Alby]

Nice to have 45 million friends. But I guess in your case, that is actually possible.

But only 12,946,037 of them voted for the current government, the one that has so dramatically changed the rules on bienes personales (and introduced the other tax that Jeff1234 has mentioned). So ask them what benefit they see in providing such a disincentive for anyone to come here, or for anyone who was originally from here, became successful, and now wants to return.

 

[gustavomoretto]

Nice to have 45 million friends. But I guess in your case, that is actually possible.

But only 12,946,037 of them voted for the current government, the one that has so dramatically changed the rules on bienes personales (and introduced the other tax that Jeff1234 has mentioned). So ask them what benefit they see in providing such a disincentive for anyone to come here, or for anyone who was originally from here, became successful, and now wants to return.

A very smart friend of my father (Jewish, originally from Germany) once told me that Argentina is really a semi-colonial country. There are basically two kinds of population: those who migrated from Europe and dream of a European utopia, and the forever-disenfranchised un-represented native and semi-native people who never bought into that model. Poverty is a difficult platform from where to be objective and choose wisely. That's the existential tragedy of Argentina.
The compensation is in it's mostly Mediterranean lifestyle, which is shared by most of those who can experience it.
Argentina is a land of paradoxes.

 

[Alby]

I´m not sure that poverty explains why many of the people I know vote the way they do.

 

[Alby]

Among the educated and financially comfortable people I know, it seems to just be tribal. Boca or River.

 

[toongeorges]

If it seems surreal, ask your friends in Argentina why they vote the way they do.

Because many of them are "anticapitalists"/peronchos whatever that may mean.

 

[gustavomoretto]

Among the educated and financially comfortable people I know, it seems to just be tribal. Boca or River.

Oh, yeah...the tribal thing,,,
I forgot about that. That's what happens when you live 32 years abroad.
"What I think is what is true", "the worst thing for an Argentinean is another Argentinean", "look at France and look at us", I should stop...

The "anticapitalist"/peroncho thing is the paternalistic "caudillo" phenomenon that never went away in Argentine history. Those are the ones that never bought into the European (or US) model because they never felt part of the continuum of out-of-their-grasp Age of Reason or Humanistic concepts.

After all, the continent was invaded and colonized by Europeans and, through the good graces of the Jesuits during the Spanish conquista, the vast majority of the overall population in Latin America are descendants of native people and their creole mix. They survived and are the overwhelming majority in that huge continent. I live in New York City and the only native people I see here are from Mexico and other Central American countries (lots of Mayan people).
I like to talk to them and ask them how they are faring in this alternative reality. It's sad to see them alone and many of them drunk during the weekends where they don't have a place to go where they could fit comfortably or they could afford. They walk like ghosts in the night.

Latin America has had so far only one democratically elected president of native origin after six centuries (!) of occupation. Evo Morales, whatever our opinion of him, is an anomaly that confirms the fact that that overwhelming majority of native people are never politically represented in those regions.