Argentine rules regarding receival of foreign pension

[obiwanderkenobi]

Does anyone know whether U.S. Veterans Affairs (VA) disability income would be taxable in Argentina?

I have a 100% "total and permanent" disability rating from the VA and it's fully exempt income for IRS purposes. I have a letter from the VA stating "This total disability is considered permanent. You are not scheduled for future examinations."

Currently here on a tourist entry and I'm considering applying for temporary residency, but not if I'd have to pay any Argentina taxes on it. I receive about $45k a year, so I assume I'd qualify for a residency visa as either a rentista or pensionado.

 

[kai420]

I do not know for sure, but I can share with you as someone who is in the final stage of receiving their pensionado visa (see my earlier message on this thread, which was a repost of my comments on another thread) that one source of my two "pension" incomes is VA, also rated 100% PT, plus SMC, since 2009.

My other income source is also a federal benefit.

While the two programs are similar, rentista and pensionado, the distinction between the two visa programs, is that while rentista is essentially another name for a person of independent means, and pensionado is also basically someone of independent means, the difference is that the source of income for the pensionado is permanent (until you die). It is why on a pensionado visa you are not allowed to work for anyone while in Argentina.

While you are still able to earn money on a pensionado visa while in Argentina, you can not work for anyone (whether in Argentina or anywhere else in the world), which means if you do earn income you can so from either investment (which may or may not be taxable, especially if that investment is in Argentina, and if it is not, I do not see how Argentina will know) or from working for yourself.

If you were to do that while in Argentina, I believe your income would be subject to taxation by both Argentina and the United States.

Since federal benefits such as Veterans or SSA benefits are not taxable by the U.S. federal government and you are not required by law to file a tax return if your sole sources of income are federal benefits, which is considered unearned (or passive) income, AND if you do not keep any bank accounts in Argentina, AND Argentina immigrations does not ask you to bank here, OR ask for bank statements, I do not see how you would pay taxes here.

I am operating under the mantra of asking for forgiveness instead of permission, so until I am told differently or asked to meet a certain requirement, I am embracing the Argentine mantra of living in the moment and not worrying about the future.

If I must pay taxes, I will worry about that mañana.

Remember, it is always mañana, mañana in Argentina.

Hope that helps.

P.S.

As a 100% PT vet, even if it is your sole income source, you can have a very comfortable life here. Much more so than in the U.S., plus no one here asks you what you do for work, and if someone does, they are usually an American.

It is a different world here my friend, and you will love it, although it can be difficult breaking in socially.

Enjoy, and thank you for your service.

If you want to talk more Master Kenobi, private message me.

May the Force Be With You.

 

[charlesfradley]

I receive my US pension directly into my dollar account in an Argentine bank( I have a peso acct also ). I reside here, so I pay tax on the income, and that tax is high. I can withdraw dollars from the bank, and I manage to find a way to exchange USD for pesos at a decent rate.

Thanks, this is very interesting. Has migracionies asked you for evidence that you deposited into that US dollar account? And were they satisfied with the evidence you provided? How long have you had this visa, and have you renewed it recently?

It would be especially interesting to hear whether anybody has recently renewed a Pensionado visa, and whether migraciones asked to see their history of bank deposits for the last year.

 

[Ries]

One thing that is always true about Argentina- Its constantly changing.
So while I have committed to Argentina, and we are currently on a pensionista visa, we did so because we love Argentina, not because its cheap. It is cheap, right now, in dollars or euros. And, most likely it will remain cheap compared to the Netherlands or the USA, but its not a poor third world country, and the cheapness factor is constantly shifting.
Its cheap because of the immensely complicated economy intertwined with 80 years of government policy, and how that interacts with foreign exchange rates, global economies, climate change, and local politics.
So dont expect it will remain unchanging.
I have seen fluctuations in dollar buying power, up and down, constantly during the 15 years we have been part time residents, and see no reason for that not to continue.

As far as the pension rules go, nobody knows.
The July government statement was extremely vague about how much money a pensionista must deposit, It specificed a peso amount, which has been changing monthly. we have been working with a lawyer, who is in the Immigrantes offices weekly, and there is no firm answer to any of these questions. And after the election, who knows.
Wait a few months, things may become more clear.
Right now, we are told pensionistas must deposit, by wire transfer or Western Union or similar, a specific amount of pesos in an argentine bank account monthly. There is no current rule about exchange rate, and they initially said both my wife and I had to deposit the same amount, then seemed to have changed and said, since I am technically a dependent on her application, only one person's monthly amount is required.
Again- no clarity at this time from the Argentine government.
For many many years, it was a quite small amount.
It looks like it may settle on the 5 times minimum salary, but who can say.

 

[charlesfradley]

One thing that is always true about Argentina- Its constantly changing.

Again- no clarity at this time from the Argentine government.
For many many years, it was a quite small amount.
It looks like it may settle on the 5 times minimum salary, but who can say.

Many thanks, very interesting. Sounds like a crap shoot right now, it makes planning difficult.

But it sounds like Migracionies are allowing use of dollar accounts and WU, so that avoids the problem of the official exchange rate.

 

[toast]

Thanks, this is very interesting. Has migracionies asked you for evidence that you deposited into that US dollar account? And were they satisfied with the evidence you provided? How long have you had this visa, and have you renewed it recently?

It would be especially interesting to hear whether anybody has recently renewed a Pensionado visa, and whether migraciones asked to see their history of bank deposits for the last year.

I've been a permanent resident since 2021, so Migraciones is not something I think about.

 

[charlesfradley]

I've been a permanent resident since 2021, so Migraciones is not something I think about.

Really?.... I thought that once you became a permanent resident, then there is no longer a requirement to bring money into the country, right?

 

[sergio]

One thing that is always true about Argentina- Its constantly changing.
So while I have committed to Argentina, and we are currently on a pensionista visa, we did so because we love Argentina, not because its cheap. It is cheap, right now, in dollars or euros. And, most likely it will remain cheap compared to the Netherlands or the USA, but its not a poor third world country, and the cheapness factor is constantly shifting.
Its cheap because of the immensely complicated economy intertwined with 80 years of government policy, and how that interacts with foreign exchange rates, global economies, climate change, and local politics.
So dont expect it will remain unchanging.
I have seen fluctuations in dollar buying power, up and down, constantly during the 15 years we have been part time residents, and see no reason for that not to continue.

As far as the pension rules go, nobody knows.
The July government statement was extremely vague about how much money a pensionista must deposit, It specificed a peso amount, which has been changing monthly. we have been working with a lawyer, who is in the Immigrantes offices weekly, and there is no firm answer to any of these questions. And after the election, who knows.
Wait a few months, things may become more clear.
Right now, we are told pensionistas must deposit, by wire transfer or Western Union or similar, a specific amount of pesos in an argentine bank account monthly. There is no current rule about exchange rate, and they initially said both my wife and I had to deposit the same amount, then seemed to have changed and said, since I am technically a dependent on her application, only one person's monthly amount is required.
Again- no clarity at this time from the Argentine government.
For many many years, it was a quite small amount.
It looks like it may settle on the 5 times minimum salary, but who can say.

Things change in Argentina. There is no doubt about that. Is it a "poor third world country"? The answer to that is not so simple. If you live in Recoleta, perhaps close to the five star hotels in the neighborhood, you certainly don't get a feeling that it's third world. And I doubt that there is any other country in Latin America that has as large a prosperous looking area as a lot of Barrio Norte however you don't have to go far from this part of town to see real poverty. People really do struggle in ways that are virtually unknown in more developed countries. There is a lot of Buenos Aires that is run-down, poor and depressing. What really made me realise that Argentina is not a 'first world' country was a trip to Posadas. That was some years ago so maybe it's changed though I doubt it. I was really astonished at the third world looking city centre. That made me look at the country from a diffrerent perspective, as did a trip on the Tren a las Nubes. The train made a stop so that people could buy souvenirs from local indigenous people. There were children without shoes holding llamas. This was a far cry from the spoiled children of the affluent who hung out at "Patio" (Patio Bullrich) in Recoleta.

 

[Ries]

Things change in Argentina. There is no doubt about that. Is it a "poor third world country"? The answer to that is not so simple. If you live in Recoleta, perhaps close to the five star hotels in the neighborhood, you certainly don't get a feeling that it's third world. And I doubt that there is any other country in Latin America that has as large a prosperous looking area as a lot of Barrio Norte however you don't have to go far from this part of town to see real poverty. People really do struggle in ways that are virtually unknown in more developed countries. There is a lot of Buenos Aires that is run-down, poor and depressing. What really made me realise that Argentina is not a 'first world' country was a trip to Posadas. That was some years ago so maybe it's changed though I doubt it. I was really astonished at the third world looking city centre. That made me look at the country from a diffrerent perspective, as did a trip on the Tren a las Nubes. The train made a stop so that people could buy souvenirs from local indigenous people. There were children without shoes holding llamas. This was a far cry from the spoiled children of the affluent who hung out at "Patio" (Patio Bullrich) in Recoleta.

I just spent a week in Catamarca. Its just a bit down the block from Recoleta, and it was surely not rich- but it did not in any way resemble real third world countries. I have travelled in places like Sumatra, or Burma, rural Mexico, and, I have seen much worse in other countries than I have ever seen in Argentina. I did see one guy drunk in public, which I never see anywhere in BA. And I have been to a lot of BA, including places like Avelleneda, La Matanza, Flores, Villa Soldati, and various places in the Conurbano.
Are people poor? Absolutely.
Are they covered in open bleeding sores, dollar a day, living in cardboard shacks? No.
And, interestingly enough, almost everything was cheaper in Catamarca than in BA, most things by a significant amount.
I have driven all over the provincia of BA, stopping in many small towns, and did the same in Catamarca.
In neither place were there homeless beggars with babies, sleeping on the sidewalk.
The level of poverty is just not comparable to the bottom 100 countries in the world.

 

[Manuel]

Thanks for the extensive replies so far! I must have overlooked the other thread, apologies.

Maybe I should have added that - because of the fact that my wife has an Argentine passport - I guess I won't need to use the pensionado visa possibility to be able to immigrate here. But I got the impression that - at least at the moment - that doesn't make a real difference, right?

If your wife is an Argentinean citizen, you are eligible for permanent residence at first request. You just need to proof you are married.