Argentne Citizenship: A Good Reason Not To Do It

[el_expatriado]

If you own a business in Argentina, try to see if you can stick with monotributo somehow. If you have an online job or are a contractor and reside in Argentina but work in the US, just file all your taxes in the U.S. and list yourself as a resident of the U.S. on your taxes. It will save you lots of hassles in the long run I think.

I hope this post has been somewhat useful to all of you.

This is what most expats do, but if you are here for the long run that is not the right way to do things. You should pay Argentine taxes and then take a tax credit in the USA for income taxes paid in Argentina.

Argentina's highest tax rate for individuals is 35% (same as the USA). But Argentina has the advantage of taking tax payments in pesos. So if you are already in the 35% bracket and you earn another $100,000 USD in income, in the USA you would pay $35,000 USD on that. In Argentina you would pay $164500 pesos based on the official 4.7 exchange rate. That translates to about $26,000 USD.

 

[arlean]

I agree with El_Expatriado. It may be I am speaking too soon with inferior knowledge though I am trying very hard to gather knowledge!!!

I think if we iive in Argentina we should support the country. I carry that even to medical care. Apparently the free medical here is very good. I have well-to-do Argentina friends who can't understand why I don't take advantage of it. One of them, an engineer, had successful laser surgery there a year or so ago on his eyes. They are always offering to take me and show me the ropes. But I refuse because I can pay. I go to a private physician (fortunately I'm healthy, just for checkups) and pay out of my own pocket. I see socialism as destroying the country and I won't take part in it.

Now if I were an Argentine that was destitute, I would take advantage of it. I don't criticize those who need it. But I'm not one of them so I don't.

 

[Ceviche]

I totally agree. One should not take advantage of the country which does good things for you. Pay your taxes and contribute to the economy whatever way you could. Do not rant about disadvantages of citizenship.

 

[arlean]

El Queso, I am sure your friends told you right. Many Uruguay banks will quit talking to a prospective customer as soon as they find out they are U.S. But there are some that will do so with no hassles. Banco Republica is one and there is another bank that will take direct deposits of pension checks for U.S.citizens but I don't remember right now which one but I can find out if anyone needs the information. Your friends just didn't go to the right bank. However, I was told it is illegal for an Argentine to have a bank account there. Reading this thread though, I wonder if he just meant it is illegal to HIDE an account in Uruguay.

 

[Ceviche]

I was told it is illegal for an Argentine to have a bank account there.

Thats exactly one of advantages of multiple passports. Its illegal for an Argentine to have a a/c in Uruguay. However if this Argentine applies for Uruguayan or Brazilian residency and goes on to become a citizen in one of these countries. He can then use a Brazilian passport to open a a/c in Uruguay and then he will not be doing anything illegal, logically speaking.

 

[Jaredberryman]

This is what most expats do, but if you are here for the long run that is not the right way to do things. You should pay Argentine taxes and then take a tax credit in the USA for income taxes paid in Argentina.

Argentina's highest tax rate for individuals is 35% (same as the USA). But Argentina has the advantage of taking tax payments in pesos. So if you are already in the 35% bracket and you earn another $100,000 USD in income, in the USA you would pay $35,000 USD on that. In Argentina you would pay $164500 pesos based on the official 4.7 exchange rate. That translates to about $26,000 USD.

el_expatriado: Is this the right thing to do if you have an online business that is based out of the U.S.? I'm not sure that IRS would like that too much. And I'm not so sure that you can do the tax credit...I had never even heard of that, although you can discount income up to $85000 if you are residing in another country (100% sure of this). And is that 35% number you are referring to income tax, or like a tax for corporations or LLCs? What about social security and payroll taxes? Where are you getting this info? I really would like to know.

 

[Tourist2008]

Quite a lot of misinformation regarding the argentine tax/residency relationship on this thread. Anyone to whom it matters, might want to take the time to read this fairly full analysis:

http://www.estudio-contable-fd.com.ar/articulos-impuestos/impuesto-ganancias/reforma-tributaria-disposiciones-materia-residencia