Buenos Aires Salaries

[Attorney in BA]

The treaty to avoid double taxation between Argentina and the US is limited to income from operations of ships and aircrafts.

For a list of all treaties to avoid double taxation entered into by Argentina you can see the AFIP's webpage

http://biblioteca.afip.gob.ar/gatew...ble_imposicion/convenios_doble_imposicion.htm

 

[zachsawyer]

I understand the legal implications of my question. However, my scenerio would involve hiring Americans as contract workers providing services to an American company. As American citizens, it is their responsibility to file taxes in America and/or in the country in which they are living. As they would not actually be employees of my American company, there would not be any laws violated unless they failed to file their taxes as self-employed workers.

 

[zachsawyer]

I think perhaps I should expand on my last comment and my question. I certainly do not want to break any laws and I do not want to do anything morally questionable. I have done lots of contract work and consulting to U.S. companies throughout my career and have always paid my U.S. taxes while doing this. I have not always lived within the U.S. while doing the work, because I was not required to do so and was able to live better & cheaper elsewhere. I would be interested only in contracting work out to U.S. citizens who are eager to work. I believe there is a population of them living in Buenos Aires who would love to find work back home, but not have to leave Buenos Aires to do it. It would, of course, be their responsibility to file taxes in the U.S. and in Argentina if required by local law. I would just like to know if I am correct in assuming such a population of American citizens exists in Buenos Aires? Of course, I also appreciate any insights as to whether I would in fact be breaking any local laws or if you could foresee any problems with my proposed scenerio.

 

[citygirl]

Are you suggesting hiring contractors for your American company that are working in Argentina? How would you put them on the books? As monotribuistas? (why am I sure that is spelled wrong). Or in other words - are you talking about "contractors" or 1099s? How are you intending to pay them? Through your US company? Or are you intending to set up a company here and pay them? and more importantly - where are you paying them? Here or in the US?

My recommendation - you need to talk to a lawyer.

Labor costs are much cheaper here but the labor laws are VERY strict.

 

[citygirl]

I'm sure you would find a plethora of US citizens eager to earn money here. But if they don't hold a work visa, it's not legal for them to do so. There are grey areas of course but keep in mind, the risk is going to be a lot greater for you as an employer than it will be for the employee.

 

[brocolliandtea]

When you think in dollars, salaries are pathetically low in Argentina. You can compare this country with India with a straight face!

I just started a job in morgage banking (a leading foreign firm outsourced here). I earn less than 2 dollars an hour gross. I expect to be earing monthly about 350 dollars.

Dont move here people unless you are rolling in foreign success. This is loserville.

 

[zachsawyer]

Hi Citygirl. I appreciate your replies because I am still trying to sort out many of the questions you have proposed. If I decide to hire U.S. citizens (as opposed to locals through a local company), they would be 1099s and get paid directly from my U.S. company. They would legally be paid in the U.S., but of couse I could physically send their payments anywhere in the world that they choose (though payments to a U.S. bank would be easier). I would not be at risk as a U.S. employer hiring Americans who may live wherever they choose because they work from home. However, I would not want to put my "employees" at risk by encouraging them to do something illegal.

I am a lawyer in the U.S., but am only partially farmiliar with law in Argentina. Of course I would contact a lawyer before committing myself to this project, but I would like to gather as much information as possible first. If I have to open a local company and hire local people, I am willing to that. However, I know that there is a sizeable population of Americans living in Buenos Aires and having lived abroad myself when I was younger, I know that I would have loved the opportunity to work for a U.S. company online. Jobs are not always easy to come by if you don't speak the local language and it is great to continue to build your resume while experiencing life in a foreign country.

 

[SaraSara]

Salaries in Argentina are very low in dollar terms, but that is low even by local standards.

In pesos, salaries are still low but not miserly. The locals manage thanks to a vast network of family and friends that allow them access to discounted prices, and provide many services for free.

Buenos Aires is getting expensive, even for those with good dollar incomes. The combination of Argentina's high inflation rate and a weakened dollar can be devastating.

When you think in dollars, salaries are pathetically low in Argentina. You can compare this country with India with a straight face!

I just started a job in morgage banking (a leading foreign firm outsourced here). I earn less than 2 dollars an hour gross. I expect to be earing monthly about 350 dollars.

Dont move here people unless you are rolling in foreign success. This is loserville.

 

[BA Bound Jan2010]

Keep in mind while estimating your costs that you have to look at aguinaldo (13th month) plus obra social, taxes, etc.

You can certainly find students that are finishing up their degree at night who can work full-time during the day. Some of our best employees are doing that.

You could probably pay as low as 2500 pesos but IMO, you run the risk of losing them to a better paying job. Bilingual & college degree would put them at 3000 or more - bruto. (4000 is too high). Bigger companies can get away with paying less b/c they have the name factor but in a smaller company, I think you need to be a little more generous.

Does anyone know how to calculate obra social, taxes, etc.? Is there an average formula used to calculate those costs? Thanks!

 

[citygirl]

When you think in dollars, salaries are pathetically low in Argentina. You can compare this country with India with a straight face!

I just started a job in morgage banking (a leading foreign firm outsourced here). I earn less than 2 dollars an hour gross. I expect to be earing monthly about 350 dollars.

Dont move here people unless you are rolling in foreign success. This is loserville.

That is ridiculously low - even for here.