Can I Live There With This Money?

[n1cotine]

Hello everyone,

My company wants to relocate me to Buenos Aires. I would be going with my wife and we don't have kids. I expect to receive a salary between 20-25k pesos + rent (at around 6-8k month).

Is this money enough for us 2 to live comfortably in Buenos Aires assuming she won't be able to work and would probably be studying (master degree and I would pay for that at UBA).

By comfortably I mean, average to good neighborhood, eating out 4 times a week, going to theaters, bars etc

 

[French jurist]

Plenty of threads deal with that, but the situation keeps evolving at a fast pace (like with the Vulture funds).

Let's assume 20K pesos + 6-8K pesos for the rent:
- You'll get a 2 or 3 bedrooms in an OK area (not fancy)
- Eating out = a minimum of 250 pesos for two, make that 16 times a month = 4K
- Cell phones for 2 = 200 pesos a month = 400 pesos
- Utilities = 300 pesos a month
- Local taxes (assuming you'll pay them) = no idea, but likely 400 pesos a month?
- Bars = once a week, 3 drinks for two = 3x2x4x40 pesos = 960 pesos
- Movie theater twice a month for two = 2x2x70 pesos = 280 pesos
- Healthcare = I assume your company pays for that
- Food at home = 40 times for 2 per month = about 40x2x50 pesos = 4000 pesos (not including wine = a decent bottle is 40/50 pesos)
- Varia = 300 pesos a month
- Clothing (basics = better not buy here) = 300 pesos a month

So, except for the rent, you'll be spending around 10.500 pesos a month for the above.
Tax rate (above 15000 pesos? not sure) = 35%

It's doable, nothing fancy.

Main concern is the AR pesos volatility to occur until the end of 2015 = your income should be indexed to some kind of reference, for your security (20.000 pesos might not buy much if there's a sudden devaluation)

 

[Redpossum]

Short answer - no, that's not enough. Insist on getting your salary paid in US dollars, and insist that it be a generous one. Then add 20% to what you consider generous. If you accept a salary in pesos, you will get screwed. If they won't pay you generously in dollars, tell them no deal.

Be assured your employer will screw you if you let them. All employers are the same in this regard.

 

[Joe]

Be careful of the advice you get on this forum, some members are bitter burnouts.

....

Well at least one member.

 

[thorsten]

frenchie's list is pretty spot on. Do you know how much the masters course at UBA is (which isn't contained in the list)? Also I'd calculate carefully if a relocation is financially worth it for you, in particular given that building up savings here is not the easiest task if you live on pesos. Ideally, you want to get paid in a foreign currency, maybe check with your company if that would be an option.

 

[Davidglen77]

Short answer - no, that's not enough. Insist on getting your salary paid in US dollars, and insist that it be a generous one. Then add 20% to what you consider generous. If you accept a salary in pesos, you will get screwed. If they won't pay you generously in dollars, tell them no deal.

Be assured your employer will screw you if you let them. All employers are the same in this regard.

Just so you know, if you are employed in Argentina YOU CAN NOT receive your salary paid in dollars in Argentina. Employment contracts for can only be paid in pesos ARG. If they are willing to pay you a salary in dollars it will have to be paid into a US account and not mentioned anywhere in your Argentine employment contract. They can pay you a salary here in pesos and then dollars in the US. If they are willing to do a scenario like this have them pay you a salary of less than $14,999 pesos per month, this way you will avoid income tax on your salary. Standard salary deductions below $15,000 are 17%, above $15,000 are about 30-35%.

 

[sergio]

Check that your employer is making contributions to your jubilacion (Argentine pension). My first employer did not make the contributions (i.e. pocketed the money). I found out years later and can not do anything now as I have passed the statute of limitations. I am sure he thought this foreigner will leave and no-one will know but my accountant found out years later. It may not affect you but you should not allow someone to steal your contributions even if you never retire here.

 

[ARbound]

Well at least one member.

Is that little old me you're referring to? lol

 

[n1cotine]

He won't pay me in USD, but I would get decent raises according to unofficial inflation rates (company is fair with this, already talked with Argentinean Co workers). Masters at uba is 400 pesos month, just called them.

Cel phone is paid by the company as health insurance (top quality) and taxes related to apartment (condo taxes etc).

FROM what I read here it seems that this money is OK to live decently, not with luxury, but a reasonable and fun life.

BTW I am a Brazilian engineer, I don't know what's considered living comfortably in the US, but maybe it is with more luxury than a Brazilian life

 

[Redpossum]

BTW I am a Brazilian engineer, I don't know what's considered living comfortably in the US, but maybe it is with more luxury than a Brazilian life

(above quote edited for brevity)

Oh great, so now I'm a bad, evil, materialistic yanqui.

(calls for water and washes his hands of the whole affair)