Considering BA as an early retirement option

[aketada]

Hey everyone, I’m very seriously considering BA as an early retirement option in about 5yrs (currently 47yrs old). those that joined this group in a similar boat, let’s connect so that we share information and concerns.

I’ll start with my own particulars. I have a 7yr old that I plan to send to an International Bilingual school if we move. He’s currently in a good public school in the Seattle suburbs. He does not speak Spanish but I do a bit and my wife is bilingual.

Am I under-appreciating the challenges of doing this with children?

 

[Alby]

A lot can happen in five years. The challenges are many. So are, or were (prior to the pandemic), the joys of living here.

One overarching issue that anyone thinking of moving here needs to be aware of from the get go, is that as of 1 January 2020 residents here are liable for a huge wealth tax (currently 2.25%), every year, calculated on the value of their assets overseas. If you have real estate or shares or other assets in the US or elsewhere, you will lose 2.25% of their value every year, just for the priviledge of being here. That enough, ought to make you consider other countries in the region, where the challenges and joys are also many.

I was in your situation, but the change, from this year, to this (pre-existing) tax has forced a change of plan.

 

[on the brink]

You may want to consider Uruguay, which does not have such a tax. For the time being....!

Also, please note that international bilingual schools in Argentina are VERY expensive. Tuition is about eight hundred dollars a month for the upper grades.

 

[Irelander]

You may want to consider Uruguay

on the brink is right, Uruguay is the place to head for if you like "rioplatense" culture and are looking for a retirement location. Essentially you can live tax free on foreign income for 5 years, and with a very low tax rate after that (12%, but any taxes paid overseas can be deduced, so effectively even lower than that). The requirements have been relaxed recently to entice richer people, but they're very, very favourable for anybody who wants to go there and live.

In order to obtain residence in Uruguay, you have to go there and demonstrate "intent to remain" ("animo a permancer"). This would normally mean buying a property, starting a business, or something that demonstrates that you're serious about staying, but in your case, just arriving and enrolling your son in school there would in itself would probably be enough to secure your residence permit.

Montevideo (or inded all of Uruguay) is a more relaxed, cleaner, more stable location than BA.

 

[aketada]

A lot can happen in five years. The challenges are many. So are, or were (prior to the pandemic), the joys of living here.

One overarching issue that anyone thinking of moving here needs to be aware of from the get go, is that as of 1 January 2020 residents here are liable for a huge wealth tax (currently 2.25%), every year, calculated on the value of their assets overseas. If you have real estate or shares or other assets in the US or elsewhere, you will lose 2.25% of their value every year, just for the priviledge of being here. That enough, ought to make you consider other countries in the region, where the challenges and joys are also many.

I was in your situation, but the change, from this year, to this (pre-existing) tax has forced a change of plan.

Thanks for chiming in. I’ve started reading about the wealth tax and I have to say that i am a bit disappointed that they would pass such a tax which would discourage expats from relocating to contribute to the economy. I certainly have no interest in giving up a quarter of my wealth in 11 yrs. And it seems the work arounds are a bit risky. I’m still attracted to the big city life of BA so hopefully they’ll revise the tax policy as it applies to expats.

 

[on the brink]

As they say in Boston, "If you don't like the weather, just wait a while".

Laws in Argentina are as changeable as the New England weather. In five years, that law may be derogated/superseded/replaced two or three times.

 

[DomoDomo]

A lot can happen in five years. The challenges are many. So are, or were (prior to the pandemic), the joys of living here.

One overarching issue that anyone thinking of moving here needs to be aware of from the get go, is that as of 1 January 2020 residents here are liable for a huge wealth tax (currently 2.25%), every year, calculated on the value of their assets overseas. If you have real estate or shares or other assets in the US or elsewhere, you will lose 2.25% of their value every year, just for the priviledge of being here. That enough, ought to make you consider other countries in the region, where the challenges and joys are also many.

I was in your situation, but the change, from this year, to this (pre-existing) tax has forced a change of plan.

I live in the US with my Argentine wife, we own a property in BA, our plan in retirement is to live in BA 3-6 months a year. I assume this does not affect us because will won't be full time residents of Argentina? What is the criteria to be considered a resident?

 

[on the brink]

Technically, you are considered a resident if you spend more than six months a year in Argentina. In my experience, that is not checked or enforced.

You could remain an American resident and stay in Argentina on a three-month tourist visa. If you wish to stay longer, all it takes is a day outing to Colonia to renew it. If you wife was born in Argentina she'll get a six-month tourist visa - no need to renew.

 

[aketada]

You may want to consider Uruguay, which does not have such a tax. For the time being....!

Also, please note that international bilingual schools in Argentina are VERY expensive. Tuition is about eight hundred dollars a month for the upper grades.

Thank you for the insight on the cost of private schools. What little i can find on the cost seems to point to about $4-5k which seemed fairly inexpensive but if the true cost is closer to $9K... It’s still acceptable albeit not the bargain i had been hoping for. Given the current exchange rate and the nature of the economic condition... I don’t see things improving for the Peso. How sensitive is the cost of tuition to the rate of inflation?

 

[aketada]

Technically, you are considered a resident if you spend more than six months a year in Argentina. But that is not checked or enforced.

You could remain an American residency and stay in Argentina in three-month increments, on a tourist visa. All it takes is a day outing to Colonia to renew the visa.

How realistic is that option of taking a trip out of the country for a stamp? (once we're past this Covid situation) I'd have a child in school so ... i'm thinking it may put me at greater risk of them taking issue of gaming the tourist visa stamp. Additionally, is renting a home substantially more difficult without residency? What i've found on this site and others suggest that there is substantially more challenges to maintaining residency on a tourist visa. but coughing up 2.25% of my savings (or whatever it will be in the future) on an annual basis seems like a high price to pay to avoid gaming the tourist visa process.