Considering BA as an early retirement option

[Alpinista]

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 In five years, that law may be derogated/superseded/replaced two or three times.

As they say in Buenos Aires: “If you don’t like the weather, just ignore it”

 

[Dougie]

I agree with the posters above that it's tough to say how the tax laws will shake out over the next 5 years. As a result of the economic hardship here, maybe there will be a doubling down on the wealth tax or maybe everything blows up and you get a new government that offers incentives to invest and live in Argentina.

Uruguay is a pleasant country. Not quite as exciting and diverse in terms of landscapes as Argentina. They do have similar cultures but you can't really compare Montevideo to Buenos Aires. Buenos Aires is far superior in my opinion if you enjoy the vibrancy of a city.

In the case you like the slower pace of small cities and/or want to live on the coast (Uruguay has some beautiful coastline) then Uruguay is a much simpler place to retire in terms of taxes and regulations. They are actively seeking to attract foreigners.

If you are only planning to stay in Argentina for a couple years, I'd say you'd be more than likely to get away with just leaving and returning every 3 months on a tourist visa. Anything beyond that and you are taking a risk. Doesn't seem prudent if you will have a kid in school here.

 

[on the brink]

How realistic is that option of taking a trip out of the country for a stamp? (once we're past this Covid situation)

It is the easiest thing - just take the morning ferry to Colonia and return in the afternoon one. Or you can just spend a morning getting the visa extended in Argentina.

Once I drove to the International bridge in Entre Rios, crossed into Uruguay, turned around the customs' building and returned home, newly stamped passport in hand. Quite legal.

 

[aketada]

I agree with the posters above that it's tough to say how the tax laws will shake out over the next 5 years. As a result of the economic hardship here, maybe there will be a doubling down on the wealth tax or maybe everything blows up and you get a new government that offers incentives to invest and live in Argentina.

Uruguay is a pleasant country. Not quite as exciting and diverse in terms of landscapes as Argentina. They do have similar cultures but you can't really compare Montevideo to Buenos Aires. Buenos Aires is far superior in my opinion if you enjoy the vibrancy of a city.

In the case you like the slower pace of small cities and/or want to live on the coast (Uruguay has some beautiful coastline) then Uruguay is a much simpler place to retire in terms of taxes and regulations. They are actively seeking to attract foreigners.

If you are only planning to stay in Argentina for a couple years, I'd say you'd be more than likely to get away with just leaving and returning every 3 months on a tourist visa. Anything beyond that and you are taking a risk. Doesn't seem prudent if you will have a kid in school here.

Thank you so much for the insight. Context is always helpful. I'm considering it as long-term option until i qualify for medicare (presumably 15 years from when i retire)... along with Spain and a few other locations. BA seemed the most attractive to maximize my savings and benefit of a large citylife. But... still about 5 years out. Keeping fingers crossed for Argentina to come to their senses. or not...

 

[jeff1234]

I have medicare coverage in the US but the healthcare here is much better and much less expensive than medicare after considering the deductibles, exclusions and co-pays.

To put the wealth tax in perspective....its still not clear whether the new law applies to all residents or just Arg citizens who have assets in other countries. Regardless, 'Taxing the rich' is a popular global trend so wherever you go, you might encounter it.
A number of countries, including the US, have adopted the Common Reporting Standard which is the exchange of information about people and their assets to facilitate taxing them globally.

Of more pressing concern to many people living in Argentina is the chronic 50% inflation, our left leaning governments and our isolation from the rest of the world. You cannot simply wire money to a bank in Argentina, you cant even ship a package here without alot of hassle and expense. Buying a household item, a computer or decent quality clothing usually requires planning a trip to Miami.

Having said this, many people love living here and for good reason. The people are wonderful and the cost of living is low. People from all over Latin America come here for our universities. And as I've said above, the health care here to to excellent.

 

[EL_TIGRE_de_Tigre]

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.

That's exactly what is said here1

 

[EL_TIGRE_de_Tigre]

QUESTION:

How does AFIP know what someone's foreign taxable assets are?

 

[jeff1234]

QUESTION:

How does AFIP know what someone's foreign taxable assets are?

Its seems to be starting with banks and others asking where asset owners are taxed then reporting asset information to that country.
https://www.crs.hsbc.com/

 

[Irelander]

Just to clarify some points made here:

its still not clear whether the new law applies to all residents or just Arg citizens who have assets in other countries

This is not true. It's absolutely clear: there is no exemption for non-Argentine citizens. If you're resident here, you're subject to the tax. It's the law.
Two further points about this tax, which haven't been made here:
1. If you transfer 5% of the value of the value of your foreign-based assets to Argentina, the tax is halved.
2. The tax is denominated in pesos, and you pay in 5 instalments. With Argentine inflation what it is, the real rate is halved, assuming you keep your assets in hard currency.

How does AFIP know what someone's foreign taxable assets are?

By the same methods as the tax authorities in any country. In recent years, Argentina has signed up to OECD anti-tax evasion accords making it easy for them to get the bank account details of people in any OECD country. You could take a risk and not declare, leaving yourself open to tax evasion charges and large fines. On a more mundane level, you'd have to figure out a way to access your money outside the banking or cash transfer systems (every time you transfer money to Argentina, you have to sign a declaration on the origin of the funds).

So if aketada or anybody else really is determined to come and live in BA, it can be done; the ways of getting round all the problems are well discussed in this forum. It's just one of the complications of living in this country.

For my money, the best way would be still to legally base yourself in Uruguay. Then if you were really determined to live in BA, you could come over the river for months on end, bringing US$ 999,99 in cash with you every time ...

 

[aketada]

Just to clarify some points made here:



This is not true. It's absolutely clear: there is no exemption for non-Argentine citizens. If you're resident here, you're subject to the tax. It's the law.
Two further points about this tax, which haven't been made here:
1. If you transfer 5% of the value of the value of your foreign-based assets to Argentina, the tax is halved.
2. The tax is denominated in pesos, and you pay in 5 instalments. With Argentine inflation what it is, the real rate is halved, assuming you keep your assets in hard currency.



By the same methods as the tax authorities in any country. In recent years, Argentina has signed up to OECD anti-tax evasion accords making it easy for them to get the bank account details of people in any OECD country. You could take a risk and not declare, leaving yourself open to tax evasion charges and large fines. On a more mundane level, you'd have to figure out a way to access your money outside the banking or cash transfer systems (every time you transfer money to Argentina, you have to sign a declaration on the origin of the funds).

So if aketada or anybody else really is determined to come and live in BA, it can be done; the ways of getting round all the problems are well discussed in this forum. It's just one of the complications of living in this country.

For my money, the best way would be still to legally base yourself in Uruguay. Then if you were really determined to live in BA, you could come over the river for months on end, bringing US$ 999,99 in cash with you every time ...

Thank you. That was what I understood as the workaround. Allowing for comparatively easier access to funds through Uruguay. Which just made my particular scenario a tad bit more tenuous with a child in school. I've considered an additional workaround splitting difference between me and my wife. Most of the assets are in my name thus i'll be based in Uruguay... while my wife will have the permanent residency with the child in BA school. Possibly a tad bit more difficult to prove her stable source of retirement income... but we've got time to figure out the details.