Considering BA as an early retirement option

[Alby]

QUESTION:

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

For some of us, by waking up to the fact that if they simply wander across to Migraciones, they can get details of all expat residents who obtained the residency vía the Rentista route and who, as a compulsory part of the application process, declared to Migraciones their overseas assets.

 

[Irelander]

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.

The problem there might be that in Uruguay they'd see your residency application, see that your wife and child are not joining you, and say hmm, no real intent to remain: residence denied.

 

[EL_TIGRE_de_Tigre]

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/

It seems EE UU in NOT CURRENTLY committed to participating according to this cut & paste from HSBC.

Countries/jurisdictions where HSBC operates
Currently participating in the CRS	Not currently committed to participating in the CRS
Argentina, Australia, the Bahamas, Bahrain, Barbados, Belgium, Bermuda, British Virgin Islands, Brunei Darussalam, Canada, Cayman Islands, Chile, China, the Czech Republic, The Cook Islands, France, Germany, Greece, Guernsey, Hong Kong, India, Indonesia, Ireland, Isle of Man, Israel, Italy, Japan, Jersey, Kuwait, Luxembourg, Macau, Malaysia, Malta, Mauritius, Mexico, Monaco, the Netherlands, New Zealand, Poland, Qatar, Russia, Saudi Arabia, Singapore, South Africa, South Korea, Spain, Sweden, Switzerland, Taiwan, Turkey, the United Arab Emirates, the United Kingdom, Uruguay	Algeria, Armenia, Bangladesh, Egypt, Maldives, Oman, Palestine, Philippines, Sri Lanka, Thailand, United States of America, Vietnam

 

[EL_TIGRE_de_Tigre]

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 ...

An alternative to that may be this:

And this assumes you have the means (I do.) to live this way ... Simply live 3 months at a time in a few different places you enjoy. It can be chasing the weather or events etc ... but it is foolproof and within the scope of the law for not being considered a tax evader.

Fo example ... live in Argentina for December, January & February ... Spend the next three months (March, April & May) in Europe. Live in Columbia or Mexico during June, July and August (Who wants to be cold in Argentina???) Back to Argentina for September & October ... With the month of November in EE UU for Thanks Giving ... The single best holiday in The US from my opinion ... DO a little Black Friday Shopping and start the cycle all over again.

As far as funding yourself goes ...

Bring the amount of cash you can lawfully bring. (No more.) Simply use your credit cards for as many purchases as you can and make your payments on line as per your usual routine. If for some reason you need more cash ... simply make an arrangement with a trusted friend or family member to do their shopping on your credit card in exchange for pesos you intend to spend in the near term.

I have thought about this for a while ... can anyone see a hole in this?

 

[jeff1234]

An alternative to that may be this:

And this assumes you have the means (I do.) to live this way ... Simply live 3 months at a time in a few different places you enjoy. It can be chasing the weather or events etc ... but it is foolproof and within the scope of the law for not being considered a tax evader.

Fo example ... live in Argentina for December, January & February ... Spend the next three months (March, April & May) in Europe. Live in Columbia or Mexico during June, July and August (Who wants to be cold in Argentina???) Back to Argentina for September & October ... With the month of November in EE UU for Thanks Giving ... The single best holiday in The US from my opinion ... DO a little Black Friday Shopping and start the cycle all over again.

As far as funding yourself goes ...

Bring the amount of cash you can lawfully bring. (No more.) Simply use your credit cards for as many purchases as you can and make your payments on line as per your usual routine. If for some reason you need more cash ... simply make an arrangement with a trusted friend or family member to do their shopping on your credit card in exchange for pesos you intend to spend in the near term.

I have thought about this for a while ... can anyone see a hole in this?

Would we have to cancel our dni's to avoid being taxed?
Is using an ATM considered bringing cash into Argentina?

 

[on the brink]

Simply use your credit cards for as many purchases as you can and make your payments on line as per your usual routine.

I have thought about this for a while ... can anyone see a hole in this?

The problem with USA-issue credit cards is that they exchange dollars at the official rate: $70.07 pesos per dollar, while he blue rate for actual dollar bills last Friday was $124 pesos per dollar. That's a 76.97% spread. So, a thousand peso lunch is $8.06 if paid in blue dollars, but $14.27 if charged to an American credit card.

So, bring as many hundred dollar bills as you possibly can. Only clean, unmarked, blue-striped new hundred dollar bills are accepted at the blue rate.

 

[Alpinista]

The problem with USA credit cards is that hey exchange dollars at the official rate: $70.07 pesos per dollar. The unofficial, blue rate for actual dollar bills is $124 pesos per dollar.

So, bring as many hundred dollar bills as you possibly can. Only clean, unmarked, blue-stripe new hundred dollar bills are accepted at this rate.

You should try to get someone of your confidence where you can handle your cash.

i always transfer usd to some usd bank account and then pick up usd in cash here and go to a cueva in florida (or pick up directly peso). So using a credit card here in argentina is definitely an expensive thing (that costs you almost half of your money)

 

[on the brink]

You should try to get someone of your confidence where you can handle your cash.

i always transfer usd to some usd bank account and then pick up usd in cash here and go to a cueva in florida (or pick up directly peso). So using a credit card here in argentina is definitely an expensive thing (that costs you almost half of your money)

Yes, that works fine. I do that with friends who want to send money to the US. Also used to go to Uruguay, where getting dollars is easier.

 

[EL_TIGRE_de_Tigre]

For some of us, by waking up to the fact that if they simply wander across to Migraciones, they can get details of all expat residents who obtained the residency vía the Rentista route and who, as a compulsory part of the application process, declared to Migraciones their overseas assets.

The RENTISTA VISA is a big no no, if one wants to keep their overseas assets unknown to AFIP.

 

[EL_TIGRE_de_Tigre]

Would we have to cancel our dni's to avoid being taxed?
Is using an ATM considered bringing cash into Argentina?

My approach assumes no DNI - Simply living as a tourist would. Therefore, no interior credentials needed.

For me personally, if I found a place I liked to call or consider home, I'd leave it unattended for 6 or 7 months a year. It would be worth the cost to leave possessions there instead of dragging them all over the world behind you.