Converting Pesos To Dollars At Government Fixed Rate

[rrptownley]

Worrying me too, I place too much month-to-month on a potentially unstable rate.

The arbolitos said back last month, after the drop in the blue resulting from the currency swap, that it wouldn't be up to it's true value again until January.
I pooh-poohed it then but now it seems that they may be right.

 

[Alicia karr]

Well the spigot for US dollars from the Yuan Swap has been closed. No more Yuan swaps available. So the fed reserve will drop quickly and they won't be able to flood the market with dollars to keep the blue down...so my unprofessional, uneducated, view is that the blue will rise again shortly....

 

[Dublin2BuenosAires]

its not that hard to buy dollars if you work on a contract paid in pesos, you need your DNI and a number which allows you to access AFIP services.

Not particularly hard to claim back the 20% retention either.

 

[ecohen14]

nkotb, I am not looking for career advice or for someone to tell me "not to move", I was asking a simple question. The number I used was just an example, what the government rate was a few years back when I lived in Argentina, I know it has grown, I expected that. And fixed rate actually is a correct term because the government fixes the rate, it does not float.

I am not asking if I will strike it rich in Argentina, I know the answer already. I am asking about the details of converting to dollars legally. Do you know of any websites or sources regarding being "charged 20% if you withdraw legally"? I would like to see more.

 

[Dublin2BuenosAires]

You have 2 options, there is a lot of misunderstanding out there but it's not so complicated.

1. Buy the foreign currency and physically get handed the money by the bank teller.

• In this case the bank DO NOT CHARGE 20%
• It is a retention, they retain 20% until the end of the tax year.
• At yr end AFIP will actually provide you with a list of what they consider to be your retentions
• You verify this and submit them on a form to your employer
• You get the 20% back in your salary at end of year, you also get any retentions back on foreign travel and some other cases, again, AFIP actually provide you with the info, you just validate it and submit to your employer.

2. Buy the currency and leave it in a foreign currency account in your local bank.

• I never do this, all I know is that the currency has to be in your account for 1 year before you can withdraw it.
• My bank, Citi, confirm that they would ópen a USD account and credit it in USD.

In my experience most peope take the fist approach, buy the dollars at 8.5 and sell them at 13ish, then you pick up your 20% at yr end. People do this to counter the fact that inflation is more than their raise (ain't no one getting a 40% raise this year!). I try to hold mine, each to their own.

As an expat your retention "payback" will be straight forward as you tax situation with AFIP will not be complicated, you wont have other earnings to declare and you wont have property or bienes personales here in country.

To buy the dollars you apply via the AFIP website, if approved (in your case as long as you earn over 7200 a month.. and you will!) you will download a pdf and take it to the bank with your DNI to buy the currency.

That's it in a nutshell, a bit of a pain waiting arounbd in the bank. There is a lot of hooting and wailing goes on about the 20% currency retention and the 35% credit card retention but essentially you will get them back as an expat as your tax affairs are straightfwd.

Those residents living here without residency get to make a nice contribution to the wellbeing of the rest of us as they cant claim it back (insert crocodile tears here).

Those residents and citizens with somewhat dodgy tax statuses hire accountants and find a way, sometimes it makes more sense for them not to claim their retentions and stay off the AFIP radar. A very large retention claim will attract some heat.

 

[wild_horses]

Hi,

If you want to buy dollars in a bank at the official rate you will need "cuenta sueldo" for at least 1 year earning 8200 pesos a month and you can buy 30% of your salary. Everybody in my office is buying at that rate and leave them in the bank, so it is not a illusion, it is just BS talking as always from Baexpats members, do not pay much attention. If you take them out straight after you bought them, a 20% charge will be applied.
All you need to do is get a "Clave fiscal", then apply to AFIP, you will get the auth right after doing so, and with that auth go to the "Caja" in the Bank and they will give them to you (last week bought 1000 for my SH who is going for Christmas holidays to Germany).

I hope that helped you.

Cheers!

 

[Dublin2BuenosAires]

Hi,

If you want to buy dollars in a bank at the official rate you will need "cuenta sueldo" for at least 1 year earning 8200 pesos a month and you can buy 30% of your salary. Everybody in my office is buying at that rate and leave them in the bank, so it is not a illusion, it is just BS talking as always from Baexpats members, do not pay much attention. If you take them out straight after you bought them, a 20% charge will be applied.
All you need to do is get a "Clave fiscal", then apply to AFIP, you will get the auth right after doing so, and with that auth go to the "Caja" in the Bank and they will give them to you (last week bought 1000 for my SH who is going for Christmas holidays to Germany).

I hope that helped you.

Cheers!

Everybody in my office is buying at that rate and leave them in the bank, so it is not a illusion, it is just BS talking as always from Baexpats members, do not pay much attention. If you take them out straight after you bought them, a 20% charge will be applied.

How very contrary, still what else to expect. Certainly not facts anyway.

Everyone I know does the opposite. Sadly, I deal with a lot of accountants, do you want to guess how many of these accountants are leaving their money in the bank. It's less than 1.

Which tells us that both options are popular and that you're a little too confident in your own little version of reality and not quite as savvy as you might think you are.

Anyway, the math is simple, buying official and selling unofficial is very popular because is covers the spread against inflation. I work on Florida, I see it, daily. Locals and tourists alike. In bank door, out bank door, straight to cueva. Nice to have a window with a view, gives you a certain perspective.

Buy at 10/11 (adjusted to cater for that 20%) and sell at 13, happens every day.

Are you telling me that AFIP don't pay back your foreign currency retentions? Same with the 35% on foreign cards?

Brush that chip off your shoulder and stop misinforming people as it suits your political agenda, gil.

 

[LucreBorgia]

Really well said and explained and the final lines...perfect aahahah

Everybody in my office is buying at that rate and leave them in the bank, so it is not a illusion, it is just BS talking as always from Baexpats members, do not pay much attention. If you take them out straight after you bought them, a 20% charge will be applied.

How very contrary, still what else to expect. Certainly not facts anyway.

Everyone I know does the opposite. Sadly, I deal with a lot of accountants, do you want to guess how many of these accountants are leaving their money in the bank. It's less than 1.

Which tells us that both options are popular and that you're a little too confident in your own little version of reality and not quite as savvy as you might think you are.

Anyway, the math is simple, buying official and selling unofficial is very popular because is covers the spread against inflation. I work on Florida, I see it, daily. Locals and tourists alike. In bank door, out bank door, straight to cueva. Nice to have a window with a view, gives you a certain perspective.

Buy at 10/11 (adjusted to cater for that 20%) and sell at 13, happens every day.

Are you telling me that AFIP don't pay back your foreign currency retentions? Same with the 35% on foreign cards?

Brush that chip off your shoulder and stop misinforming people as it suits your political agenda, gil.

 

[Gringoboy]

Also, you're still allowed to send USD1500 overseas as family support every month, which I found particularly useful recently, if you know what I mean.
ie buying at official rate.

 

[ecohen14]

Bringing it back to this old post... but finally starting this process, and am wondering if I can bring the AFIP print out to any bank to retrieve the dollars? Or it has to be a bank here that I have an account in? Do all Argentine banks process the dollar applications?

How do I go about receiving the retention from AFIP at the end of the tax year? They contact me with my yearly retentions? My employer handled starting my AFIP account so would they be the ones to receive my tax retentions?

Thank you for all the help!