How would I live in BA on 18,000 Pesos/month

[citygirl]

First off, the 18K is gross correct?

So your take home will be SUBSTANTIALLY less than that. You need to ask your HR to do a salary calculation for you but I would estimate you would have abut 50% of your check taken out in taxes and contributions. At that level, your employer must withhold income tax on your salary and pay it (at low levels, I believe the gov't trusts people to file on their own) You would probably fall in the 35% income tax bracket. Plus your 17% deduction in standard payroll contributions.

So if you're looking at 9K in hand - that changes things considerably. Especially if you are looking at supporting 2 people on that salary. It is certainly doable but you won't be living a luxurious life.

You mentioned work will pay for housing for 6 months which will be a huge savings. Will they assist you with finding a place after that? Will they act as guarantor allowing you to rent at "local rates" vs a short-term furnished apt which would be considerably more expensive. Will they provide you a private health insurance or will you need to provide your own if you want something other than the obra social? (private insurance for 2 people, will be around 2000 pesos a month). Will they be reviewing your salary on an annual basis and taking into account local inflation? Most employees here expect 20% raises. Will your company provide flights home? For two people, you're looking at spending between 2000 and 3000 USD for r/t flights.

Another thing to consider - do you have bills in the US to pay? Credit card bills? Student loans? Mortgage? Etc, Etc.

I think it sounds like a great opportunity but would advise you ask questions.

 

[ghost]

Citygirl............great I was thinking the same. You saved me allot of typing. But it's true, when you look at the these deals in a "business like way" they begin to fade. Argentina is a place where the win / win proposition is very, very elusive.

 

[hepdoll]

There's a lot of good advice in this thread. Even $9k pesos in hand is enough to live in a decent part of town, live modestly but comfortably, and still have some extra to save or spend on luxuries. Take CityGirl's advice about inflation and the extra expenses that can creep in, and get your company to take care of those for you as much as possible.

What I want to suggest is that it does not have to be a bad thing to reduce your income. I know it probably feels counterintuitive, especially considering the uncertainty in the economy right now. But what that does for you is, if you're like me, you'll find new ways to have fun that don't have to involve spending lots of money - less shopping, less eating out, more inviting friends over for a homecooked meal or hanging out at the park to drink mate. These were things that I had always wanted to do - spend less, consume less, learn to make things myself - but it took moving here and significantly reducing my income to "force" me to do it, and I am grateful to have gone through it and learned that I can be just as happy or happier with less money. (Assuming my basic needs are covered, of course.) That's something that is going to influence me for the rest of my life and help me to make decisions based on what's best for me, with less dependence on money, and there's a nice sense of freedom that goes along with that.

Anyway, I say all of this just to offer you a different view on this opportunity. I think that, if you let it, it can be an incredible experience to live outside of your home culture because it can teach you so much about yourself. You will face challenges to assumptions that you've unknowingly carried with you your entire life. The impact that this experience would have on the rest of your life is certainly worth a small cut in pay. (In my humble opinion.

Good luck with your decision!

 

[nikad]

I agree with the above posts,and would add:make sure you get 2 yearly salary adjustments based either on inflation or Usd/peso exchange rate to cover yourself in the event that inflation gets higher and / or the peso is devalued rapidly after the National elections.

 

[CarverFan]

Citygirl, can you explain the tax situation? Why are there 2 lots of income taxes? 50% is pretty steep!!! Even higher than the top UK bracket. Thanks...

 

[citygirl]

I am no tax expert so big giant caveat there! However, I can tell you what I know based on my own employees.

The 17%, every employee of a company (except directors) have taken out of their paycheck and that goes towards mandatory contributions towards jubilacion (11%), obra social (3%), ley 19032 (3%),

On top of that, once you earn more than 10,000 pesos a month, your employer must withhold income tax and pay it to the government on your behalf.

I *believe* these are the current personal income tax rates but as always, verify!
(taken from here: http://www.taxrates.cc/html/argentina-tax-rates.html)

1) Argentina Income Tax Rates

Argentina residents are liable to a progressive tax on their worldwide income ranging between 9% - 35%. There are 7 income tax scales:

Taxable Income (ARS) / Tax Rate %

ARS 0 to 10,000 9%
ARS 10,001 to 20,000 14%
ARS 20,001 to 30,000 19%
ARS 30,001 to 60,000 23%
ARS 60,001 to 90,000 27%
ARS 90,001 to 120,000 31%
ARS 120,001 and above 35%

Non-Taxable income is ARS 10,800 / year.

 

[nikad]

Taxes are crazy for what you get in return imho ( public hospitals in poor condition, poor public education, bad roads, deficient services out of large cities, etc to name a few ) On top of this, you are gonna be paying 21% vat on almost everything, so basically your salary can be taxed for as much as 70%!!! When you have a high salary, no dependents, and everything en blanco, taxes are a bad joke here for what you will get, but you are going to be contributing to subsidize the lazy, the illegal and all of those who take advantage of the system ( currently known as "profundizacion del modelo" )

 

[jb5]

There are plenty of professionals making this salary. They live pretty well. I'd use the whole salary to enjoy your time in BA. Money is a buffer to many of the things people constantly complain about in Argentina--long lines, bad food, getting robbed on trains and buses, cockroaches....

My recommendation is to get really nice housing, take taxis everywhere, hire a half time maid to wait on lines and eat at the really good restaurants. You will enjoy BA much more that way. You should have money left to do some travel through LAM while you're here which will add to the fun.

 

[BAFinance]

Regardless of inflation....your going to live like a KING on 18k a month!

 

[nikad]

I think a lot of the people posting here are not making the right numbers: 18k pesos gross and en blanco with no deductibles means around 50% in taxes and he will have to pay a rent after 6 months ( with no garantia, unless the employer helps with this ) that is likely to be a tourist rental ( furnished apt ). Most people that earn this type of money here get a part en blanco and a part en negro for a reason.