Immigration / Rentista Visa

[StephOlive]

Hi there everyone.
I would like to know if someone can help me with a few questions i have.
We are looking at coming to Argentina (myself, my husband and our Toddler son) from Cape Town as you all know safety issues are only getting worse in South-Africa.
What id like to know when applying for the rentista visa is in connection with the proof of funds, we have a online business and we want to use those funds as proof as it is recurring/ passive income.
Now my question is the business is a sole prop. (Sole Proprietorship. Definition: A business that legally has no separate existence from its owner. Income and losses are taxed on the individual's personal income tax return. The sole proprietorship is the simplest business form under which one can operate a business.)

1. Does it have to be registered or will sole prop be acceptable?
2. Cost of living: i have seen everyone saying that $1500 is not enough to live comfortably? what do you think will be the amount we should look at? keep in mind that we would like to live in San Rafael, Mendoza.
3. Would it be easy to open up a new business there? (not online, we have a few things we would like to do)
4. Would you say San Rafael is a good place for a young family that love the outdoors and country type life?

Im am looking forward to your replies!!
Have a great day!!

 

[Rich One]

1. Must be passive income..!
2. For San Rafael $1500 seems adequate , not much to do there, other than drink wine
3. Opening a new business in Argentina , under the present circumstances , seems very risky to invest.
4. San Rafael IS a certainly good place for a young family

Maybe there are opportunities in the Tourism industry to handle English speaking Groups.. Hospitality industry . . Wine making projects...

 

[Pierre Smith]

1. It doesn't matter the source, so long as it is genuine, foreign sources passive income.
2. $1,500.month will be adequate out there.
3. Under the rentista visa, you're allowed to establish your own business. The process of opening your own business depends on where and what type of business, but out in Mendoza, assuming you speak Spanish, it should be very easy. If you're looking into agriculture, you should be watching the news very carefully.

 

[steveinbsas]

It doesn't matter the source, so long as it is genuine, foreign sources passive income.

Income whose source is from business activities of a sole proprietorship is not considered passive.

If the foreigner is living in Argentina and operating an online business, they will not qualify for the visa rentista, even if 100% of the income is generated outside of Argentina.

The income must also be stable (uninterruptible) and active business income (even from an online business) will not be meet this requirement.

Under the rentista visa, you're allowed to establish your own business. The process of opening your own business depends on where and what type of business, but out in Mendoza, assuming you speak Spanish, it should be very easy. If you're looking into agriculture, you should be watching the news very carefully.

Unless there was a change in the definition of "rentista visa" I don't think this is possible. Income generated by a business or a person living in Argentina is not considered passive.

There is (or at least there used to be) an investor visa, but that requires a substantial investment and a lot of red tape. I don't know what someone with an "international" online business could invest in to meet the requirement.

PS: It's worth noting that Steph did not ask about agriculture, not even growing mushrooms.

PS2: its also worth noting that a real estate professional I have know for more than ten years refers to San Raphael as a place where one of the locals favorite pastime is "ripping off foreigners."

 

[Pierre Smith]

Once granted a rentista visa, a person can establish their own business in Argentina.

It's true that the source of income must be passive and generally shouldn't be interruptible, but the sole proprietorship matters only because of the point you make about management. If OP meets the criteria, the fact that profit is being taken by a sole proprietor vs as a dividend doesn't matter, so long as the other criteria are met.

And OP didn't ask about agriculture, but ag and tourism are the obvious industries out there, especially for ZA immigrants. People might not realize how radically the change of government could affect ag, so it's worth noting.

 

[steveinbsas]

It's true that the source of income must be passive and generally shouldn't be interruptible, but the sole proprietorship matters only because of the point you make about management. If OP meets the criteria, the fact that profit is being taken by a sole proprietor vs as a dividend doesn't matter, so long as the other criteria are met.

I understand that migraciones considers dividends paid by a corporation on a regular basis as passive income, but I wonder what's passive about income generated by a sole proprietorship and the proprietor is "registered" to do business in a foreign country?

Do you know of anyone who was granted a vista rentista after telling migraciones they were going to operate an online business after moving to Argentina, even if it was making enough monthly income to meet the monthly requirement (which should quadruple soon)?

Once granted a rentista visa, a person can establish their own business in Argentina.

Yes, they can, but, as you point out, they first have to have the visa rentista, and I've never anyone who was planning to operate an online business in Argentina being granted a visa rentista based on their present income from that business.

PS: I think it would be great for them as well as Argentina if they could.

 

[elhombresinnombre]

I understand that migraciones considers dividends paid by a corporation on a regular basis as passive income, but I wonder what's passive about income generated by a sole proprietorship and the proprietor is "registered" to do business in a foreign country?

Do you know of anyone who was granted a vista rentista after telling migraciones they were going to operate an online business after moving to Argentina, even if it was making enough monthly income to meet the monthly requirement (which should quadruple soon)?



Yes, they can, but, as you point out, they first have to have the visa rentista, and I've never anyone who was planning to operate an online business in Argentina being granted a visa rentista based on their present income from that business.

PS: I think it would be great for them as well as Argentina if they could.

Didn't we establish, some time ago, in this forum that an income from a properly set up trust fund would count as a passive source for visa rentista purposes? It would mean locking some tens of thousands of dollars away in a trust whose purpose is to pay out a monthly income over a set period but such a deed, properly administered would, I believe, meet the requirements.

 

[db887]

Consider Paraguay instead. Easy residency, foreign income not taxed and nice people. Downside: USD1500 a month a bit low for family of 3.

 

[StephOlive]

Hi there everyone, thank you for your feedback.
The business "online" was opened a few years back on a sole prop account as we first wanted to see if it was going to do well, and it has, we have just never changed it to an official registered business, but we can though.
We want to open an international online business when we are there as well, but this doesnt mean that it will be the only thing we will be doing. We will be looking into opening another type of business thats not online similar to what we are doing here.
Do you think i must rather have our registered business here pay us monthly? As it will also be going on even if we do immigrate (note this business is not online).
We will be earning more than the required amount of $1500 monthly.
And yes unfortunately the amount to invest on the investment visa is a bit above our belt but we will be looking at buying property there in the future.

 

[StephOlive]

As for Paraguay, i have looked at it as well, but we prefer Argentina.
I know the economy isnt doing that great at the moment but am i wrong in saying that our income from outside Argentina will make us be able to live a decent life there? Seeing that the Rand is stronger that the Peso? Please do correct me if im wrong.