Looking at reverse cultural-shocking myself in a few years

[Gustavo_L]

Hi, folks! I'm Gustavo.

I was born and raised in Argentina, but lived and worked in the US for about 90% of my adult, productive life. When I go back to visit, I feel right at home after just about ten minutes, but I acknowledge that that may be something of a mirage: I'm not there, going through the daily-life struggles and hassle like every Argentine resident folk.

I have two questions that I'm sure some of you know the answer to:

1) Does the infamous Argentine Wealth Tax apply to 401(k) accounts? Shelling out a 2+% of that every year would be a show stopper for me.
2) Are Social Security benefits treated as ordinary income (and therefore subject to the Argentine tax rates)?

Thanks in advance for your help.

Gustavo

 

[EL_TIGRE_de_Tigre]

Gustavo,

That's a great question. (I don't know the answer to it, but I'd sure like to know the answer as well.)

It is my best guess that The Argentine government does not consider the retirement assets or retirement programs of foreigners as tax exempt from local law. My reasoning would simply be that the need for revenue (Acquired through taxation!) is so great, that nothing is sacred ... and more so with the person with exterior assets or retirement programs.

 

[Fiscal]

How would Argentina ever learn you of your 401k?

 

[EL_TIGRE_de_Tigre]

How would Argentina ever learn you of your 401k?

It would be hard to show those cards, but possible ...

If someone were to go THE RENTISTA VISA route, that might be an example??? Or even the typical retiree visa, in the course of demonstrating an income against insolvency???

 

[Gustavo_L]

How would Argentina ever learn you of your 401k?

I have no idea. My take on the filing of tax returns is that those are basically sworn declarations. Sure, one can claim to have none (401(k) savings), but in omitting to report it there may be risks.

 

[Gustavo_L]

Gustavo,

That's a great question. (I don't know the answer to it, but I'd sure like to know the answer as well.)

It is my best guess that The Argentine government does not consider the retirement assets or retirement programs of foreigners as tax exempt from local law. My reasoning would simply be that the need for revenue (Acquired through taxation!) is so great, that nothing is sacred ... and more so with the person with exterior assets or retirement programs.

Good point, Tigre. Argentina is super cash-starved right now. And their tax brackets are pretty unfavorable for for say the average foreign-based pension or retirement.

 

[on the brink]

Hello Gustavo - just sent you a PM

 

[Steve K]

Lifetime pension/retirement income (private or government-based) is not taxable in Argentina.

 

[Johnny]

Lifetime pension/retirement income (private or government-based) is not taxable in Argentina.

That's a cue for the "you owe and you will pay" crowd to add their comments.

 

[on the brink]

Lifetime pension/retirement income (private or government-based) is not taxable in Argentina.

Are you sure? I've been told it is. Please confirm - that would be great news.