Looking at reverse cultural-shocking myself in a few years

[oldgringo]

I also am trying to follow this. I will have no property but will have checking accounts ,cd's and ira accounts as well as social security and pension payments. Will any of that be taxable and how would they know. I receive money from WU in my wifes name will they be tracking this now?

 

[Gustavo_L]

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

After reading what's out there, specifically what seems to apply to those who have resided in Argentina for more than half a year in any given year (Law Nº 20.628, specifically, Articles 79 and 160) the way I interpret it is, foreign pensions and retirement moneys may be treated as taxable income by the AFIP. But I'm neither a lawyer nor an accountant. So, if there are any pros in here, please illuminate us. Granted, one thing may be what the AFIP proclaims, another is how they track things and ultimately enforce it.

 

[luckyLuciano]

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

Well, the argentine government in 2008 expropiated the AFJP private pension funds created in the 90's to stash the people's money in public pension funds. So, I think that they wont hesitate to get their hands on your 401k

 

[Gustavo_L]

Well, the argentine government in 2008 expropiated the AFJP private pension funds created in the 90's to stash the people's money in public pension funds. So, I think that they wont hesitate to get their hands on your 401k

I understand, Luciano. A move similar to the AFJP heist would probably be extremely hard for them though, as 401(k) retirement money sitting in a US institution I believe it is not even liable for owed compensation in civil lawsuits. I was more concerned with any passive income from it or drawdowns potentially being taxed at the highest income tax rate if I were to re-gain residency in the future. Anyway, not a fun topic. Thanks for sharing your thoughts!

Gustavo

 

[EL_TIGRE_de_Tigre]

I understand, Luciano. A move similar to the AFJP heist would probably be extremely hard for them though, as 401(k) retirement money sitting in a US institution I believe it is not even liable for owed compensation in civil lawsuits. I was more concerned with any passive income from it or drawdowns potentially being taxed at the highest income tax rate if I were to re-gain residency in the future. Anyway, not a fun topic. Thanks for sharing your thoughts!

Gustavo

Your understanding and fears are both correct as far as I am aware.

Retirement funds are above civil disagreement for settlement purposes and the only way the Argentine government can legally get at your money is at the point of distribution. Confiscation, and, or forced conversion to pesos is impossible as your 401K sits in a US institution I presume.