I'm sure that's declared income. I would say most folks (esp rich folks) don't report all those pesos.
Don’t be so sure. To be really wealthy in this country you
need to be en blanco if you want any hope of ever spending it, accessing financing, moving money or keeping your business alive since the system exists to catch and cancel you if not.
At least whatever is made and spent inside Argentina although it’s increasingly hard to hide undeclared income, assets and spend offshore.
But then again that’s why really good lawyers and accountants here are so expensive because they keep you
en-Blanco.
I would go as far as saying that the truly wealthy in Argentina are the
most tax compliant group in the country. Not saying perfect, but
most compliant. (Eg. The lower classes just don’t pay tax, the middle classes live or supplement their income from little things that are/ were easier to hide like rental properties and income or a sale not put through the til, while the upper classes get smart and can afford to spend a fortune on minimizing their burden legally etc.)
Inside that 5% earning on
average 400k, you have the A and B class earning well above that
average - let’s say 50% of that. That’s like 1.1m-ish people living lifestyles comparable to other high earners or high net worthers anywhere else in the world. I’d say that adds up to the scale of the market for fancy cars and real estate we actually see here.
On a side note, while you may not afford a Porsche on around $4k per month, well without financing, you will qualify for some of the most premium credit cards and banking packages like HSBC Premier
Black ($700k per month requisite) on the market before you get into the realms of private banking. Given how few customers of the total banking customers have access to these products gives you an idea of how “exclusive” $4k per month in Argentina actually is.