Potential Expat Inquiry Update

[soulskier]

Stanley, monotribustia is a self employment tax, not a social security tax as you previously posted.

 

[Stanexpat]

Stanley, the monotribusto I pay is my income tax. Since I rent properties as one of my sources of income, it is a flat monthly fee based upon the average amount declared of my rentals. In addition, I pay a small .75% wealth tax on my real estate, truck, etc each year, if they total 300,000 pesos or more.

Thanks for the advice to seek professional help, but it was my accountant that set me up as a monotribuio.

I have some advice for you. Why don't you stop posting about things you actually don't know about? I think it is funny that you can attach a link and are an expert on the topic. My findings come from my 4 years of actual life experiences here in Argentina. You don't even live in the country anymore, but find it necessary to always point things that aren't accurate. Surely you have better things to do with your time?

Well suit yourself. I'm not claiming to be an expert on taxes in Argentina nor do I know the particulars of your finances. You stated earlier you pay a very small fixed monthly amount on your rental properties. The effective income tax rate on rental property in Argentina is 21% per the attached link which is not small and makes me think what you are paying is not the income tax.

http://www.globalpropertyguide.com/Latin-America/Argentina/Tax-Pages

You seem unaware that there is an income tax in Argentina with a top rate of 35%. Income taxes there are considerably higher than federal taxes in the states. Getting back to my original point in the thread that people would be moving to Argentina to avoid high U.S. taxes doesn't make sense as income taxes there are higher. The 80k exclusion there from U.S. taxes doesn't really mean anything in this case as the taxes you would pay on 80k there is already much higher than in the states to begin with. The 80k exemption would only be helpful if Argentina were a country of low or no income tax.

If this is inaccurate information then please show me where I'm wrong. I'm not trying to upset you or anybody else. I am in serious saying you should check this out with a professional.

 

[Stanexpat]

Stanley, monotribustia is a self employment tax, not a social security tax as you previously posted.

In the U.S. there is a self employment tax as well for self employed individuals. All it is a way for the government to collect social security taxes for individuals who don't get a paycheck with the usual deductions for social security. Don't know but could this be the same thing there? The self employment tax in the U.S. is in addition to, not a replacement of, normal income taxes.

 

[soulskier]

I am not going to continue to discuss my tax structure with you. But I can assure you I have an accountant here in Bariloche, that has set me up to be most beneficial to me. I have other colleagues doing the same thing.

I am not "unaware" about the top tax bracket, as I stated earlier, people in ARG often times do not pay taxes on their full amount earned. It is common practice. Just look at Real Estate deals, even the escribano knows about "Black"and "White" money.

 

[perry]

Stanexpat the truth is that Argentines pay much less tax then United States citizens . Of course the USA is a controlled society where tax collection is taken very seriously and any violations are dealt with severly.

I have never ever heard of an Argentine citizen being sent to jail for tax evasion. Has anyone heard of this?

In regards to the posts that state the New York Bankers are moving to Buenos Aires in droves I have heard from various high class immobilarias that this is true . I expect to see this trend to continue as Buenos Aires offers a freedom and lifestyle that is highly attractive to the moneyed elite.

 

[soulskier]

Pericles, thanks for getting us back on track.

The NY Bankers are smart. When I tell my friends we traded up a social class and cut our cost of living into a third, they don't believe me. It makes perfect sense for those with and/or earning dollars to relocate to Argentina.

 

[steveinbsas]

As much as I love living in BA, I doubt there are enough New York bankers willing to relocate to BA to have any real impact on real estate prices. You have to want to move here for reasons greater than a "cheaper" lifestyle and greater opportunities for tax evasion or you will probably come to regret that decision. A few may come here and buy apartments, but it is obvious that the expat invasion has dwindled. The future economic prospects for a newly unemployed New York banker or Wall Street executive surely continue to be much greater in New York than BA.

BA is still a great place to visit, but anyone thinking about moving here had better do a lot of research and spend some time here first (IMO at least six months).

I hear Atlanta has become the epicenter for Mexican drug cartels in the US. Perhaps Stan can let us know if that has led to greater economic opportunities in his neck of the woods...or helped make it a better place to live than BA.

 

[RWS]

I enjoy (and learn from) both "SoulSkier"'s posts and "StanExpats"'. I hope that each will continue to post in this forum.

I've little to add, but that little might clarify matters (I work in international law in the States and have Argentine lawyers among my friends and acquaintances, and Argentine citizens rich and middling among my friends and cousins; plus, I do try to keep eyes and ears open -- but none of this is, of course, legal advice). The "monotributo" is a unified payment of the Argentine equivalents of American federal income tax and contributions to Social Security, designed for workers' ease of payment; wealth taxes are separate. Tax evasion in Argentina is rife -- as "SoulSkier" pointed out, evading the law is the only national pastime more popular than fútbol -- and punishable, though I, as "Pericles", have never known of anyone to pay (other than a . . . hmm . . . consideration to powers that be) for it.

Finally, and speaking from ignorance of the situation on the ground but some hard-won understanding of human nature, I'd agree with "SteveinBsAs": few high-income Americans will move permanently to Buenos Aires. Their loss, our gain.

 

[soulskier]

Stan, is that true, that you are living in part of a drug cartel in your new home? Maybe ARG isn't looking so bad after all?

 

[perry]

Some people do not like the facts Soulskier . The truth is that Argentines pay less tax than US Citizens this is a fact. Land and property taxes in the USA are much higher than Argentina

I do not condone not paying taxes as this is illegal.
I believe that taxation when fair is a major contribution to an equitable society.