Recommendation: tax lawer / tax advice?

[victor]

Hi! I'm moving from Spain to Argentina this year and I have a few questions about how to set things up tax-wise. Can any of you recommend me a good tax lawer? Or if you have tips/advice I'd love to hear it as well!

My situation: I'm an EU-citizen and I'm moving to Argentina with my wife who has Argentine citizenship and baby. I own a small online company in Spain with yearly revenue in the low 6-figures.

I'm quite worried about the tax burden in Argentina: it's even higher then in Spain with lower quality service in return. But that's a different discussion.

As far as I know, there's no way around it:

- If you live 6+ months per year in Argentina you're a fiscal resident here.
- If you're fiscal resident in Argentina, you're taxed on your worldwide income.

Tax-wise the neighboring countries like Chile and Uruguay offer much more attractive tax schemes, but since we want to e closer to my wife's family moving there is not an option.

I hope a tax expert can help me figure out the best way to set things up here. Thank you!

 

[steveinbsas]

Hi! I'm moving from Spain to Argentina this year and I have a few questions about how to set things up tax-wise. Can any of you recommend me a good tax lawer? Or if you have tips/advice I'd love to hear it as well!

My situation: I'm an EU-citizen and I'm moving to Argentina with my wife who has Argentine citizenship and baby. I own a small online company in Spain with yearly revenue in the low 6-figures.

I'm quite worried about the tax burden in Argentina: it's even higher then in Spain with lower quality service in return. But that's a different discussion.

As far as I know, there's no way around it:

- If you live 6+ months per year in Argentina you're a fiscal resident here.
- If you're fiscal resident in Argentina, you're taxed on your worldwide income.

Tax-wise the neighboring countries like Chile and Uruguay offer much more attractive tax schemes, but since we want to e closer to my wife's family moving there is not an option.

I hope a tax expert can help me figure out the best way to set things up here. Thank you!

A licensed Argentine accountant should be able to tell you exactly what you need to do and you'll no doubt need one to stay in compliance with the Argentine tax system.

It might not be more complicated than registering with AFIP as a monotributo and billing your foreign clients with facturas (invoices) that are approved by AFIP. Your present clients may be able to continue to pay in exactly the same way as before (such as making on line payments to your present bank account in Spain).

Of course you will have to pay the appropriate tax rate in Argentina. Someone might tell you there's no way AFIP would know if you had more than one bank account in Spain and only billed some of your clients with invoices from Argentina. Of course that could backfire if you need to spend the money in Argentina and haven't declared. the income.

I can imagine that some individuals who are "worried about the tax burden in Argentina" make ATM withdrawals from foreign bank accounts thinking they can hide some of their foreign income. I don't know if AFIP monitors ATM withdrawals made by foreigners who have temporary or permanent residency (or even Argentine citizens) and can cross reference those withdrawals with their income declarations in Argentina.

 

[garryl]

Many people have massive income abroad and retire in Argentina, they do not pay anything.

 

[victor]

A licensed Argentine accountant should be able to tell you exactly what you need to do and you'll no doubt need one to stay in compliance with the Argentine tax system.

It might not be more complicated than registering with AFIP as a monotributo and billing your foreign clients with facturas (invoices) that are approved by AFIP. Your present clients may be able to continue to pay in exactly the same way as before (such as making on line payments to your present bank account in Spain).

Of course you will have to pay the appropriate tax rate in Argentina. Someone might tell you there's no way AFIP would know if you had more than one bank account in Spain and only billed some of your clients with invoices from Argentina. Of course that could backfire if you need to spend the money in Argentina and haven't declared. the income.

I can imagine that some individuals who are "worried about the tax burden in Argentina" make ATM withdrawals from foreign bank accounts thinking they can hide some of their foreign income. I don't know if AFIP monitors ATM withdrawals made by foreigners who have temporary or permanent residency (or even Argentine citizens) and can cross reference those withdrawals with their income declarations in Argentina.

Thanks, good points. I'll search for a licensed accountant as well. I thought my income would be too high for the monotributo-scheme but I'll look into that again.

I prefer to do everything above board, but funny enough most people I've talked with the last few months called me crazy to declare everything. They all told me to invoice part of my income with the monotributo and not declare the rest.

One person specifically told me "I used to think like you and did everything the right way, but I regret it immensely since it only led to more problems." (I'm paraphrasing, he was more specific).

Anyway, time to talk to an expert (or two) since I'm honoustly not sure what to do anymore.