Rentista Visa + Dividend from US Stock

[LuckyLuke]

So there will be various methods of legally avoiding paying said taxes looked at with possibly setting up Trusts, LLC's etc

Please do some research on this point. As antipodean astutely pointed out, Argentina does not acknowledge LLC's, trusts or S-Corps the same as the USA in that if the Argentine tax resident exercises any control of the administration of said US structure, they will be taxed directly regardless.

 

[Alby]

And don't overlook the wealth tax (bienes personales), which also kicks in on worldwide assets with tax residency.

 

[Robert8808]

With US Stocks there are only 3 countries in LATAM that have a US Tax Treaty, Chile/Mexico/Venezuela, the tax treaty countries only pay a 15% rate on dividends taken from source at the exchange on each payment, the rest of LATAM with no tax treaty pay the rate of 30%, also as Alby pointed out the dividends will be taxable by the state after the time mentioned as income tax, So there will be various methods of legally avoiding paying said taxes looked at with possibly setting up Trusts, LLC's etc

*Error above - 'as income tax' should be Wealth Tax.

 

[Alby]

I would have thought that the dividends will be taxable under income tax (ganancias) and the value of the stock counted as wealth and taxed in that category (bienes personales).

 

[Robert8808]

I would have thought that the dividends will be taxable under income tax (ganancias) and the value of the stock counted as wealth and taxed in that category (bienes personales).

So you too have not heard of anyone here(this forum) using dividends from US stocks as income in AR?

 

[Alby]

So you too have not heard of anyone here(this forum) using dividends from US stocks as income in AR?

It is often discussed / floated here as a possible strategy to obtain temporary residency in the category of Rentista. I don't know if anyone who contributes here has pulled it off ever, or recently. What is never heard of / discussed here are the Argentine tax implications of these types of arrangements.

 

[Robert8808]

It is often discussed / floated here as a possible strategy to obtain temporary residency in the category of Rentista. I don't know if anyone who contributes here has pulled it off ever, or recently. What is never heard of / discussed here are the Argentine tax implications of these types of arrangements.

Initial searching seems after 12mths that approx 50%+ of dividend payment will go to the taxman, that is unacceptable, hope Milei can get rid of that wealth tax soon, will see what I can find as far as lowering the hit on dividends.

 

[Alby]

It is very hard to get an Argentine tax discussion going on this forum, even though you would think it would be one of the biggest and first issues foreigners seeking to come and live here would want to consider. Instead, there is a lot of denial and wishing the problem away based on anecdotes.

To the extent it has been discussed, the matter boils down (for those who DO accept foreigners on Migraciones residency quickly become taxable on their income and assets--except where a DTA saves them, or they are on 5-year employment contracts, or they manage their time inside and outside the country in a particular way) to whether ACRA would be interested in and able to target a few faily mobile foreigners from OECD-like countries amongst the hundreds of thousands of immigrants here from poorer neighboring countries and millions of non-complying Argentine nationals.

Accepting one's income and assets are, technically, taxable under Argentine law is one thing. What one does about that (pay up, or evade, or pretend) is another. Only a tax lawyer here will be able to help you understand your particular risk profile in the current and foreseeable near-term environment and help you decide what to do.

The bienes personales tax is being progressively reduced by the current government, with a view to its elimination. But there is no guarantee that process will continue.

 

[Robert8808]

It is very hard to get an Argentine tax discussion going on this forum, even though you would think it would be one of the biggest and first issues foreigners seeking to come and live here would want to consider. Instead, there is a lot of denial and wishing the problem away based on anecdotes.

To the extent it has been discussed, the matter boils down (for those who DO accept foreigners on Migraciones residency quickly become taxable on their income and assets--except where a DTA saves them, or they are on 5-year employment contracts, or they manage their time inside and outside the country in a particular way) to whether ACRA would be interested in and able to target a few faily mobile foreigners from OECD-like countries amongst the hundreds of thousands of immigrants here from poorer neighboring countries and millions of non-complying Argentine nationals.

Accepting one's income and assets are, technically, taxable under Argentine law is one thing. What one does about that (pay up, or evade, or pretend) is another. Only a tax lawyer here will be able to help you understand your particular risk profile in the current and foreseeable near-term environment and help you decide what to do.

The bienes personales tax is being progressively reduced by the current government, with a view to its elimination. But there is no guarantee that process will continue.

Great take on the situation, thank you.

 

[Robert8808]

Please do some research on this point. As antipodean astutely pointed out, Argentina does not acknowledge LLC's, trusts or S-Corps the same as the USA in that if the Argentine tax resident exercises any control of the administration of said US structure, they will be taxed directly regardless.

This from Google Gemini AI, please note Trust Fund mentioned on the Consistent Payments line -

While the specific regulations can change, generally, for the Argentine Rentista Visa, you need to demonstrate a consistent and reliable passive income from sources outside of Argentina that is sufficient to support yourself and any dependents.1
Based on the information available, income derived from a trust fund could potentially be accepted as proof of income, provided that you can clearly demonstrate the following:

• Consistent Payments: You will need to show a reliable and consistent stream of payments from the trust fund, typically on a monthly basis. Authorities will want to see a history of these payments to ensure they are stable.
• Legitimate Source: You must prove the legitimate origin of the funds within the trust. Documentation outlining the establishment of the trust, the source of its assets, and your beneficiary status will likely be required.
• Sufficient Amount: The total income received from the trust must meet the minimum income requirements for the Rentista Visa. This amount is subject to change but is often cited as being around USD 2,000 per month for the primary applicant.2 Be aware that recent information suggests the requirement is now tied to five times the Argentine minimum wage, which fluctuates. As of early May 2025, this would need to be verified with the latest official guidelines.
• Transferability to Argentina: You might need to demonstrate that these funds can be readily transferred to an Argentine bank account. While you don't necessarily need to transfer the entire amount upfront, the ability to access and use these funds in Argentina is important.
• Official Documentation: You will need to provide official documentation related to the trust, potentially including trust deeds, statements of payments, and letters from the trustee, all likely needing to be officially translated into Spanish and potentially apostilled or legalized depending on the origin of the documents.

It is crucial to understand that the final decision rests with the Argentine immigration authorities. They will assess the documentation you provide to determine if the income from the trust fund meets their requirements for stability, legitimacy, and sufficiency.
Therefore, while payments from a trust fund may be acceptable, you should:

1. Gather comprehensive documentation regarding the trust and the income you receive from it.
2. Verify the current official income requirements for the Argentine Rentista Visa through the official Argentine immigration website or by consulting with an immigration lawyer specializing in Argentine visas.
3. Be prepared to provide additional documentation or clarification as requested by the immigration authorities.

In summary, providing proof of payments from a trust fund has the potential to be an acceptable method of demonstrating income for the Argentine Rentista Visa, but it is subject to rigorous review by the immigration authorities to ensure it meets all the necessary criteria for a stable and legitimate source of passive income.