Rentista Visa From Rents Collected in 2019

steveinbsas

Registered
^ This is a very good question that could be determinative for almost all expats on whether or not to naturalize.
I think it's much more likely to be deterministic for any expats considering getting temporary residency, at least until I see how becoming a citizen who lives in Argentina more than 182 days of the year exempts them from paying the bienes personales on their foreign assets and income tax on their foreign income.

PS: At this point, not getting temporary residency (and not staying in the country more than 182 days of the year) is the only way I can see as a way not to pay these taxes, assuming citizens living in Argentina have a legal obligation to declare their foreign assets and foreign income and pay the applicable taxes on them (with the possible exception of income earned in countries with whom Argentina has a tax treaty).
 
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Alby

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As far as I can glean from the various news articles of recent days and from older country reports from the likes of PWC and KPMG about how the tax has worked in the past, the Bienes Personales tax has always applied at 31 December to all “residents for tax purposes” (that would be all Argentines and—with one exception detailed below—any expat on any temporary or permanent visa once he or she has completed the first 12 months of their temporary residency) who have worldwide assets greater than the quite low minimum threshold. The change now, again as far as I can glean, is two-fold: (i) a massive increase to the amount of the tax; (ii) closing the loophole that most Argentines (and presumably expats who were aware of the tax and sought to avoid it) with overseas assets exploited, which was to fix their “domicile” as the address of their overseas property. With the loophole closed by an amendment to the legislation added at the last minute in the lower chamber of parliament, it appears to me, that now, strictly speaking, all expats with overseas financial and fixed assets over the first rung of the threshold (2,000,000 pesos) will have to either pay the tax or take the risk of avoiding it. The exception appears to be those who are in the country on working visas of less than five years, who have always had exemption and I see nothing in any of the commentary to suggest that exemption disappears.

I have obtained no professional advice on this; it is purely based on some research I have done in recent days since the matter appeared in the press. The tax changes are political and not directed at expats, but, on my reading, expats are collateral damage. One report I saw pointed out that this kind of wealth tax has been eliminated in most countries around the world because of the difficulty of collecting it, which goes to the point about whether AFIP has any means of really enforcing it/detecting overseas assets. Perhaps not (another report said that Migraciones and AFIP do not share information); nonetheless it is a risk for those either under or considering the Rentista category since in order to obtain the visa we declare and provide documentary proof to the government that we own property overseas. I am not sure that double taxation agreements between Argentina and foreign countries will give much relief, since they usually cover taxes common to both countries, and, as wealth taxes are rare the Bienes Personales tax is unlikely to be covered.
 

Alby

Registered
Sorry for the noise, but just to put the above perhaps slightly more directly: it appears that once the legislation becomes law (it may already be), everyone (all Argentines (including citizens, or foreigners who have become citizens) and all expatriates (including all permanent and temporary residents)) is liable to pay the Bienes Personales tax each year on their worldwide wealth (i.e., all the Argentinian assets they hold and all the overseas assets they hold), in an amount that is calculated on 31 December each year and starts at 1.25% of the wealth value for assets in excess of 2 million pesos and finishes at 2.25% for assets in excess of 18 million pesos. There seems to be no exception for any Argentine and there is only one exception for the expatriate community (regardless of whether one's DNI is permanent or temporary): those temporary residents who obtained their DNI as a trabajador and whose employment contract is of less than five years duration. Double tax treaties Argentina has with other countries (https://www.argentina.gob.ar/economia/ingresospublicos/conveniossuscriptos) may (but probably don’t) give relief from the tax.

If anyone can find any information that contradicts the above, it would be greatly appreciated. So too would any information about the efficiency or otherwise of AFIP in its compliance activities.
 

Alby

Registered
And finally, the only escape hatch for an Argentine citizen seeking to avoid the Bienes Personales tax in any given year appears now to be the same as for avoiding income tax: leave the country for nine months of the calendar year and thus lose their tax residency status for that year.
 

Bajo_cero2

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Would becoming a citizen legally reduce or eliminate the tax liability on foreign income and foreign assets for those who live in Argentina more than 182 days of the year?

Are you referring ot AFIP when you mention there are no records about how long Argentines live in Argentina?

Are you referring to the number of days of the year?

Even if there are no records of how many days of the year an Argenitne is living in Argentina, at what point, if any, do they become exempt from paying the bienes personales on foreign assets or income tax on theor foreign income?

In other words, at some point, aren't Argentines living in Argentina legally responsible for declaring their value of their foreign assess and their foreign income?

Finally, what are the consequences for a naturalized Argentine who fails to comply with whatever tax laws there are?
To enroll the AFIP is voluntary while the DNM treats foreigners as slaves, so, they feel with a right on your assets and this is why everything is compulsive.
There is no exemption but no control neither unless you want to do something where AFIP can realize you exist like enrolling or buying real estate for example.
The worst possible escenario is that they say you have to pay X, and you appeal before a judge for years while the usd skyrockets. If you get prosecuted, paying ends the criminal prosecution but you have to be a complete idiot for getting prosecuted.
 

Bajo_cero2

Registered
OMFG!!

The proposal also includes income tax on all temporary residents (who are required to be in Argentina 182 days per year to maintain their temporary residency)?

PS: Even this creates no problem for me, I m very sorry for what this means to most expats with temporary residency.
The law was always there, they just didn’t enforce it but they can do it any time.
 

zalayeta

Registered
You shouldn't need a lawyer to get temporary residency. Patricia is not a lawyer. In prior years she has accompanied several of us to the immigration office to act as a friendly translator. There's no reason to contact her until you actually have an appointment.
Hi Steven ,
I already had appointment with migration office , could you send me contact number of Patricia ? By message no problem. Thanks
 

PeteWade

Registered
you have to stay in argentina for 6 months in each of the first 3 years that require a renewal of the temporary residence ( 6 months start from the date your first DNI is issued ), after that you apply for a change of category to permanent and once you have a permanent residence you have to spend at leas ta day every two years in argentina in order to keep it. You also have to be in Argentina to start the RADEX application. most of the questions you ask here are answered on the internet - google migraciones . The extra 10K might shorten your wait for a turno from 90 days to about 30, but don't expect it next day.
Hi the minimum stay requirements during the first 3 years may be of significance to me. I hadn't seen anything during my own research though of course I may have been looking in the wrong place. Could you help me with a reference or similar pointer to the resource ?. cheers
Pete
 
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