Residency Without Fitting Any Category !!!!

[lucha54]

If you live here more than 6 months/year, and you make e.g. $25,000/year from foreign companies and investments, and you pay tax on all of it in the states, would this still mean that you owe $250 to AFIP?

 

[steveinbsas]

If you live here more than 6 months/year, and you make e.g. $25,000/year from foreign companies and investments, and you pay tax on all of it in the states, would this still mean that you owe $250 to AFIP?

The example you have provided involves foreign income. I always thought that both temporary and permanent residency created a tax liability on world wide income, but when I searched taxes for temporary residents I found different opinions. Once the taxable threshold is reached, the tax rate on foreign income is much greater than 1%.

The 1% tax NickF was referring to applies to foreign assets, not income,and the "asset tax" rate for assets in Argentina is different for residents and non-residents. I don't think it makes any difference if the residency is temporary or permanent. When I was paying it as a temporary resident, the rate for residents was .5% and for non-residents the rate was 1.25%. I only paid the "bienes persoanales" tax on assets in Argentina, but that's because I had no foreign assets to tax. By the time I became a permanent resident the tax threshold had been raised and I was no longer liable to pay the tax.

I have no doubt that permanent residents are subject to taxation in Argentina on their worldwide assets and income. After reading some of the posts in my search I am not so sure about temporary residents. Dr. Rubilar, however, appears to be certain that they are included. Nonetheless, I doubt that many of them are paying taxes in Argentina on all of their worldwide assets or income.

The question remains as to whether or not temporary residents in Argentina are required by law to pay the bienes personales tax on their worldwide assets.

 

[NickF]

Not accurate. Taxes has to be paid if you live here over 6 month per year. Read the income tax law.

I wasn't referring to income. I was referring to assets. I know you have to pay taxes on income as a temporary resident. Paying taxes on assets outside of Argentina is a different matter, as I understand it. An accountant who specializes in international tax in Argentina explained to me that you have to pay tax on assets outside of Argentina when you become a permanent resident, but not as a temporary resident.

I'll say this again...I'm not an expert in this area, but I'm pretty sure this is correct information. If someone has factual information and would like to correct me, by all means please do. But the fact the you tell me to read the income tax law suggests you weren't paying attention very close attention to what I wrote as I wasn't talking about income tax.

 

[Bajo_cero2]

I wasn't referring to income. I was referring to assets. I know you have to pay taxes on income as a temporary resident. Paying taxes on assets outside of Argentina is a different matter, as I understand it. An accountant who specializes in international tax in Argentina explained to me that you have to pay tax on assets outside of Argentina when you become a permanent resident, but not as a temporary resident.

I'll say this again...I'm not an expert in this area, but I'm pretty sure this is correct information. If someone has factual information and would like to correct me, by all means please do. But the fact the you tell me to read the income tax law suggests you weren't paying attention very close attention to what I wrote as I wasn't talking about income tax.

Well, art. 17 of the bienes personales law says that persons who have his address here has to tay this tax.

Art. 20 of the National Constitution states there is no difference among citizens and foreigners...and among foreigners (art. 16 or 17).

Accountants do not understand law.

The difference between 0.5 up to 1.75 depend on the value of the asset. Over 5.000.000 pesos is 1.75%.

Art. 25 says that you deduct the tax you paid abroad if is similar (non double taxation clause).

 

[NickF]

Well, art. 17 of the bienes personales law says that persons who have his address here has to tay this tax.

Art. 20 of the National Constitution states there is no difference among citizens and foreigners...and among foreigners (art. 16 or 17).

Accountants do not understand law.

The difference between 0.5 up to 1.75 depend on the value of the asset. Over 5.000.000 pesos is 1.75%.

Art. 25 says that you deduct the tax you paid abroad if is similar (non double taxation clause).

Thanks for the taking the time to cite specifics on why you think the asset tax applies to temporary residents on assets outside of Argentina. I took a quick look at the two articles cite, and am surprised that you interpret these two articles to mean that.

Article. 17 of the bienes personales refers to people that are domiciled here. Article 17 does not specifically define domicile but a domicile typically refers to a fixed, PERMANENT residence, not a temporary one. This is why it would make sense that a permanent resident would be required to pay this asset tax and why a temporary one would not. I’m reading this article quite differently from you. How do you think domicile is defined by this law?

Article 20 of the National Constitution seems to be primarily talking about foreigners having the right to enjoy same civil rights as citizens. Seems like a real stretch to interpret this article to mean that all foreigners in Argentina have to pay the asset tax even though they don’t permanently reside here. If that’s how you interpret this, then it would seem that tourists should be paying this tax too. Seems a little unlikely don’t you think?

I’m not sure why you would say that accountants don’t understand law. Certified Public Accountants specializing in tax are trained to apply specific aspects of law that pertain to tax. In my professional life, I’ve worked with many very competent accountants on issues related to international relocations so I am surprised why you make this generalization.

I understand that you are an immigration attorney, not a tax attorney, but you seem pretty confident and willing to offer advice outside of your practice area. Really, are you SURE that TEMPORARY residents are required to pay asset tax on assets outside of Argentina? No doubt in your mind?

 

[steveinbsas]

Article. 17 of the bienes personales refers to people that are domiciled here. Article 17 does not specifically define domicile but a domicile typically refers to a fixed, PERMANENT residence, not a temporary one. This is why it would make sense that a permanent resident would be required to pay this asset tax and why a temporary one would not. I’m reading this article quite differently from you. How do you think domicile is defined by this law?

I believe the asset tax applies to cash, and cars as well as all types of property, including bare land, barns, houses and apartments. Just because one type of asset may be called a domicile in English does not have anything to do with where someone is domiciled (living). Having temporary or permanent residency is a category recognized by Argentine migraciones and is different from the "fixed, PERMANENT residence" (place) where someone resides.

Based on bajo_cero2's post, a foreigner with Argentine residency (temporary or permanent) could own farmland (with or without a barn) in Illinois or a commercial building in Florida that had no domicile in which to reside, but if the value of the land or the building is great enough they would owe the asset tax in Argentina. A PERMANENT resident of Argentina may or may not be "domiciled" here and may not even own a "domicile" in Argentina, A permanent resident of Argentina is not required to live in Argentina for more than one day in two years, yet is required by law to pay the tax on foreign assets.

The asset tax either applies to temporary residents (who must physically be "domiciled" (living) in Argentina at least 180 days per year) or it doesn't.
I don't remember anyone with temporary residency posting here that their Argentine accountant told them they had to pay the asset tax on their foreign property, but that doesn't mean they aren't liable for the tax.

I do remember at least one member commenting that he got different answers to the same question from different Argentina accountants. Mine told me that if I had property (land) in the USA and paid property taxes on it in the USA that I would not have to pay the bienes personales tax on that property in Argentina. He also told me that if I had a Rolls Royce in the USA that was not subject to property tax there, that I would owe the tax on the Rolls in Argentina.

PS: I think it was an Argentine real estate agent who told me the asset tax was higher for non-residents, but it might have been an Argentine accountant. According to bajo_cero2, it's a progressive tax based on value, not residency.

 

[Monique]

I have temporary residency here in Argentina and own property in the Netherlands. My accountant here told me that I was liable for paying taxes on my foreign property, however, I pay the asset tax in the Netherlands and because of a tax treaty between Argentina and the Netherlands I am exempt from paying here.

 

[Monique]

Also I read somewhere (but of course can't find it anymore) that as bajo_cero stated anyone residing in the country more than 6 months/year is liable to paying taxes (income + assets) which automatically means that this applies to any form of residency, permanent or temporary... Would be good to find a trustworthy source that confirms all of this in detail.

 

[khairyexpat]

..... I am exempt from paying here.

Minor technical correction:
NO ONE IS EXEMPT !!!!! (No such a thing)
Proper way to put it is: you claim in Argentina what you´ve already paid in the Netherlands.
The final end result (for overwhelming majority of us), effectively may look like you´re exempt.
(of coarse it may be totally different, ... depending very much on your own details under that specific TaxTreaty).

 

[NickF]

Also I read somewhere (but of course can't find it anymore) that as bajo_cero stated anyone residing in the country more than 6 months/year is liable to paying taxes (income + assets) which automatically means that this applies to any form of residency, permanent or temporary... Would be good to find a trustworthy source that confirms all of this in detail.

Agreed.Thank you. In the U.S. we don't have this type of tax as in Argentina and the Netherlands and am trying to get my arms around it.

Also, regarding property, I understand the tax is on the value on the property, not the amount you actually own (please correct me if I'm wrong!). So if you have a mortgage you might actually own a small percentage of the property but you pay the tax on the full value, which can be significant.