Retiring in the US and moving back to Buenos Aires: need contador!!

[gustavomoretto]

Thanks again Alby.
I am an Argentine citizen and the government won't have it any other way even if I'm a US citizen as well.

Would a trip to a neighbor country, say Uruguay, work for a renewal of the 180 days, or that is too good to be true...?
I guess a retiree would not be treated any different than a working expat...right?

It's just very hard to process that I might not be able to return to my country!

 

[gustavomoretto]

The answer is, in brief, that the tax in question (Bienes Personales) only became a problem for expats (and Argentines) with overseas assets exactly 12 months ago, when the current government changed the rules (by closing a loophole that had allowed people to set their domicile as the country in which the assets were located). So the problem is a new one. One way to manage it is to stay in Argentina no more than 180 days in each calendar/fiscal year.

Thanks again Alby.
I am an Argentine citizen and the government won't have it any other way even if I'm a US citizen as well.

Would a trip to a neighbor country, say Uruguay, work for a renewal of the 180 days, or that is too good to be true...?
I guess a retiree would not be treated any different than a working expat...right?

It's just very hard to process that I might not be able to return to my country!

 

[garryl]

Leave all your asset in US, you really do not need an accountant in Argentina, never mix it with 2 countries.
You can live nicely with your money outside Argentina. When you just marry someone, you do not just mix your money
with your fiance ? (unless she has a lot more and is willing to mix hers with yours). Why tie yourself so much, not knowing
if you like it in AR. I do think you have a lot more chances to meet some Argentine ladies (at Tango classes).

 

[Alby]

Thanks again Alby.
I am an Argentine citizen and the government won't have it any other way even if I'm a US citizen as well.

Would a trip to a neighbor country, say Uruguay, work for a renewal of the 180 days, or that is too good to be true...?
I guess a retiree would not be treated any different than a working expat...right?

It's just very hard to process that I might not be able to return to my country!

You can live in Uruguay (or the US) for half the year then avoid the bienes personales and probably any other taxes that your accountant could tell you about. I just wanted to alert to the fact that as you suspect, the tax issues are massive and this bienes personales is a particularly nasty one. Don't try and solve it here. There is no easy way around it. Find your accountant, and discuss the strategies with him or her. But my advice is don't get too emotionally invested in this idea yet. Find out about the tax issues. They are major, and you are right to be looking for a good accountant.

 

[bdk1]

I strongly recommend Estudio Mintzer in Palermo (Av. Medrano 1970, +54 11 4821-8910, I can't find their email right now). They have a great team that has been dealing for decades with cases like yours, international clients, etc. They are also very communicative and reply to emails and calls very quickly. They are on the expensive side (for Argentinean standards), but engaging them will probably potentially not just save you money but lots of headaches.

 

[gracielle]

Hi everybody!
I'm an Argentinian college professor teaching at CUNY (NYC) and I've lived in the US for 32 years. I am planning on retiring this coming year and going back to Buenos Aires.I need help with an accountant in order to know how to manage my US retirement money in Argentina.

Hi gustavomoretto,
Thread on this forum re:

Argentina's New Tax On Residents Global Wealth

Argentina's new tax law requires everyone living in Argentina to pay a tax of up to 2.25% of all their assets worldwide, every year. In 10 years you will pay 22.5% of all your savings, real estate, stocks, etc. It's tempting to think that we will just ignore it but from what I've read, failure...

baexpats.org

 

[Cristian77]

Of course you are right to look for a good accountant. The detail matters. But, to help you not get too far ahead of yourself in committing emotionally to the project and then working out the tax issues once your heart has already dominated your head, there is some broad-brush information that can be comprehended right now before you even get to your accountant.

One of the biggest items you will discover (and which has been discussed at length on this forum in other threads) is that whatever wealth you have accumulated and hold in the US will be taxed each year in Argentina (as of midnight on 31 December each year, right now in fact, as I write) in an amount of (currently) 2.25% of its value. There are ways to reduce the percentage amount and use inflation to reduce the final amount in pesos. But it is a sobering fact that you need to be considering right now. Unless you want to get into some evasion scheme, you will have to hand over up to 2.25% of your patrimony every year that you are taxable in Argentina (basically every tax year you spend more than 183 days in the country). Don't wait for a top-notch accountant to tell you that. Start thinking about it now.

One thing that is worth noting is that this tax has to be paid in pesos, not dollars, and there are ways to convert US dollars into pesos at the non-official exchange rate. This makes the tax lower than 2.25%. Since the official exchange rate is around 90 pesos, and the non-official exchange rate is around 150 pesos, you end up paying approximately half of 2.25%. Also, you should have in mind that if you transfer a small percentage of your money to Argentina, your assets will be taxed at the local tax rate, which is much lower. In the end, you will end up paying around 1% of your wealth every year. An investment can generate, say, 4% of profit every year, or even more, of course. So you will not lose your wealth. Actually, you will increase it. Staying in Argentina is way cheaper than staying in the US, and you will be making a profit from your money. Excellent idea to come back.

 

[¡Sencillamente yo!]

Gustavo,

Life is too short. (Money is important, but health and happiness are rated higher.) I urge you to get the information you need to accomplish what you are trying to do, then follow your heart.

 

[gustavomoretto]

One thing that is worth noting is that this tax has to be paid in pesos, not dollars, and there are ways to convert US dollars into pesos at the non-official exchange rate. This makes the tax lower than 2.25%. Since the official exchange rate is around 90 pesos, and the non-official exchange rate is around 150 pesos, you end up paying approximately half of 2.25%. Also, you should have in mind that if you transfer a small percentage of your money to Argentina, your assets will be taxed at the local tax rate, which is much lower. In the end, you will end up paying around 1% of your wealth every year. An investment can generate, say, 4% of profit every year, or even more, of course. So you will not lose your wealth. Actually, you will increase it. Staying in Argentina is way cheaper than staying in the US, and you will be making a profit from your money. Excellent idea to come back.

Thank you Cristian! Your message had an impeccable timing! I just closed a rental in Belgrano C and intend to move back as soon as it's humanly possible. I had not received a message for weeks, so this comment by you seems to have had some kind of "cosmic" connection. It certainly feels good to have your hunches confirmed like this.

 

[gustavomoretto]

Gustavo,

Life is too short. (Money is important, but health and happiness are rated higher.) I urge you to get the information you need to accomplish what you are trying to do, then follow your heart.

Thank you Sencillamente Yo! (haha!). Your comment is central to my decision! It was difficult to let go of the structure that took me so long to accomplish here. But health and and happiness are rated higher! and it's wonderful to have another sympathetic soul confirm that. Thank you!!