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

[gustavomoretto]

Hi Iznogud,

I fully understand the innumerable failures, frustrations and limitations of life in Argentina. I returned to Buenos Aires in 1985 and in 1987 I went back to the US and kissed the soil as soon as I got off the plane.
Why am I thinking of going back then? In part because most of my life-long friends are living a high quality of life there, in spite of all the nightmares they went through in the last 40-50 years. There must be a compensating element in that life that tips the balance in a positive way. I have some family left and life long friends with whom we share unforgettable memories. Still, I do not overrule your points and hearing your views on Argentina serves as a sobering reminder.

 

[Ries]

I have many Argentine friends who, despite the problems here, would never leave. There is still a dynamic creative society, lots of younger people commited to making Argentina better, and amazing art, music, theater, dance, fashion, and industrial design going on every day. Many artists I know have taken advantage of the pandemic to be more productive than ever. Many people I know long ago gave up on making "first world" salaries, and live modestly but happily. There is a lot good in Argentina, and there is a hell of a lot bad in the USA right now. As soon as the Argentine government will let me in (I have no residency) I will be on the first plane to Buenos Aires.

 

[sergio]

You definitely need an accountant - one who is REALLY familiar with US-Argentine taxes, not just any accountant who says he knows how it works. You could wind up in an uncomfortable tax situation. WHY must you pull up stakes in the US? Can't you divide your time?

 

[gustavomoretto]

Thank you Ries. I agree with that particular dynamic of Argentine society and its amazing creative impulse. It's like old Europe with dreams that don't go away!

 

[gustavomoretto]

Good question Sergio!
I was doing just that and this year the pandemic stopped me.

The issue I have with my life here in the US is loneliness and a perpetual feeling of alienation from others and from the impulses and values in this society.

I am profoundly grateful for the opportunities I got in this country but I need the human warmth that makes everything worthwhile.
I've had an amazing career in Argentina and have many friends and colleagues with whom I can connect, reminisce and make music.
I do not minimize the tax issues that I can't yet begin to understand.

I've found just about every help I can think of but a truly knowledgeable accountant still eludes me.

 

[Alby]

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.

 

[sergio]

Good question Sergio!
I was doing just that and this year the pandemic stopped me.

The issue I have with my life here in the US is loneliness and a perpetual feeling of alienation from others and from the impulses and values in this society.

I am profoundly grateful for the opportunities I got in this country but I need the human warmth that makes everything worthwhile.
I've had an amazing career in Argentina and have many friends and colleagues with whom I can connect, reminisce and make music.
I do not minimize the tax issues that I can't yet begin to understand.

I've found just about every help I can think of but a truly knowledgeable accountant still eludes me.

There are accounting firms that deal with US expats exclusively. Do some research. Ask a major accounting firm in NYC for advice. I should think you need to keep a low profile and maintain your legal permanent residence in the US and NOT Argentina.

 

[gustavomoretto]

Thank you Alby...
That's pretty devastating. I truly appreciate getting the real deal when it gets to information
The question is: how do expats manage to live in Argentina with those taxes?
It seems like an insurmountable problem!
Any answers?
Thanks again Alby. Please stay in touch if that's OK with you.

 

[gustavomoretto]

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.

Thank you Alby...
That's pretty devastating. I truly appreciate getting the real deal when it gets to information
The question is: how do expats manage to live in Argentina with those taxes?
It seems like an insurmountable problem!
Any answers?
Thanks again Alby. Please stay in touch if that's OK with you.






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[Alby]

The question is: how do expats manage to live in Argentina with those taxes?
It seems like an insurmountable problem!

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.