Social Security deposit to foreign bank

[orestia]

This is incorrect.

I am a naturalized citizen receiving social security benefits from the USA. I don't pay any taxes in the US or Argentina on my retirement benefits.

Read this article by a financial planner who addresses the subject.
"Argentina does not tax pension income. That’s good news if you’re just planning to live off your retirement savings. However, you will need to pay income taxes if you get a job or earn other income from another source within Argentina."

 

[orestia]

What about the IRA/401K withdrawals, they should also be considered (self funded) pensions, are they also exempt? It would great if you have tax accountant/lawyer reference for latest updates.
Portugal started taxing pensions since 2020, apparently.

 

[Reversegate]

What about the IRA/401K withdrawals, they should also be considered (self funded) pensions, are they also exempt? It would great if you have tax accountant/lawyer reference for latest updates.
Portugal started taxing pensions since 2020, apparently.

Portugal doesn't tax all pensions in the same way. As the link belows states, personal pensions without an employer contribution are taxed in a different way.

https://www.blevinsfranks.com/tax-and-pensions-portugal/#:~:text=Once%20you%20are%20a%20tax,of%20up%20to%20%E2%82%AC4%2C104.

From all of my investigations, I've seen nothing that indicates that Argentina will aply income tax to income from a US pension scheme. Your own tax obligations to the USA will of course depend on what type of pension scheme you have.

 

[Aztangogirl]

Thanks for all the replies! This is very helpful and I think the best route is direct deposit to a US Schwab account, then using the Schwab debit card for purchases and ATM withdrawals.

And when doing this, do you get the official rate or the blue rate?

 

[toast]

I must be the dumbest Yanqui in Argentina. I pay Argentine taxes. Two local accountants were in accord on Argentine tax consequences of social security income. They treated my US Social Security income as taxable. It is taxable also in the sense that my income exceeds the threshold that applies to every Argentine. And then there is the Beines Personales, wealth tax, that applies to assets held in Argentina or anywhere else on the planet. My SS monthly payment is wired directly to an Argentine bank, where I maintain a peso account and a USD account. The USD account costs USD $10 monthly. If the need arises to request discretionary inbound wires, my ARG bank takes less than 2% for the transaction. No fee applies for the monthly SS payments. When the need arises, I go to the local bank branch and withdraw USD in cash. The US Embassy can complete the form the bank has to initiate direct deposit of monthly SS payments. So, yes, you can wire in US social security income directly to an Argentine bank. That money comes in as USD and stays USD in my USD account. I have not relied on this forum for tax advice. Tax evasion is rampant in ARG, and Argentines are not even tight lipped about their practices. You will have to make your own decisions regarding the mechanisms for getting USD into Argentina, and the tax implications that may arise, and what risk, if any, you feel is tolerable if you opt for a rationale to minimize or avoid ARG taxes entirely. Of course, it is easy to dismiss the dumbest Yanqui in Argentina.

 

[Reversegate]

I must be the dumbest Yanqui in Argentina. I pay Argentine taxes. Two local accountants were in accord on Argentine tax consequences of social security income. They treated my US Social Security income as taxable. It is taxable also in the sense that my income exceeds the threshold that applies to every Argentine. And then there is the Beines Personales, wealth tax, that applies to assets held in Argentina or anywhere else on the planet.

Then I am happy to be wronger than a wrong thing on a Thursday wearing a bit wrong hat.

 

[HenryNisental]

Using your C Card from the USA here may be a very bad idea, since I believe that Visa will bill your purchases at the oficial exchange rate (i.e., 50%), so every thing that you buy will cost you double in USD.

 

[Johnny]

Using your C Card from the USA here may be a very bad idea, since I believe that Visa will bill your purchases at the oficial exchange rate (i.e., 50%), so every thing that you buy will cost you double in USD.

I use my USAA Visa card here and get the discount rate. No problem.

 

[sts7049]

Using your C Card from the USA here may be a very bad idea, since I believe that Visa will bill your purchases at the oficial exchange rate (i.e., 50%), so every thing that you buy will cost you double in USD.

the credit is applied usually some days after. it might seem to post at the official rate but will get adjusted.