taking a job in ARG; some advice plz

[luddite]

I was offered a job in Argentina with a European company. This would be an "over the table" job whereby I would be sponsored so that I can obtain my DNI. The compensation is in pesos and the figure was given in "bruto."

Obviously I am concerned about being paid in pesos. Does anyone have some advice of the types of questions/issues I should raise with my potential employer? What is the percentage difference between bruto and neto?

Thanks.

 

[Delfina]

I`ll help you with the easy one:

It can vary a little, depending on the amount and other factors, but the difference is around the 20%.

 

[purpleyogi]

Check if you fall in this category and if they can request for exemption of some taxes:

"Enterprises contracting foreign scientists, professionals or technicians can request an exemption of social security taxes on these employees if they are contracted for less than 2 years."

http://www.argentina.gov.ar/argentina/portal/paginas.dhtml?pagina=1333

 

[bocagirl]

Bruto is what you earn before they take out money for retirement, gov things, etc. Neto is what you would have in your hand at the end.

ex. you earn 3000 pesos bruto per month
---minus 100 for retirement
---- minus 200 for health
(there are a lot of minuses but i dont remember how many or what exactly they are.)


3000-300=2700 pesos that you are free to spend..your end of the day salary

when looking at a job, you always want an estimate of what the neto amount will be!

 

[LiXueLee]

You also want to be careful about housing expenses because apartments are often quoted in $US and paid in $US, so if you are getting remunerated in pesos, exchange rate changes can really kick you in the ass. You might want to ask for some sort of escalator to make up any exchange rate differences to protect yourself in terms of housing.

 

[jojo123]

By all accounts the peso will fall dramatically over the next year. You would be foolish to take a job in pesos.

 

[mrisley]

I´m not sure where bocagirl gets her numbers, but I have a high salary, and pay about 35% in total most going to 5to categoria.

Jojo is right, you should try to close in Dollars.

Good luck.

Mike

 

[luddite]

thanks for the advice all. Fortunately, I am in a decent financial position where I don't necessarily need to work for a couple of years, so for me this gig is more for the experience rather than pay. It also helps tremendously that I bought a depto down here in 2005, so I pay no rent (just overpriced expensas). Besides, this company will do the legwork for me to get my residency card; how much is that worth?

 

[Hockey_Nut]

thanks for the advice all. Fortunately, I am in a decent financial position where I don't necessarily need to work for a couple of years, so for me this gig is more for the experience rather than pay. It also helps tremendously that I bought a depto down here in 2005, so I pay no rent (just overpriced expensas). Besides, this company will do the legwork for me to get my residency card; how much is that worth?

A lot if you own a property and don´t need the money

 

[steveinbsas]

thanks for the advice all. Fortunately, I am in a decent financial position where I don't necessarily need to work for a couple of years, so for me this gig is more for the experience rather than pay. It also helps tremendously that I bought a depto down here in 2005, so I pay no rent (just overpriced expensas). Besides, this company will do the legwork for me to get my residency card; how much is that worth?

Having residency and a DNI could be "worth something" if you decide to sell your apartment and the declared value (on the escritura) was less than $305,000 pesos (considerably less prior to 2007). That entails lower annual personal asset tax rates (bienes personales) and less paperwork if and when you sell.

Living in Argentina more than six months a year (with or without residency) also "subjects" your worldwide income and assets to the bienes personales tax. I am constantly surprised how many expats here have no idea this tax exists. Expats "living" here on a tourist visa ("renewed" by leaving the country every six months) generally don't worry about or pay this tax, but many who live abroad and own apartments here don't know about it, either, as no bill is ever sent. Non residents cannot file and pay the tax on their own. Most only discover the existence of this tax (and high penalties for non-payment) when they try to sell their properties and the sale is blocked by AFIP until the tax issues (including assumed rental income) are resolved.

To clarify, non residents who own property here only have to pay the bienes personales tax on their assets and income in Argentina. The tax rate is higher for non residents (1.25% versus .50%) and the tax is assessed on the total value of the apartment (without the $305,000 exemption). Unless the utility bills drop to near zero usage when the owners are out of Argentina, AFIP assumes rental income.