Tax advice needed (Assets and rental income)

jonnytownmouse

Registered
Hello all,

I am from the UK and am currently in Buenos Aires on a tourist VISA, looking to stay longer than 6 months (if my steady income VISA is successful) and have alot of questions regarding tax. There is an overwhelming amount of information online, some old, some new which just adds to my confusion.

My main concern is reading that if you are resident here you have to pay an assets tax on your "world wide assets", which by my understanding means I would have to make an annual payment (between 0.5 and 1.75% of the value of my home), which seems quite crazy considering it is in the UK and nothing to do with Argentina.

The inland revenue was none the wiser and just said the double taxation agreement means I can deduct what tax I owe in Argentina with the tax I owe in the UK (not paying just tax in the UK as I had hoped).

I also would like to know if I have to pay rental income tax? It seems quite high, with no tax relief.

If anyone can shed any light on this, or put me in contact with an accountant or tax advisor in Buenos Aires who speaks English, whom could help me further, it would be much appreciated.

Thanks
Phil
 

steveinbsas

Registered
Relax, as a "temporary resident" in Argentina you will not owe taxes on your worldwide assets.

If you buy an apartment and have temporary residency (with a DNI), you will only owe taxes (.05%) if the property is valued at over $305K (on the escritura). Higher rates may apply at higher values. If you do not have residency, the tax rate is at least 1.25% (I am not familiar with the 1.75 figure).

Once you have permanent residency (granted upon the third renewal of you temporary residency), your worldwide assets are subject to taxation, but I have no additional information on the subject, as all of my assets are in Argentina.

If you own an apartment in Argentina and rent it to others you will owe taxes. If you are not living in it the Argentina the tax man will assume you are renting it unless the utility bills drop to near zero when you are out of the country.

Sooner or later they will check, especially if and when you sell and don't have a DNI.
 

jonnytownmouse

Registered
Hi Steve,

That's some really good information. Yes, sorry the assets tax is between 0.5% and 1.25% (I read it had gone up from 0.75% to 1.25% for non-residents, in 2007 and remembered it incorrectly).

Also would I be correct in thinking that as a "temporary resident"my rental income from my property in the UK would not be liable to tax in Argentina?
 

blackburn

Registered
Martin is not a tax lawyer I was with him last week but he sent me a copy of a tax book which is about the tax situation Phil is concerned about.I have rental income from UK but only pay tax in UK.The situation about the wealth tax I am not sure about and need to find out about it to.I am not losing sleep about it and have an obligation to myself for avoiding as much as possible paying money to some other shit to waste on some other shit whan I am gifted in wasting my own dosh by my self...suerte
 

steveinbsas

Registered
blackburn said:
Martin is not a tax lawyer I was with him last week but he sent me a copy of a tax book which is about the tax situation Phil is concerned about.I have rental income from UK but only pay tax in UK.The situation about the wealth tax I am not sure about and need to find out about it to.I am not losing sleep about it and have an obligation to myself for avoiding as much as possible paying money to some other shit to waste on some other shit whan I am gifted in wasting my own dosh by my self...suerte
Now that you have permanent residency here, your worldwide assets and income are subject to taxation in Argentina, period.

You might have been "wiser" to continue to pay the $600 pesos per year for the renewal to maintain your temporary residency. Now your ass (or arse) is theirs (AFIP).

You happiness about not being charged for the permanent residency may eventually turn to sadness and regret. (Bloviators usually get their just deserts.)

If you don't file with AFIP, sooner or later they will come looking for you (and your money). If you own property in Argentine, it will be sooner rather than later.

You don't need a tax "lawyer" here; you need an account, who, by law, actually represents AFIP (similar to the way a lawyer in the US is an "officer" of the court).

The longer you "avoid" paying taxes in Argentina, the more you will regret it (measured by fines and interest), especially when you "try" to sell property.
 

blackburn

Registered
Hahaha...the prophet of doom....I told you it cost me $200 to renew my visa not $600...you have been ripped of if you have been paying so much!!
well I certainly won't be seeking out an accountant if they are on the other side!!!
I have filed with afip some years ago and haven't heard from them yet,cross that bridge when I come to it.will let you know when I get banged up for tax evasion,probably do a runner...with me loot.suerte
 
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