Taxes for USA Expats

Sequoia1321

Registered
I was wondering under what situation might I owe tax in Argentina? If I live less than 6 months at a time do I owe taxes? What if during this time I do something that might be classified as working, for example, if I work on writing a book, and later, months or years later, make money from the book. What if instead of a book I write articles, or do some other online work where I get paid sooner. And finally, what if I get the 3 month extension to the 6 month stay? To be clear, I'm not looking for what I can get away with, but what is the law if I'm totally transparent with the authorities about my activities. As a USA citizen I'm concerned about double taxation, because I heard that wherever I go I have to file for USA taxes, even if I don't reside in USA, unlike most other countries where taxation seems to be residency based. I imagine I have to double check everything with a tax expert, but wanted to get a general sense of what I might expect. Thanks.
 

Alby

Registered
Refer to this thread.

In a nutshell, it doesn't become an issue for you unless you successfully seek and obtain residency here. The earliest you will become an income tax (ganancias tax) resident in Argentina (unless you buy a property, in which case you become liable immediately for the bienes personales tax), is 12 months after you have been granted temporary residency by Migraciones. After you become a tax resident (i.e., after 12 months after you have become effectively an official migrant here), you can lose your tax residency by staying out of the country for 12 months (which would, however, entail also losing your temporary Migraciones residency).

I am no tax account, but that is what the law currently says, on my reading of it.
 

steveinbsas

Registered
I was wondering under what situation might I owe tax in Argentina? If I live less than 6 months at a time do I owe taxes?
Not unless, as Alby mentioned, you own property here.

if during this time I do something that might be classified as working, for example, if I work on writing a book, and later, months or years later, make money from the book. What if instead of a book I write articles, or do some other online work where I get paid sooner.
You can only be taxed on money you make (aka income) in the year in which you receive it and you will not be subject to taxes in Aregentina for something you wrote years earlier UNLESS you have been living in Argentina for 12 months when you receive the money. You would also have to have at least temporary residency, a DNI and a tax number in order to make the declaration and pay the taxes.

...what if I get the 3 month extension to the 6 month stay?
As a tourist you will receive a 90 day permit (aka tourist visa) to stay in Argentina when you enter the country. You can get ONE extension of that permit/visa at migraciones. That constitutes the "six months" stay. You cannot stay in the country for six months and then get a 90 day extension.

A number of years ago one member posted that he was told at migraciones when he asked how to stay longer was to leave the country (and return the same or the next day) just before his first 90 day entry permit expired in order to get a NEW 90 day visa and THEN ask for a 90 day extension of the second entry permit within ten days of its expiration date. It is VERY important to keep in mind that the entry permit/tourist visas are issured for 90 days, NOT three months. It is possible to unintentionally overstay if you think the expiration date is on the same day of the month that you entered, three months later.

To be clear, I'm not looking for what I can get away with, but what is the law if I'm totally transparent with the authorities about my activities. As a USA citizen I'm concerned about double taxation, because I heard that wherever I go I have to file for USA taxes, even if I don't reside in USA, unlike most other countries where taxation seems to be residency based.
Unless the tax regulations have recently changed, if you live outside the USA for more than 11 monthss of the year and you are EMPLOYED in a foreign country, you can earn about $100,000 USD without paying federal income tax to the IRS. If you are paying "social security" taxes in the foreign country you may also be exempt from paying the same tax in the USA. If you are self employed I don't think you can claim the income or social security tax exemptions.
 

steveinbsas

Registered
.. you can lose your tax residency by staying out of the country for 12 months (which would, however, entail also losing your temporary Migraciones residency).
And, as far as I know, temporary residency is lost if you stay out of the country for more than six months of the year. Normally, one would have to reapply rather than renew their residency if they did not meet the six months physical presence requirement, but that may not be the case as a result of the plandemic.
 

Sequoia1321

Registered
Last August I emailed to a Argentinian attorney who specializes in immigration, not tax I believe, and below is part of our conversation:
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"when you are a temporary residency you can live in Argernina up to 9 months a year, and stay outside 3 months a year in order not to trigger tax liaility."

If I become a resident I'll probably be working online, and get paid from people in US, so I was curious how this might affect my tax situation in Argentina and the states.

"Lots of foreigners work remotely from Argentina and make sure no to stay longer than 9 months."

For the 9 months residency, is it still required to have 2000 usd passive income? "Maye we can attempt usd 1500 instead of usd 2000 to have good chances of approval. We can try with less, but we cannt guarantee success."

Can I keep applying for the 9 months temporary residency forever, or is it only up to 36 months?

"Yes, you can be a temporary resident for ever, adjusting status is not mandatory."

How does the 6 months tourist stay work? Can you tell me more about your services and the cost?

"If you decide to live here less than 6 months a year you can do it, it is also possile."
-----------

So if I understand correctly, there is a 9 month temporary residency that you can keep renewing every year, but you must have a source of passive income? And if you don't have the passive income you can do the 6 month tourist stay, both of them have no income tax for working online and getting paid from sources outside the country.
 

Alby

Registered
You can come in as a tourist for 3 months, renew that for another 3 months (thus staying in the country 6 months in the financial year), and not even be close to having to pay income tax (unless you buy a property here, in which case you have to pay the bienes personales tax on the value of that property, for life, wherever you live).

There is no such thing as a 9-month temporary residency. The temporary residency is 12 months. (The argument that he gave you that, after obtaining your 12-month temporary residency, you can avoid tax by staying out of Argentina for 3 months of the 12 months does NOT mean the residency is granted for 9 months.)

You can apply for temporary residency under several categories, one of which is by having the right amount of demonstrable passive income: this is known as the rentista category. You can renew your temporary (rentista category) residency every 12 months. After the first 12 months of the first temporary (rentista category) residency, you become liable to pay income (ganancias) tax. After 36 months of continuous 12-month renewals of your temporary (rentista category) residency, you can choose to apply for a permanent residency.

The information he gave you about staying out of Argentina for 3 months during the 12 months of temporary (rentista category) residency in order to avoid being eligible for paying income (ganancias) tax (and for that matter, bienes personales tax on any assets you hold outside Argentina) is an interesting possible loophole. It may or may not, however, be correct information.
 

steveinbsas

Registered
Last August I emailed to a Argentinian attorney who specializes in immigration, not tax I believe, and below is part of our conversation:
---------
"when you are a temporary residency you can live in Argernina up to 9 months a year, and stay outside 3 months a year in order not to trigger tax liaility."

If I become a resident I'll probably be working online, and get paid from people in US, so I was curious how this might affect my tax situation in Argentina and the states.

"Lots of foreigners work remotely from Argentina and make sure no to stay longer than 9 months."

For the 9 months residency, is it still required to have 2000 usd passive income? "Maye we can attempt usd 1500 instead of usd 2000 to have good chances of approval. We can try with less, but we cannt guarantee success."

Can I keep applying for the 9 months temporary residency forever, or is it only up to 36 months?

"Yes, you can be a temporary resident for ever, adjusting status is not mandatory."

How does the 6 months tourist stay work? Can you tell me more about your services and the cost?

"If you decide to live here less than 6 months a year you can do it, it is also possile."
-----------

So if I understand correctly, there is a 9 month temporary residency that you can keep renewing every year, but you must have a source of passive income? And if you don't have the passive income you can do the 6 month tourist stay, both of them have no income tax for working online and getting paid from sources outside the country.
I answered your previous question about staying in Argentina as a tourist, not a temporary reseident, so .I am glad you posted the quote from the attorney.

The attorney might be correct about not paying taxes in Argentina if you have temporary residency and stay less than nine months a year, but there is no such thing as a nine month temporary residency. The visas granting temporary residency are isssued for one year at a time and must be renewed in Argentina annually. Permanent residency can be (and in my case was) granted on the thrid renewal. I don't know if it is currently posssible to renew a temporary visa outsside of Argentina or it the six month physical presence (which is different from legal residency) requirement had been temporarily suspended.

The last monthly income figure shown on the migraciones website for the visa rentista was only $30.000 pesos (now just over $200 US DOLLARS!) and I don't think there has ever been a specific amount for the vias pensionado, so I am not sure how much income migraciones will be looking for when they resume granting these types of visas (if ever). Since the introduction of the RADEX system, I don't think an exact amount of monthly income required for the visa rentista has been posted on the migraciones website.
 

steveinbsas

Registered
Can I keep applying for the 9 months temporary residency forever, or is it only up to 36 months?

"Yes, you can be a temporary resident for ever, adjusting status is not mandatory."
The attorney whoo told you this MIGHT be correct, but, based on the actual experience of a friend of mine, this is not possible. He was told at migraciones after renewing his temporary residency for the thrid time that he MUST request the "cambio de categoría" to permanent residency the next year and, that if he did not, his temporary residency would not be renewed.

What the attorney wrote "if you don't have the passive income you can do the 6 month tourist stay...(and)... have no income tax for working online and getting paid from sources outside the country" sounds correct, though it may not actually be "legal" for you to work online while you are here.

I am sure many others have done this without any problem from the tax authority here.
 

Sequoia1321

Registered
The attorney whoo told you this MIGHT be correct, but, based on the actual experience of a friend of mine, this is not possible. He was told at migraciones after renewing his temporary residency for the thrid time that he MUST request the "cambio de categoría" to permanent residency the next year and, that if he did not, his temporary residency would not be renewed.

What the attorney wrote "if you don't have the passive income you can do the 6 month tourist stay...(and)... have no income tax for working online and getting paid from sources outside the country" sounds correct, though it may not actually be "legal" for you to work online while you are here.

I am sure many others have done this without any problem from the tax authority here.
Thanks for the input. The attorney/law firm, came highly recommended and are specialized in this work, so I assume probably they have been doing it, and hopefully it's legit. Interesting to know that i may not actually be legal to work online while here and not owe taxes to Argentina, if I understand you correctly. Something I should probably look into with a tax advisor in case I do anything of that sort. I assume you're talking about situations where you are paid more immediately, like for example, writing articles as oppose to writing a book that you might get paid some years later.
 
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