Taxes for USA Expats

[steveinbsas]

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."

The aattorney may have accurate information about the current monthly income requirement for the visa rentists and it indeeed could be $2000 USD now.

The last time the monthy income requirement of $30.000 peso was posted on the migraciones website, that amount was equal to about $800 USD per month and, based on reports here in the forum, migraciones was granting new visas and renewals at that time, even though the $30.000per month income requirement took effect when the official exchange rate was 15 pesoss to one USD. That equaled $2,000 USD per month.

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!)

Migraciones will no doubt calculate the monthly income at the official rate, so (just for example) if the official rate is $100 pesos to one USD, $30.000 pesos would equal $300 US Dollars, but it's hard to imagine that's all they will require if and when they resume granting new visa rentistas. I'm not sure, but it may be possible to renew existing ones for those who are now in Argentina if migraciones is open.

 

[Alby]

Keep it simple for Sequoia. S/he is months away from even being able to come here as a tourist for 3 or 6 months. If s/he can get here and then decides s/he would like to stay longer than 6 months every year, s/he could apply for a rentista temporary residency, under whatever rules apply at that time (That would be sometime in 2022, at the earliest). Under the rentista option, s/he could be looking at probably 12 to 18 months (or longer) for that temporary residency to be even be assessed, let alone approved. By now, we are into 2024. Then, a further 12 months before s/he becomes a tax resident for ganancias (and for bienes personales on any assets outside Argentina). By now we are into 2025 or 2026.

The interesting issue in Sequioa's post is the immigration lawyer's opinion that foreigners here on temporary residencies can escape eligibility for income tax (and by extension, bienes personales on overseas assets) by ensuring they only stay in the country for 9 out of the 12 months. Whether that is true, and how one would actually execute the maneuver, would be useful to explore.

 

[steveinbsas]

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?

Have you seen this thread?

The Buenos Aires Digital Nomad Program

The government has officially launched the BA Digital Nomad Program. The website is called BA Global and it covers the Buenos Aires-related international affairs. There is also a special section for Digital Nomads. They are offering a Welcome Kit that includes a SIM card, SUBE Card, discounts...

baexpats.org

I don't think it deals in depth with the issue of taxes on income genterated by a digital nomad working in Argentina, and as my last post in the trhead indicates, I don't think this program is likley to happen. I don't think the lifestyle of the digital nomad (whimsical traveler) will be possible in the future thanks to the coming restrictions on travel in the effort to combat climate change, regardles of the outcome of the battle against covid.

 

[steveinbsas]

The interesting issue in Sequioa's post is the immigration lawyer's opinion that foreigners here on temporary residencies can escape eligibility for income tax (and by extension, bienes personales on overseas assets) by ensuring they only stay in the country for 9 out of the 12 months. Whether that is true, and how one would actually execute the maneuver, would be useful to explore.

Yes, it is a very interesting "issue" worth exploration for those to whom it applies but only if discretionary/whimsical international travel is permitted in the future and the expat is free to enter and leave the country at will. If and when it becomes necessary to ask permission to do so, no one will want to say their reason for travel is to avoid having to pay taxes in Argentina.

I'm obviously very happy I found a legal way to live in Argentina as a permanent resident without paying the bienes personales tax on the assets in the USA which generate my income or on the property in Argentina which I own...as well as not having to pay income taxes in either country. I only pay the IVA in Argentina on purchases of new items. My annual property taxes in Argentina are less than $70 USD and I have no property in the USA.

 

[Sequoia1321]

Yes, it is a very interesting "issue" worth exploration for those to whom it applies but only if discretionary/whimsical international travel is permitted in the future and the expat is free to enter and leave the country at will. If and when it becomes necessary to ask permission to do so, no one will want to say their reason for travel is to avoid having to pay taxes in Argentina.

I'm obviously very happy I found a legal way to live in Argentina as a permanent resident without paying the bienes personales tax on the assets in the USA which generate my income or on the property in Argentina which I own...as well as not having to pay income taxes in either country. I only pay the IVA in Argentina on purchases of new items. My annual property taxes in Argentina are less than $70 USD and I have no property in the USA.

Thanks. I saw that Buenos Aries digital nomad program thread. Looks interesting. How is the legal way you are paying less taxes? I hear people talk about such things but I haven't yet found anything, though I guess I need to do more research and also speak to a tax advisor. I know long term capital gains is one sure way to reduce the taxes. I heard of IRA's but aren't those taxed eventually? Getting loans on existing capital is another way I hear, but again, I don't see how that does anything other than delay taxes, or did I misunderstand what those are? Being a resident of Puerto Rico has tax benefits on capital gains. Some countries don't have tax if I understand correctly. There's an interesting Youtube Channel that I've been watching, called Nomad Capitalist, where the guy is an American who renounced his citizenship and now pays very little tax and lives all over the world. Covers all sort of subject about international tax, citizenship, multiple passports, golden visa programs.

 

[Alby]

What do you mean by the question: How is the legal way you are paying less taxes? All I think Steve is saying is that he pays the taxes the law requires him to (in the jurisdictions where he could conceivably have tax liability, namely, the US and Argentina). His affairs are such that he doesn't have to pay many taxes, and the ones he pays are not particularly onerous. Some of that is good luck (favorable laws that, at this point in time, work to his advantage), some of that is good management and planning (arranging his life to take advantage of the laws that, at this point in time, favor him).

I recommend you come to Argentina when you can, stay six months, and apply for residency as a rentista. Going down that path, as per the post above, you are legally free of Argentine tax until probably 2025 at the earliest (and maybe forever if the advice you received about the 9/3 time share turns out to be correct), and would only have to organize your affairs to pay as little as the law in the US allows you to.

The only problem is that Argentine tax law changes (sometimes in a dramatic way), which can mean that the decision we take to come here based on one set of rules (that seem to favor us), can, in hindsight (after a dramatic change), appear to have been the wrong choice.

 

[Sequoia1321]

What do you mean by the question: How is the legal way you are paying less taxes? All I think Steve is saying is that he pays the taxes the law requires him to (in the jurisdictions where he could conceivably have tax liability, namely, the US and Argentina). His affairs are such that he doesn't have to pay many taxes, and the ones he pays are not particularly onerous. Some of that is good luck (favorable laws that, at this point in time, work to his advantage), some of that is good management and planning (arranging his life to take advantage of the laws that, at this point in time, favor him).

I recommend you come to Argentina when you can, stay six months, and apply for residency as a rentista. Going down that path, as per the post above, you are legally free of Argentine tax until probably 2025 at the earliest (and maybe forever if the advice you received about the 9/3 time share turns out to be correct), and would only have to organize your affairs to pay as little as the law in the US allows you to.

The only problem is that Argentine tax law changes (sometimes in a dramatic way), which can mean that the decision we take to come here based on one set of rules (that seem to favor us), can, in hindsight (after a dramatic change), appear to have been the wrong choice.

Was curious what specifically he does to pay less taxes. Yes, will come there soon hopefully and check it out. I'm confident it'll be very good.

 

[Alby]

Was curious what specifically he does to pay less taxes. Yes, will come there soon hopefully and check it out. I'm confident it'll be very good.

Reading between the lines, I suspect the answer is lead a simple life and not accumulate more assets than necessary. That is probably the best way to pay less tax.

 

[MilHojas]

Argentina's wealth tax has collected just 2% of target to date

Argentina’s new wealth tax has netted just two percent of its target figure ahead of its original deadline, with the nation’s richest citizens evidently in no hurry to pay up.

www.batimes.com.ar

 

[¡Sencillamente yo!]

Reading between the lines, I suspect the answer is lead a simple life and not accumulate more assets than necessary. That is probably the best way to pay less tax.

The best thing to spend money on is living, not collecting. I know others may disagree, and that is okay.