Temporary residency renewals require 6 months in Argentina

[Sleuth]

Just saw this on my immigration attorney's web site and thought I'd share it:

When attempting to renew your residency, immigrations now require and will be performing checks that you have lived within Argentina for at least 6 months out of the year. If you haven't, they will refuse your renewal. Contact us for more information.

 

[steveinbsas]

Perhaps this means the tax man cometh, as tax liability applies to foreigners who reside in Argentina 180 days per year. In the past, those who were not involved in the economy did not receive much scrutiny from AFIP. Of course expats who own property have been subject to the bienes personales tax, but I never met anyone with temporary residency who said that they paid taxes in Argentina on their foreign income or assets.

With the recent increase in the income requirement for the visa rentista to $8000 pesos per month, AFIP may soon be knocking on some expat doors seeking payment of taxes not only on their foreign income, but on the assets that produce it as well. Why else would such a requirement be implemented?

 

[jp]

AFIP may soon be knocking on some expat doors seeking payment of taxes not only on their foreign income, but on the assets that produce it as well. Why else would such a requirement be implemented?

Apparently the tightening up of visa requirements for the rentista visa was party due to Argentina's obligations with respect to money laundering and tax evasion. I'm sure they'd like to tax each and every expat on their foreign income, but they may just been meeting their duties with respect to money launderers and tax evaders from other parts of the world.

 

[steveinbsas]

Apparently the tightening up of visa requirements for the rentista visa was party due to Argentina's obligations with respect to money laundering and tax evasion. I'm sure they'd like to tax each and every expat on their foreign income, but they may just been meeting their duties with respect to money launderers and tax evaders from other parts of the world.

I would be very surprised if those who apply for the visa rentista are considered potential money launderers or foreign tax evaders. I wonder how many money launderers and tax evaders actually bother with things like temporary resident visas. I also wonder how increasing the income requirement to $8000 pesos per month (about two thousand dollars) could prevent money laundering, and even if it could, why is there still no specific income requirement for the pensionado visa?

A recent post indicated that migraciones now asks for the "source" of the income as well. This is something I always provided, beginning with my initial application for my visa in 2006, so I'm not sure if this is actually a new requirement. It certainly would be the one thing that addresses the issue of money laundering.

My Argentine accountant told me I would have to pay the bienes personales (wealth tax) on the foreign assets that produced my foreign income until I was able to show him proof that I was not the owner of those assets. According to him, the previous income requirement for the visa rentista (about $750 USD per month) fell just below the level of minimum taxable income. $8000 pesos per month is taxable here. Not declaring the income or paying the taxes will generate penalties and/or interest on the unpaid taxes.

In recent years AFIP has gone after foreign property owners for payment of the bienes personales whether they had a resident visa or not. I think it's quite likely that they will seek payment of taxes from foreigners with the visa rentista whether or not they own property or "actively" participate in the economy. I think it's possible that migraciones will begin asking for proof of tax payments prior to granting future renewals of the visa.

 

[jp]

I would be very surprised if those who apply for the visa rentista are considered potential money launderers or foreign tax evaders. I wonder how many money launderers and tax evaders actually bother with things like temporary resident visas.

My understanding is that if you spend six months out of the year of many countries, you don't have to pay income tax. If you can demonstrate you have residency in another country (based on you spending six months a year there) you are exempt from income tax in your country of origin.

So if Argentina is a soft option for people claiming residency, as they grant residency to people who don't even live here for six months a year, it is potentially aiding tax evasion - as people know they live here without paying taxes on their foreign income.

Its a theory, could be completely wrong. But a load of the docs I had to provide when we applied for a rentista visa were related to money laundering. It wasn't sufficient to demonstrate that you had funds, you had to demonstrate exhaustively where they came from, where they were held, which bank they were held in etc.

I'd guess this move covers their obligations to not be a "soft option" regarding money laundering (how many hundreds of millions of dollars have been buried in construction projects around the city?) and tax evasion, whilst opening up the possibility of going after foreign income, as you've said. I'm just speculating though.

 

[steveinbsas]

US citizens must spend about eleven months out of the US per year in order to qualify for the foreign income tax exemption, and until I saw this thread I believed that the best way to avoid tax liability on foreign income in Argentina was not to live here more than 180 days per year even if you do have a visa rentista.

Even if the six month requirement is "party due to Argentina's obligations with respect to money laundering and tax evasion" it also creates a greater possibility for taxation of foreigners in Argentina, specifically those with the visa rentista.

 

[Kate Cohen]

Sorry for not contributing any knowledge on this matter but I was wondering if i could talk to someone who does know these things to advise me on what to do now. Im currently living here on a tourist visa and need to apply for something which is longer (work or residency) but the official places offer me different advice on different days! Please private message me if you have advice and i could talk on the phone about it.