US Business owners moving to Argentina - Looking for advice.

[Alby]

From what I've read since posting it seems that the Rentista Visa may be our better option. Reason being that I make a salary that seems to qualify our family, while my wife makes a salary from her corporation and seems that it's more complicated to do so if she's the primary applicant. We don't have any citizenship rights unfortunately, that would be nice though!

It doesn't sound like you qualify for any immigration category. So that's the real problem. The business questions are irrelevant until you figure that out.

 

[LuckyLuke]

The law in Argentina is similar to that in your own country - like most others - as to having specific requirements that determine whether a company a tax resident or not and the mere presence and roles of its final beneficiaries have a lot to do with it. Where a companies clients are located from an Argentine perspective is entirely irrelevant. You can't just wish the law away with wishful thinking when it is not convenient to what you want to hear. If you are actually serious about doing serious business from Argentina with a US company, I strongly recommend you speak to an Argentine lawyer or tax accountant and not an internet forum.

If however you were "just" a freelancer / consultant sending an invoice to a company each month (up to predetermined limits) you can easily register in Argentina as a monotributista. No idea however how this helps for immigration purposes, but whatever solution you choose, don't go overcomplicating things that are not worth overcomplicating.

While I would be afraid of Argentine corporate taxes due to the complexity and many layers of them that are more trouble than they are worth unless you are talking big business, I would not be afraid of Argentine personal income taxes - 35% as a maximum rate is really not that bad compared to most developed countries albeit it does have low thresholds and lacks scope to make sizeable deductions. What sucks in personal taxation is the global wealth tax that will drain you dry once/ if you stop making money.

He has an S Corporation, which means he pays himself a salary at year end. That is the taxable income, not the corporate earnings, which are registered and earned in the US as a separate entity.

 

[antipodean]

He has an S Corporation, which means he pays himself a salary at year end. That is the taxable income, not the corporate earnings, which are registered and earned in the US as a separate entity.

Argentina doesn’t recognize US S Corporations as a special category of company, this concept doesn’t exist under Argentine company law. How the US treats taxable income of an S Corp is irrelevant, there is not even a DTA between Argentina and the US.

 

[LuckyLuke]

Argentina doesn’t recognize US S Corporations as a special category of company, this concept doesn’t exist under Argentine company law. How the US treats taxable income of an S Corp is irrelevant, there is not even a DTA between Argentina and the US.

Fascinating...it's remarkable that a DTA still doesn't exist given the trade relationship they share.

 

[steveinbsas]

He has an S Corporation, which means he pays himself a salary at year end. That is the taxable income, not the corporate earnings, which are registered and earned in the US as a separate entity.

Does this mean that the "salary" is paid only once a year and Is it possible (within the rules of an S corpoation) for the annual payment to be paid and declared as corporate "dividends" which migraciones would likely consider a "passive" source of income that would fit the requirements of the visa rentista?

 

[steveinbsas]

Does this mean that the "salary" is paid only once a year and Is it possible (within the rules of an S corpoation) for the annual payment to be paid and declared as corporate "dividends" which migraciones would likely consider a "passive" source of income that would fit the requirements of the visa rentista?

...and if this could be done, wouldn't it also result in the loss of the $100k+ IRS annual foreign "earned income" exemption, likely resulting in a significantly higher tax liability in the USA?