Us Expat Working Remotely For Us Company - Tax Help

[veritas238]

I am a US Citizen looking into relocating to Buenos Aires and have a few options available, but would like someone who may be or has been in a similar situation to offer guidance before a final decision would be made.

I will be working remotely for a US company and earning a salary in USD that will be deposited into my US bank account. I would be using a service such as Xoom to obtain pesos monthly as needed.

This is where I need the most clarification. It is my understanding that I would be able to qualify for the Foreign Earned Income exclusion when filing US taxes, which would limit my tax burden for US Federal Income Tax to $0... pretty awesome if my understanding is correct. Would I have to pay taxes on my US income while living in Argentina on a tourist visa to the Argentinian government.... or is there a way around having to pay income tax. Basically I am looking for a way to avoid paying any income taxes on my USD salary while living in Argentina in order to pay down my US student loans quickly. I would be in Argentina for 4-5 years. Is this possible? Does anyone have any experience doing this... as shady as it may appear?

I would want to travel to the US and return to Argentina once, possibly twice per year. I understand that a tourist visa is only good for 90 days, and can be renewed by leaving and re-entering the country. I could do this every now and then, but I don't want a passport full of stamps every 90 days. I also understand that there is a fine that can be paid upon leaving the country as a penalty for overstaying a visa. I would rather pay this fine once or twice a year when I leave the country..... but is it possible to reenter the country after having paid the fee? If it is possible... is it possible to keep this ongoing for 5 years?

I also have the option of obtaining a religious visa, which I understand would allow me to stay in the country legally for a length of time indicated on the Visa, but does anyone have any idea of how taxes would work with a religious visa? I would also have my remote position with a salary in USD along with of the religious visa.

I would appreciate any input from anyone that has knowledge of earning a US income while living in Argentina, and if there is a way to avoid paying US income tax and Argentinian income tax. I will happy to give more information if needed. Thanks for the help!

 

[Jed]

Here's part of your answer regarding the US tax laws, hope it helps:

• A U.S. citizen or a U.S. resident alien who is physically present in a foreign country or countries for at least 330 full days during any period of 12 consecutive months.

https://www.irs.gov/individuals/international-taxpayers/foreign-earned-income-exclusion-requirements

 

[jbeas176]

no disrespect veritas.. but you might get away with fooling immigrations in argentina but you will not fool the irs. good luck

 

[nikad]

Living in Argentina being a tourist means you will be living here illegally, so why bother with taxes? now, if you are here legally, you should be paying taxes as both countries do not have any double taxation treaties as of yet. If you don't pay taxes in Arg, chances are that nobody will go after you, but you will not be able to open bank accounts or buy property, if you want to sign a regular lease you will not be a good candidate, etc.

 

[sergio]

Ask an accountant familiar with expats. I doubt you can do what you want though. You will not be a resident, just s tourist trying to evade US taxes. As a tourist you do not pay taxes in Argentina.

 

[RichardP]

As a tourist you do not pay taxes in Argentina.

At least not income tax.

 

[veritas238]

Thanks for the valuable insight everyone. From what I understand about the Foreign Earned Income Exclusion is that I would not have to pay any US income tax on income earned while living abroad, regardless of if the income is from Argentina or the US. If I understand correctly, If I am an Argentine resident and not on a tourist visa, then any income that is generated from the United States while working in Argentina would be taxed at a pretty high rate, which is the reason for the tourist visa and not having to pay income tax in either country.

I am friends with locals in Buenos Aires. As far as real estate goes, how difficult would it be to get an apartment in their name, pay them pesos each month, and have them pay? Or would it be extremely difficult for me to get an apartment and pay in cash or pesos as a tourist? I would be fine without buying property, just renting or renting a room in a shared house.

Also, If I were to get married to an Argentine local, I understand that taxes are reported and paid separately, so would it be possible to have the apartment and bank account in my spouse's name and continue to avoid paying into the Argentine income or social security tax?

 

[Girino]

If you are a freelancer, you'd still have to pay self-employment tax to the IRS (approx. 15%) unless you earn over 118,000 USD/year.
If you are an employee, you'd still have to pay local taxes to the IRS.

About paying taxes in Argentina and not having a tax treaty, there is more than a way to skin a cat. If you are employee to an US company, you could claim (in Argentina) that your job is taxed in the US. Even as a freelancer, you could say that your worked for US clients and received money in the US and did the work while in the US, hence it is not subject to Argentinian taxation.

Actually, taxes in Argentina are pretty low if you are a modest freelancer (under 28,000 USD gross/year), because you can enroll as monotributista (a simplified tax regimen). Things start getting expensive above that threshold, because you wouldn't qualify as a monotributista.

The presence test quoted by Jed is what makes the difference US-wise as far as taxes go. Getting paid in the US also means total transparency on your income in the US. Argentina wouldn't know about that money, but, again, things are getting more closely monitored also here. I.e. they could determine that you were falsely here as a tourist and demand you pay your due taxes also for the past years.

Anyway, I second the suggestion to find an accountant that deals with expats as the law and the application of the law are two very separate thing in Argentina.

 

[wineguy999]

Sounds like what you'll really need is someone to visit you in prison.

 

[jbeas176]

what am I missing here. you are not a resident of argentina and do not have an argentine passport. dual residency.you are receiving money into your US bank account. your company is going to claim your payment through a 1099 or w2 form as cost of doing business. you are trying to avert the immigration laws in argentina. the IRS will know you are receiving money though your social security number associated with your account. you will pay taxes and you will die at some point. if you magically find a solution to your problem, post it. I have a lot of friends working abroad that don't have a charitable religious foundation receiving money in the united states. learning to live abroad is a gift. go experience it. also use the history of this site to read up. bajo zero can help when you have immigration problems. again, good luck