Visa Runs

[ventanilla]

A city cannot enact a law about International Private neither Public Law that is a matter of the Federal Congress because it is a Federal Law.

well they have announced plans to make a residency visa all the same. No clue how it will work

 

[Edu R]

It won't. The City of BA could, maybe, exempt digital nomads from paying Ingresos Brutos, which is a local tax, but that in itself would presume that technically they are now permanent residents and should pay the tax in the first place, so by taking the exemption you'd essentially be admitting to AFIP that you're a resident.

Honestly, I'm curious if preferential tax treatment for digital nomads is a thing in any large country, as international taxation is in general heading away from any sort of tax exemptions for work performed abroad. The OECD and others mostly want countries to have tax treaties to avoid double taxation, Argentina's just really bad at those.

 

[cais]

Thanks for the replies, everyone. I appreciate the information that's been shared.

 

[steveinbsas]

The ba city government is introducing a one year digital nomad visa soon. Wait for that.

A city cannot enact a law about International Private neither Public Law that is a matter of the Federal Congress because it is a Federal Law.

well they have announced plans to make a residency visa all the same. No clue how it will work

As far as I know, it has been proposed, but it is not yet a certainly. and I think it would have to apply to the entire country, not just the city of Buenos Aires.

When and if enacted, the six month version keeps you a nomad without paying local taxes while the one year version would make you a temporary resident subject to regulations that will significantly reduce your "net" income in dollars as you pesify them.

Hey Steve, if you reread the conditions of the nomad visa (which you have alreat posted at least twice) you might be able to realize that the "visa nomad" program does not appear to create a new category of "legal" residency.

I could be wrong, but I think anyone here for six months will have residency transitoria with permission to work remotely with these conditions

Digital Nomad (less than 6 months)
- Exempt from domestic taxes (except IVA)
- Exempt from Bienes situados en el exterior
- Can in theory access the Savings Account for Tourists once available, and receive a better exchange rate
- Not required to pesify via the MULC
- Possible to use WU, even though current regulation stipulates it is for familiar support (rarely, if ever enforced, users here been doing it for years)
- Must earn income from foreign companies/persons (i.e. visa/passport stamp prohibits working for an Argentine employer)

Anyone working remotely for more than six months must already have a form of legal residenc

Digital Nomad (more than 6 months)/Working Remotely for a Foreign Employer as a Citizen or Resident (Temporary or Permanent)
- Has a form of legal residency
- Must obtain a CUIT/CUL/CDI
- Must register with AFIP
- Must adhere to monotributista regime (provided annual income for 2021 is under $2.6 Million pesos at the official exchange rate)
- Must subscribe to an Obra Social
- Required to issue type E facturas to foreign clients
- Must pesify and repatriate (send to Argentina) funds within 5 days of receiving payment for goods/services rendered via the MULC (official exchange rate)
- Depending on province, pay Ingresos Brutos
- For Bienes situados en el exterior that exceed $3,000,000 ARS (not including a primary residency up to $18,000,000 ARS or bonds/Argentine/Provincial debt) you pay a graduated wealth tax with a floor of 0.70% up to a maximum of 2.25%
- If you repatriate at least 5% of the total assets valued abroad (i.e. $150,000 if you have $3 Million ARS worth of assets abroad) AND you keep these assets in Argentina until December 31st of the year, you can become exempt from paying the Bienes Personales
[/QUOTE]

All the digital nomad program does is make it legal (if you follow the ruls) to work remotely as a tourist who is here for less than six months or a temporary or permanent resident who is here for more than six months.

It appears to have little to do with migraciones, but a lot to do with AFIP, and if you are working remotely here for more than six months of the year as an individual who already has temporary or permanent residency, and you follow the rules, you will pay a very heavy tax burden.

The City of BA could, maybe, exempt digital nomads from paying Ingresos Brutos, which is a local tax, but that in itself would presume that technically they are now permanent residents and should pay the tax in the first place, so by taking the exemption you'd essentially be admitting to AFIP that you're a resident.

I would not say that taking part (enrolling in) in the digital nomad program and taking a tax exemption is admittting to AFIP that you are a resident. It is admitting that you are working remotely.

Permanent residents living in Argntine and working remotely would be elegible for the program, but you only become a permanent resident when that category is officially granted by migraciones and if I understand correctly, permanent residency does not necessarily equal tax resdiency.

PS: I personally think this program was designed to get those who are working remotely in Argentina to admit to AFIP that they are doing so and actually increase tax revenue in Argentina.

From my point of view, the program appears to have advantages for those who are really "digital nomads" and leave before the end of six months, but huge disadvantages for those who are already temporary or permanent residents, unless, at some point AFIP decides to "go after" them.

 

[Bajo_cero2]

Well, not everybody considers becoming an Argentine citizen especially in such a dramatic way.

I only explained under what circumstances a public official can be threatened with legal consequences without you being the one who suffers the legal consequences of the Criminal Code for resisting the authority in an aggravated way and / or coercion.

 

[Quilombo]

I really doubt the Digital Nomad visa will ever come to fruition while the Ks are in power, and even if JxC gets control in 2023 I think it would only be possible as part of a larger change to existing AFIP/BCRA regulations. As others have pointed out the biggest issue (besides the ones I will also mention) is that immigration is a federal matter, not provincial, so CABA would have no legal standing to implement said program on it's own.

Even if Alberto got on board with a digital nomad visa it would create a quilombo (pun unintended) in terms of administration. By the nature of the program being a temporary visa, assumingely maxing out at 365 days, this would mean that digital nomads wouldn't be tax residents of Argentina, and as such would be exempt from income taxes, part of the core reasons why the program would be appealing.

This is rather straight forward and all, but next comes BCRA Comunicación A 6770. This takes away the advantage of earning in dollars/euros as they'd be required to pesify at the official exchange rate, while additionally having bills/expenses in their home countries in dollars/euros, which they'd be unable to pay. Let's say you exempt them from this requirement: you've now pissed off the hundreds of thousands of people/businesses who are subject to Comunicación A 6770 that have been either adhering to it, or doing their damnedest to skirt it, all before an election. It's politically suicidal, and why the only way I see it happening is if JxC wins the presidency, and implements it as part of a larger repeal BCRA Comunicación A 6770 or at the very least lets the peso float/ends the restrictions on buying dollars as to incentivize people/businesses to stop working in negro/gris.

I like to gamble, but a digital nomad visa before December 2023 is a bet I'm not willing to take.

 

[Bajo_cero2]

I really doubt the Digital Nomad visa will ever come to fruition while the Ks are in power, and even if JxC gets control in 2023 I think it would only be possible as part of a larger change to existing AFIP/BCRA regulations. As others have pointed out the biggest issue (besides the ones I will also mention) is that immigration is a federal matter, not provincial, so CABA would have no legal standing to implement said program on it's own.

Even if Alberto got on board with a digital nomad visa it would create a quilombo (pun unintended) in terms of administration. By the nature of the program being a temporary visa, assumingely maxing out at 365 days, this would mean that digital nomads wouldn't be tax residents of Argentina, and as such would be exempt from income taxes, part of the core reasons why the program would be appealing.

This is rather straight forward and all, but next comes BCRA Comunicación A 6770. This takes away the advantage of earning in dollars/euros as they'd be required to pesify at the official exchange rate, while additionally having bills/expenses in their home countries in dollars/euros, which they'd be unable to pay. Let's say you exempt them from this requirement: you've now pissed off the hundreds of thousands of people/businesses who are subject to Comunicación A 6770 that have been either adhering to it, or doing their damnedest to skirt it, all before an election. It's politically suicidal, and why the only way I see it happening is if JxC wins the presidency, and implements it as part of a larger repeal BCRA Comunicación A 6770 or at the very least lets the peso float/ends the restrictions on buying dollars as to incentivize people/businesses to stop working in negro/gris.

I like to gamble, but a digital nomad visa before December 2023 is a bet I'm not willing to take.

I think the whole debate is useless.
Art. 20 of the NC is a tax exception for foreigners. It allows you to work without the clause “according” to the laws that is unquestionable interpreted at tax law. I have been litigating fines for working without LR since 2012 and they weren’t able to cash not even one. This is called a natural debt. If you pay is well paid but it is not enforzable.

 

[ventanilla]

well either way they can just stay for 6 months on a tourist visa anyway at least and do all the same stuff. Regarding tax, they'd still pay VAT which is the most important tax in argentina. The country benefits from them in the same way it does tourists in general.

 

[Big Swifty]

I really doubt the Digital Nomad visa will ever come to fruition while the Ks are in power, and even if JxC gets control in 2023 I think it would only be possible as part of a larger change to existing AFIP/BCRA regulations. As others have pointed out the biggest issue (besides the ones I will also mention) is that immigration is a federal matter, not provincial, so CABA would have no legal standing to implement said program on it's own.

Even if Alberto got on board with a digital nomad visa it would create a quilombo (pun unintended) in terms of administration. By the nature of the program being a temporary visa, assumingely maxing out at 365 days, this would mean that digital nomads wouldn't be tax residents of Argentina, and as such would be exempt from income taxes, part of the core reasons why the program would be appealing.

This is rather straight forward and all, but next comes BCRA Comunicación A 6770. This takes away the advantage of earning in dollars/euros as they'd be required to pesify at the official exchange rate, while additionally having bills/expenses in their home countries in dollars/euros, which they'd be unable to pay. Let's say you exempt them from this requirement: you've now pissed off the hundreds of thousands of people/businesses who are subject to Comunicación A 6770 that have been either adhering to it, or doing their damnedest to skirt it, all before an election. It's politically suicidal, and why the only way I see it happening is if JxC wins the presidency, and implements it as part of a larger repeal BCRA Comunicación A 6770 or at the very least lets the peso float/ends the restrictions on buying dollars as to incentivize people/businesses to stop working in negro/gris.

I like to gamble, but a digital nomad visa before December 2023 is a bet I'm not willing to take.

Forgive my n00b ignorance, but what does "pesify" mean. Google is not helping me with this and I'd rather look dumb, ask, and learn something, as opposed to making an assumption that might not be correct.

 

[Edu R]

Forgive my n00b ignorance, but what does "pesify" mean. Google is not helping me with this and I'd rather look dumb, ask, and learn something, as opposed to making an assumption that might not be correct.

Convert income in USD/Foreign Currency to pesos. The term usually refers to a forced or mandatory exchange as imposed by government regulations.