Wealth Tax

steveinbsas

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Since the "weatlh tax" applies to temporary and permanent residents and Argentine citizens, it no doubt already has had a significant impact on expatriation. You can search for threads on the subject using key words. There was at least one expat who made it clear the "bienes personales" tax on their foreign assets would preclude seeking residency in Argentina.

As far as investments are concerned, the capital gains tax on properties purchased after January 1, 2019 (?) is likely to have a significant impact on the purchase of Argentine property as an investment..as there could be a signifiant tax levied on a "capital gain" in pesos, while the dollar amount of the sale could actually be less than the purchase price (if what one semi-retired real estate professional posted on the subject is accurate).
 

QuilmesSlo

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Sorry I meant this post in the context of the proposed, one-time COVID levy. But perhaps your point is simply that this new levy is merely more of the same.
 

steveinbsas

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Sorry I meant this post in the context of the proposed, one-time COVID levy. But perhaps your point is simply that this new levy is merely more of the same.
The one time COVID levy as proposed would supposedly apply to 12,000 individuals with "large fortunes" that begin at 2.5 million (pesos?).

"BUENOS AIRES, Nov 17 (Reuters) - The lower house of Argentina's Congress on Tuesday began debating a bill seeking to raise 300 billion pesos ($3.75 billion) through a tax on large fortunes to finance programs aimed at helping families hit by the COVID-19 pandemic.

The government-backed bill may be approved late on Tuesday if debate does not continue past midnight, as some local media predicted. The Senate was expected to consider the legislation before the end of the month once it is passed by the house.

People with more than $2.5 million - about 12,000 individuals - would get hit by the 2% flat tax. The levy would increase progressively as equity increases, under the proposal."


I don´t think that would have a serious effect on foreign investments or expatriations...

But I´m surprise that only 12,000 individuals in Argentina are considered to have "large fortunes" that begin at 2.5 million.
 

camberiu

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The one-time (for now) tax will apply to individuals whose declared assets exceed 200 million pesos (US$2.35 million), with a progressive rate of up to 3.5% for assets in Argentina and up to 5.25% on assets outside the country.
 

Alby

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But I´m surprise that only 12,000 individuals in Argentina are considered to have "large fortunes" that begin at 2.5 million.
I have thought the same thing. It surprises me that the oligarchs are so few in number, even when they are defined as starting from a base as modest as $2.5m.

The argument some advanced earlier this year here about why the bienes personales changes were nothing to worry about, was that the government would not be interested in a few expats when its real target was a (supposed) massive pool of Argentines pretending to live outside Argentina and holding great wealth offshore.
 

steveinbsas

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I have thought the same thing. It surprises me that the oligarchs are so few in number, even when they are defined as starting from a base as modest as $2.5m.
The Reuters article mixed pesos and dollars without making a clear distinction when doing so.

As camberiu pointed out, the asset threshold for the covid tax is expresssed in dollars, so it makes sense that "only" 12,000 individuals in Argentina have declared assets in excess of $2.35 million USD.
 

Alby

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It still seems a low number of oligarchs to me. My Peronista friends must be disappointed to learn their enemies only number 12,000.
 

bdk1

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It still seems a low number of oligarchs to me. My Peronista friends must be disappointed to learn their enemies only number 12,000.
It's $2.35 million USD in declared assets. Hence the low number. Most "oligarchs" will never have declared as much as that. And if they did, during Macri's 2016 blanqueo for example, most have simply been re-routing their declared assets since Fernández won the PASO elections in August 2019 because they saw this coming. I don't know what those 12,000 that got caught were thinking.
 
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