Argentina Taxes for US Expats: A Guide
- Life abroad as a US expat in Argentina
- Argentina at a Glance
- US Expat Taxes in Argentina
- Who Has to Pay Income Tax in Argentina?
- Determining Residency of Argentina for Tax Purposes
- Income Tax Rates in Argentina
- Other Tax Situations in Argentina
- Argentina Tax Forms for US Expats Living Abroad
- Essential Tax Forms for US Expats in Argentina
- US Tax Deductions for Americans in Argentina
- Does Argentina Offer Tax Deductions to US Expats?
- Does the US have a Tax Treaty with Argentina?
- Does an Argentina-US Totalization Agreement Exist?
- Navigating Tax Compliance for US Expats in Argentina
Life abroad as a US expat in Argentina
Argentina is a land of beauty, from its stunning coastlines to its diverse climates, including subtropical jungles and arctic Southlands. With Spanish and European-style architecture, culinary delights, and cultural influences, it’s no surprise that over 60,000 expats have chosen to call this South American country home. If you’re one of them, it’s crucial to know how to navigate the unique challenges of living in Argentina as a US expat, including handling your taxes.
Living as a US expat in Argentina can be both exciting and challenging. One of the most critical challenges is dealing with your expat taxes, as you may be responsible for paying taxes in Argentina and the US. Fortunately, several tax breaks are available to help ease the burden of your tax liability.
In this guide, we’ll delve into everything you need to know about living abroad as a US expat in Argentina, from rich cultural offerings to the practicalities of managing your expat taxes. Whether you’re considering moving to Argentina or are already settled in, this guide will provide valuable insights and tips to make your expat journey successful.
Argentina at a Glance
- Primary Tax Form for Residents: Form 572.
- Tax Year: January 1st to December 31st.
- Tax Deadline: April 30th of the following year.
- Currency: Argentine peso.
- Population: As of 2021, around 45 million.
- Number of US Expats: As of 2021, estimated 45,000 US expats
- Capital City: Buenos Aires.
- Primary Language: Spanish.
- Tax Treaty: Yes
- Totalization Agreement: Yes
US Expat Taxes in Argentina
Americans living abroad in Argentina must file both their US tax returns and Argentina tax returns, annually. Though understanding your filing requirements isn’t a fun part of living abroad, it is important and will ensure you stay tax compliant.
The good news is, if you’re earning income from an employer only (and aren’t self-employed), your income taxes in Argentina will be handled automatically — so you likely won’t have to file a tax return.
We’ll walk you through everything you need to know about taxes for foreigners in Argentina.
Who Has to Pay Income Tax in Argentina?
Residents and non-residents of Argentina must pay income taxes in the country. However, if you only earn income from an employer, you won’t have to worry about filing your taxes.
For individuals, the income tax system in Argentina is progressive, meaning that the more you earn, the higher the percentage of your income that you will be required to pay in taxes. Currently, the income tax rates in Argentina range from 5% to 35%, depending on the amount of income earned.
In addition to the income tax, there are also other taxes that may apply to individuals in Argentina, such as the personal assets tax and the value-added tax (VAT). However, these taxes are not directly related to income and are applied differently.
For companies, the income tax rate in Argentina is a flat rate of 30%, although there are certain deductions and exemptions that may apply. Companies are also required to pay other taxes, such as VAT and social security contributions.
If you only make money through employers in Argentina, you won’t have to file a tax return in Argentina. A return will be automatically filed for you.
Determining Residency of Argentina for Tax Purposes
In Argentina, residents are taxed on all the income they make — regardless of if it was made in Argentina or internationally. However, non-residents are only taxed on the income they made in Argentina.
If you’re a US expat living in Argentina, you might be unsure about whether or not you’re considered a resident or non-resident of the country. Here’s how you can find out:
Qualifying as a Resident of Argentina
You’re considered a resident of Argentina if:
- You applied and received permanent residency from the country
- You reside in the country for more than twelve months
- You are an Argentinian national, but have a tax residency in another country
If any of these statements are tue, you’re likely considered a resident of Argentina, and thus must pay income taxes for all of your income.
Qualifying as a non-resident of Argentina
If you’ve lived in Argentina for less than twelve months and you have not applied to become a resident, you’re likely considered a non-resident. Non-residents are subject to different tax rules and rates than residents in Argentina.
For example, non-residents are generally subject to a higher tax rate on their income, and they may not be eligible for certain deductions and exemptions that are available to residents. Non-residents are also required to pay taxes on income earned in Argentina, such as rental income or investment income, although there are certain exemptions that may apply.
Income Tax Rates in Argentina
The income tax rate for foreigners in Argentina ranges from 5% to 35% depending on how much income you earn throughout the year.
Just like in the US, the Argentina tax year runs from January 1 to December 31. While you won’t have to file taxes if you only earn employer income in Argentina, those with foreign income and self-employment income will need to file tax returns by June 30.
Income tax rates in Argentina
|Income tax bracket||Tax rate||Taxes owed|
|ARS 0 – 97,202.00||5%||5% flat rate|
|ARS 97,202.01 – 194,404.00||9%||ARS 4,860.10 plus 9% on the amount over ARS 97,202.00|
|ARS 194,404.01 – 291,606.00||12%||ARS 13,608.28, plus 12% on the amount over ARS 194,404.00|
|ARS 291,606.01 – 388,808.01||15%||ARS 25,272.52, plus 15% on the amount over ARS 291,606.00|
|ARS 388,808.02 – 583,212.01||19%||ARS 39,852.82, plus 19% on the amount over ARS 388,808.01|
|ARS 583,212,02 – 777,616.01||23%||ARS 76,789.58, plus 23% on the amount over ARS 583,212.01|
|ARS 777,616.02 – 1,166,424.02||27%||ARS 121,502.50, plus 27% on the amount over ARS 777,616.01|
|ARS 1,166,424.03 – 1,555,232.07||31%||ARS 226,480.66, plus 31% on the amount over ARS 1,166,424.02|
|ARS 1,555,232.08 and over||35%||ARS 347,011.16, plus 35% on the amount over ARS 1,555,232.07|
Again, residents owe this tax rate on all earned income, while no-residents only owe income taxes to Argentina on income made in the country.
Dreading the last minute scramble pulling together your tax documents? Despair no more! This simple checklist lists the documents you need to have on hand when preparing to file.
Other Tax Situations in Argentina
If you earn self-employment income, it’s subject to a contribution tax rate of 21.4%. You should report quarterly income in April, July, October, and January.
Capital Gains Tax
In Argentina, the capital gains tax rate is 15%.
Businesses in Argentina pay a flat tax rate of 25% to 35% on all taxable corporate profits.
Value-added Tax (VAT)
In Argentina, the value-added tax is charged at the time of checkout when you buy goods or services in Argentina.
You’ll pay 21% VAT for most items in Argentina. Utility services like telecommunications systems, natural gas, water, sewage, and other household energy services have a 27% VAT rate.
Other items like construction materials, personal loan interest, medical assistance, and some passenger transportation costs have a lower 10.5% VAT rate.
Argentina does charge wealth tax for taxable assets above ARS 6,000,000. For the 2022 tax year, the wealth tax rates for the amount above this threshold are:
|Taxable assets||Wealth tax rate|
|ARS 0 – 3,000,000||0.5%|
|ARS 3,000,000.01 – 6,500,000.00||0.75%|
|ARS 6,500,000.01 – 18,000,000.00||1%|
|ARS 18,000,000.01 – 100,000,000.00||1.25%|
|ARS 100,000,000.01 – 300,000,000.00||1.50%|
|ARS 300,000,000.01 and over||1.75%|
The country of Argentina does not levy an inheritance tax, but residents and non-residents in Buenos Aires may be subject to the city’s inheritance tax.
If you own property in Argentina, you must pay annual property tax. The tax rate varies by province and the estimated value of the property. Local authorities may also grant exemptions for certain types of properties and land.
In Argentina, employees contribute 17% of their gross monthly income to Social Security and social health care. Employers contribute between 24% and 26.4% of the employee’s salary.
Argentina Tax Forms for US Expats Living Abroad
If you only receive income from an employer, your income taxes in Argentina will be deducted automatically, and you most likely will not have to file an income tax return.
However, if you receive self-employment income, if you’re a resident earning foreign income, or if your gross annual salary is over ARS 3.7 million, then you’ll need to file your Personal Income Tax return (PIT).
In Argentina, income tax returns are due on June 30 for the previous calendar year.
You can file your personal income tax online with the Argentina Income Tax Authority, also known as the Administración Federal de Ingresos Públicos (AFIP). Though the site offers English translation, it’s not perfect, so if you are not fluent in Spanish, we recommend seeking professional tax guidance.
Essential Tax Forms for US Expats in Argentina
If you are a US expat living in Argentina, it is important to stay up to date with your tax obligations. Here are some essential tax forms that you may need to fill out:
- Form 1040 is the main US tax return form, which must be filed by all US citizens and residents, regardless of where they live. You will need to report your worldwide income, including any income earned in Argentina.
- Form 1116 is used to claim a foreign tax credit for any taxes paid to Argentina. This can help reduce your US tax liability.
- FinCEN Form 114: If you have any foreign bank accounts with a balance of $10,000 or more at any point during the year, you must file this form to report the account to the US government.
- Form 8938 is similar to FinCEN Form 114 but applies to a wider range of foreign financial assets, such as stocks, bonds, and mutual funds.
Failing to comply with US tax laws can result in penalties and even criminal charges, so it is important to take your tax obligations seriously.
US Tax Deductions for Americans in Argentina
Since Argentina does not have a tax treaty with the US, it’s important for US expats to take advantage of any tax breaks that apply to their personal financial situation. There are a few key IRS tax credits and deductions that could lower your US expat tax liability, specifically, the Foreign Earned Income Exclusion, the Foreign Tax Credit, and the Foreign Housing Exclusion.
Foreign Earned Income Exclusion
US expats may be able to lower their taxable income using the Foreign Earned Income Exclusion (FEIE). This tax credit lets eligible expats deduct a portion of their foreign-earned income from US taxation.
While the amount changes annually, for 2022, you can exclude up to $112,000. This means if you made less than this amount in 2022, you could wipe out your tax bill.
You can claim the Foreign Earned Income Exclusion by filing IRS Form 2555.
Foreign Tax Credit
Americans living abroad in Argentina may also be able to lower their tax liability with the Foreign Tax Credit (FTC). This tax break lets you deduct any income taxes you’ve already paid or will pay to Argentina, dollar for dollar, from your tax bill.
For example, if you paid $12,000 in taxes to Argentina and you’re eligible for the FTC, you could deduct this amount from your US tax bill, helping to lower or eliminate your tax burden.
You can claim the Foreign Tax Credit by filing IRS Form 1116.
Foreign Housing Exclusion
Lastly, you may be able to deduct eligible housing-related expenses from your US tax bill with the Foreign Housing Exclusion.
You can only claim the Foreign Housing Exclusion if you’re also claiming the Foreign Earned Income Exclusion. Both are filed with Form 2555.
Does Argentina Offer Tax Deductions to US Expats?
Yes, Argentina does offer tax deductions to expats, but the eligibility and amount of deductions vary depending on the individual’s circumstances.
Expats living and working in Argentina may be eligible for deductions on their income tax return for expenses related to their job or business. These expenses may include transportation costs, work-related travel expenses, and professional development expenses.
Additionally, expats who own property in Argentina may also be eligible for tax deductions on expenses related to their property, such as maintenance costs and property taxes.
However, it’s important to note that expats must comply with Argentina’s tax laws and regulations in order to qualify for these deductions. This includes filing tax returns and paying taxes on their worldwide income.
It’s recommended that expats consult with a tax professional who is familiar with Argentina’s tax laws and regulations to ensure that they are taking advantage of all available deductions and credits.
Does the US have a Tax Treaty with Argentina?
No, While the US has tax treaties with many countries designed to prevent double taxation, Argentina and the US currently do not have a tax treaty agreement.
Does an Argentina-US Totalization Agreement Exist?
No. Argentina does not have a totalization agreement with the US. A totalization agreement helps protect US expats living in a foreign country from paying duplicate Social Security taxes. Without an agreement in place, Americans working in Argentina will contribute to both Argentina’s and US Social Security.
Navigating Tax Compliance for US Expats in Argentina
We hope that this tax country guide has provided you with the information and tools necessary to navigate the Argentine tax system as a US expat. Remember that paying taxes is an important responsibility, but it doesn’t have to be a daunting task. With a little preparation and diligence, you can fulfill your tax obligations and enjoy all that Argentina has to offer.
Contact us, and one of our customer champions will gladly help. If you need very specific advice on your specific tax situation, you can also click below to get a consultation with one of our expat tax experts.