Argentina Taxes for US Expats: A Guide

Argentina Taxes for US Expats: A Guide

Life abroad as a US expat in Argentina

Lined with miles of coastline, and full of diverse climates ranging from a subtropic jungle to arctic southlands, Argentina is bustling with Spanish and European-style architecture, cuisine, and cultural influences. With dynamic cities and beaches, it’s no wonder over 60,000 expats reside in this South American country. And if you’re one of them, it’s important to know how to handle your Argentina taxes for US expats.

Knowing how much you owe in expat taxes can be confusing. Since you’re living in Argentina, you’re on the hook for both Argentina taxes and US taxes. The good news is, there are some sizeable tax breaks that can help lower your tax bill.

Here’s everything you should know about your expat taxes in Argentina:

Argentina taxes for US expats at a glance

  • Primary Tax Forms: PIT (Personal Income Tax form)
  • Tax Deadline: June 30
  • Currency: Peso (ARS)
  • Number of US Expats in Argentina: Approx. 60,000
  • Capital City: Buenos Aires
  • Primary Language: Spanish
  • Tax Treaty: No
  • Totalization Agreement: No

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.

Like the US, Argentina taxes your income on a progressive scale. However, there are not many exemptions to paying income taxes — even if your annual income falls in the smallest income tier, you’ll still pay 5% in income tax.

Pro Tip: 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.

How to determine if you’re a resident of Argentina

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:

Argentina resident qualifications

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.

Argentina non-resident qualifications

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. This means you’ll only pay taxes on income earned in Argentina.

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 bracketTax rateTaxes owed
ARS 0 – 97,202.005%5% flat rate
ARS 97,202.01 – 194,404.009%ARS 4,860.10 plus 9% on the amount over ARS 97,202.00
ARS 194,404.01 – 291,606.0012%ARS 13,608.28, plus 12% on the amount over ARS 194,404.00
ARS 291,606.01 – 388,808.0115%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 – 777,616.0123%ARS 76,789.58, plus 23% on the amount over ARS 583,212.01
ARS 777,616.02 – 1,166,424.0227%ARS 121,502.50, plus 27% on the amount over ARS 777,616.01
ARS 1,166,424.03 – 1,555,232.0731%ARS 226,480.66, plus 31% on the amount over ARS 1,166,424.02
ARS 1,555,232.08 and over35%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.

Other tax situations in Argentina

Self-employment Tax

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%.

Corporate Tax

Businesses in Argentina pay a flat tax rate of 25% to 35% on all taxable corporate profits.

Value-added Tax (VAT)

In Argentina, value-added tax is charged at the time of checkout when you buy goods or services in Argentina. 

You’ll pay 21% for 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.

Wealth Tax

Argentina does charge wealth tax for taxable assets above ARS 6,000,000. For 2022, the wealth tax rates for the amount above this threshold are:

Taxable assetsWealth tax rate
ARS 0 – 3,000,0000.5%
ARS 3,000,000.01 – 6,500,000.000.75%
ARS 6,500,000.01 – 18,000,000.001%
ARS 18,000,000.01 – 100,000,000.001.25%
ARS 100,000,000.01 – 300,000,000.001.50%
ARS 300,000,000.01 and over1.75%

Inheritance Tax

The country of Argentina does not levy inheritance tax, but residents and non-residents in Buenos Aires may be subject to the city’s inheritance tax.

Property 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.

Social Security

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.

Is there an Argentina-US tax treaty in place?

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 and US Social Security.

What Argentina tax forms do US expats living abroad need to file?

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.

Are there US tax deductions available to 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?

As an expat in Argentina, you may be eligible for tax breaks for certain qualifying:

  • Medical expenses
  • Donations
  • Mortgage interest
  • Retirement annuities

File your expat taxes with confidence

We hope this guide gave you a better understanding of Argentina taxes for US expats. We know taxes can be complicated, so if you still have questions about your resident status, tax liability, or whether or not you qualify for tax deductions, Greenback can help.