If you’re considering moving to Argentina in 2025 or planning to invest in the country, understanding how the taxes apply to you is a must. This well-explained guide for foreigners and expats will help you navigate the Argentine tax system, covering everything from income tax and wealth tax to VAT and different fees. Being aware of your responsibilities can help you avoid surprises and make smarter financial decisions (Ministerio de Economía, 2024).
Why The Status Matters in Argentina
In Argentina, your tax residency status is the convenience store of your tax obligations. You’re considered a tax resident if you spend 183 days or more in the country during a year, or if you establish a permanent home or strong personal/economic ties locally (AFIP, 2024).
This distinction is a really important thing:
- Tax Residents are taxed on their worldwide income, regardless of where it’s earned.
- Non-Residents are only taxed on Argentine-sourced income (PwC, 2024).
Understanding this, is a key part of tax explanation in Argentina.
Personal Income Tax: Who Pays What?
Argentina’s tax system is progressive, meaning higher earners pay a larger percentage of their income in taxes.
- For Employees: Income tax rates can reach up to 35% for annual earnings. (AFIP, 2024).
- For Self-Employed Individuals (Freelancers & Remote Workers): Rates range from 5% to 35% depending on the income bracket. (EY, 2024).
- For Non-Residents Temporarily Working in Argentina: A 24.5% flat tax generally applies to your local income (PwC, 2024).
Understanding Argentina’s Wealth Tax
This annual wealth tax in Argentina applies to assets above a set threshold.
- For Residents: You pay between 0.5% and 1.5%, depending on your total asset value, which includes assets held globally (AFIP, 2024).
- For Non-Residents: You only pay 0.5%, and exclusively on assets physically located in Argentina (Deloitte, 2024).
An optional program, REIBP, allows individuals to lock in specific rates and potentially avoid future tax increases through 2027, offering a degree of predictability (BCRA, 2024).
VAT and Other Indirect Taxes
Like most countries, Argentina applies a Value Added Tax (IVA) and various other indirect taxes that foreigners will encounter daily.
- Value Added Tax (IVA): The standard rate is 21% on most goods and services. However, essentials like bread, medicine, and transportation are taxed at a reduced 10.5% rate (Ministerio de Economía, 2024).
- Other Indirect Taxes Include:
- Excise Taxes: Applied to specific goods, such as up to 60% on tobacco, 20% on alcohol, and 8% on sugary drinks (Deloitte, 2024).
Cheque/Debit Tax: A 0.6% tax on all banking debits and credits, a common financial transaction tax (BCRA, 2024).
Social Security & Provincial Taxes
Foreigners working in Argentina (employed or self-employed) also contribute to the social security system.
- Social Security Contributions:
- Employees typically contribute around 17% of their gross salary.
- Employers contribute approximately 21% on behalf of their employees (AFIP, 2024).
- Health insurance is also typically deducted, usually 3–6% of gross salary, providing access to local healthcare.
Gross Income Tax (Provincial): This tax varies by province and ranges from 3% to 5% on business revenue. If you plan to conduct business or freelance within a specific province, understanding its local tax structure is essential (Ciudad de Buenos Aires, 2024).
Double Taxation & Expat Considerations
Avoiding Double Taxation: Argentina has tax treaties with several countries, including Germany, Spain, Italy, UK, and others. These double taxation agreements (DTAs) are designed to prevent people from being taxed on the same income in both Argentina and their home country. (OECD, 2024).
U.S. Citizens Specifics: If you’re a U.S. citizen, you still have an obligation to file taxes with the IRS, even when living abroad. However, you may qualify for key exclusions and credits:
- The Foreign Earned Income Exclusion (FEIE): Allows you to exclude a significant portion of your foreign-earned income from U.S. taxation (IRS, 2024).
- The Foreign Tax Credit (FTC): Provides a credit for income taxes paid to a foreign government, potentially offsetting your U.S. tax liability.
- The Foreign Housing Exclusion: Helps reduce your taxable income based on qualified housing expenses abroad (IRS, 2024).
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Key Resources on Taxes in Argentina for Foreigners & Investors
AFIP – Argentine Tax Authority
Official guidelines for income tax, wealth tax, and residency requirements for foreigners.
Visit AFIPMinisterio de Economía
Up-to-date economic and fiscal policy information including VAT and indirect taxes.
Visit Ministerio de EconomíaOECD Tax Treaties
Explore Argentina’s double taxation agreements and international tax guidelines.
View OECD ResourcesPwC Argentina Tax Insights
Professional analysis on Argentine tax rules for expats and international investors.
Visit PwC ArgentinaIRS – U.S. Citizens Abroad
Key information on U.S. expat tax obligations, FEIE, and foreign tax credits.
Visit IRS InternationalDeloitte Argentina
Comprehensive resources on wealth tax, excise taxes and local regulations.
Visit Deloitte Argentina
