Making a Living
Making a Living
Obtaining Digital Nomad Status
Many Russians moving to Argentina manage to maintain remote work arrangements with their current employers. If pursuing this option, consider applying for a Digital Nomad visa. This visa status legalizes your stay in the country and allows you to “whitewash” your income. The visa is valid for 180 days and renewable for an additional 180 days. You will need to provide evidence of employment and qualifications, as well as to demonstrate at least $2,500 per month and provide proof of health insurance. More detailed instructions for applying are outlined here.
Finding Local Employment
Finding a job in Argentina is difficult especially for non-Spanish speakers. However English speakers or those with specific technical skills may find opportunities especially in Banking, IT and oil sectors. There is a strong startup culture in Argentina, with Argentine companies getting headway especially in FinTech areas – some of the larger Argentine Tech and FinTech companies include:
English speakers may also find employment in the hospitality industry, in call centers or in teaching English as a foraging language.
In most situations residency status or work permits will be required. Sometimes the hiring company will help with the paperwork, however, having a legal status when seeking employment would increase the chances of being hired.
The following websites advertise job opportunities for foreigners: BA Expat Jobs, Buenos Aires Expat Hub, Expats in Buenos Aires, Craigslist.
Work Culture in Argentina
Work days in Argentina are usually 8 hours long and limited by law to a total of 48 hours a week. Daily working schedules vary by business and location with days typically starting at 8:30 am. Outside of major metropolitan centers, workers typically take a siesta between 12:30 – 4:00 pm and work until 8:00 pm. There is a built in system of bonus payment: by law employers are required to pay one month of wages as a bonus (so total wages for the year are equal to 13 months), with one-half of the bonus paid in June and the other half in December.
Starting a Business
Monotributo status for Solo Proprietors
Freelancers or solo proprietors are advised to seek Monotributo legal entity status for their businesses. This is the easiest legal entity status to procure, especially for foreigners- you can do it yourself, it requires completion of only one form, you can do it online in about 15 minutes. It also provides for the lowest tax rate, ranging from 5.2% to 11.2% of income depending on turnover and type of activity. You will pay a fixed tax every month, depending on your declared income The only limitation of this legal entity status is that your declared income must not exceed $40,000 per year.
To get more detailed information and to start the process for Monotributo registration visit Administración Federal de Ingresos Públicos AFIP website.
Other Business Registration Options:
Other legal entities to consider and their pros and cons are outlined below.
- Sociedad Anónima (SA): Similar to a corporation. It must have at least two share-holders and a full-time Argentine auditor.
- Sociedad por Acciones Simplificada (SAS): Simplified Stock Company, designed for smaller businesses with streamlined procedures.
- Sociedad de Responsabilidad Limitada (SRL): Limited Liability Company, often preferred for smaller businesses. It is analogous to a Russian LLC. An SRL cannot be owned by one person, and one of the founders of the company must be Argentinean. If the capital of S.R.L. exceeds 5 million pesos, a full-time auditor will be required.
Cost of Doing Business
TAXES:
- Value Added Tax (VAT): Businesses with an annual turnover above a certain threshold must register for VAT. Current VAT tax rate is 21%
- Corporate Income Tax: Businesses are subject to corporate income tax on their worldwide income. The tax rates starts at 25% for incomes up to $40,000 and can go up to as high as 60% for larger incomes.
- Personal Income Tax: Shareholders are taxed on dividends received.
To optimize taxes it is beneficial to register a business in Uruguay or Paraguay, because the tax situation there is more favorable, and because non-resident companies are taxed on sources derived only in Argentina, while companies registered in Argentina will be taxed on income derived from all sources in and outside of Argentina.
OTHER ADMINISTRATIVE COSTS:
- Social Security Contributions: Both employers and employees are required to make contributions. Employer contributions range from 24-26%
- Stamp Duty: Applicable on various legal documents.
- Cost of Hiring and Firing Employees: Although wages are cheaper in Argentina relative to Europe and other industrialized countries, wage costs can add up when considering obligatory employer contributions, mandatory annual bonuses (equal to one month of wages) and the fact that employees typically earn a 9% pay raise every 17 months. Firing employees can also be costly, as employers are obligated to provide a severance equal to one month’s salary for each year of employment or period worked in excess of three months.
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