Does Argentina Tax Foreign Pensions? What Retirees Need to Know

If you’re planning to retire in Argentina or already living here and receiving a foreign pension, understanding your tax obligations is crucial. While Argentina is known for its beautiful landscapes and relaxed pace of life, its tax laws can be complex — especially when it comes to foreign income like pensions.

In this article, we break down the key points you need to know about how Argentina taxes foreign pensions, who qualifies as a tax resident, and what this means for you.

🧾 Does Argentina Tax Foreign Pensions?

Yes, Argentina taxes foreign pension income — but only once you become a tax resident. The Ley de Impuesto a las Ganancias (Law 20.628) establishes that tax residents are subject to income tax on their worldwide income, and it does not provide any special exemption for foreign pensions, regardless of the country of origin.

So, if you're receiving a pension from the United States, Canada, Europe, or any other country, that income becomes declarable and potentially taxable under Argentine tax law.

🧍‍♂️ Who Is a Tax Resident in Argentina?

Interestingly, tax residency is not defined in Law 20.628 itself, but in its regulatory decree: Decree 862/2019, particularly in Articles 116 and 117.

According to Article 116 of the decree, you are considered a tax resident in Argentina if:

• You are a foreign national who has obtained temporary or permanent residency; and

• You have been physically present in Argentina for more than 12 months, unless you have spent more than 90 days outside the country during that period.

This rule continues to apply on a rolling annual basis. So if you're in Argentina on a temporary residency permit as a "pensionista", you will become a tax resident after 12 months, unless you break the 90-day rule by spending more than 90 days abroad.

💰 When Does Your Pension Become Taxable?

Once you meet the residency criteria, your foreign pension becomes declarable under the Impuesto a las Ganancias if your income exceeds the non-taxable minimum threshold (which adjusts annually for inflation).

• There is no automatic exemption for pensions from the U.S. Social Security system, IRAs, 401(k)s, or other similar retirement vehicles.

• You are required to declare this income and, if it exceeds the threshold, pay taxes accordingly.

You can consult the current non-taxable minimum and other updates on the AFIP official website.

⚖️ No Tax Treaty Between Argentina and the U.S.

One of the key issues U.S. retirees face is the absence of a tax treaty between Argentina and the United States. This means that there’s no agreement to prevent double taxation on your U.S. pension income.

You may need to pay income tax on your pension to both the IRS and the Argentine tax authority (AFIP), without an automatic credit system between the two.

👥 Key Points and Considerations

• Stay under the threshold: If your total worldwide income is low enough, you may not owe any tax — but you may still need to file.

• Track your days: If you spend more than 90 days outside Argentina during any 12-month period, you may avoid becoming a tax resident.

• Get advice: Laws are subject to change, and enforcement varies. Consulting a bilingual Argentine tax accountant or lawyer is strongly recommended.

• Don't assume exemption: Even if others tell you their pensions aren't taxed, the law is clear: foreign pensions are not exempt, even if they're not always enforced.

📝 Final Thoughts

Argentina’s tax laws are often nuanced, but the bottom line is clear: if you're a tax resident, your foreign pension income may be taxed. While enforcement might be inconsistent in practice, the legal obligation exists — and being proactive is far safer than being surprised by an audit or fine.

If you're unsure about your specific case, speak with a local tax expert or international tax advisor who understands both Argentine and foreign systems.

📚 Citations and Legal References

• Ley 20.628 – Ley de Impuesto a las Ganancias (General scope of worldwide income):
  View full law

• Decreto 862/2019 – Definición de residencia fiscal (Arts. 116 and 117):
  View official decree

• AFIP – Administración Federal de Ingresos Públicos:
  www.afip.gob.ar

Disclaimer:
The information provided in this article is for informational purposes only and is not intended as legal advice. It should not be relied upon as a substitute for consultation with a qualified legal professional.

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