Tag Archives: argentina

Compliance issues that arise for foreign workers in Argentina

Compliance with Migration Law
In Argentina,tourist visas are granted for a term of up to three months and may be extended for another three months upon their expiration.If a foreigner enters the country under the category of tourist, he or she will not be legally entitled to render services or perform productive work in Argentina.

Argentine migratory regulations establish that if a foreigner intends to work in Argentina for a short period of time, he or she may request a Temporary Work Permit. Such permit application does not require any prior processing prior to arrival in Argentina. The foreigner should enter the country as a tourist and only then request the Temporary Work Permit in the National Migration Bureau in Argentina, provided that he or she will render services to an Argentine entity.Temporary Work Permits are issued for up to a maximum term of 30 days (15-day initial period, renewable for another 15 days) and are granted immediately upon their request. Alternatively,citizens from certain countries specifically included in the applicable regulations,who declare upon their arrival that they are visiting Argentina on business,may enter under a special category and stay in the country for a term of up to three months,that may be extended for an additional three months upon its expiration.This category authorizes a limited number of commercial and/or professional activities in Argentina, including consultations, negotiations, business meetings and conferences. Employment under this latter category is not authorized. There are two alternatives for obtaining a work visa:(i) a foreign company who assigns its employee to work in Argentina due to a service or technical assistance agreement with an Argentine company, or (ii) a local company who hires the foreigner and includes him or her as an employee in its payroll.

Compliance with Employment Law

Pursuant to Section 3 of Employment Contract Law (“ECL”),individuals rendering services in Argentine territory must be subject to Argentine labor legislation.This is a mandatory provision because labor regulations are defined as public policy,which means that parties cannot agree to a different law.

The law requires an Argentine-based employer to hire such individuals, once the individual has the work visa. The lack of an Argentine-based employer and subsequent employment with a non-Argentine entity is a violation of Argentine law,and exposes the non Argentine entity to several penalties, including employment,migration, social security and tax. The only exception to this rule would be the case of foreign employees visiting Argentina for a brief period of time due to occasional services in Argentine territory for their foreign employer. Although there is no provision in the employment law about the extension of this occasional stay,a consistent interpretation with the migration law authorizes a stay of up to 30 days. There is no specific provision for employees sent on commission beyond30 days (e.g., due to a services agreement between the foreign employer and an Argentine entity,to install a machine,to research the market, etc.),and there is a grey area. As explained above,the Migration authority grants a work visa for such cases and does not require an Argentine entity to be the employer. Furthermore,the Retirement and Pension Law sets forth that those Argentine-based employees sent abroad on commission are still subject to the Argentine law, hence a converse construction could be made. In any case,it is advisable to have an Argentine employer when the stay exceeds 90 days.To the best of our knowledge there are no relevant precedents regarding the above mentioned scenario. The assignment scheme (also known as secondment), under which the home company maintains employment status and makes certain payments,while at the same time the host company pays certain expatriate benefits,is contradictory to Argentine law. The Argentine regulations require that all compensation paid to the expatriate be declared in the pay statement in Argentina by the Argentine employer, for purposes of employment related benefits,social security and taxes. Therefore,whenever the foreign employer pays compensation to the  expatriate, such payment needs to be declared by the Argentine employer.The only exception to this rule would be the case in which the expatriate performs work for two employers simultaneously, in different jurisdictions, under a dual employment scheme. As regards acknowledgement of services for the group,Argentine labor courts have awarded severance factoring the entire period of services,as opposed to the period worked in Argentina.

Compliance with Social  Security Law

Expatriates working in Argentina are subject to the social security system, under which employees and employers are mandated to pay contributions.

There are two exceptions to this rule:

(i) expatriates who are appointed as corporate directors,and (ii) expatriates who stay less than two years. Under the Argentine Retirement and Pension Law,corporate directors are obliged to pay contributions as “independent workers”,as opposed to “dependent workers.”Corporate directors who also work as employees can opt to contribute as employees, but otherwise are exempted. The Argentine Retirement and Pension Law also provides that either the employer of foreign scientists, professionals or technicians (“expatriate”) or the expatriate may request from the social security authority an exemption from social security payments for up to a two year period. The reduction is effective as from the date of filing the request.If the authority does not approve the exception,the employer must pay the outstanding social security contributions plus interest. Additionally,Argentina has signed several social security treaties,which in general terms,allow employees to either factor in the period within which they have worked in Argentina to obtain a retirement or pension-related benefits in their home country, provided that their home country has executed a social security treaty with Argentina, and/or to continue to be affiliated with the social security system of the home country for a limited period of time (i.e., between one and two years).In the latter case,the employees must follow a procedure required by the corresponding authorities of both countries. Because there is no totalization agreement between the United States and Argentina,social security payments will need to be made in Argentina,with the exception of the professionals and technicians who come to work for less than two years.

Compliance with Tax Law

Income Tax

The Argentine employer is required to withhold income tax (and social security contributions,if applicable) on a monthly basis.The tax base for withholding and contributions is the total salary and in-kind benefits the employee receives. The employee will be treated as an expatriate taxpayer,which permits the employee to be taxed only on his or her Argentine source income for the first five years worked in Argentina.After five years in Argentina,the expatriate will be subject to income tax on his or her worldwide income from 9 percent to 35 percent depending on the net taxable income of the employee. Expatriates who reside in Argentina for less than six months are subject to a flat withholding tax of 24.5 percent on their gross Argentine source income, rather than the regular progressive tax rates referred to above.The taxable income for expatriates working in Argentina for more than six months in a calendar year is subject to income tax withholding ranging from 9 percent to 35 percent depending on the net taxable income of each employee Individuals who reside in Argentina for more than six months in a calendar year are entitled to deduct an amount equivalent to AR$9,000 (approximately US$2,330) from their gross income.In addition,a standard annual tax deduction equivalent to AR$34,200 (approximately US$8,860) is available for benefits received for services arising from a labor relationship.

Personal Assets Tax

If the expatriate remains in Argentina for less than five years, he or she will be subject to Personal Assets Tax on assets held in Argentina exclusively.The applicable rate ranges from 0.5 percent to 1.25 percent depending on the valuation of the computable assets. In case the expatriate remains in Argentina for more than five years, he or she will be considered domiciled in Argentina and,consequently,subject to Personal Assets Tax on worldwide assets.The applicable rate ranges from 0.5 percent to 1.25 percent depending on the valuation of the computable assets.

Buenos Aires Argentina Labor and Employment Lawyer

The Buenos Aires Argentina labor attorney professionals of Kier Joffe support clients in human resources planning and restructuring. Modern labor criteria and geographic mobility for companies takes considerable legal prowess, and the Buenos Aires Argentina labor lawyer professionals of Kier Joffe  have the experience and expertise to help. As well, the Argentina labor attorneys have experience in prevention and resolution of individual and collective disputes for clients. Kier Joffe provides labor advice intended to avoid controversies, reduce costs and optimize results, keeping clients permanently informed on the evolution of applicable regulations and their interpretation by perspective governments.

The proven Buenos Aires – Argentina lawyer professionals at the Kier Joffe law firm have experience working with foreign clients involved in all kind of cases in Argentina. Buenos Aires Argentina attorney professionals are knowledgeable in almost all the practice areas of law, to service its international cases in Buenos Aires Argentina. International clients will have the confidence of knowing that the case is being handled by an experienced and knowledgeable Buenos Aires  lawyer in Argentina.


Argentina publishes new rules requiring foreign reinsurers to open an Argentine branch by September 1, 2011 or otherwise be barred from transacting business

Effective September 1, 2011, a non-domestic reinsurance company wanting to do business in Argentina will be required to establish a local branch before it may reinsure any risks held by an Argentine insurer. The new regulation was among several changes to Argentina’s reinsurance regulatory framework that were published on February 21, 2011. (Resolution 35.615/2011 as published in Official Gazette No. 32.096 (Feb. 21, 2011) is available at http://infoleg.mecon.gov.ar/infolegInternet/anexos/175000-179999/179428/norma.htm.)

Under the new regulations, local insurers will be prohibited from ceding risks to any reinsurer who has not made itself subject to Argentina’s regulatory authority. Local insurers wanting to buy reinsurance will be limited to buying only through reinsurance companies that are domiciled in Argentina, including “[a]ny branches of foreign reinsurance companies that may be set up in the Republic of Argentina.” Ch. 1, § 1(b). A foreign reinsurer who intends to open an Argentine branch for the purpose of becoming licensed to transact reinsurance business in the market must provide capitalization of at least U.S. $5 million. Foreign reinsurers have until September 1, 2011 to conform to the new regulation or will thereafter be barred from accepting any reinsurance transactions originating in Argentina.

The sole exception to the regulation will allow a foreign reinsurer to transact business in Argentina if (a) the transaction cannot be covered by a domestic Argentine reinsurer and (b) the Superintendent of Insurance is provided an application to enter into the transaction in advance by the domestic insurer, who is also obligated to provide the Superintendent all of the relevant material “supporting the exceptional nature” of the ceded risks. Ch. 1, § 19. Only reinsurers that are authorized to do business abroad in their own countries are eligible to enter into such transactions. The regulations further set down requirements for foreign reinsurers in these limited circumstances, including providing proof from an external auditor of a minimum net worth of U.S. $30 million and maintaining copies of financial statements that are signed by an appointed attorney representative in the City of Buenos Aires. Once a license is issued allowing the transaction, the foreign reinsurer will be subject to numerous requirements on an ongoing basis during the life of the reinsurance agreement.

The new regulations are silent with respect to whether a domestic reinsurer may retrocede Argentine risks to a foreign reinsurer.

The local press has reported wide discontent over this reform coming from the insurance community and local brokers. Among other things, members of the insurance community have pointed out that the Argentine market has no capacity to assume the risk (more than 90% of risks are now reinsured abroad) and that even if there were capacity, this resolution concentrates all of the risk in local companies, which is far from desirable. In addition, it has been pointed out that this reform will increase premiums as there will be little competition from international reinsurers. Hence, it is very likely that the market will oppose this reform. However, it remains to be seen whether such opposition will be successful. In the meantime, reinsurance companies have less than six months to comply with this drastic reform.

Consult with a Proven Buenos Aires Argentina Insurance and Reinsurance Lawyer

The proven Buenos Aires Argentina Insurance and reinsurance lawyer professionals at Kier Joffe law firm are experienced in the effective resolution of Insurance and reinsurance lawsuits as related to Insurance and reinsurance contracts in Argentina. Buenos Aires Insurance and reinsurance attorney professionals are knowledgeable in all areas of general Insurance and reinsurance law and cases in Buenos Aires Argentina. Clients will have the confidence of knowing that the case is being handled by an experienced and knowledgeable Buenos Aires Insurance and reinsurance lawyer.

The proven Buenos Aires – Argentina lawyer professionals at the Kier Joffe law firm have experience working with foreign clients involved in all kind of cases in Argentina. Buenos Aires Argentina attorney professionals are knowledgeable in almost all the practice areas of law, to service its international cases in Buenos Aires Argentina. International clients will have the confidence of knowing that the case is being handled by an experienced and knowledgeable Buenos Aires  lawyer in Argentina.



Overseas Judgments and the Australian Jurisdiction – Enforcement & Recovery of Debts

Dealings by Australian businesses with international clients, suppliers and developers are increasing at a rapid rate.

One result of that trend is the need to take into consideration the enforcement of claims brought against overseas-based companies or individuals. Regardless of where one’s business is based, the enforcement of claims brought against overseas-based parties can be difficult, lengthy, expensive and ultimately deeply unsatisfying.  Consideration of such issues, and of the steps that may be taken to improve the prospects of a successful recovery process, is highly recommended as a proactive measure to be taken when setting up dealings with international parties.

When seeking to enforce an Australian judgment in a foreign jurisdiction, the foreign jurisdiction’s laws on the enforceability of foreign judgments will govern the viability of the process. This article aims to provide a general background regarding the enforcement of Australian judgments in foreign jurisdictions, and the issues that typically arise.


Reciprocal Enforcement Arrangements

Australia is a party to reciprocal enforcement arrangements with many countries in respect of the enforcement of judgments obtained in Australian Courts. The Foreign Judgments Regulations (Cth) 1992, identifies those countries with which Australia reciprocal enforcement arrangements, including New Zealand, Germany, Japan and France. A notable exception is theUnited States, which situation persists despite the introduction of the Australia-United States Free Trade Agreement.

The terms of reciprocal enforcement arrangements differ from country to country. Reference must be had to the legislation of the relevant country in order to identify which Australian Courts (and, therefore, the judgments of those Courts) are recognised in that country, and to identify the applicable enforcement process.  A major benefit of there being an applicable reciprocal enforcement arrangement is the enforcing court will be unlikely to require that the merits of the Australian Court’s decision be re-visited.

Typically, when seeking to enforce an Australian judgment in a foreign jurisdiction with which Australia has a reciprocal enforcement arrangement, the judgment must:

• be final and conclusive – it is worth noting that in some foreign jurisdictions, even if an appeal of the Australian judgment is pending, the judgment may be viewed as ‘final and conclusive’ for purposes of seeking enforcement in those foreign jurisdictions.  Special rules may apply to default judgments;
• concern a matter regarding which the Australian Court held the jurisdiction to hear;
not conflict with local public policy in the jurisdiction in which enforcement of the judgment is sought – i.e. the terms of the Australian judgment, or the claim(s) determined by that judgment concern matters must not offend the public policy of the jurisdiction in which enforcement of the judgment is sought.  For example, judgments awarding exemplary damages are not recognised in some countries, and statutory interest attaching to Australian judgments may not be enforceable in countries that follow Sharia Law, which is often the case in Middle Eastern countries such as the United Arab Emirates;
– be a money judgment – i.e. the judgment cannot be an equitable order for an injunction or for specific performance;
– be made in respect of proceedings for which proper notice had been given – i.e. notice had been properly served on the overseas-based debtor pursuant to the procedural rules of the Australian Court that issued the judgment; and
– be given by a Court that is recognised as a court of sufficient standing by the foreign jurisdiction – i.e. whilst judgments given by the superior courts (e.g. the Supreme and Federal Courts) are generally recognised, reciprocal enforcement arrangements do not always provide that all Australian Courts will be recognised.

Access to the enforcement processes in a foreign jurisdiction is entirely dependant upon the laws of that country. Generally, a verified copy of the original Australian judgment, together with a translation of the judgment into the official language of the foreign country, should be provided to the applicable judicial body, together with:

– an affidavit setting out the particulars of the debt that is the subject of the Australian judgment and identifying the location of the overseas debtor; and
– written submissions confirming that the Australian judgment meets the substantive requirements of the relevant reciprocal enforcement agreement.

Non-Reciprocal Enforcement Arrangement Jurisdictions 

In foreign jurisdictions for which reciprocal enforcement arrangements are not in effect, generally the judicial authorities will not recognise Australian judgments as being the final determination on the merits of the claims raised in the Australian proceedings.  It is highly likely the merits of the Australian judgment will be re-examined by the judicial authorities of the foreign jurisdiction, potentially requiring a complete re-prosecution of the original claim.

In addition to any factual defences the overseas debtor might raise against the claim, the debtor may also be entitled to raise defences such as lack of jurisdiction, fraud, public policy considerations that are local to the foreign jurisdiction in which proceedings have been commenced, and denial of natural justice.

International Arbitration – an Alternative 

For cross-border commercial dealings, private arbitral proceedings are a commonly accepted alternative to the prosecution of claims through the court systems.  A prerequisite to taking a matter in dispute to arbitration is the parties’ agreement to accept arbitration.  Generally, the parties will make such an agreement when they enter into the contract that governs their commercial dealings.  Contracts that contain provisions to resolve disputes by arbitration typically set out the terms by which the rules governing the arbitration are selected, the body of law governing both the contract and the arbitral proceedings, the arbitral venue, the language in which the proceedings will be conducted, and perhaps most importantly, the parties’ agreement that arbitral awards will be binding on the parties and may be enforced in any courts that have jurisdiction over the party against which enforcement is sought.  That the parties did not agree at the time of contracting to accept arbitration does not preclude their later agreeing to do so, but this may lessen the likelihood of the parties agreeing to accept arbitration when a dispute arises.  Acceptance of arbitration as an alternative to pursuing claims through the courts is also becoming more common in purely domestic commercial dealings.

The election to resolve matters in dispute through arbitration proceedings often yields a number of benefits to the parties such as; the dispute may be heard by an industry specialist, the proceedings are frequently implemented much more quickly and then heard in less time, the avenues of appeal are limited, and the cost of arbitration often works out to be a fraction of the cost of proceedings conducted through the courts.

The Convention on the Recognition and Enforcement of Foreign Arbitral Award (“New York Convention”) and the UNCITRAL Model Law on International Commercial Arbitration (“UNCITRAL Model Law”)obligates courts from participating countries to recognise and enforce private arbitral awards made in a country that is a party to the New York Convention. At the time of writing, more than 140 countries are parties to the New York Convention. By contrast, there are only some 30 countries that have reciprocal enforcement arrangements with Australia.

The New York Convention identifies a range of grounds upon which a party against whom an arbitral award has been made, may seek to persuade a foreign court not to enforce the award.  These include; the party was subject to some incapacity, recognition and enforcement of the award is contrary to the public policy of the country in which enforcement is sought, or the award dealt with matters that fell outside the matters submitted for arbitration.

Given the wide acceptance of the New York Convention and its relatively straightforward operation, providing for resolution of disputes by arbitration in international commercial dealings is certainly worth considering, particularly where the counterparty is domiciled in a country, such as the United States, that does not have a reciprocal enforcement agreement with Australia.

Our top lawyers in Buenos Aires Argentina can advise parties both in respect of debt recovery and claims enforcement options available when dealing with a overseas-based parties as well as when negotiating appropriate terms of agreements to frame your commercial dealings with parties situated outside Australia.

The best Law firm, top Lawyers in Buenos Aires, Argentina, Attorneys, Advocates, Solicitors and Barristers.

The proven Buenos Aires – Argentina lawyer professionals at the Kier Joffe law firm have experience working with foreign clients involved in all kind of cases in Argentina. Buenos Aires Argentina attorney professionals are knowledgeable in almost all the practice areas of law, to service its international cases in Buenos Aires Argentina. International clients will have the confidence of knowing that the case is being handled by an experienced and knowledgeable Buenos Aires  lawyer in Argentina.


Criminal Lawyer Buenos Aires – Argentina Attorney Law Firm

The proven Buenos Aires – Argentina criminal lawyer professionals at the Kier Joffe Law Offices law firm have experience working with foreign clients involved in a criminal claim in Argentina. Buenos Aires criminal attorney professionals are knowledgeable in all areas of general criminal law, including but not limited to burglary, homicide and forgery cases in Buenos Aires Argentina. International clients will have the confidence of knowing that the case is being handled by an experienced and knowledgeable Buenos Aires criminal lawyer.

Contact a Buenos Aires Criminal Attorney with Experience in Many Types of Criminal Acts:

• Burglary
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• Homicide
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• Manslaughter
• Parole and Probation
• Search and Seizure
• Sexual Assault
• Shoplifting
• Theft
• Traffic Violations

Argentina criminal law underlines the rules of law established by state and federal governments to set a standard of conduct for people to obey. Any action or failure to act in violation of a law commanding or forbidding it is classified a “crime”. A crime is defined as conduct that threatens, harms or endangers the safety of people and is split into four major sub-categories: fatal offenses, personal offenses, property offenses and participatory offenses.

Fatal offenses typically revolve around homicide and manslaughter, while personal offenses deal with instances of assault and battery, rape and sexual abuse. Property offenses in Argentina include breaking and entering, burglary and theft. Aiding in a criminal act would result in a participatory offense.

In Criminal Defense Law, the suit is initiated by the province or federal government through a prosecutor rather than being initiated by the victim. Plaintiffs in a civil law suit only need to show by a preponderance of the evidence that a defendant is liable (responsible) for the damages. But, the prosecutor in a criminal defense law case has to prove to the judge “beyond a reasonable doubt” that the defendant is guilty of the crime charged.

Kier Joffe Law Offices The Buenos Aires Criminal Lawyer Source

The Buenos Aires criminal lawyer professionals of Kier Joffe Law Offices law firm are distinguished by a history of successful criminal law claim recoveries and resolutions. If you or your family is involved in a dispute over criminal conduct, please call a Buenos Aires criminal attorney with the Kier Joffe Law Offices law firm in Argentina .

The proven Buenos Aires – Argentina lawyer professionals at the Kier Joffe law firm have experience working with foreign clients involved in all kind of cases in Argentina. Buenos Aires Argentina attorney professionals are knowledgeable in almost all the practice areas of law, to service its international cases in Buenos Aires Argentina. International clients will have the confidence of knowing that the case is being handled by an experienced and knowledgeable Buenos Aires  lawyer in Argentina.


Wills, probate and inheritance in Argentina


Tax year and payment dates

1. When does the official tax year start and finish in your jurisdiction and what are the tax payment dates/deadlines?

For income tax purposes, the official tax year for individuals starts on 1 January and ends on 31 December.

Domicile and residence

2. What concepts determine tax liability in your jurisdiction (for example, domicile and residence)? In what context(s) are they relevant and how do they impact on a taxpayer?


For individuals, the domicile is the individual’s principal place of residence and business (Argentine Civil Code). When the principal place of residence differs from the principal place of business, the tax regulations provided that the domicile for tax purposes will be the principal place of business. For tax purposes, the domicile is relevant for receiving notices from the tax authority but is not used to determine tax liability.


Residence determines the manner in which an individual is taxed in Argentina. Whenever an individual, under the relevant rules of each tax (in particular, income tax and tax on personal assets), is deemed to be a resident of Argentina, the tax is levied on a worldwide basis (either on worldwide sourced income or the assets owned worldwide by the taxpayer) rather than on an exclusively Argentine basis. Resident individuals must file tax returns with the Argentine Tax Authority. Non-resident individuals are solely taxed on their Argentine-sourced income (through withholding) and on their Argentine-based assets.

Under Argentine income tax law, the following are considered Argentine residents for tax purposes:

– Argentinean individuals, whether native or naturalised, except for those that no longer hold a “permanent resident” status either because:

i. they became permanent residents of another country under that company’s immigration rules; or

ii. due to a continued residence abroad for a continuous period of 12 months. Short trips to Argentina are deemed not to interrupt the 12-month continuous residence period if they do not cumulatively exceed 90 days in a 12-month period.
Foreign individuals that have a permanent resident visa or individuals who have remained in Argentina for 12 months while holding temporary visas. If absences from Argentina do not cumulatively exceed 90 days in the 12-month period, the permanent residence period is deemed to be uninterrupted. However, foreigners who must remain in Argentina by reason of their employment for a period not exceeding five years (as well as their relatives) will not be considered to be Argentinean residents.

Under certain circumstances, individuals re-entering Argentina with the intention of residing permanently in Argentina will be considered to be Argentinean residents. This will even apply if they had previously lost their residence status in Argentina or if they acquired status as a permanent resident elsewhere.

Taxation on exit

3. Does your jurisdiction impose any tax when a person leaves (for example, an exit tax)? Are there any other consequences of leaving (particularly with regard to individuals domiciled in your jurisdiction)?

There are no exit taxes in Argentina. There are no other consequences of leaving, except that it is necessary to file a special tax return for the irregular period closing the date in which the individual leaves the country. Once an individual is no longer an Argentine resident, he:

– No longer has to pay income tax on a worldwide source basis and is only taxed, through withholding, on his Argentine-sourced income.
– Is no longer subject to personal assets tax on his worldwide assets but solely on his Argentine-based assets.

Citizenship does not necessarily determine tax liability. For example, an individual that resigns Argentinean citizenship but remains a resident of Argentina is still subject to tax in Argentina on his worldwide assets and income.

Temporary residents

4. Does your jurisdiction have any particular tax rules affecting temporary residents?

Foreigners who must remain in Argentina by reason of their employment for a period not exceeding five years (as well as their relatives) will not be considered to be Argentinean residents (see Question 2, Residence). Certain treaties to avoid double taxation also address the issue of temporary residents (see Question 14).

Taxes on the gains and income of foreign nationals

5. How are gains on real estate or other assets owned by a foreign national taxed? What are the relevant tax rates?

There is no capital gains tax on individuals in Argentina. Therefore, in principle, tax is not charged on the sale of real estate or other assets when the seller is a foreign individual.

However, if the foreign individual is usually engaged in buying and selling assets, he will be deemed an individual “enterprise” (which is not expressly defined in the Income Tax Law) and income tax is withheld on the total amount received by the seller on the sale of real estate at an effective rate of 17.5%. Alternatively, the foreign seller can file a special tax return with the tax authority to evidence the actual profit derived from the sale, and apply income tax at the rate of 35% on the net proceeds (see Question 6).

When the sale of real estate is not subject to income tax (whether made by an Argentine individual or a foreign individual), the seller is subject to a special tax on the transfer of real estate at the rate of 1.5% of the amount of sale.

Certain stamp taxes apply on the instrument (that is, public deed (escritura)) evidencing the sale. The buyer and seller customarily pay one-half each of those stamp taxes, which can be up to 4% of the sale price.

6. How is income received by a foreign national taxed? Is there a withholding tax? What are the income tax rates?

Generally, any income or profit obtained by foreign beneficiaries (as non-Argentine resident individuals are referred to under income tax regulations), which is deemed to be Argentine-sourced, is subject to withholding tax. Withholding tax does not apply on dividends paid by Argentine companies or to profits obtained from permanent establishments in Argentina.

For resident individuals, the income tax charged on a sliding scale that starts at 9% for individuals making up to ARS10,000, and goes up to 35% for individuals making more than ARS120,000. For any other taxpayer (including foreign beneficiaries) the rate of the tax is 35%.

To determine the tax liability of a foreign beneficiary, the Income Tax Law establishes a series of non-rebuttable presumptions of net income on the gross amounts paid, that varies depending on the kind of payment made by the local resident (who must act as withholding agent), including:

– 60% of the amounts paid for technical, engineering or consulting services that are not obtainable in Argentina and fulfil the requirements established by the Transfer of Technology Law (as the tax rate is 35% this amounts to an effective tax rate of 21% on the income).
– 80% of other amounts paid under the Transfer of Technology Law (effective rate: 28%).
– 35% of the royalties paid for the exploitation of copyright in Argentina (effective rate: 12.25%).

-100% in the case of interest. However, 43% (effective rate: 14%) is deemed to be the net income of Argentine source where the:

i. borrower is a financial institution;
ii. lender is a bank or financial institution located in a non-tax haven jurisdiction;
iii. interest relates to certain bonds that are registered in countries with which Argentina has concluded investment protection agreements.
– 40% of the amounts paid for renting movables goods in Argentina (effective rate: 14%).
– 60% of the amounts paid for renting real estate in Argentina (effective rate: 21%).

Finally, if the concept of the income is not expressly set out in the Income Tax Law, 90% is deemed net income of Argentine source (effective rate: 31.5%).

Argentina has entered into treaties to avoid double taxation with various countries (see Question 14).

Inheritance tax and lifetime gifts

7. What is the basis of the inheritance tax or gift tax regime (or alternative regime if relevant)?

There are no federal inheritance or gift taxes in Argentina. Only one jurisdiction (the province of Buenos Aires) has imposed an inheritance and gift tax on the amount received by the beneficiary. This tax is applicable as from January 2010, and is charged on assets:

– Located in the province (even if the owner is not domiciled there).
– Transferred to individuals or legal entities domiciled in the province.

The tax rate will depend on the amount received by the beneficiary and his relationship with the deceased.

8. What are the inheritance tax or gift tax rates (or alternative rates if relevant)?

Tax rates

Tax is payable on the amount received, at progressive rates from 4% to 21.92%.

Tax free allowance

There is a tax-free allowance of ARS50,000 on the aggregate of the lifetime gifts of an individual and the gifts at the time of death. This amount is increased to ARS200,000 when the receiving party is the spouse, child or parent of the transferor.

In addition, in relation to inheritance tax, the debts of the deceased existing at the time of his death, and funeral expenses, are deductible from the amount transferred to the beneficiary.


The following are exempt from inheritance or gift tax:

– Any transfers in favour of the national government, the provinces or the City of Buenos Aires or any municipality or any body of these institutions.
– Gifts to religious, public health, social assistance, cultural or public welfare institutions, provided those institutions comply with certain conditions.
– Transfer of art or other objects that have a historic, scientific or cultural value, as long as the deceased has transferred the property on the basis that the art or object is to be used for instruction or public exhibition purposes.
– Transfer of collections of books, newspapers, magazines or other periodic publications.

– Transfer on death of the household registered under the Family Household Protection Act (Law N° 14,934) when:

i. the transfer is made in favour of the spouse, descendants, ascendants or collateral relatives up to the third degree of relationship with the deceased;
ii. they lived with the deceased;
iii. the registration of the property under the Family Household Protection Act is maintained for at least five years after the death.

– Transfer on death of urban real estate that is used as the household, when the:

i. transfer is made in favour of the spouse, ascendants or descendants (including adopted children);
ii. property does not exceed a certain valuation, established by the province on an annual basis.

– Transfer on death of an enterprise when the:

i. aggregate gross income of the fiscal year before the year of death exceeds a certain figure established annually;
ii. transfer is made in favour of the spouse, ascendants or descendants (including adopted children);
iii. acquiring parties maintain the enterprise in activity for five-year period following the deceased’s death.

Techniques to reduce liability

The simplest way to avoid inheritance or gift tax liability is to avoid being domiciled in the province of Buenos Aires, and to own assets through a company domiciled outside of the province of Buenos Aires.


Not applicable.

9. Does the inheritance tax or gift tax regime apply to foreign owners of real estate and other assets?

If the assets are located in the province of Buenos Aires, the tax applies even if the owner does not reside in Argentina.

10. Are there any other taxes on death or on lifetime gifts?

There are no other taxes on death or on lifetime gifts.

Taxes on buying real estate and other assets

11. Are there any other taxes that a foreign national must consider when buying real estate and other assets in your jurisdiction?

Purchase and gift taxes

The provinces impose stamp tax on the public deed required to transfer real property (see Question 5). The rate varies depending on the province, and ranges from 2% to 4% of the price paid for the property being transferred.

In addition, there is a special tax on the transfer of real estate that applies when the sale is not subject to income tax (that is, when the sale is made by an individual rather than an enterprise). The rate of the tax is 1.5% applicable of the price paid.

Wealth taxes

The Personal Assets Tax applies to foreign individuals holding property (whether real estate, movable property or intangible property) in Argentina. The rate of the tax is 1.25% and it is levied on an annual basis. When the owner of the real estate is a foreigner, there are certain methods of substitution that impose the obligation to pay the tax on the local resident that has the administration of the asset.


Each of the provinces and the city of Buenos Aires (which has an autonomous status, as if it were a province) levy a tax on real estate. The tax is imposed on the fiscal valuation of the real estate and the rate varies depending on the valuation of the property.

12. What tax-advantageous real estate holding structures are available in your jurisdiction for non-resident individuals?

The simplest holding structure is to have a special purpose foreign company to own the real estate in Argentina. This company must be set up in a country that does not tax capital gains (or at least does not tax the capital gains stemming from the sale of equity instruments). There are no local rules that deem the sale of this special purpose company a sale of real estate in Argentina.

Taxes on overseas real estate and other assets

13. How are residents in your jurisdiction with real estate or other assets overseas taxed?

Local residents are taxed on their worldwide income; however, capital gains are not subject to tax, except when the individual usually trades in selling and buying real estate or assets (see Question 5).

International tax treaties

14. Is your jurisdiction a party to many double tax treaties with other jurisdictions?

Argentina has entered into double taxation treaties, although some have been recently cancelled or repealed (such as the ones entered into with Spain and Austria). Current treaties include treaties with: Australia, Belgium, Bolivia, Brazil, Canada, Denmark, Finland, France, Germany, Italy, The Netherlands, Norway, United Kingdom, Sweden and Switzerland.

Wills and estate administration

Governing law and formalities

15. Is it essential for an owner of assets in your jurisdiction to make a will in your jurisdiction? Does the will have to be governed by the laws of your jurisdiction?

It is not essential for an owner of assets in Argentina to make a will in Argentina. Where no will is present, forced heirship and intestacy rules apply (see Questions 24 to 29). In Argentina, it is not usual to have wills or testaments, except for certain wealthy individuals. There is no requirement for the will to be governed by the laws of Argentina, although the provisions of a foreign law are only applied where they do not violate Argentine public policy (for example, forced heirship rules).

16. What are the formalities for making a will in your jurisdiction? Do they vary depending on the nationality, residence and/or domicile of the testator?

The formalities for making a will in Argentina are the same, regardless of the nationality, residence and/or domicile of the testator.

There are three different ways in which wills can be made (Argentine Civil Code):

1. Handwritten testament (testamento ológrafo). This must be completely handwritten, signed and dated by the testator.
2. Public deed testament (testamento por acto public). This must be notarised by a public notary, with three witnesses that insert their signature in the public deed.
3. Closed testament (testamento cerrado). This does not have to be completely handwritten by the testator, although it must bear the testator’s signature. In addition:it must be given in a closed
i. envelope to a public notary in the presence of five witnesses;
ii. the testator must say aloud that the closed envelope contains his will.

Redirecting entitlements

17. What rules apply if beneficiaries redirect their entitlements?

Beneficiaries are not entitled to redirect their entitlements.

Validity of foreign wills and foreign grants of probate

18. To what extent are wills made in another jurisdiction recognised as valid/enforced in your jurisdiction? Does your jurisdiction recognise a foreign grant of probate (or its equivalent) or are further formalities required?

Validity of foreign wills

Wills made in a foreign jurisdiction are recognised as valid, as long as they comply with the law of the place in which the wills were made. Substantive provisions, however, must comply with Argentine law (in particular, forced heirship) to be enforceable in Argentina. The law will also enforce wills made by foreigners outside of Argentina if the will complies with the formalities of the place of residence of the testator, his country of nationality, or those of Argentina.

Validity of foreign grants of probate

As with foreign wills, foreign grants of probate will be recognised in Argentina if they comply either with Argentinean laws or the relevant foreign law (see above, Validity of foreign wills). No further formalities are required.

Death of foreign nationals

19. Are there any relevant practical estate administration issues if foreign nationals die in your jurisdiction?

The issues depend on whether the foreign national’s last domicile was in Argentina or not and whether he had any assets in Argentina. If he was domiciled in Argentina, Argentine rules apply and a court-based procedure (sucesión) must be followed. This also applies if he has assets in Argentina.

Administering the estate

20. Who is responsible for administering the estate and in whom does it initially vest?

Responsibility for administering

The court appoints an administrator of the estate (usually, the surviving spouse or an heir or a group of heirs) that has limited authority to carry on acts that are:

  • Necessary to preserve the estate.
  • Ordinary, considering the nature of the goods and assets that are being administered.

The administrator, in principle, has no authority to sell, mortgage, pledge or otherwise dispose of or encumber the goods and assets.


A court procedure must be followed to finally declare the legitimate heirs of the deceased. When the court makes that declaration, the estate is deemed to have vested directly and immediately from the deceased to each of its heirs.

21. What is the procedure on death in your jurisdiction for tax and other purposes in relation to:
  • Establishing title and gathering in assets (including any particular considerations for non-resident executors)?
  • Paying taxes?
  • Distributing?

Establishing title and gathering in assets

Any and all heirs are entitled to establish title and gather in assets. However, everything must be done through the court procedure and with the control of the judge. There are no particular considerations for non-resident executors in this aspect, since court participation is mandatory. If a non-resident executor has been appointed, the court will probably require from him a local address for service of process.

Procedure for paying taxes

Until the court procedure is ended, the administrator is responsible for filing tax returns and paying taxes on behalf of the estate. Failure to do so could make the administrator jointly and severally liable for any unpaid taxes.

Distributing the estate

The court distributes the estate in the court procedure (see above, Establishing title and gathering in assets). The court decides how the distribution is to be made or grants authority to distribute the estate to the testator or the executor.

22. Are there any time limits/restrictions/valuation issues that are particularly relevant to an estate with an element in another jurisdiction?

In principle, there are no time limits, restrictions or valuation issues that are particularly relevant to an estate with an element in another jurisdiction.

When the estate involves elements in different jurisdictions, certain “offset” provisions of the Argentine Civil Code might be relevant, depending on the facts. Heirs of the deceased that reside in Argentina would be entitled to a larger portion of the assets that are located in Argentina if, due to the application of foreign law, they were deprived of assets located abroad (or a portion of those assets) that should have, under Argentine Law, been allocated to them under the forced heirship regime (see Question 24). Therefore, if a foreign resident dies leaving assets in both Argentina and in his home country, and through a will deprives an heir who resides in Argentina of his statutory reserved portion under Argentine Law, that heir is entitled to the additional portion of the Argentine assets, equal to the value ascribed to the deprived portion (see Question 24).

23. Is it possible for a beneficiary to challenge a will/the executors/the administrators?

A beneficiary is entitled to challenge the:

i. Will, when it affects the portion that Argentine Law mandatorily reserves for forced heirs.
ii. Executors, when their acts affect the portion that Argentine Law mandatorily reserves for forced heirs or when they depart from the instructions contained in the will.
iii. Administrators, when they perform their duties in excess of their authority or without fulfilling the “good businessman” standard.

Succession regimes

24. What is the succession regime in your jurisdiction (for example, is there a forced heirship regime)?

Argentina has a forced heirship regime that is deemed part of public policy. Any provisions of the parties (either by the deceased or the heirs) against it are invalid and of no force and effect. There are precedents in Argentine courts in which forced heirship claims have been admitted against trust assets.

Forced heirs (ascendants, descendants, spouses and others) cannot be deprived of a certain portion of the deceased’s estate (except where one of the few statutory causes for disinheritance are present and invoked by the decedent in the will). These portions are:

  • i. Children and their issue: four-fifths of the total assets of the deceased.
  • ii. Ascendants (where there are no children): two-thirds of the assets of the deceased.
  • iii. Spouse (where there are no ascendants or descendants): one-half of the assets of the deceased.

In relation to the intestacy rules, see Question 28.

Forced heirship regimes

25. What are the main characteristics of the forced heirship regime, if any, in your jurisdiction?

Avoiding the regime

There are no ways to avoid the regime and judges are reluctant to admit structures that defeat the forced heirship rules.

Assets received by beneficiaries in other jurisdictions

Assets received by beneficiaries in other jurisdictions are taken into account (see Question 22).

Mandatory or variable

Any agreement entered into between future beneficiaries during the deceased’s life is null and void. Argentine law forbids any agreement regarding the future estate.

Real estate or other assets owned by foreign nationals

26. Are real estate or other assets owned by a foreign national subject to your succession laws or the laws of the foreign national’s original country?

Title to real property located in Argentina may only be passed in accordance with Argentine law. It is unclear, however, if this applies solely to transfers between living persons or if it should also apply in the case of transfer by death. However, most Argentinean court decisions have held that it applies to both.


27. Do your courts apply the doctrine of renvoi in relation to succession to immovable property?

The Argentine courts may, where the case concerns immovable property located in Argentina, accept a reference back to their jurisdiction; however, this is a complex area of law.


28. What different succession rules, if any, apply to the intestate?

The intestacy succession rules depend on the surviving relatives.

i. There are surviving descendants but there is no surviving spouse. The children are entitled to the entire estate. If any of the children have predeceased but have surviving issue, the share that would have been allocated to that child goes to his or her issue per stirpes (in equal proportions).
ii. There is a surviving spouse and surviving descendants. One-half of the deceased’s “marital” property is distributed to the surviving spouse and the other half is transferred entirely to the children (in relation to marital property, see Question 37). The deceased’s “own” property is distributed in equal portions among all of the children and the surviving spouse.
iii. There are surviving ascendants but no surviving descendants or a surviving spouse. The whole estate passes to the surviving ascendants. In this case, the closer generations exclude the inheritance rights of the further generations (for example, the grandfather is excluded if the father survived).
iv. There is a surviving spouse and surviving ascendants but no descendants. The surviving spouse is entitled to one-half of the marital and one-half of the own property of the deceased. The other half goes to the ascendants.
v. There is a surviving spouse but no surviving ascendants or descendants. The surviving spouse is entitled to the whole estate.
 vi. There are no surviving ascendants or descendants, and there is not a surviving spouse. The collaterals (until the fourth degree of relationship) are entitled to the estate.

29. Is it possible for beneficiaries to challenge the adequacy of their provision under the intestacy rules?

It is not possible for beneficiaries to challenge the adequacy of their provision under the intestacy rules.


30. Are trusts (or an alternative structure) recognised in your jurisdiction?

Type of trust and taxation

Law No. 24,441 (Trust Act), enacted in December 1994, established the regulation for trusts in Argentina. Trusts under the Trust Act depend on the concept of revocable property (dominio revocable) and have certain differences with the common law concept of trust.

Generally, the Trust Act considers two types of trusts, a financial trust and an ordinary trust. The difference between the two depends on the person acting as trustee. If it is a financial trust, the trustee must be a financial entity or a corporation specifically authorised by the Argentine Securities Commission to act as financial trustee.

Residence of trusts

In general terms, if the trust is set up under Argentine law, it is deemed a resident of Argentina for tax purposes.


31. Does your jurisdiction recognise trusts that are governed by another jurisdiction’s laws and are created for foreign persons?

Argentina recognises trusts that are governed by another jurisdiction’s laws and are created for foreign persons.

32. What are the tax consequences of trustees (for example, of an English trust) becoming resident in/leaving your jurisdiction?

If any foreign entity (including a trust) becomes resident in Argentina, it is subject to tax in the same manner as an Argentine corporation.

33. If your jurisdiction has its own trust law:

– Does the law provide specifically for the creation of non-charitable purpose trusts?
– Does the law restrict the perpetuity period within which gifts in trusts must vest, or the period during which income may be accumulated?
– Can the trust document restrict the beneficiaries’ rights to information about the trust?

Purpose trusts

The Trust Act does not include specific provisions regarding non-charitable purpose trusts. However, Argentine law distinguishes between an act that is gratuitous from an act which is made for a consideration that has certain legal effects such as, for example, a fraud of creditors, which may be relevant in the context of transfers to trusts.

Perpetuities and accumulations

A trust has a maximum term of 30 years from the date on which it was created. The restriction does not apply where the beneficiary is not capable, in which case the trust can extend until the incapacity ceases or the person with the incapacity dies. There are no regulations regarding the period within which income must be accumulated.

Beneficiaries’ rights to information

The Trust Act does not include any information rights in favour of the beneficiary that cannot be contractually restricted. However, the statute does prohibit any provision that would release the trustee from liability incurred due to the non-performance of his duties.


34. Does the law in your jurisdiction recognise claims against trust assets by the spouse/civil partner of a settlor or beneficiary on the dissolution of the marriage/partnership?

In relation to marital property, the spouse would not be entitled to claim against trust assets in the case of dissolution of the union (that is, divorce or death of one of the spouses). However, the spouse could, depending on the circumstances, be entitled to make a claim directly against the other spouse at the time of dissolution. When the trust was settled with own property, and the settlor dies, the forced heirship rights apply (see Question 24).

35. To what extent does the law of your jurisdiction allow trusts to be used to shelter assets from the creditors of a settlor or beneficiary?

Where a trust is used to shelter assets from the creditors of a settlor or beneficiary, fraudulent conveyance rules can be used under the Trust Act to invalidate the transaction.

Ownership and familial relationships


36. What are the laws regarding co-ownership and how do they impact on taxes, succession and estate administration?

The Argentine Civil Code establishes the co-ownership rules (condominio). Those rules do not have any relevant impact on taxes, succession and estate administration, except in connection with the co-ownership rules applicable to the “marital” property, in which one of the spouses is responsible for filing the tax returns on that property. Generally, any co-owner has the right to require the dissolution of the co-ownership (even if it requires the sale of the good). There are few cases in which the right to dissolve the co-ownership does not apply.

Familial relationships

37. What matrimonial regimes in trust or succession law exist in your jurisdiction? Are the rights of cohabitees/civil partners in real estate or other assets protected by law?

Generally, the matrimonial regime in Argentina (which applies to all couples that married in Argentina, as long as their initial domicile was in Argentina) provides that all property (whether tangible or intangible) that was acquired by any of the spouses during the marriage is “marital property” (bienes gananciales). However, property that was received as a gift remains the own property of the spouse that received it. The marital property relates to the marriage “partnership” and, on dissolution, is distributed between the partners (spouses) by halves.

There are no relevant protections for cohabitees or civil partners (except for the case of same-sex civil unions, which were formalised by statute in 2010) (see Question 38).

38. Is there a form of recognised relationship for same-sex couples and how are they treated for tax and succession purposes?

Same-sex unions were legalised by statute in 2010. As this is a recent development, no case law exists. However, regulations passed under the statute establish that the tax and succession treatment must be the same granted to a heterosexual marriage.

39. How are the following terms defined in law:
  • Married?
  • Divorced?
  • Adopted?
  • Legitimate?
  • Civil partnership?


Marriage is defined as a person that is united to another of the opposite sex, as husband or wife, in a consensual and contractual relationship recognised by law, and in which the consent is usually expressed in the presence of a public officer. There are certain “marital duties” that the spouses must comply with (such as fidelity, maintenance payments, and residing in the same house).


A divorce is the final termination of a marital union. It is declared by a judge in a formal procedure, and it cancels the marital duties and dissolves the marital “partnership”.


An adopted child is one that was taken into a family that is different to the one of its parents after a legal process was followed under the Argentine Adoption Act. The adopted child’s legal rights and obligations towards his natural parents are terminated and similar rights arise with the adoptive parents. Adopted children have the same legal status as children which are not adopted.


Formerly, a distinction was made between “legitimate” children (born from a married couple) and “natural” children (born with no marital union). Although the difference can still be found in certain sections of the Civil Code, legitimate, natural and adopted children have the same rights and status.

Civil partnership

Civil partnership is a legal union or contract, similar to a marriage, between two people of the same sex.


40. What rules apply during the period when an heir is a minor? Can a minor own assets and who can deal with those assets on the minor’s behalf?

Minors are represented, in general terms, by the surviving parent. If no parent survives, the court designates a representative (curador) to handle all the assets on the minor’s behalf. Disposition of assets usually requires court approval.

Capacity and power of attorney

41. What procedures apply when a person loses capacity? Does your jurisdiction recognise powers of attorney (or their equivalent) made under the law of other jurisdictions?

A court procedure is required to declare that a person has lost his capacity. The court appoints a curator to represent the incompetent person.

Generally, Argentina recognises powers of attorney made under the law of other jurisdictions. However, once a person is declared to have lost his capacity, under Argentine law any and all powers of attorney are terminated.

Proposals for reform

42. Are there any proposals to reform private client law in your jurisdiction?

Currently, a project to amend the Argentine Civil Code is being studied at the Congress. Although the project is complete, it is difficult to tell when (and if) it will be passed. However, although it does have effect on other areas of the civil law, it does not seem to affect significantly private client law.

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