Taxes in Argentina for Expats Face Milei-Era ARCA Overhaul in 2026

Guides · Argentina

Argentina has rewritten the administrative face of its tax system for foreigners since Javier Milei took office. The old AFIP is gone, the PAIS tax is dead, and simplified filing tools have arrived under a new agency called ARCA.

Tax Residence Hinges on Migration Status and a 12-Month Test

Argentine tax law does not use the 183-day presence test that many published expat surveys repeat as the trigger for full income tax residency.

The operative tests are obtaining permanent residence or remaining in Argentina under temporary authorization for 12 continuous months.

Several sources indicate residency generally starts from the first day of the month following the trigger event.

A separate practical rule can matter for personal deductions if an individual spends more than six months in Argentina during the fiscal year.

That six-month reference is distinct from the full residency trigger and should not be confused with the 12-month rule.

CUIT and CUIL Are Separate Identification Systems

Foreigners and taxpayers interact with Argentina’s tax apparatus through a tax identifier used on the ARCA portal.

For a standing reference, this point should be verified directly against official ARCA guidance before stating it as a firm rule.

In practice, foreigners dealing with tax filings and property matters typically encounter a CUIT-style identifier.

The safest description is that Argentina uses distinct tax and labour identifiers, with the tax identifier required for ARCA procedures.

Income Tax Is Progressive and Reaches 35 Percent

Argentina’s Impuesto a las Ganancias for individuals is a progressive tax with rates that move up to 35 percent.

One professional source states that in 2026 net taxable income is taxed at graduated rates ranging from 5 percent to 35 percent.

The peso thresholds move with inflation or periodic updates, so exact bracket boundaries should not be stated without the current official schedule.

Employment income is generally subject to wage withholding and annual reconciliation in the Argentine system.

Self-employment and professional income falls within the same personal income tax framework for residents.

Residents Are Taxed on Worldwide Income

Once a person becomes an Argentine tax resident, Argentina taxes that person on worldwide income.

Before residency is triggered, taxation is generally limited to Argentine-source income.

This creates a sharp compliance change for foreigners who cross the 12-month or permanent residence threshold.

Foreign rental income, dividends, interest and capital gains can all enter the Argentine tax base after residency begins.

The worldwide principle also applies to the wealth tax, which extends to assets located outside Argentina.

Bienes Personales Adds a Layer on Global Assets

Argentina retains a bienes personales wealth tax framework in 2026 that applies to individuals’ assets.

Foreign assets are included in the tax base for residents, and the treatment of foreign assets has been a recurring feature of the regime.

Thresholds and rate mechanics change with inflation or statutory updates, so exact exemption amounts are not stated here.

The safe statement is that resident taxpayers may owe bienes personales on worldwide assets, including foreign-situated property.

Liability depends on the current annual legal thresholds and rates in force for the filing year.

Milei Replaced AFIP with ARCA and Ended PAIS

The most visible administrative change under Milei is that AFIP was replaced by ARCA, the Agencia de Recaudación y Control Aduanero, at the end of 2024.

The PAIS tax was definitively ended in December 2024.

The broader direction under Milei-era fiscal policy has been one of tax simplification and reduced burden in selected areas.

That simplification includes a simplified income tax return regime for individuals and estates introduced by ARCA resolutions in 2026.

Some payroll and withholding thresholds for income tax continued to be adjusted for inflation during 2026.

PAIS Tax on Foreign Currency Purchases Is Gone

The PAIS tax existed on foreign currency purchases and related transactions, adding a surcharge when buying dollars abroad or paying for foreign services.

It was definitively repealed at the end of December 2024.

For September 2026, the correct current-status statement is that the PAIS tax is no longer in force.

Foreigners moving money in and out of Argentina no longer pay that specific consumption-layer surcharge.

Other exchange controls or withholding rules may still apply separately, so the absence of PAIS does not mean a fully liberalised currency regime.

IVA and Monotributo Provide the Everyday Tax Frame

Argentina’s VAT regime, known as IVA, is commonly described in guides as having a standard rate and reduced categories.

Monotributo remains in use as a simplified regime for small taxpayers, including individuals and some self-employed workers.

ARCA continues to administer small-taxpayer filing pathways and simplified compliance.

Because thresholds and category limits are updated regularly, hard-coded limits should be taken only from the current official ARCA schedule.

Double Taxation Relief Follows Treaties and Unilateral Rules

For a safe reference, foreign tax residents in Argentina may rely on treaties or unilateral relief mechanisms where available.

Treaty coverage and credit mechanics need direct verification from a current treaty list or legal text before naming specific countries.

The general principle is that residents can sometimes credit foreign taxes paid against Argentine tax on the same income.

Non-residents are generally taxed only on Argentine-source income, which reduces double taxation exposure before residency begins.

Practical Compliance Starts with ARCA Registration

Foreigners who become residents generally need to interact with the ARCA system using a tax ID and annual filing process.

Residents are expected to file an annual income tax return.

A 2025 and 2026 guide states that taxpayers can request a tax residency certificate through the AFIP or ARCA account, but that should be verified against official ARCA instructions.

The safest advice is to obtain the tax identifier, monitor ARCA announcements, and seek local professional help before the first annual return is due.

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