Moving to Argentina
Argentina has so much to offer expats, especially digital nomads, remote workers and investors. Located in South America, Argentina has a population of approximately 45 million people and shares its longest border with Chile and the Atlantic Ocean. It also calls Bolivia, Brazil and Uruguay its neighbors. Since the past presidential administration, Argentine authorities have attempted to draw foreign direct investment (FDI) into the economy. This includes establishing Free Trade Zones, Special Customs Areas and exemptions from tax for certain exports.
Cost of living and standard of living are both reasonably attractive and make Argentina an tempting relocation destination. Add to this a digital nomad visa on the horizon (timeline TBD), and remote workers will be even more incentivized to call Argentina home.
Knowledge Economy Framework
Argentina has been taking steps to increase its attractiveness. In 2019, it enacted the Knowledge Economy Law, previously known as the Law of Software. The legislation intends to promote the creation, design, development, production, and implementation of software and digital services. The law aims to incentivize investment in the sector, doubling the number of jobs and generating US$15 billion from exports by 2030.This law represents the best possible operational framework for software companies in Argentina. Eligible companies receive the following benefits: a 15 percent income tax rate; ability to credit foreign income taxes against Argentine income taxes due on Argentine-sourced income; VAT exemption for withholdings and reverse withholdings; tax stability (federal tax burden for the taxpayer cannot increase once the taxpayer applies for the regime); reduced Social Security contributions; and a tax credit bond to offset federal taxes.
According to Statista English Proficiency Index 2020, Argentina scored 566 out of a maximum of 800 points. That was the highest score among all Latin American countries included in the survey.
Argentina is expanding benefits to its burgeoning tech sector in an effort to boost much-needed foreign investment and exports, supporting a resilient industry that’s grown amid a severe economic crisis during the pandemic.
Both chambers of Congress recently approved a technology bill that provides tax incentives for the next decade to software firms that train and hire workers. It’s one of very few bills with long-term economic scope to make it through Argentina’s deeply divided Congress this year.
The tech sector has bucked Argentina’s job loss trend, boosting employment by nearly 30 percent in five years to 115,000 workers, according to government data. Tech services now comprise about 10 percent of all Argentine exports, a welcome trend for a country where economic fortunes still largely depend on commodity prices. The nation is also home to many of Latin America’s so-called unicorns – tech businesses valued over US$1 billion – including e-commerce giant MercadoLibre Inc. and Globant SA, Argentina’s largest software developer.
Argentina has upcoming and developing tech parks such as Catalinas Norte, in Buenos Aires, with 19 buildings for commercial use by technology companies. The Technology Park of the Litoral Centro SAPEM, Santa Fe is another shining example of Argentina’s blooming IT scene, with its massive R&D focus, technological transfers, and the Technology-based Business Incubator, which engages business with technological innovation, business ideas, and knowledge exchanges.
Remote Work and Digital Nomad Visa for Argentina
Argentina provides an opportunity for remote workers and digital nomads through this new visa category. The initial-period is granted for six-months, and can potentially be extended for another six-months.
💡 The introduction of the remote work and digital nomad visa for Argentina is still untested waters (as of early 2023)
Quality of Life
In addition to a ripe tech sector and burgeoning laws aiming to keep pace with such advancements, Argentina offers a decent quality of life and standard of living. In terms of exploring the great outdoors, one is spoiled for choice with what the Argentine natural landscape has to offer. From dunes to the north to “the end of the world” (i.e. Patagonia to the South) there’s an activity for everyone. If, however, outdoor activity is not your jam, enjoy some respite at a local cafe, watching the world go by while sipping on one of the many (many) famous Malbecs Argentina is known for producing, or enjoying a warm mate. Do keep in mind, though, if you’re interested in working at an internet cafe (or from home), servers are often crowded. This means wifi speed is suboptimal (indeed Argentina has one of the slowest internet speeds in all of Latin America because of how booming and concentrated the tech sector has become there). This is a sticking point for some remote workers and worth consideration until infrastructure improvements take hold.
In terms of living standards, the cost of monthly living is around $1000 USD for a single person and $1500 for a family of four. Rents are fairly reasonable and the cost of food is as well. Keep in mind the GDP per capita in Argentina is just touching $9,000 USD a year so your income could potentially stretch far.
Sip on Argentina’s famous mate (mah-tay) and enjoy the scenery while we dig up more on this gorgeous South American relocation destination.
While you wait, dig deeper into our on-the-pulse information about Argentina and connect with our leading immigration Advisors in Argentina today.