US citizens in Argentina face a complex tax situation due to the absence of both a comprehensive income tax treaty and a social security totalization agreement. Double taxation is primarily managed through US domestic provisions like the Foreign Earned Income Exclusion (FEIE) and the Foreign Tax Credit (FTC). Self-employed individuals must be particularly careful, as they are liable for US self-employment taxes in addition to any Argentine social security contributions.
US filing basics every American abroad must know
US citizens and green-card holders are taxed on worldwide income wherever they live, and usually must file Form 1040 once gross income exceeds the IRS threshold ($15,750 for single filers, $31,500 for married filing jointly, and $23,625 for head of household for 2025), even when no tax is ultimately due. The tools that reduce double taxation are the Foreign Earned Income Exclusion (FEIE, up to $130,000 for 2025 under IRC §911) and the Foreign Tax Credit. Neither is automatic. The FEIE requires a tax home in a foreign country plus either the bona fide residence test or 330 full days abroad in a 12-month period, and it reaches earned income only. The Foreign Tax Credit is figured separately for each income category under IRC §904 and is capped at the US tax on the foreign income in that category, so it reduces double taxation without guaranteeing that none remains.
Two reporting rules catch most filers in Argentina: the FBAR (FinCEN Form 114), required when foreign financial accounts exceed $10,000 in aggregate at any point in the year, and Form 8938 (FATCA) for specified foreign assets above the applicable threshold. Both can carry penalties even when no tax is owed. If you are behind, the Streamlined Filing Compliance Procedures are the usual path back for non-willful taxpayers. They run on two tracks: the foreign track carries no offshore penalty but requires meeting the program's non-residency test, and the domestic track carries a 5% offshore penalty but works through amended returns, so it does not fit someone who never filed at all. Tax and interest on the catch-up years are owed whichever route applies.
US tax treaty with Argentina
There is no comprehensive income tax treaty in force between the United States and Argentina. This means that standard US domestic tax rules and statutory withholding rates apply, and double taxation relief relies entirely on the Foreign Earned Income Exclusion and the Foreign Tax Credit. The two countries do have an agreement for the exchange of tax information, but this does not prevent double taxation.
Argentine Pensions (SIPA) and US Tax
Argentina's primary retirement system is the state-run Sistema Integrado Previsional Argentino (SIPA). For US tax purposes, because there is no tax treaty, the SIPA is treated as a foreign social security system. This has several significant consequences:
- Reporting: Payments and the right to receive payments from a foreign social security or similar government program are not specified foreign financial assets, so SIPA is not reported on Form 8938. SIPA is a state pay-as-you-go system rather than an account you hold, so it is also not a foreign financial account for FBAR purposes.
- Foreign Trust Treatment: A state-run social security system is not a foreign grantor trust and does not require Forms 3520 or 3520-A.
- Taxation of Contributions: Unlike a US 401(k), your contributions to SIPA are not deductible on your US tax return. Furthermore, employer contributions to a foreign social security system are treated as employer payroll taxes, not taxable income to the employee.
- Taxation of Growth: SIPA is a state social security system without individual accounts, so there is no internal growth to tax.
- PFIC Risk: Individuals do not hold PFICs through a state social security system and do not file Form 8621 for it.
Investments, property, and capital gains in Argentina
Investing in Argentina requires careful navigation of US anti-deferral tax regimes. Investments in Argentine-domiciled mutual funds, ETFs, or other pooled investment products are almost certain to be classified as Passive Foreign Investment Companies (PFICs) by the IRS. Owning a PFIC necessitates filing Form 8621 for each investment. Without making a timely election (like a QEF or Mark-to-Market election), any gains or distributions are subject to a punitive default tax regime with high rates and an interest charge.
For business owners, forming a local company like a Sociedad Anónima (S.A.) or Sociedad de Responsabilidad Limitada (S.R.L.) has major US tax implications. The entity is a Controlled Foreign Corporation (CFC) only if US shareholders together own more than 50% of it by vote or by value, counting only those US shareholders who each own 10% or more. Holding 10% or more does not by itself create an annual Form 5471 obligation: the annual filing runs with US shareholder status in a CFC, while acquiring a stake that reaches 10%, acquiring another 10% on top, disposing of enough to drop below 10%, or becoming a US person while already holding 10%, carries its own filing category for the year it happens. As a shareholder of a CFC, you may be required to pay US tax currently on the company's earnings under the Global Intangible Low-Taxed Income (GILTI) or Subpart F rules, even if the company does not distribute any profits to you.
Self-employment and companies in Argentina
Crucially, there is no social security totalization agreement between the United States and Argentina. This has a significant and often costly impact on self-employed US citizens in Argentina.
A self-employed US person is fully liable for US self-employment taxes (Social Security and Medicare) on their worldwide self-employment income. The tax is 15.3% on 92.35% of net earnings, with the 12.4% Social Security portion applying only up to the annual wage base ($176,100 for 2025) and the 2.9% Medicare portion uncapped, plus a further 0.9% Additional Medicare Tax on combined Medicare-taxed wages and self-employment income above $200,000 for a single, head-of-household or qualifying-surviving-spouse filer, $250,000 for a joint return, and $125,000 for married filing separately. It is due once net earnings from self-employment reach $400 or more. You cannot obtain a Certificate of Coverage to claim an exemption from US self-employment tax. This means you may be legally required to pay social security taxes to both the US (via the IRS) and Argentina (via its own system for independent workers) on the same income. The Foreign Earned Income Exclusion cannot be used to reduce your income for self-employment tax purposes.
Worked examples
Salaried employee at an Argentine tech company (2025)
Maria, a US citizen, works for a company in Buenos Aires and earns a salary equivalent to USD 95,000. If her tax home is in Argentina and she meets either the 330-day physical presence test or the bona fide residence test, she can use the Foreign Earned Income Exclusion (FEIE) to exclude her entire salary from US income tax, since it is below the 2025 exclusion limit of $130,000. This would likely reduce her US income tax to zero. However, employer contributions to a foreign social security system are not taxable compensation to the employee. She must also report her Argentine bank accounts on the FBAR if the aggregate value of her foreign accounts exceeds $10,000. SIPA is a state pay-as-you-go system rather than an account she holds, so it is not part of that FBAR total.
Self-employed freelance graphic designer (2025)
John is a US citizen living in Mendoza and works as a freelance designer for clients in the US and Europe. His net profit from self-employment is $120,000. Because there is no totalization agreement, John owes US self-employment tax. His self-employment tax liability is calculated on 92.35% of his net profit: $120,000 * 0.9235 = $110,820. The tax is 15.3% of this amount, so he owes $110,820 * 0.153 = $16,955.46 in US self-employment tax. He can still use the FEIE to exclude the $120,000 from US income tax, but the self-employment tax is due regardless. He will also be required to pay into Argentina's social security system for self-employed individuals (monotributistas or autónomos), resulting in double social security taxation.
Retiree with US and Argentine investments (2025)
David, a retired US citizen, lives in Bariloche. He receives US Social Security benefits and has an investment portfolio in Argentina that includes several local mutual funds. His US Social Security is taxable by the US according to US rules. His Argentine mutual funds are considered PFICs. For each fund, he must file Form 8621. When he sells shares of a fund at a gain, the gain is treated as ordinary income and taxed at the highest US marginal rates, plus an interest charge, unless he made a prior election. He must also report all his Argentine financial accounts, including the brokerage and bank accounts holding his investments, on the FBAR and potentially Form 8938.
Common mistakes for Americans in Argentina
- Assuming a tax treaty exists to reduce US tax or provide lower withholding rates.
- Believing there is a US-Argentina totalization agreement and that they are exempt from US self-employment tax.
- Reporting Argentine social security (SIPA) on the FBAR and Form 8938, even though it is exempt.
- Assuming a state-run social security system has individual accounts with internal growth to tax or is a foreign grantor trust.
- Investing in Argentine mutual funds or ETFs without considering the punitive PFIC rules and Form 8621 filing requirements.
- Forgetting to file Form 5471 for an owned Argentine company like an S.A. or S.R.L.
- Incorrectly using the Foreign Earned Income Exclusion to try to reduce or eliminate US self-employment tax.
- Thinking that because Argentina has no treaty, there are no US reporting obligations for foreign accounts and assets.
Argentina tax FAQ
Is there a US-Argentina tax treaty?
No, there is no comprehensive income tax treaty between the US and Argentina. This means there are no treaty-reduced withholding rates on dividends, interest, or royalties. To avoid double taxation on income, US citizens must rely on the Foreign Tax Credit or the Foreign Earned Income Exclusion.
Can I avoid paying US self-employment tax while working in Argentina?
No. Because there is no totalization agreement between the US and Argentina, a self-employed US citizen in Argentina remains fully liable for US self-employment tax (Social Security and Medicare). You cannot get a Certificate of Coverage to claim an exemption, and you may be required to contribute to both countries' social security systems on the same income.
Do I have to report my Argentine pension (SIPA) to the IRS?
No. The right to receive benefits from a foreign social security or similar government program is not a specified foreign financial asset, so SIPA is not reported on Form 8938, and a state pay-as-you-go pension is not a foreign financial account for FBAR purposes or a foreign trust for Form 3520 purposes.
Are my contributions to my Argentine pension plan deductible on my US tax return?
No. Since it is not a qualified plan under US law, your own contributions are not deductible. Furthermore, employer contributions to a foreign social security system are treated as employer payroll taxes, not taxable income to the employee.
I own shares in an Argentine mutual fund. What do I need to know?
It is almost certainly a Passive Foreign Investment Company (PFIC). This requires you to file Form 8621 for each fund annually. The default tax treatment for PFICs is extremely unfavorable, so you should consult a tax professional about making a timely Mark-to-Market or QEF election if possible.
I started a small business in Argentina as an S.R.L. Do I need to tell the IRS?
Yes. Acquiring a 10% or larger interest in a foreign corporation can create a Form 5471 filing requirement for the year of the acquisition, and being a US shareholder of a CFC creates one every year. Your S.R.L. is a Controlled Foreign Corporation (CFC) only if US shareholders together own more than 50% of it by vote or by value, counting only those US shareholders who each own 10% or more. Failure to file Form 5471 carries a penalty of $10,000 per form per year.
How do I avoid double taxation on my salary from an Argentine employer?
You can use either the Foreign Earned Income Exclusion (FEIE) on Form 2555 to exclude your wages from US income tax up to a certain limit, or the Foreign Tax Credit (FTC) on Form 1116 to credit the taxes you pay to Argentina against your US tax liability. The credit is figured separately for each income category and cannot exceed the US tax on your foreign-source income in that category, so it does not always remove the US tax entirely. Which one is better depends on your income level, family situation, and long-term goals.
What is the US-Argentina Tax Information Exchange Agreement (TIEA)?
The TIEA, signed on December 23, 2016 and in force since November 13, 2017, allows the IRS and Argentina's tax authority (ARCA, which replaced AFIP in 2024) to request and exchange information to enforce their respective tax laws. It is not a tax treaty and provides no benefits to taxpayers, such as reduced tax rates or credits. It is designed to combat tax evasion.
Sources and last reviewed
- IRS, U.S. Income Tax Treaties A-Z (verified 2026-06-07)
- U.S. SSA, List of Totalization Agreements (verified 2026-06-07)
- Argentina - National Social Security Administration (ANSES) (verified 2026-06-07)
Reviewed by Ilya Fayerman, Esq. (NY Bar) on
Common services needed by expats in Argentina
Most Americans abroad in Argentina need help with at least one of the following core compliance areas, which frequently interact:
- US expat tax returns, Form 1040 with FEIE, FTC, treaty positions, and any required state returns.
- FBAR reporting, FinCEN Form 114 for foreign financial accounts exceeding $10,000 aggregate at any time during the year.
- Form 8938 (FATCA), IRS disclosure of specified foreign financial assets when thresholds are met.
- Streamlined catch-up filing, For eligible non-willful taxpayers with prior unfiled years.
Related country guides
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- US expat tax in Costa Rica
- US expat tax in Turks and Caicos
- US expat tax in Panama