Podcast — 26 min
Argentina — 10 min
Remote work and the rise of distributed teams are giving businesses a competitive edge by helping them build diverse teams and achieve cost savings. If you're looking for highly skilled talent in a Spanish-speaking country, Argentina might be a solid option.
But, before you start hiring remote workers in Argentina, you'll have to have a good understanding of local labor laws, tax legislation, and compliance requirements. You’ll also have to make sure you classify your employees correctly, or risk facing heavy fines and penalties.
There’s no need to worry, though. International hiring doesn’t have to be a hassle, as long as you follow our expert advice on managing remote teams. In this article, we cover all the basic information you have to know about hiring and paying remote workers in Argentina.
So, grab yourself a hot (or cool, depending on when you're reading this) drink, and let’s begin.
The most popular options to pay workers in Argentina are listed below.
To hire and pay a remote worker successfully, you could establish a legal business entity in Argentina. This involves opening a bank account that accepts foreign payments and paying your remote workers in the local currency. You also have to register your company, hire a legal team with knowledge of Argentina law, and undergo strenuous banking procedures. Opening a legal entity could be a complex, expensive, and time-consuming process.
Alternatively, you can avoid the inconveniences of setting up a local entity, by working with a global employment partner like Remote, who can handle the hiring and payment process for you. A partner like Remote also provides other helpful services, which include tax filing, contractor management, global payroll, and legal advice.
The third option is to hire and pay your workers as contractors. With this option, you can pay contractors for the hours worked based on your agreement terms with them. However, you’ll have to be careful not to run into risks of misclassification. Worker misclassification can have serious consequences for your business and can lead to damaging fines, penalties, and legal issues. Working with a contractor management service like Remote can help you handle contractor hiring, onboarding, and payments while minimizing misclassification risks.
You can pay remote employees in Argentina in Argentine pesos ($, ARS), but you may also send them money in any other currency. However, if you’re paying workers in Argentina in another currency, be aware that there may be changes in the currency exchange rates depending on the economic circumstances.
There are four tax brackets in Argentina. Whether you're hiring workers via your own local entity or working with a global employment partner, you must be aware of these tax rates. Moreover, capital gains, income, and other taxes are not included in these numbers because they are calculated based on your taxable income.
Argentinian residents have to pay taxes on any worldwide income they receive. They may, however, get certain tax credits on the income taxes that they produce. Nonresidential citizens only pay income tax from their Argentine income.
Income tax is progressive in Argentina and ranges between 5% and 35%. However, special tax rates come into play due to interest, real property, and gains from securities. The higher the income, the higher the tax rate. The personal income rates for 2023 in Argentina are:
5% — ARS 0 to 173,834.61
9% — ARS 173,834.61 to ARS 347,669.23
12% — ARS 347,669.23 to ARS 521,503.84
15% — ARS 521,503.84 to ARS 695,338.47
19% — ARS 695,338.47 to ARS 1,043,007.68
23% — ARS 1,043,007.68 to ARS 1,390,676.90
27% — ARS 1,390,676.90 to ARS 2,086,015.35
31% — ARS 2,086,015.35 to ARS 2,781,353.85
35% — ARS 2,781,353.85 and over
Payroll taxes are applicable to both residents and non-residents. Those who are self-employed get to pay higher payroll taxes.
Income from industrial and commercial activities (rate: 35%)
Interests on deposits, loans, and other assets (rate: 20% on the total return)
Gains from the sale of land-related properties, including apartments (rate: 20% of the total value).
The first ARS 7,000 that an individual earns in any income is eligible for the total exemption. However, this limit is lower, up to ARS 5,000 for at least 75 years of age. If you are self-employed, your income is only exempt on the first ARS 60,000 of income.
Moreover, wages for domestic services are not subject to taxes in Argentina.
Per diem is a benefit authorized by an employer to reimburse employees for out-of-pocket expenses incurred due to official travel. As such, it is taxable following the tax regulations established for this type of benefit.
In Argentina, per diem should be included in one’s gross income, and it may be subject to income taxes and mandatory contributions even if the employee does not receive other remuneration from their employer during their assignment abroad. In the case of remote workers, per diem is taxed under the income tax regulations established for foreign travel expenses.
The Argentinian government sets per diem rates every month and every year to reflect seasonal changes in the cost of living. The allocations can be tricky to plan, but they also give individuals financial freedom because they don’t have to budget a sum per day that might cover more than three months.
In Argentina, a reimbursement is when you provide your employees with compensation for their business expenses directly; these expenses may include work-related transportation and accommodation costs. You can claim a tax credit on this because you are not compensating employees for their work but reimbursing their expenses.
An allowance, on the other hand, is an advance payment provided to the employee for purposes like housing and food. The employee can use this money for whatever expenses they see fit; this amount is considered a taxable salary component, however.
There are no limitations on what you can deduct from your employees' salaries in Argentina. Consult the legal department of your business association to help you figure out the deductions you have to make from your employees' salaries. These deductions include:
Insurance schemes — You may need to make deductions for medical insurance, unemployment insurance, occupational disease insurance, professional injury insurance, workers' compensation, and compensation for accidents in the workplace.
Pension schemes — You may need to make deductions for pensions, retirement plans, or other social security payments.
Taxes — You may be required to make deductions for personal income tax, municipal tax, and provincial tax.
Others — Any additional deduction is included in the employment contract signed when an employee and an employer agree on having a working relationship.
The minimum wage in Argentina as of June 2023 is ARS 87,987 per month — set by the National Economic and Social Council for each province in Argentina.
In Argentina, if the employee works overtime, they are entitled to 50% of their usual salary for the work performed. If they work overtime during the holidays/rest period, overtime pay is 100% of their salary.
When you start a business in Argentina, you'll have to comply with the local labor laws.
According to the Argentinian labor law, employers must:
Provide their employees with a safe working environment
Comply with regulations concerning minimum wages, maximum hours of work, maternity leave, and rest periods
Ensure working conditions that enable a healthy lifestyle for their employees
Pay their workers wages at least once a month (failure to do so can lead to heavy fines or jail time)
Pay compensation to employees who have been harmed at work or those fired without a just cause
Compensate families of employees who die on the job
Not force their employees to work more than 48 hours per week
Pay overtime for any additional hours over the standard 40-hour week
Pay statutory 13th-month payments in two installments, in June and December
Argentina introduced new laws concerning the rights of teleworkers or remote workers in 2020.
Independent contractors are self-employed individuals who provide services based on a pay-per-project basis. You can pay them either a flat rate, or by the number of hours or days worked. Contractors are responsible for filing their own tax returns and are not entitled to benefits or protected by Argentine labor laws.
Population methods to pay contractors include online money transfer providers such as PayPal, Remitly, Wise, Western Union, and Xoom. You can also choose to make an electronic funds transfer (EFT), where you transfer payments from your bank account to your contractor’s bank account without using a third party.
While remote contractors can add value to your team, you have to make sure you classify them correctly. Some risks you may face due to misclassification include massive fines, penalties, and in the worst case, jail time. For more information about misclassification, read our expert guide on employee and contractor misclassification.
At some point in your global employment journey, you might want to consider converting your contractor to an employee. When you’re ready to do this, a global contractor management service like Remote can help you make the switch easily.
You can choose to pay remote employees in Argentina by setting up a local entity in Argentina. One thing to consider is the risk of permanent establishment. If you are a foreign business owner who hires a worker in Argentina, then you might have a permanent establishment in the country. Essentially, this means you’ll have to pay corporate taxes in Argentina and meet other compliance standards.
The safest way to avoid permanent establishment risks is to work with an employer of record or EOR, that can act as an intermediary between your business and your remote employees. An EOR can take care of all the legal issues related to hiring remote workers. Additionally, using an EOR can ensure that you’re paying your global remote team on time, and in their local currency.
For more information, read our helpful article on how to choose an EOR to scale your business while hiring and paying remote workers worldwide.
Global hiring is no walk in the park. Tax regulations, employment laws, compliance requirements, and payroll — there’s a lot you need to get to grips with when you're hiring remote workers in Argentina.
That's why you need a reliable global employment and payroll partner like Remote on board. Remote makes it safe, easy, and fast to hire and onboard remote workers, no matter where they’re based. We provide a suite of services that are designed to make global hiring simple — onboarding procedures, a centralized platform for employee and contractor management, tax and legal advice, payroll services for global teams, intellectual property protections, and more!
If you’re thinking about recruiting in Argentina but don’t know where to begin, we got you covered. Our team of experts can take the stress and hassle out of the process, allowing you to focus on key aspects of growing your business.
Download our guide to hiring your remote team today! If you’re ready to onboard remote workers in Argentina, sign up with Remote and get started in minutes.
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