In July, El Expatriado,www.expat-argentina.com, blogspot.com, posted a very good analysis, "How Much Money Do You Need to Live in Argentina?" It's still generating comments in November. Here is an excerpt:
"Some other expats could chime in on this, but I think a pretty good way of estimating your standard of living here would be to take your U.S. Dollar income, multiply it by three, and then imagine living in New York, Chicago, or some other major American city with that income. I think that's a mental exercise that most of us could do."
OK, I will take the invitation and ring in with two cents or more. The 3X rule stated here is easily true. The reality can be even better than that with a little management. An American living in Buenos Aires and making say, $30,000(or 90,000 pesos), will probably enjoy a better standard of living and feel less financial stress than if he or she were making $90,000 and living in NY, Chicago, SF, Boston or LA. The terms "standard of living" and "quality-of-life" can get complicated, so let me clarify that I am talking about the affordability of basic goods and services. (Which is not to say quality-of-life measures such as cultural resources and access to natural wonders are not extremely good here. They are).
1. Housing. As El Expat points out, rents for like-apartments are typically more than three times less costly in Buenos Aires than in major US cities like New York. And buying an apartment will cost you about four to five times less. In major US cities, percentage of income dedicated to housing can get as high as 50%. In Buenos Aires it should be much less: %20-%30 would be a good target range. This means you'll have more money left over to enjoy everything else.
2. Transportation Unlike most Americans in the middle class or higher(excluding New Yorkers),expats in Buenos Aires usually don't own or need cars. On automotive expenses alone you'll save a fortune. Add cheap cabs ($2 to $5 for most cab rides) and nearly free buses and subways(.25c), and it's game over in this category. Note that transportation is linked with housing. You don't have to live in Recoleta or Palermo because you can get around quickly and inexpensively. Try Belgrano for example.
3. Food and entertainment. You will spend less than a third on restaurants, movies, drinks, theater etc. This is especially true if you mix in small neighborhood spots with your Olsens and Sushi Clubs. This is the land of $20-$25 dinners for two including a good bottle of malbec. And if you cook at home once in a while you will save even more. First run movies at nice multiplexes like Village Recoleta are $5.00 a ticket with a seat number you select. The popcorn is available salty or sweet.
4. Consumerism/Keeping Up With the Jones In Buenos Aires most expats will spend far less on general shopping and consumption. For one thing you won't have any access to Best Buy, Amazon and Banana Republic. The constant advertising won't reach you either(file under quality-of-life). And you won't have the pressure from friends and coworkers to buy all the latest electronic gadgetry and other so called durable goods (such as cars). Anyway you'll be too busy enjoying the city to miss your widescreen plasma and TiVo.
5. Taxes Don't think you're off the hook with the IRS, but as a bonafide resident of Argentina who is physically present in the country for 330 days during any period of 12 consecutive months, you may qualify to exclude income up to $80,000 of your foreign earnings.
If you work for an "indefinite or extended period and you set up permanent quarters for yourself and your family, you probably have established a bonafide residence in a foreign country, even though you intend to return eventually to the United States."
So to qualify you can't leave the country for more than a month in any given year. But you can spend your free time traveling around the beautiful country of Argentina.
"Some other expats could chime in on this, but I think a pretty good way of estimating your standard of living here would be to take your U.S. Dollar income, multiply it by three, and then imagine living in New York, Chicago, or some other major American city with that income. I think that's a mental exercise that most of us could do."
OK, I will take the invitation and ring in with two cents or more. The 3X rule stated here is easily true. The reality can be even better than that with a little management. An American living in Buenos Aires and making say, $30,000(or 90,000 pesos), will probably enjoy a better standard of living and feel less financial stress than if he or she were making $90,000 and living in NY, Chicago, SF, Boston or LA. The terms "standard of living" and "quality-of-life" can get complicated, so let me clarify that I am talking about the affordability of basic goods and services. (Which is not to say quality-of-life measures such as cultural resources and access to natural wonders are not extremely good here. They are).
1. Housing. As El Expat points out, rents for like-apartments are typically more than three times less costly in Buenos Aires than in major US cities like New York. And buying an apartment will cost you about four to five times less. In major US cities, percentage of income dedicated to housing can get as high as 50%. In Buenos Aires it should be much less: %20-%30 would be a good target range. This means you'll have more money left over to enjoy everything else.
2. Transportation Unlike most Americans in the middle class or higher(excluding New Yorkers),expats in Buenos Aires usually don't own or need cars. On automotive expenses alone you'll save a fortune. Add cheap cabs ($2 to $5 for most cab rides) and nearly free buses and subways(.25c), and it's game over in this category. Note that transportation is linked with housing. You don't have to live in Recoleta or Palermo because you can get around quickly and inexpensively. Try Belgrano for example.
3. Food and entertainment. You will spend less than a third on restaurants, movies, drinks, theater etc. This is especially true if you mix in small neighborhood spots with your Olsens and Sushi Clubs. This is the land of $20-$25 dinners for two including a good bottle of malbec. And if you cook at home once in a while you will save even more. First run movies at nice multiplexes like Village Recoleta are $5.00 a ticket with a seat number you select. The popcorn is available salty or sweet.
4. Consumerism/Keeping Up With the Jones In Buenos Aires most expats will spend far less on general shopping and consumption. For one thing you won't have any access to Best Buy, Amazon and Banana Republic. The constant advertising won't reach you either(file under quality-of-life). And you won't have the pressure from friends and coworkers to buy all the latest electronic gadgetry and other so called durable goods (such as cars). Anyway you'll be too busy enjoying the city to miss your widescreen plasma and TiVo.
5. Taxes Don't think you're off the hook with the IRS, but as a bonafide resident of Argentina who is physically present in the country for 330 days during any period of 12 consecutive months, you may qualify to exclude income up to $80,000 of your foreign earnings.
If you work for an "indefinite or extended period and you set up permanent quarters for yourself and your family, you probably have established a bonafide residence in a foreign country, even though you intend to return eventually to the United States."
So to qualify you can't leave the country for more than a month in any given year. But you can spend your free time traveling around the beautiful country of Argentina.
3 comments:
qué *buenísimas* fotos
excelente ojo
mimi
soy tu FAN!!
Annie/Cookie
On the housing issue, if a foreigner plans to purchase, it is paid in full. There are no mortages here for foreigners.
As for renting, you will pay ,more than a local. And perhaps a year upfront, if you do not have a guarantor.
As a foreigner, with dollars, euros or pounds. Life is a ball here.
But for 50 percent or more of the locals here, they are struggling.
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