There is no income tax treaty between the United States and Argentina, and none is currently being negotiated. That means no reduced withholding rates on dividends, interest, or royalties, no permanent establishment threshold protecting business profits, and no treaty tie-breakers for residency. Taxpayers on both sides work from each country’s domestic tax code, and the Foreign Tax Credit does most of the heavy lifting to keep the same dollar from being taxed twice.
What Actually Exists Between the Two Countries
Argentina is not on the list of US income tax treaty partners. The two governments did sign a Tax Information Exchange Agreement in Buenos Aires on December 23, 2016. The TIEA lets the IRS and Argentina’s federal tax agency (AFIP) share taxpayer information for enforcement, but it does not lower any tax rate or prevent double taxation.
The one narrow area of substantive relief is international shipping and air transport. Foreign corporations organized in a country that grants a reciprocal exemption can exclude income from operating ships and aircraft internationally, and Argentina grants that reciprocity. Nonresident alien individuals get a parallel exclusion under Section 872. Nothing beyond transportation profits is covered.
If You Are a US Citizen Earning Argentine Income
US citizens and resident aliens owe federal income tax on worldwide income, so wages from a job in Buenos Aires or dividends from an Argentine holding are reportable on Form 1040 even if Argentina taxed them first. The filing obligation stands even when credits or exclusions wipe out the actual US tax bill.
The Foreign Tax Credit
The Foreign Tax Credit is the primary defense against double taxation. It gives you a dollar-for-dollar credit against US tax for income taxes paid to Argentina. Only income taxes qualify; Argentina’s VAT (IVA), wealth tax, and similar non-income levies are not creditable.
The credit is capped. You cannot use Argentine tax to offset US tax on US income; the limitation compares foreign-source taxable income to total taxable income and applies that ratio to your total US tax. Individuals compute it on Form 1116, separating income into categories like passive (dividends, interest) and general (wages, business profits). Corporations use Form 1118.
When Argentine taxes exceed the year’s limitation, the excess carries back one year or forward up to ten. Argentina’s corporate tax reaches 35% at higher brackets, and a 7% dividend withholding on distributions to nonresidents stacks on top of that. A US shareholder in an Argentine corporation can easily end up with excess credits that only get used through the carryover.
The Foreign Earned Income Exclusion
If you earn wages or salary in Argentina, you may instead exclude a portion of that income from US tax. For 2026 the exclusion is $132,900. You qualify by passing either the bona fide residence test (a genuine resident of Argentina for a full tax year) or the physical presence test (outside the US at least 330 full days in a 12-month period).
You can use the exclusion and the Foreign Tax Credit in the same year, but not on the same dollars. If you exclude $132,900 of Argentine wages, you cannot also credit the Argentine tax paid on those excluded wages. You can claim the credit on earned income above the exclusion, and on passive income like dividends or interest. Claiming a credit on income you could have excluded is treated as revoking the FEIE election, and you cannot re-elect for six tax years without IRS consent. The exclusion does nothing for investment income, so anyone with Argentine dividends or interest still needs the credit.
If You Are an Argentine Resident Earning US Income
The US taxes nonresident aliens only on US-source income, and that income splits into two categories that are taxed very differently.
Passive Income Faces a Flat 30%
US-source dividends, royalties, rent, and annuities paid to an Argentine resident are subject to a flat 30% withholding tax on the gross amount. The US payer withholds before sending the payment, so a $1,000 US dividend arrives as $700. Treaty partners commonly see this rate reduced to 5%, 10%, or 15%; Argentine residents get no reduction, and the 30% applies uniformly across royalty types, whether the payment is for a patent, software, or film distribution rights.
Portfolio interest is a significant exception. Interest paid to a nonresident on registered debt is generally exempt from the 30% withholding, provided the recipient does not own 10% or more of the paying corporation’s voting stock. A parallel provision covers foreign corporations. Interest paid to a 10%-or-greater shareholder faces the full 30%.
Income Connected to a US Business
Income effectively connected with a US trade or business is taxed at the same graduated rates that apply to US citizens, with deductions for related expenses allowed. This covers profits from a US branch, compensation for services performed in the US, and similar earnings. The nonresident files Form 1040-NR.
An Argentine corporation operating a US branch faces an additional layer: the branch profits tax. On top of regular corporate tax on effectively connected income, the foreign corporation owes 30% on its “dividend equivalent amount,” roughly the after-tax earnings pulled out of the branch. Treaties routinely reduce or eliminate this tax. Argentine companies pay the full 30%.
Form W-8BEN
Before receiving any US-source payment, an Argentine resident should provide the US payer with Form W-8BEN, establishing that the recipient is not a US person and is the beneficial owner of the income. Without a valid W-8BEN on file, the payer may withhold at higher backup rates. The treaty-benefits section (Line 9) stays blank; there is no treaty to invoke.
No Permanent Establishment Shield for Argentine Businesses
A typical treaty taxes a foreign company’s business profits only when it maintains a permanent establishment (a fixed office, factory, or similar presence) in the other country. Without that threshold, US domestic law governs, and the “US trade or business” standard can be triggered by less substantial activity than a permanent establishment would require. An Argentine company sending employees to perform services in the US, or regularly soliciting sales through dependent agents, may become subject to US tax without opening an office. Even modest, temporary US operations can create a filing obligation and expose profits to tax on both sides, with Argentina’s own foreign tax credit rules the only backstop.
Capital Gains and US Real Estate
An Argentine resident who sells US stocks or other non-real-estate assets generally owes no US tax on the gain. The US taxes a nonresident’s capital gains only if the individual is present in the country for 183 days or more during the tax year. This is a unilateral US rule and does not depend on any treaty.
US real estate is the major exception. Under the Foreign Investment in Real Property Tax Act (FIRPTA), any gain from selling a US real property interest is treated as effectively connected income and taxed at graduated rates. The buyer must withhold 15% of the gross sale price at closing and send it to the IRS. Withholding drops to 10% if the buyer plans to use the property as a personal residence and the sale price is $1,000,000 or less. The Argentine seller then files a US return to report the actual gain and claim a refund if the withholding exceeded the tax owed.
No Social Security Totalization Agreement
The US and Argentina have no Social Security totalization agreement. Totalization agreements prevent workers from paying into both countries’ systems on the same earnings. Without one, a US citizen self-employed in Argentina owes US self-employment tax (Social Security and Medicare) on top of Argentine social security contributions.
Self-employment tax kicks in at $400 of net earnings, and the rules apply the same whether you live in the US or abroad. Income excluded under the FEIE still counts for self-employment tax purposes. There is no credit mechanism between the two systems for the dual contributions.
Reporting Argentine Accounts to the US
The absence of a tax treaty makes information reporting more important, not less. Penalties for missing these filings can dwarf the underlying tax.
FBAR (FinCEN Form 114)
Any US person with a financial interest in or signature authority over foreign financial accounts whose combined value exceeds $10,000 at any point during the year must file a Report of Foreign Bank and Financial Accounts. Argentine bank, brokerage, and certain investment accounts count. The FBAR is due April 15 with an automatic extension to October 15. Civil penalties for non-willful violations adjust for inflation annually; willful violations carry substantially higher penalties and potential criminal exposure.
FATCA (Form 8938)
Separately, FATCA requires reporting specified foreign financial assets on Form 8938, filed with your tax return. Thresholds depend on residence and filing status. For taxpayers in the US: $50,000 on the last day of the year or $75,000 at any point, doubled for joint filers. For taxpayers abroad: $200,000 on the last day or $300,000 at any point for single filers, and $400,000 or $600,000 for joint filers.
Failing to file Form 8938 triggers a $10,000 penalty, with up to $50,000 more if you still do not file after IRS notification. A 40% accuracy penalty applies to any tax understatement linked to undisclosed foreign assets. The 2016 TIEA gives both tax agencies a channel to exchange account information, so assuming Argentine accounts stay invisible to the IRS is a poor assumption.