How to pay foreign contractors in Argentina

October 24, 2021

Working as an independent contractor in Argentina for a US company is very common these days. Paying wages to overseas employees in Argentina is done through a variety of methods. Various remittance services are used to send payments to foreign contractors for services. The official language of Argentina is Spanish. Hiring independent contractors in Argentina is done through Argentina foreign investment, payroll rules, and payments to foreign contractors for services tax. Independent contractor agreement sample in Argentina is defined according to it.

Working remotely from Argentina for a US company tax depends on the freelancer statistics in Argentina. Salary to foreign employees in Argentina is sent through various remittance services. The software industry in Argentina has been significantly grown in the past few years. The highest-paying software companies in Argentina are BairesDev, Mercado Livre, Globant, and Everis. US companies paying foreign employees use remittance services such as Remitly, Xoom, and Transferwise. 

Language and currency of Argentina:

The national language of Argentina is Spanish which is the primary language of Argentina. English is usually an official language used for hiring independent contractors in Argentina and sending payments to foreign contractors for services tax. 

Investment in Argentina:

Many countries have invested by hiring independent contractors in Argentina and through working remotely from Argentina for a US company tax. According to FDI, the United States has the highest investment in Argentina i.e. USD 85 billion in 2020.

Different companies define independent contractor agreement samples in Argentina and the salaries to foreign employees in Argentina are sent through different bank transfers and remittance services. Banco de la Nacion Argentina is the best bank for remittance in Argentina. Many remittance services are available in Argentina for paying foreign contractors for services including PayPal. Google Pay is also available in Argentina but can not pay the android users in the country. You can also open a foreign currency account in Argentina for your business and personal needs. The account balance may earn you interest. A person can simply open "Caja de Ahorro en Dólares" which helps in depositing and cash withdrawal. All American Express, Visa, and Master cards can be used for this purpose in Argentina.

Software developers in Argentina:

The number of software developers varies in Argentina. According to the census of Stack Overflow, there were 114,576 software developers in 2018. The average salary of an Argentinian software developer is $471000. The exchange rate of USD in Argentina Peso is 98.72 ARS. The contractor upfront in Argentina should be paid for a maximum of 33% or 50% of the total cost upfront. Independent contractor payment rights of the Argentina 1099 employees and contractors are protected by the companies through which the contractors are linked. Paying independent contractors in Argentina is mostly done by remittance services. However, paying independent contractors in cash in Argentina also occurs to avoid payroll and the company’s taxes.

Paying foreign contractors in Argentina:

Paying wages to overseas employees in Argentina occur through companies such as Remitly, PayPal, Western Union, World Remit, etc. Salary to foreign employees in Argentina is sent through these services.

Following are the best methods to pay salaries to foreign employees in Argentina:

  1. Transfer Wise:

Wise International Payment is the best way to send money to Canada because it supports 45+ state currencies. Fast transfers in up to 2 days of contractor pays can be done through the channel. The remittance cost 3.42USD (48.5100 exchange rate). The service provides a high level of security and accepts credit and debit cards. The tool called Wise Batch Payment helps foreign countries to pay multiple salaries in Argentina in one go. The company’s application has made International payments more convenient. However, the recipient can not track the transaction statuses.

  1. Remitly:

Remitly is a cost-effective, and safe method of paying independent contractors hourly in Argentina. It also provides transfers over $1000 without a fee. Economy transfer service deposits contractor pays within 3-5 days. However, Express transfer supports instant delivery. The fee for transfers below $1000 is $3.99 and a 3% remittance fee is charged on card payments. The company also provides promotional packages for new customers.

  1. Xoom:

Xoom is a user-friendly service based in Argentina for fast money transfers without a fee. The process of signing in and paying contractor salaries is convenient if compared to other remittance services. Xoom also provides free transfers over $1000 if banks are used as the transferring medium. Furthermore, the remittance cost is very low in locked-in exchange rates. Money transfers can be tracked through the company’s application. Delivery occurs in 1-2 days.

  1. Western Union:

Western Union is another method for sending payments to foreign contractors for services. Price Estimator Tool of Western Union helps to calculate remittance fees. Foreign contractor salaries can be received in minutes to days through Western Union. Similar to Remitly the application helps in the simplification of money transfers. Agents are present all over the country that makes cash payments and pickups convenient.

  1. SWIFT:

It is the oldest method to send contractor pays to foreign contract workers in Argentina. It helps employers and companies to pay the contractors via bank transfers internationally. However, the payment method has been declining because of problems with employment laws. Also, the banks charge a huge amount for the transfers. For example, Banco de la Nacion support SWIFT in Argentina. A government-issued form of identification, proof of address, and social security number are some requirements by law for International Bank Transfer. 

  1. World Remit:

World Remit also provides a reliable service of paying wages to independent contractors in Argentina. The transactions can be made through credit cards, debit cards, or mobile applications. It provides facilities for bank transfer, cash pickup, and airtime top-up. The transfer costs are very low at best exchange rates. The transfer fee is $3.99 which can increase to $24.99 for various currencies.

  1. RIA:

RIA is used for paying wages to overseas employees in Argentina. RIA is easy to use and provides free transfers through banks. The contractor pays are delivered in almost 3 days with good customer service. The service is safe for money transfers and provides 1-month of free debit card transfers. However, credit card payments are relatively expensive (i.e. $35). RIA has an extensive security check which takes up to one month. Therefore, RIA is not recommended for emergency transfers.

  1. OFX:

OFX helps to pay internationally without a fee. However, a mark-up is made on the exchange rates through which they earn money. The mark-up depends on the amount to transfer and the transfer history with OFX. For example, a 0.4-2.5% mark-up is added if transfer rates range from $8-$50. Service guarantees delivery in 1-2 days.

  1. PayPal:

Foreign contractors of Argentina can also get paid through PayPal which is a renowned money transferring company. The method is faster, reliable, and provides a high level of security. Recurring Argentinian contractor pays can also be managed easily by PayPal. The transfer fee for transferring to Argentina by the US is $2.96 with an exchange rate of $63.14 exchange rate mark-up. The contractor pays can be delivered on the same day along with Mass Payment Tool for paying employee cash legally in Argentina.