If you are considering moving to Argentina, it is vital that you understand the current economic situation. Argentina has a relatively low standard of living; nevertheless, it frequently faces economic instability and fluctuating currency, occasionally complicating budgeting. Whether your goal is to earn, save, invest, or simply avoid losing money due to inflation, this guide provides a summary of the key financial aspects of life in Argentina.
Argentina’s economy is as full of promise as it is of doubt. On the one hand, the country is endowed with vast natural resources and a developed agricultural sector, but on the other, the country also suffers due to constant economic crises, hyperinflation, and a constantly fluctuating currency. Some points to keep in mind are as follows:
Inflation is one of many issues Argentina has not yet overcome. They hold one of the highest rates of inflation in the world today. To place this into perspective, commodity and service prices within the country can increase substantially over the course of a few months, and this has a way of affecting literally everything from grocery prices, rent, salaries, and savings. For those who earn in Argentine pesos (ARS), it is virtually impossible to maintain pace with inflation. There is a bright side to this, however, for those who earn in foreign currencies like USD or EUR since they are more well-off while the peso keeps depreciating.
The value of the currency fluctuates, and as such, the Argentinian peso is known to be volatile, especially when calculating its worth in relation to other currencies. Moreover, the value of an official exchange rate changes according to the details of a deal.
The official exchange rate differs significantly from the dólar blue (the unofficial black-market rate), which is often much more favorable for those exchanging foreign currency.
To get the best rate, many expats bring U.S. dollars in cash and exchange them through trusted local sources rather than banks.
Banking in Argentina can be bureaucratic, and high inflation makes saving in pesos a risky move. Here’s what you need to know:
To open a bank account (cuenta bancaria) in Argentina, you usually need:
Non-residents typically cannot open a local bank account, which means expats often rely on foreign accounts and cash transactions.
Argentina is still a cash economy, and most businesses don’t take credit cards but accept cash, especially for big purchases. ATMs have withdrawal limits and charge very high fees, so most expats keep USD and exchange it for pesos at decent rates.
Due to restrictions on foreign currency, transferring money into Argentina can be complicated. Options like Western Union, Revolut, or using crypto (Bitcoin, USDT) are common ways for expats to move money in and out of the country.
It can be really cheap or pricey to live in Argentina depending on your lifestyle and where your money comes from. You will be able to afford much more if you are working in foreign currency than if you have a local income.
If you’re employed in Argentina, keep in mind that salaries are generally low here due to inflation. Most expats prefer working remotely for overseas companies while in Argentina so that they can avail themselves of the cost-of-living benefits.
Life in Argentina can be incredible, but money needs to be handled well. The following are some tips to get the best out of your finances:
Despite facing an economic crisis, Argentina remains an attractive place for expats, digital nomads, and retirees because of its affordable living expenses, lively culture, and breathtaking scenery. If you manage to effectively navigate the financial system, you can genuinely prosper in this environment.
[Disclosure: none of this is financial advice, just our opinion and experiences from Living in Argentina]
