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How to Pay Contractors in Argentina: Complete 2025 Guide

For businesses paying independent contractors in Argentina

Quick Summary

Best payment methods for Argentine contractors:

  1. Wise (lowest fees, best rates)
  2. PayPal (widely accepted)
  3. Payoneer (popular alternative)
  4. Cryptocurrency (increasingly common due to currency controls)

Key requirements:

  • CUIT/CUIL (Argentine tax ID)
  • Written service agreement
  • Currency considerations (USD strongly preferred over ARS)
  • AFIP tax compliance (contractor's responsibility)
  • Understanding of currency controls and restrictions

Why This Guide Is Different

Argentina has a highly skilled tech workforce and competitive rates, but unique economic challenges. If you're hiring contractors in Argentina, you need to understand:

  • Currency volatility (ARS has significant inflation and devaluation)
  • Strong USD preference (contractors almost universally prefer USD)
  • Currency controls and restrictions (cepo cambiario)
  • Payment method preferences (Wise, PayPal, crypto increasingly popular)
  • AFIP compliance (Argentine tax authority)
  • Time zone advantages (ART is UTC-3, good overlap with US East Coast)

Payment Methods Compared

MethodCostSpeedBest For
Wise$4-$101-3 daysRegular payments, best exchange rates
PayPal$6-$15InstantWidely accepted, instant transfers
Payoneer$5-$121-3 daysPopular with Argentine freelancers
Cryptocurrency$2-$10Minutes-hoursAvoiding currency controls, tech-savvy contractors
Bank Transfer$20-$503-7 daysLarge amounts, traditional method

Recommended: Wise

Why Wise is best for Argentina payments:

  • Lowest fees ($4-$10 vs $20-$50 for traditional bank transfers)
  • Real mid-market exchange rate (no markup)
  • Fast transfers (1-3 business days)
  • Transparent pricing (see exact fees before sending)
  • Widely accepted by Argentine contractors
  • Can send USD (strongly preferred)

Currency Considerations

Currency is the most critical consideration when paying Argentine contractors due to extreme ARS volatility and inflation.

USD vs ARS: Always Choose USD

Unlike other countries where currency preference varies, Argentine contractors almost universally prefer USD due to:

  • High inflation: ARS has experienced significant inflation (often 50-100%+ annually)
  • Currency devaluation: ARS loses value rapidly against USD
  • Currency controls: Government restrictions on USD access (cepo cambiario)
  • Purchasing power: USD maintains value better for savings and large purchases

Important: Always pay Argentine contractors in USD unless they specifically request ARS (which is rare). Paying in ARS can result in significant value loss for the contractor due to inflation and devaluation.

Tax and Compliance Requirements

CUIT/CUIL

Argentine contractors need either a CUIT or CUIL tax identification number.

  • CUIT (Clave Única de Identificación Tributaria): Tax ID for businesses and self-employed
  • CUIL (Código Único de Identificación Laboral): Labor ID for individuals
  • Your responsibility: Verify contractor has valid CUIT/CUIL
  • Contractor's responsibility: Register with AFIP and maintain tax ID

AFIP Compliance

AFIP (Administración Federal de Ingresos Públicos) is Argentina's tax authority.

  • Contractors must register with AFIP as monotributistas or autónomos
  • They're responsible for filing monthly and annual tax returns
  • They must issue facturas (invoices) for services
  • As a foreign client, you typically don't withhold Argentine taxes

Important: As a foreign company paying an Argentine contractor, you typically don't have tax withholding obligations in Argentina. The contractor handles their own AFIP compliance. Consult with a tax professional for your specific situation.

Common Mistakes (And How to Avoid Them)

Mistake 1: Paying in ARS Instead of USD

Problem: Contractor loses significant value due to inflation and devaluation.

Solution: Always pay in USD unless contractor specifically requests ARS (which is rare).

Mistake 2: Not Understanding Currency Controls

Problem: Contractor may have difficulty accessing USD due to government restrictions.

Solution: Use Wise or PayPal which allow contractors to hold USD in their accounts. Some contractors use crypto to avoid restrictions.

Mistake 3: Using Expensive Bank Transfers

Problem: Traditional wire transfers cost $20-$50 with poor exchange rates.

Solution: Use Wise or PayPal to save 60-80% on fees.

Mistake 4: Ignoring Economic Volatility

Problem: Economic instability can affect contractor availability and rates.

Solution: Build strong relationships, pay in USD, and be understanding of economic challenges contractors face.

Why Hire Argentine Contractors?

Despite economic challenges, Argentina offers significant advantages:

  • Highly skilled workforce: Strong engineering and design talent
  • Competitive rates: 40-60% lower than US while maintaining quality
  • Time zone alignment: ART (UTC-3) overlaps well with US East Coast
  • Cultural compatibility: Similar work styles to Western companies
  • English proficiency: Many tech workers speak English fluently
  • Motivated workforce: USD income is highly valued

Tools for Managing Argentine Contractors

Kontrable is built specifically for managing international contractors:

  • Track payments across Wise, PayPal, and other methods
  • Store contracts and invoices
  • Handle USD payments seamlessly
  • Generate payment reports for accounting
  • No per-contractor fees (unlike Deel at $49/month per contractor)

Frequently Asked Questions

Q: Should I pay Argentine contractors in USD or ARS?

A: Always USD unless the contractor specifically requests ARS (which is rare). ARS has high inflation and devaluation, so contractors strongly prefer USD.

Q: What are currency controls and how do they affect payments?

A: Argentina has restrictions on USD access (cepo cambiario). Using Wise or PayPal allows contractors to receive and hold USD, avoiding these restrictions.

Q: Do I need an EOR platform for Argentine contractors?

A: No. EOR is for employees. Argentine contractors handle their own AFIP tax compliance. You just need a good payment method (Wise) and contractor management tool (Kontrable).

Q: Is cryptocurrency a good payment option?

A: Some Argentine contractors prefer crypto (especially stablecoins like USDC) to avoid currency controls. However, Wise and PayPal are more mainstream and easier for most contractors.

Q: What's the best payment method for Argentina?

A: Wise offers the lowest fees ($4-$10) and best exchange rates. PayPal is also popular but has higher fees ($6-$15). Both allow contractors to hold USD.

Get Started

Managing Argentine contractors?

  1. Verify contractor has valid CUIT/CUIL
  2. Set up Wise business account
  3. Create written service agreement
  4. Always pay in USD (not ARS)
  5. Get contractor's Wise or PayPal account
  6. Set up regular payment schedule

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