How to pay international contractors in Argentina [2025]

Argentina is a diverse country, home to many proficient English speakers and the fourth-largest population in South America. It's no wonder global companies are taking note that Argentina is a great place to source talent.

But hiring contractors in a foreign country can be a complex and time-consuming process. That's why so many global businesses look to independent contractors, skilled workers who can be hired with a more flexible arrangement—even across international borders.

When hiring contractors in Argentina, paying them is a crucial part of the process. Looking to learn how to run payroll for contractors in Argentina—all while staying compliant with Argentine labor laws? Here are the steps.

Step #1: Classify your workers

Argentina takes worker classification seriously. The Ministerio de Trabajo, Empleo y Seguridad Social (MTEySS), or the Administración Federal de Ingresos Públicos (AFIP) are the agencies that investigate claims of misclassification. If they find that a business has misclassified employees as contractors, they can levy fines, back taxes, and other penalties, including:

• All outstanding social security contributions for the duration of the worker's service.

• Salary differences

• Severance pay for employees terminated while misclassified.

• Labor fines

In the chart below, you'll see some of the key differences between contractors and employees according to Argentine labor and employment laws.

Step #2: Determine the best way to pay your contractors

Before you can pay contractors in Argentina, you have to determine how you'll pay them. With the rise of global workforces and remote work, employers now have more choices than ever for making international payments to contractors. Here are some options:

• Bank wires. By opening an Argentine bank account, you can deposit funds directly into your contractors' accounts. Or, you can use your bank to send a secure global wire transfer—but keep in mind these can come with steep fees.

• International money orders. This common and long-standing payment method can be slow—especially because the employer needs to physically purchase the money order, and the contractor needs to physically deposit it upon receipt. Money orders can also come with fees and bad exchange rates.

• Digital wallets or payment platforms. Some employers use platforms like PayPal or Wise to transfer money across borders. Remember that not all digital platforms are available in all countries (for example, Venmo is only available in the U.S.) and their exchange rates can change from day to day, making it difficult to predict your outgoings.

• Global payroll services. Typically, contractors aren't included in payroll, since they aren't subject to the same withholdings as employees—instead, they invoice for their services, which goes through accounts payable for many companies.

Step #3: Create a service agreement for Argentine contractors

Once you've decided on a payment method, you'll want to draft a service agreement for your Argentine contractor. In Argentina, it's not strictly required to get contractor work agreements in writing, but it is a best practice to help avoid future disputes and better protect yourself against misclassification claims.

The service agreement should include:

• Pay rates and methods

• The length of the contract

• What services the contractor will provide

• Conditions for terminating the contract

• Any benefits the contractor will receive

Step #4: Use global payroll software to process payments

As you saw in Step #2, there are multiple ways to pay contractors in Argentina. But the fastest and simplest way is paying contractors through global payroll software.

With Rippling, you can pay contractors across the world. Here’s a preview of how Rippling’s global payroll system works:

Step #5: Calculate and file your Argentine tax forms

While employers aren't required to withhold and pay taxes for contractors in Argentina, they may be required to submit several tax forms to the Administración Federal de Ingresos Públicos (AFIP), or the Federal Public Revenue Administration.

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FAQs about paying contractors in Argentina