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You can get 40% taxes on high income? thats nuts. The cost of living in SF is crazy, 40k in Argentina , in terms of nominal value, after taxes are probably aro

You can get 40% taxes on high income? thats nuts. The cost of living in SF is crazy, 40k in Argentina , in terms of nominal value, after taxes are probably around 32k/y, 2600 net dollars per month. Rent of a 1 bedroom place in a decent neightborgood=> 400 U$S a month. Grocieries, living costs, going out,etc,say..250 U$S? Lets make you a party animal and big spender at 400 U$S a month for that. So after takes and expenses, 40k a year in argentina yields you 1800U$S a month. In san francisco, a 1br for yourself is 2k a month at least. Work often provides food, but if it doesnt, at 10 dollars a meal avg you get 10 x 30 x 2 = 600U$S in food alone. Restaurants, shows, going out, drinks, add 200 U$S a month, if you go out weekly. That ends up being about 2800 U$S per month only on rent+food. To be able to nominally save 1800U$S a month, you have to make 4600U$S pre-tax, which at 28% taxes, ends up being about 70k annual income. The point of this exercise is to measure the impact of cost of living on salary: it definitely makes a dent(you need 30k a year more in San Francisco for the cost of living difference). However, its very easy to make 100k+ in the bay area working for a startup (and more if you work for facebook or google), which means you will always make way more money working in a startup in the us,than any income bracket in uruguay. (assumption: cost of living in Uruguay ~= Argentina)

GFischer 12y ago
Cost of living in Uruguay is higher than in Argentina at the moment, mostly due to rent being close to twice as much. I pay U$ 700 in rent+expenses and it's not uncommon in a "good" neighbourhood (I was paying close to U$ 1000 before, including very high apartment expenses, in one of the better neighbourhoods called Punta Carretas, think Palermo, before I had to downsize). If you own your own home, living becomes much cheaper, but I don't :( and they're incredibly expensive right now (the housing bubble never burst here, though it has slowed down). Food is more expensive here as well, but not as much as housing. I pay U$ 700 for food and going out for 2 people (We do eat takeaway and go out a lot, so it's definitely not normal. But I get paid U$ 300 in meal vouchers which suck). So I have U$ 400 for the rest (including gas, insurance, medicine, any extra expenses...), so I basically can't save (I could if I cut down on the eating and going out part). "Real" salaries are higher I think, so it makes up for a bit of the difference between Uruguay and Argentina. But still, I'll never be able to afford a house unless the housing bubble bursts or I start working abroad. I'm including social security and healthcare in the "taxes" part (that's why I said take home pay could be 60%), I get deducted 17.5% of my nominal salary for social security, 20% for taxes, and 5% for healthcare. To make it worse, I actually get paid a part of the remainder in "meal vouchers" called Tickets Alimentación. http://en.wikipedia.org/wiki/Meal_voucher http://en.wikipedia.org/wiki/Meal_voucher
- conanbatt 12y ago
  I see, thanks for the data. Rent in Argentina is crazy low in proportion to property pricing. As rent grows 20% year over year on contract, and inflation is higher, rent is lagging behind. I remember my absolute dollar value rent going down from 400U$S to 350U$S, in a 1 br 82m2-next to subway-first occupant appt. Inflation really does a number on the economy. And Im glad meal vouchers dissapeared in argentina, we had all sorts of them 8 years ago. Regarding property prices in Uruguay, don't you have a reliable mortgage industry? Ours is ridiculously small, and inflation makes it risky and unreliable for both lenders and borrowers.

GFischer 12y ago

Cost of living in Uruguay is higher than in Argentina at the moment, mostly due to rent being close to twice as much. I pay U$ 700 in rent+expenses and it's not uncommon in a "good" neighbourhood (I was paying close to U$ 1000 before, including very high apartment expenses, in one of the better neighbourhoods called Punta Carretas, think Palermo, before I had to downsize). If you own your own home, living becomes much cheaper, but I don't :( and they're incredibly expensive right now (the housing bubble never burst here, though it has slowed down). Food is more expensive here as well, but not as much as housing. I pay U$ 700 for food and going out for 2 people (We do eat takeaway and go out a lot, so it's definitely not normal. But I get paid U$ 300 in meal vouchers which suck). So I have U$ 400 for the rest (including gas, insurance, medicine, any extra expenses...), so I basically can't save (I could if I cut down on the eating and going out part). "Real" salaries are higher I think, so it makes up for a bit of the difference between Uruguay and Argentina. But still, I'll never be able to afford a house unless the housing bubble bursts or I start working abroad. I'm including social security and healthcare in the "taxes" part (that's why I said take home pay could be 60%), I get deducted 17.5% of my nominal salary for social security, 20% for taxes, and 5% for healthcare. To make it worse, I actually get paid a part of the remainder in "meal vouchers" called Tickets Alimentación. http://en.wikipedia.org/wiki/Meal_voucher http://en.wikipedia.org/wiki/Meal_voucher

conanbatt 12y ago
I see, thanks for the data. Rent in Argentina is crazy low in proportion to property pricing. As rent grows 20% year over year on contract, and inflation is higher, rent is lagging behind. I remember my absolute dollar value rent going down from 400U$S to 350U$S, in a 1 br 82m2-next to subway-first occupant appt. Inflation really does a number on the economy. And Im glad meal vouchers dissapeared in argentina, we had all sorts of them 8 years ago. Regarding property prices in Uruguay, don't you have a reliable mortgage industry? Ours is ridiculously small, and inflation makes it risky and unreliable for both lenders and borrowers.