Argentine entrepreneurial migrants who seek a better future elsewhere prefer Uruguay, Paraguay, Bahamas, and Portugal to start anew, it was reported.
Uruguay, Bahamas, and Portugal are less tax-burdening, according to Martin Litwak, CEO and founder of Untitled SLC, a legal services firm specializing in international estate planning and the establishment of investment funds, Infobae reported.
International moving is one of the most widely used estate planning tools. When you move, you do it with a purpose that is not always focused on the wealth issue; there may be family, work, [and] quality of life reasons, depending on the profile of each person or family, but the impact on wealth is obviously the same explained the Lawyer Litwak.
According to the Uruguayan government, about 6,000 Argentines have requested a migratory residence in that country, while Argentina's AFIP tax bureau received 1,800 requests for cancellation of tax residence.
In this context, the city of Montevideo appears as ideal for those who want to remain in contact with Argentina, or plan to maintain certain businesses in the country, due to its physical and cultural proximity, Litwak said.
As for Europe, Madrid appears as the first landing place for Argentines, and Miami emerges as the gateway into the United States for many, he added.
In Uruguay, citizens of a Mercosur country are entitled to a speedier process with fewer requirements, Infobae explained. In Uruguay and The Bahamas, there are no exit, gift, or inheritance taxes. The Bahamas also has no income or revenue taxes.
Uruguayan law allows migrants to be exempt from foreign income tax for a period of 10 years. At the end of this period, a 7% rate will be established, instead of 12%, but it will be for an unlimited period of time,” Litwak acknowledged.
In Portugal, there is no wealth tax. There is stamp duty on gratuitous transfers in favor of the spouse or common-law partner, descendants, or ascendants (except for real estate). When planning an international move, it is important to take into account aspects such as entry and residence requirements, he added.
Meanwhile, businessmen interviewed by MDZ Radio have underlined the advantages of settling in Paraguay, as opposed to Argentina's permanent hurdles to people willing to invest.
Mendoza businessmen Fernando Espina and Mauricio Badaloni explained in an interview with MDZ Radio how Paraguay has become a Latin American industrial pole and Argentine entrepreneurs go there. Paraguay is taking away the industries of South America, [while] we are with a policy which is always looking inwards.
Following Badaloni's comment, Espina said that just two months ago he visited Paraguay after an invitation he received from that country.
Paraguay has its doors open. I met with everyone, except the President, because he was not in the country at that time, Espina explained. They are very much interested in the electromobility project and they have an industrial promotion with a stable macro, the guarani is a currency that does not devalue, importing is easy. I found a very interesting country to do things, said the co-founder of Enerby, a company that manufactures electric bicycles.
He also said Paraguay was the spearhead for Latin American production. Because today countries are aiming to stop being 'Chinese-dependent', for several reasons, and start producing with Latin America in mind.
Badaloni also noted that Paraguay had an energy surplus which it decided to make available to industrialists so that factories settle there. They captured many industries, for example, very important Brazilian industries. The process is very simple, as opposed to ours, which is blocked on all sides.
When you go to Paraguay you ask three times if what they tell you is true, 'Can I really export and you only charge me 1 percent?', 'Are there no taxes? And they tell you: 'how are we going to impose export taxes?'.
Argentine President Alberto Fernández is pushing for yet a new increase in export duties to finance the country's budgetary deficit.
There are countries where even the president welcomes you if you are going to be an investor. But we expel [people], Badaloni stressed. There comes a time when you have no choice but to take the project to another country,” he added.