The economic crisis in Argentina and the uncertainty fostered by the electoral climate in the neighboring country have increased the number of queries from Argentines who seek to settle in Uruguay or transfer at least part of their investments to the country in search of greater security and stability; as reported by different sources of tax studies and business chambers to Ambit.
The phones began to ring even at dawn on Monday, just a few hours after the first electoral numbers were known in Argentina, and while the definitive trends were consolidated that gave the representative of Peronism (Unión por la Patria) and Minister of Economy as the most voted candidate, Sergio Massa and as his opponent in the runoff Javier Milei by La Libertad Avanza (LLA).
This is how he tells it Rolando Rozemblum, president of the Maldonado Business Chamber and of the Punta del Este Promotion and Tourism Leaguewho said to Ambit that, until yesterday, there had already been 11 Argentine families that had contacted the International College —of which he also owns.
To account for the significance of the number, Rozemblum pointed out that “last year, throughout the month of October, we received formal inquiries from 20 families.” This means that, in just three days after the general elections in the neighboring country, he received a 55% of the total volume of inquiries average for the month.
“It is symptomatic and shows very clearly a tendency of intention to settle in Uruguay”, express. He also added that this trend is seen in the increases in inquiries that the company has indicated Anderson, which deals with domicile and tax residency issues; and real estate Covelo.
The search for stability, the engine of queries
Consultations regarding tax aspects also had a large increase, as confirmed Diego Vuille Lafourcadedirector and partner of the tax accounting firm Vuille Lafourcade. In comparative terms, he pointed out that the “boom” in calls is similar to what occurred between 2020 and 2021, in the middle of the pandemic.
According to the accountant, the aspects that most attract Argentines to Uruguay They are exchange security and “clear rules of the game.” “Uruguay offers that: even though there are elections next year, no matter who wins, there are things that are not going to change,” he said.
On the other hand, the Argentine scenario is one of great uncertainty, within a situation already strongly marked by economic crisis —and the few prospects that there will be immediate improvements after the new government takes office. For this reason, the number of consultations grew significantly “from PASSED until today, and very acute between Monday and Tuesday.”
According to Vuille, there were many inquiries from people who had already shown interest in previous situations but whose procedures had not been finalized; but new people interested in learning more about the tax conditions of the country, as well as schools and homes. “The phone has explodedI don’t know if it’s because they feel there’s going to be a lot of instability, “It is not clear what is going to happen,” said the managing partner of Vuille Lafourcade.
The feeling of uncertainty was not resolved either with the announcement of Milei’s alliance with Patricia Bullrich, who came third in the elections. “The calls as a result of uncertainty did not stop,” Vuille emphasized. In fact, the queries are becoming more specific, which allows you to understand that there will be a high correlation percentage between those who ask and those who will actually move their businesses to Uruguay, or even settle in the country.
What is the profile of the Argentine who looks towards Uruguay?
The growing interest in recent weeks in transferring investments – which has been recorded since before the first round of elections – or even choosing to live in Uruguay It was also evident on Thursday at the event LatAm Real Estate Buenos Aires 2023 editionin which investment projects from the different departments of the country were presented, with great emphasis on the options presented Cologne and a large influx of people at the different panels of the event.
In this regard, Vuille identified two clear profiles among the people who consulted in recent days: on the one hand, seniors with high net worthtotally or partially retired from their work activity, with the intention of “gaining peace of mind and financial safeguard”. Besides, medium and large companies who seek to “put a foot” in Uruguay to “overcome those ups and downs that may occur Argentina” and “gain some stability in times of uncertainty.”
“Many times what is sought is the partial transfer or transfer of a business area to minimize risks, or to serve international markets in Uruguay to be able to receive foreign currency,” he explained.
At the tax level, the biggest questions revolve around the tax advantages that Uruguay offers in terms of investments and assets outside the country, as well as their eventual repatriation, based on the entry of foreign currency without restrictions. “The rules of the game are clear and they are not going to impose surprise taxes. The tax rate is stable regardless of the political color of the government, which gives it security for the saver, the investor and the companies“, pointed out the accountant as aspects that today attract Argentines, who see Uruguay as a refuge from the uncertainty that exists on the other side of the border.