Uruguay, the Bahamas and Portugal are among the countries where Argentines benefit the most from a tax standpoint if they have to choose a place to move to, according to data from the Argentine lawyer. Martin LitwakCEO and founder of Untitled SLC, a legal services firm specializing in international real estate planning and the creation of investment funds.
“International relocation is one of the most widely used estate planning tools. When you move from one place to another, you do so for a purpose that is not always focused on the issue of ownership; there may be reasons related to family, work, and quality of life, depending on the profile of each person or family, but Obviously, the impact on heritage is the same,” Litwak explained.
There are about 6000 Argentines who have applied for immigrant residence in Uruguay
According to data detailed by the Uruguayan government, about 6,000 Argentines have requested immigrant residence in that country, while AFIP reported that there are 1,800 requests to deregister for tax residence.
“In this context, Montevideo seems ideal for those who want to keep in touch with Argentina, or plan to maintain some business in the country, due to the physical and cultural proximity. As for Europe, Madrid seems to be the first landing for the Argentines and Miami has emerged as the gateway to the States United for many,” the lawyer explained.
However, the countries that offer the greatest benefits to Argentines, from a financial point of view, are Uruguay, the Bahamas and Portugal. In the case of Uruguay, Argentines must take into account that there are two types of legal residence: temporary and permanent. In any case, the reason for the application must be justified, and in the case of permanent residence, evidence of minimum economic support must also be certified.
Residents belonging to a Mercosur country must perform a shortened process in which fewer requirements are requested and do not have the obligation to provide a justification at the time the procedure is carried out.
In Uruguay and the Bahamas, there are no exit, gift, and inheritance taxes. The Bahamas has no taxes on income or dividends
In the cases of Uruguay and the Bahamas, there are no exit, donation and inheritance taxes. The Bahamas has no taxes on income or dividends.
Uruguay imposes an income tax of 10% to 36% on income from domestic sources; 12% of furniture income generated from abroad. The tax on dividends is 7% and on shareholders’ equity from 0.2% to 0.7%.
Another point to consider is the “tax exemption” or tax holiday that Uruguay offers to new residents: “This benefit allows an immigrant to be exempt from foreign income tax for 10 years. At the end of that period, 7% will be set, instead of 12,” Litwak explained. %, but it will be for an unlimited period.
In the case of Portugal, there is no wealth tax. There is a stamp tax on free transfers in favor of a spouse, common-law partner, grandchildren or assets (excluding real estate).
“When planning an international move, it is important to consider aspects such as entry and stay requirements, the tax system, the existence of tax benefits and tax status in the country of origin, among others. The specialist explained that although citizenship and citizenship are often confused, the two concepts are different.
Nationality is the legal bond that unites a person with the state to which he belongs, giving him a series of rights and duties in relation to that state. However, citizenship is obtained by fulfilling certain conditions, since there are generally permanence requirements.
“It is not necessarily when we move to another country that we become legal and financial residents. In general, both residences have different requirements and peculiarities. To obtain both residences, certain procedures must be carried out, and certain requirements must be met that vary according to the country concerned.”