The exchange crisis affects Argentinians who have homes in Punta del Este, but it has caused more and more local companies to want to flee.
Argentines seek refuge in Uruguay from the economic crisis, but Appreciation of Uruguayan peso adds to local devaluation, Forcing property owners in Punta del Este to sell because they can’t pay the expenses,
However, due to official policies, Other invest in “safe bricks”, Rent Apartments in Montevideo, OR channel their companies through neighboring countries.
in Argentina, The blue dollar was trading at $131 on August 31, 2020 And, exactly 2 years later, it’s up to $290. in recent weeks it it was close to $500, with whom nearly quadrupled its value in less than three years,
,In Uruguay, a reversal position was verified“, assures iProUP Gerardo Tasende, Principal Partner of GTS Uruguay Public Accountants, who specifies that, “While the inflation of the last 20 years reaches 200%, the increase in The dollar was up 27% over that period“, which means the notorious increase in the cost of the US currency in the neighboring country”.
Tasende summarizes the situation thus: “If an item costs US$1, which was equivalent to 30 Uruguayan pesos in September 2002With the update by the Consumer Price Index (CPI), it is now worth 91 uruguayan pesobut it shows about 30 april $2.35″.
Even then, The number of Argentinians applying for residency and relocating their businesses to the other side of the Río de la Plata is increasing.
5 results for dollar to argentina in uruguay
Jonas Bergstein of the Bergstein Abogados law firm of Montevideo summarizes five main results difference in exchange rate policies For Argentinians seeking asylum in Uruguay:
- intensity of immigration clause to the east
- zodiac pronunciation Argentina who are processing tax residency in that country
- Albiceleste refuge for investors in the real estate market of UruguayTaking advantage of this, aim to invest in “safe bricks” construction profit
- increased trend of Argentinian businesses wishing to settle in Montevideolike a recent example of pharmacy
- at the company level, Find legal platforms and legal solutions throughout Uruguay (free zone, free port regime or international trade)
What about the traditional mansions of Punta del Este
Tasende warns that “the currency crisis affects purchasing power and purchasing power of Argentines abroad, which causes property owners have difficulty covering expenses and other taxes local,
,This generates that many owners, for example, have summer houses in Punta del Este. break away fromBecause of the difficulty of maintaining them or as an opportunity to hold onto dollars and meet consumption in Argentina,” he explained.
Experts point out thatThere is a significant supply of properties for salemainly from Punta del Este, and in most cases owner is argentina,
In the real estate market in general, which includes subsidized apartments for housing, That they are a very good investment, assures Banchero Real Estate that “after the World Cup and the holidays, a period in which inquiries from Argentina decreased, they reappeared during the summer.”
“There was a strong closing of operations in March, up more than 40% over the same month in 2022. Since then, there has been less time between exclusivity consultation and procurement, decision making is too fast, He Argentina more determined to finalize the transaction“, Belief.
Marcos Galperin, CEO of Mercado Libre, was one of the “leading” businessmen in the Uruguayan exodus before the pandemic
And he adds: “Another peculiarity compared to previous years is that we are Getting investors from Rio Negro, Corrientes, Mendoza, Cordobaand so far they were almost always portinos”.
How the Qatar Dollar and the Currency Crisis Affected Tourism
Although Argentine tourism to Uruguay is stagnant, loyal to neighboring beaches this summer were not deterred by either the Qatari dollar, which makes card purchases in dollars more expensive, or the rest of the current sanctions.
“It can be assumed that, due to the currency crisis, the number of people traveling and tourism will decrease. But between January and March, 716,548 passengers arrived from Argentinarepresented by 2.6% higher than in 2019Tasende says.
He stressed that “another important indicator of the impact of the currency crisis is Notorious increase in applications for legal residence of citizens of Argentina in Uruguay”.
How the flight of people and companies to Uruguay continues
Tasende commented This figure was barely reached by 2019 2,000 citizens per year, but they climbed,
- ,6,816 applications in 2020, despite borders being closed,
- ,12,489 new legal residents in 2021, a record year,
- ,7,209 applications for legal residence in 2022,
“Therefore, they have done a total 26,514 Argentinians are establishing their residence in neighboring country last three years“, he insists.
Argentines are selling their summer homes and betting on buying subsidized apartments to rent
Tasende confirms “a very noticeable increase in new customers from Argentina which structured their activities from UruguayEstablishment of offices and staff; their operations notably increased with higher hiring of personnel or new opening of premises; and even with relocation and establishment to be with their families”.
“In the last two years we have also supported many well-known Argentine companies that transferred part of their activities and established them in several free zonesTaking advantage of tax exemptions, both for the physical passage of goods and for the development of service activities abroad,” he pointed out.
“I know too add multiple projects which will mean more transfersJob creation and more growth for Uruguay, driven by Argentine businessmen,” he says.
What are the main ways to save tax
according to experts, Formats provided by Uruguay to file companies And getting tax benefits are as follows:
1. Free Zone
currently they are nine areas that provide tax exemption for business formation, Bergstein lists the main benefits:
- Entry of goods into free zones and their exit abroadnot including Uruguayan territory, Are tax free (vat included),
- Exempted from income tax if more than 75% of employees are citizens of Uruguay (IRAE), among others.
- Dividend distribution is not taxed
2. Free Port
Organizations operating in the ports of Uruguay benefit from the preferential tax regime (called free port regime), Bergstein highlights that benefits,
- non resident income tax
- wealth tax
- the tub
- other import taxes
Free port regime applies All Uruguayan ports and terminals have the capacity to receive international vessels.Including Carrasco Airport.
International Business Activities (Trade)A foreign buyer is defined as the acquisition of goods from a foreign supplier for the purpose of resale, without transferring these goods to the territory of Uruguay, They also enjoy tax benefits,
Thus, the Uruguayan entities that carry out this activity benefit from the option of payment IRAE on a lesser computed basis of 3% on the difference between the purchase price and the resale price,