South American Real Estate News

Uruguay removes one of the last Tax Advantages favouring foreigners.

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Punta del EstaUruguay removes one of the last Tax Advantages favouring foreigners.
For many years now investors could own property ( excluding farms ) and companies using a company structure called Bearer Bonds.  Bearer bonds have historically been the financial instrument of choice for money laundering, tax evasion, and concealed business transactions in general.

Most favoured by Argentines  Uruguay’s removal of the right to use this instrument ends one of the last loopholes to hide information from the AFIP ( Argentina Tax Authority ) on properties in Uruguay, after it came into force in February 2013.  The Treaty of tax information exchange that enables the authorities of Argentina and Uruguay to access information on banks, financial institutions, agents or trustees, data related to the ownership of partnerships, trusts and foundations. This is now happening.

It is estimated that Argentines have some 3,000 million of deposits in Uruguayan banks. The Organisation for Economic Cooperation and Development ( OECD ) had demanded Uruguay sign tax transparency agreements with Argentina and Brazil to get out of the “Gray list” of “tax havens” suspected of money laundering. This has had an immediate effect of slowing real estate sales down in Uruguay and pushing investors into using other options.

Contact the Gateway to South America team to learn about the best investment opportunities in the region. The company is a benchmark for foreign investors wishing to invest in Argentina, Brazil, Chile, Paraguay, Peru and Uruguay, providing expert advice on property acquisition and investment tours. #adp02

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