Uruguay is considered a magnet for Argentine investors due to its legal security, tax benefits, ease of access to properties and residences, and proximity, among other aspects.
It is well known that the COVID-19 situation has affected the economy of almost all countries in the world since sanitary restrictions have led to the closing of borders, the closure of certain commercial areas and conglomerating activities, and promoting home office, among others to safeguard the lives of their populations.
Now, with the gradual reopening of all types of activities, investors are looking to improve their economy in every sense. In the case of Argentine investors, they see Uruguay as a country where their money can pay off.
As El Ámbito pointed out, the key factor of interest in choosing Uruguay to preserve their capital is clear: legal certainty, tax benefits, ease of access to properties and residences, and proximity.
In terms of legal certainty and tax benefits, Uruguay “offers clear and consistent government policies. The Promoted Housing option has a 10-year tax exemption in central and accessible areas of the city. The proposal has led to the development of buildings to buy units and rent them in a safe market with a lot of expansion potential,” the newspaper reported.
Likewise, those who choose this type of construction receive important benefits consisting of 100% exemption from income and property taxes and 2% exemption from ITP (Impuesto a las Transmisiones Patrimoniales – Property Transfer Tax) on the first sale.
In addition, they have the lowest ticket proposal that allows the investor to ensure liquidity in case he/she needs the money immediately. Finally, profitability in dollars is assured as a consequence of the continuous demand for rentals, mainly from the middle class.
Regarding residency, “in addition, in recent times and considering the clear expansion of foreign investments in the city, the State understood that it was essential to continue encouraging growth if the stay was facilitated. That is why the government lowered the amounts required to settle in the country, and the residency process became simple, not involving too many steps,” the note argued.
According to the aforementioned, Uruguay is a clear example of how to reactivate the economy and attract investors to a country. Thus, Uruguay will be benefited from the increase of investors and Argentina from the attraction of future income.
Source: Ámbito 16/08/21