Uruguay becomes a destination for Argentines who want to pay less tax

A population dispute has arisen between Argentina and Uruguay. According to a report in The Economist, Argentinians are dissatisfied with the tax policy of Alberto Fernandes‘ new Peronist government, while Uruguay facilitates the entry and establishment of foreign migrants in their country.

„I cannot sit back and watch my government drain my pension over the next few years with crazy taxes,“ said Argentine accountant Francisco, who moved to Punta del Este, to The Economist’s report.

Another interviewee, businessman Arturo also says that he has already moved to the other side of Rio, „the Peronists, who regained power in Argentina last year, started the „class war.

Uruguay has a relatively large territory for only 3.5 million inhabitants, facing a falling fertility rate. Luis Lacalle Pou, the country’s current president, has launched measures to make it easier for foreigners to settle in the country, targeting Argentines in particular.

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On June 11, the first decree was made that reduces the value of property a person must buy to qualify for residence from US$1.7 million to US$380,000. Entrepreneurs who previously had to apply for a minimum investment of US$5.5 million have now moved to US$1.7 million. The six months required to reside in the country to qualify for residence have become just two.

In addition, Uruguay is an example throughout the West in the fight against covid-19, while Argentina faces a growing number of deaths each day. Even without a vaccine, the country has registered only 48 deaths so far and about 2000 cases since the beginning of the pandemic.

On the other side of the Río de la Plata, the Argentine government makes life difficult for the rich with an annual tax of up to 2.25% on the world’s assets of citizens and residents. A further wealth tax of more than $3 million is under discussion in Congress. Meanwhile, Lacalle Pou has granted 10 days of tax exemption to immigrants.

Alberto Fernández also responded to the exodus that Argentina now faces by stipulating that Argentines moving for tax purposes must live in their new homes for at least six months of the year, with only 90 days per year in Argentina. At present, some 20,000 Argentines are registered to cross the river this year into Uruguay.

Translated with www.DeepL.com/Translator (free version)