ARGENTINA Trends and Developments Contributed by: Herberto Robinson and Micaela Cagnoli, McEWAN
Fiscal and legal trends As mentioned, Argentina has been (correctly) per - ceived as a country with a high tax burden and sig - nificant tax complexity. Recently, attempts have been made to reverse this “perception” by implementing laws and reforms aimed at making the tax system more transparent and by encouraging people to regu - larise undeclared assets and to prepay certain taxes (eg, the wealth tax), obtaining a reduction in the rates applied to such prepayments. This regulation establishes a voluntary and temporary regime to which individuals and legal entities ‒ wheth - er residents or non-residents ‒ may adhere, allow - ing them to declare assets located in Argentina or abroad without criminal or tax penalties, in exchange for the payment of a special rate. Complementarily, an optional advance payment scheme for the wealth tax was introduced, allowing taxpayers to prepay this tax for fiscal years 2023 to 2027 inclusive by apply - ing decreasing rates: 1.5% for the year 2023, 1.25% in 2024, 1% in 2025, 0.75% in 2026, and 0.25% in 2027. This scheme offers tax predictability to those who adhere and represents a tangible incentive to regularise assets and establish fiscal residence in the country. Moreover, it is important to highlight other fiscal trends currently in force that are comparatively advantageous relative to other jurisdictions. Among them, it is worth noting that: • Argentina does not levy inheritance or gift taxes at the national level (only in one of the states ‒ name - ly, the Province of Buenos Aires); • Argentina does not impose an “exit tax” or taxes for changing fiscal residence; • Argentina has free trade zones, promotional regimes (in lithium, technology, and agroindustry), and treaties to avoid double taxation with several European countries; • the effective tax burden for pre-residence fiduciary planning structures can be substantially lower than the nominal one; • individuals resident in Argentina are subject to income tax on their worldwide income at a pro - gressive rate ranging from 5% to 35% (with differ - ential treatment for gains derived from the sale of
ian landscapes, the southern Atlantic beaches or the vineyards of Mendoza, Argentina offers varied ecosystems that adapt to different preferences, without the urban overcrowding of Europe. • Compatible cultural framework ‒ Argentine society maintains strong ties with Europe, both culturally and linguistically. The architecture, language, gas - tronomy and social life are familiar to the average European citizen, all of which facilitates integration. • Tax and fiscal opportunities ‒ although the Argen - tine tax system is complex, it can offer advantages for Europeans with passive income, offshore com - panies, or wealth-optimisation strategies, provided there is adequate planning. The combination of double taxation treaties and the possibility of fis - cal redomiciliation (for individuals/corporations) is attractive. • Ease of migration ‒ Argentina maintains open migration legislation, especially for European citi - zens. Access to temporary and permanent resi - dence is straightforward, with accessible require - ments and no need for a minimum investment in most cases. Main destinations within Argentina Argentina is the eighth-largest country in the world, with a surface area of more than 2.7 million square kilometres. Its territory includes a diverse geography, featuring glaciers, subtropical forests, fertile agricul - tural plains, and Andean mountains. It also possesses strategic natural resources ‒ from enormous reserves of lithium and unconventional gas, to productive land that supplies the world with food. The main regions in Argentina (and their main attrac - tions) are: • Buenos Aires ‒ cosmopolitan urban centre, with access to services and culture; • Mendoza ‒ vineyards, European lifestyle, and prox - imity to the Andes; • Bariloche ‒ nature, lakes, and year-round tourism; • Córdoba ‒ university life and youthful dynamism; • Southern Patagonia ‒ tranquility, land investment, and adventure tourism; and • the Atlantic Coast ‒ seaside residential options.
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