In the latest chapter of crisis argentino creating oportunidad uruguaya, Argentine service export companies are rushing to open offices in Montevideo in order to circumvent currency controls and ultimately boost their bottom lines by over 50%.
Companies Exporting From Uruguay To Avoid Exchanging At the Official Rate is the headline of Mariano Gorodisch’s expert analysis in Cronista which summarizes several trends we monitor daily: the impact of currency controls, the boom in Montevideo commercial real estate, the new construction pullback in Maldonado and the money-saving advantages of a contado con liqui transaction.
“There is a boom of Argentina export companies opening Montevideo subsidiaries in order to sell their services (from Uruguay),” writes Gorodisch who offers a laundry list of sectors making the move. “Technology, software, design, logistics, law firms and accountants who export services have found the legal solution (with contado con liqui).”
Instead of settling dollars for pesos in Argentina at the official rate ($5.25), the Uruguay subsidiary can bring dollars through the Stock Exchange and exchange at $8.20, an exchange rate 56% greater than the official rate. Established financial service firms like FDI are experts in this arena.
Another advantage of setting up shop in Uruguay for these companies is the fact that they pay no taxes on earnings generated abroad. Gorodisch says foreign companies can set up an export subsidiary in Uruguay for as little as US$2,000 plus $2,000 a year for an LLC. (Full Story in Spanish)
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