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New Law Improves Access to Tax Residency in Uruguay

New Law Improves Access to Tax Residency in Uruguay

In June 2020, a new decree was introduced to improve access to tax residency in Uruguay. According to Forbes, the country is considered one of the most favorable places to obtain residency and a second passport. Uruguay is characterized by being a country open to investment with a migration policy that provides a framework of public, legal and economic security for foreign nationals who decides to settle in Uruguay. On 11 June, President Luis Lacalle Pou announced Decree 163/20 in order to make the requirements for obtaining tax residency in Uruguay more flexible. A natural person who meets new eligibility requirements based on economic interest can obtain tax residency in the country. The Decree aims to stimulate investment on the premise of generating employment and improving social welfare for residents of Uruguay. Key points from Decree 163/20 to obtain tax residency in Uruguay According to Forbes, Uruguay is considered one of the most favorable places to obtain residency and a second passport. The new Decree outlines 2 key conditions to obtain tax residency in Uruguay: Investment in properties for a value greater than UI 3,500,000 (approximately US$370,000) made as of 1 July 2020, and an effective presence in Uruguayan territory for 60 days in the calendar year.Direct or indirect participation in a company with a value greater than UI 15,000,000 (approximately US$1,585,000) made as of 1 July 2020 and that generates at least 15 new direct jobs in a dependent employment relationship, hired from from 1 July 2020. Previous regulations for tax residency Previously,...

Challenges to Business in Panama and How to Overcome Them

Challenges to Business in Panama and How to Overcome Them

Understand the challenges you might face while expanding your business to Panama and how to overcome them.  Panama has been one of the fastest-growing economies in Latin America, with an average economic growth of 4.6%. The country supports furthermore foreign direct investments by granting fiscal and commercial benefits, such as tax incentives. The consistent growth, the policies to attract foreign investment and its strategic geographical position make Panama an international hub in Latin America. However, doing business in Panama requires familiarity with the Panamanian workforce law and the understanding of the challenges that might come up. This article outlines some of the most significant challenges when doing business in Panama and exposes how to overcome them.  1. Bureaucracy processes for business in Panama If you're planning to do business in Panama, learn the basics of the Spanish language.  The initial challenge to face while incorporating your business in Panama is the market entry. In Panama, the process of establishing a company can be extensive if you´re not familiar with local legislation and institutions.  In Panama, many processes require personal assistance of the investors to be or their representatives to the public institutions. The way to overcome this issue is to spend time in the country before incorporating a business in order to build commercial relationships. In addition, working with a commercial associate who can help you to understand the business culture and assist you with the incorporation of your business in Panama...

Manage Your Business Risks With Due Diligence in Bolivia

Manage Your Business Risks With Due Diligence in Bolivia

Due diligence in Bolivia is the best way to ensure the safety and security of your business operations in the country. Future business executives should be aware of the challenges they may face when doing business in Bolivia, such as the local legislation, market behavior, and appropriate risk management. Undertaking due diligence processes will significantly improve your ability to make informed decisions when doing business in Bolivia. These processes provide business owners with critical information about companies and partners, including an extensive analysis of financial, legal, labor information, or even environmental practices. Carrying out due diligence will significantly improve your possibilities of making better decisions when doing business in Bolivia. Understanding due diligence in Bolivia Processes for due diligence in Bolivia for market entrants include in-depth investigations to analyze the profitability of expanding a new business. Collected information helps to evaluate the risks that executives may face. A local third party can carry out the appropriate market research to give comprehensive and knowledgeable feedback to the company. Both parties can operate under a confidentiality and exclusivity agreement to undertake this work. With the information gathered from due diligence research, executives can understand potential strategies, liabilities and contingencies to enter the market. Why is due diligence important in Bolivia? Bolivia’s economy has grown considerably in the last few years due to the extraction and export of natural gas, silver, zinc,...

Why are Foreign Companies Choosing to Do Business in Uruguay?

Why are Foreign Companies Choosing to Do Business in Uruguay?

Find out the benefits and incentives to do business in Uruguay in 2020. Despite turbulent economic times in Latin America due to COVID-19 restrictions, Uruguay remains an increasingly popular destination for expanding businesses. Uruguay is a small country with approximately 3,500,000 inhabitants. It is a founding member of Mercosur and for the last decade its political and economic stability has attracted the attention of foreign investors seeking to incorporate a company and do business in Uruguay. In Uruguay, foreign direct investment (FDI) has reached record levels, making the country one of the top receivers of FDI, in terms of GDP in South America. This growth in foreign investment is associated to its attractive free zones, free trade agreements, as well as its participation in Mercosur, ALADI and other regional blocks. Doing business in Uruguay is promising in 2020 given its pro-investment policies. Doing business in Uruguay The country has a pro-investment policy that eliminates restrictions on the use of foreign capital, allowing for free movement of capital and bank secrecy. In September 2019, the creation of a new legal entity, a Sociedad Anónima Simplificada, or SAS, sought to boost business in Uruguay. This new structure minimizes the costs of incorporation, streamlines the process of creating companies in Uruguay by promoting the use of digital platforms in all phases of the process, and allows companies already incorporated in the country to transform their legal entity to a SAS. Laws that promote business in Uruguay The Uruguayan...

Potential for Stronger Colombia-China Trade Relations

Potential for Stronger Colombia-China Trade Relations

In recent years, market observers have recognized a high potential for stronger Colombia-China trade relations. As many know, China is the second-largest economy in the world. Colombia is the fourth-largest economy in whole Latin America. A pairing like this offers strong potential trade channels for exporters and importers operating in Colombia.In the last decade, all of Latin America’s economies have grown more accustomed to receiving Chinese investment and commercial attention. China is the biggest trading partner for Brazil, Chile and Peru. As part of that, Brazil received US$66 billion in Chinese investment, Peru US$25 billion and Chile US$9 billion. Chinese trade with Latin America jumped to US$225 billion in 2016 from US$12 billion in 2000, according to Jason Marczak, Director at the Atlantic Council. We outline the potential for a stronger context for Colombia-China trade relations and opportunities for multinationals to enter the market. Overview: current Colombia-China trade relations With Colombia-China trade relations strengthening in recent years, China has become Colombia's second-largest trading partner. Colombia is now China's fifth-largest trading partner in Latin America. In 2018, Colombian imports from China reached US$4.06 billion. Top 10 imports from China in 2018 include (table adapted from TradingEconomics): Colombia imports from China in 2018ValueMineral fuels, oils, distillation products$3.48 billionIron and steel$297.79 millionCopper$171.67 millionCoffee, tea, mate and spices$16.66 millionOres slag and ash$15.46 millionRaw hides and skins (other...

Costa Rica Promotes Sustainability and Growth Through Business Development Initiatives

Costa Rica Promotes Sustainability and Growth Through Business Development Initiatives

Costa Rica business development initiatives strongly support the country’s overall economic growth and welcome foreign business. With dozens of habitats and climate zones, it can be easy to only relate Costa Rica to nature and biodiversity, however, the country’s development has far surpassed economic activities from the primary sector. The growing technology scene and public strategies adopted by the government have contributed to the economy and to create sustainability.  While most Latin American countries still struggle to develop different industries to an advanced level, Costa Rica has worked on this since the early 1990s. The country's energy matrix originates mainly from renewable energies and exports are diverse, including technological devices, agricultural products, forest products, and other various manufactured articles. This diversification has contributed to billion-dollar worth of exports in both, the technological and the agricultural industries. Businesses seeking a market with demand and supply of renewable energies, high technological innovation and support for foreign investment can look to Costa Rica. In this article, we touch upon Costa Rica business development initiatives to boost entrepreneurship and business activities. Costa Rica’s business development initiatives One of Costa Rica's greatest business development initiatives is the Zona Franca. Costa Rica has a tax-free regime to boost investment, known as the Zona Franca Regime (FTZ). FTZ provides tax exemptions to business in especified industries. These exemptions are not indefinitive...

Development Activities Generate New Business Opportunities in Panama

Development Activities Generate New Business Opportunities in Panama

Find out how new development initiatives and activities offer new business opportunities in Panama. The Panamanian economy recently has experienced significant growth, which is related to diverse development strategies within the country. As Panama was the first Spanish colony on the Pacific in 1501, the country went through a long history of development since then. After the independence of Spain in 1821, Panama became part of Gran Colombia. In 1903, Panama gained its final independence with the help of the United States.  Being the bridge between North and South America, Panama is moving towards fostering a high-income economy. As part of that, the gross domestic product (GDP) per capita has grown at an average rate of almost 6% annually. Furthermore, the multi-dimensional review of Panama (MDCR) considers the country one of the most dynamic economies in Latin America. New business opportunities in Panama are emerging as a result of a focus on human and social development, sustainable development, tourism and exports. Human Development agenda to drive business opportunities in Panama According to the Ministry of Economy and Finance (MEF), Panama ranks fourth in the Human Development Index in Latin America. Due to increased life expectancy, average number of years spent in schooling and gross national income (GDP), Panama is considered a high development country.  This economic growth has contributed to a reduction of Panama’s poverty. Despite that, the OECD Development Centre reports a a remaining inequality in society. Particularly, inhabitants of indigenous...

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