Factors to consider when structuring an inheritance in Argentina
Estate planning, tax reduction, and privacy are crucial factors to consider when it comes to structuring an inheritance in Buenos Aires or Argentina. Offshore companies, trusts, foundations, and investment funds are some of the options available for this purpose. In Argentina, the inheritance tax burden is one of the highest in the world, making it all the more important to plan ahead in order to avoid unexpected surprises.
Inheritance planning can be overwhelming, especially when it comes to taxes and privacy. To structure an inheritance in Argentina, you can consider offshore companies, trusts, foundations, and investment funds. These options can help reduce taxes, time, and costs.
To get started, it’s crucial to know your family’s unique needs and goals. Some families prioritize reducing or deferring taxes, while others focus on inheritance or a better privacy protection. Good planning becomes essential when dealing with members in different countries or disabled members that need special care.
When it comes to taxes, Panama and Paraguay are the only two low-taxation countries in Latin America. Other countries like Central America and Uruguay have tax systems based on local income and only charge taxes on locally generated income. Not assets held outside their territories. Argentina, on the other hand, is the second country in the world in terms of tax pressure.
However, it allows taxpayers to set up offshore fiduciary structures for inheritance and/or tax matters. In Argentina, you can incorporate offshore companies into your patrimony. These provide privacy protection and allow clients to later settle their family inheritance abroad. Offshore companies are structured through the issuance of shares with the right of survivorship, shares of different classes, or the preparation of a will under the laws of the jurisdiction in which it was decided to incorporate the family offshore company.
If you are looking to defer income tax linked to the assets held outside the country and save the Personal Property Tax, you can move to the irrevocable and discretionary trust. Which is accepted by legislation, doctrine, and jurisprudence. If you’re not entirely convinced about irrevocability, you can set up a revocable trust or a private interest foundation. However, these options are more suitable for inheritance and asset protection, not tax.
Finally, investing in an investment fund is another option to defer income tax when the figure of the trust is not advisable. Taxpayers can also set up a special investment fund for a family. It is an option not without complexities that is only recommended for specific cases.
LIMERES is an Argentine inheritance law firm which can assist with tax matters, trusts and powers of attorney specific to an Argentine inheritance.
To learn more visit: Limeres.com or contact us through WhatsApp at: wa.me/+5491141620021