A mini-war across the River Plate

摘要

FRANCISCO, AN ACCOUNTANT, sips Coffee in a cafe as he explains why he would move to Punta del Este, Uruguay's most famous beach resort, from his native Argentina. "I can't sit back and watch my government drain my pension pot empty over the next few years with crazy taxes." Arturo, a business owner from the province of Buenos Aires, joins the conversation. "I've moved already, and my family will follow when the school year ends." The Peronists, who won back power in Argentina last year, had started "class warfare". The exchange on Calle Gorlero, Punta del Este's main shopping street, suggests that the drive to attract new residents to Uruguay, launched by the country's conservative president, Luis Lacalle Pou, is beginning to work. On June 11th, three months after taking office, he issued a decree making it easier for foreigners to settle in the country. It reduces the value of property a person must buy to qualify for residency from $1.7m to $380,000. For business owners, the minimum investment has been cut from $5.5m to $1.7m. A five-year tax holiday for both sorts of newcomer has been extended to ten. Foreigners need no longer spend six months every year in Uruguay to qualify for residency. From July 1st the minimum stay is 60 days. The legislature endorsed the changes in August.