Open a Trust in Argentina - We Provide Legal Advice to Foreigners
Open a Trust in ArgentinaUpdated on Sunday 28th August 2022
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Trust in Argentina can be formed to properly manage personal assets. You must have a trustee to act in your interest. And to get a complete idea about the legal formalities of the trust, we invite you to talk to our lawyers in Argentina. In this article, we will review some information about trusts in Argentina.
How does trust work in Argentina?
There are two types of trusts in Argentina, the revocable one in which the founders can request revocations of assets, as well as the irrevocable one in which the beneficiaries are the only ones who can manage the respective funds. But you can find out other information in this regard below:
- A trust in Argentina can be established with the establishment of a company. Charitable donations are also accepted as a structure for registering a trust in Argentina.
- The Civil and Commercial Code allows the trustee to be the beneficiary of the established trust in Argentina. It is, however, advisable to avoid potential conflicts of interest.
Considering these aspects, we remind you that you can talk to one of our experts in the field. Also, if you are interested in immigration to Argentina, you can benefit from specialized advice on formalities, collaborating with our immigration lawyers in Argentina.
Tax benefits of trusts in Argentina
Trusts in Argentina can be considered common investment funds if certain criteria are met. Therefore, income tax is excluded, but it must be proved that they have no foreign-source income.
Also, there is no withholding tax for revenues distributed by the trusts in Argentina. However, there is a capital gains tax of approximately 13.5% that applies in the case of disposal of a contribution in the trusts in Argentina. Here is other useful information:
- If trusts are liquidated within 5 years from the date of establishment, a withholding tax of 31.5% may be imposed on what has been accumulated and not distributed.
- But if the liquidation is done within 10 years from the establishment, there will be no withholding tax rate.
You can find out more about this matter from our lawyers in Argentina. You can also ask us for information about immigration to Argentina if you are thinking of moving your business to this country.
FAQ about trusts in Argentina
1. Can the beneficiaries of a trust in Argentina be changed?
It is possible to change the beneficiary of a trust in Argentina. This is done with the agreement of the protector of the trust which may include certain family members as well as other people who are not related to the said family.
2. Is it possible to ask for the distribution of trust in Argentina?
Yes, if there are no restrictions in this regard, especially those imposed by the founder, the beneficiaries can request the distribution of the respective trust. However, the taxation of trust in Argentina will be taken into account, before its distribution.
3. What happens if the founder of a trust has deceased?
Normally there must be a letter in which the founder stipulates what happens to the trust in Argentina after his death. Even if there are exceptions, the distribution of assets to the beneficiaries will be considered, especially if minors are involved.
Regarding investments in Argentina, the country offers multiple possibilities for development. The following information may be of interest to you:
- The establishment of a company can be done with a minimum capital of ARS 100,000 and one shareholder.
- Over USD 98 billion was the total FDI in Argentina in 2021.
- Also in the same years, several companies from China invested USD 1 billion in Argentina.
Those interested in opening a trust in Argentina can contact our law firm for specialized legal advice. You can also collaborate with our immigration lawyers in Argentina for legal advice in this regard.