'Expats vs Millionaire Uruguayans' Retirement

Expats vs Millionaire Uruguayans

"If you have 1 million dollar deposit (abroad or in Uruguay), and you earn, say, a 6% annual interest rate; that would give you 50 thousand dollars a year. IRPF is 12% of that, and that is about 7 thousands dollars a year, what the economist said."

"Again, sorry to say but expats are a few number in Uruguay, they don't count at the time of fixing economic policies. I know you may think I should b more polite cause I'm writing in an expat forum; but I prefer to be honest and remind you that you unfortunately are exceptions; tax laws will never be passed thinking in you guys. In the better case, you could ask for reasonable exceptions; but for that you cannot act individually but, as I suggested Patrick, should get together and try to contact our political system to explain your special situation."

Other than how much interest is actually earned, I don't particularly disagree. But, I think the economic impact of expat may be greater than many thing, and more importantly increasing.

I suspect the number of Uruguayans with 1 million dollars in the bank is fairly small, and not a rapidly growing number. I'm also told that many young Uruguayans go to the University and then seek to work/live outside of Uruguay.

So the sake of argument let's say the cost of living for an expat is about US$2500 a month. That might break down to something like $800 for rent, $800 for food in the grocery store and $900 for other stuff.

So this expat will be contributing $800 x .12 = $96 (landlord pays for tax on rental income), $800 x .10 (iva on food in the grocery store): $80, 900 x .22 (iva on other stuff): $190 or a total of $374 in monthly taxes. $4500 a year in taxes and bringing a new US$30, 000 into the economy of Uruguay.

That $30, 000 a year plus $4500 in taxes is simply brought to the economy because someone feels like living here. Of course some live on much less, but others on a lot more.

A few years ago, I recall the immigration statistics showed that about 3, 000 people a year were getting residency. So each year 3, 000 expats more here would be an additional US$90, 000, 000 brought into the local economy and an additional US$13, 500, 000 in IVA. This is money and taxes that Uruguay would never see if those people didn't feel like living here!

Of most importance is that number of expats is rapidly increasing, and not just retired people living on fixed incomes, but also those "telecommuting" who may be much more active participants in the economy.

So, while I agree with Jorge that the politicians not likely to be paying much attention to expats... they could miss out on a great opportunity... one that's simply based on where someone feels like living.

Lee,

If the expat comunity were so important as you think, it would be evident to everibody. Belive me, nobody out of a couple of forums, or some real state agencies in a few areas, even know you exist. Even in this forum, in Southron's and in the monthly events, there are just a few dozens people showing up. You know english speaking people tend to gather for language practice. It's a necessity for anyone living in a different language environment. However, the ones appearing are still a few. I bet argentineans, peruvians, paraguayans, and chileans asking for residency individually triple the Northern Hemisphere retiree characteristic that you are extending to the whole 3.000/year statistic.

Anyway. You can even convince me, but you are not convincing the right ones. Again, if you think you have a case to present, and the numbers to have any influence, go for it. There's no gain in staying home complaining about how changes affect you guys, or how you think affect you. Go and let the people that are processing these changes listen to your reasons and objections.

The point is "too much Uruguayan" I mean Uruguayans care totally about their Country and they forget the outside or foreigners living next to them. We cover ourselves with the Uruguayan Flags and we forget we are part of a large world and possibilities.

Don't forget the large amount of Uruguayan living in others countries like the USA, Australia, Canada, Spain, forming Uruguayan Clubs and Schools etc.

There is a lot of people thinking that way here and they forget that this Country was built(and still is) by immigrants of all nationalities and Uruguay too.

I don't underestimate you, but sometimes I disagree.

Ha ha - sometimes when I listen to you it reminds me, when I live in Cuchilla Grande with my Father and in his "Gallinero" lived this huge rooster that use to chase me.

Cool down. As we say here: Bajá un cambio! There's no advantage in telling the fellow forumers just what they'd like to hear. The situation is this:

a) The World is processing a big change in terms of financial movements, bank secrecy and tax information.

b) Uruguay is accompaniying that change adjusting rapidly to it, both forced by the OCDE and by it's Mercosur partners, and because of local reasons.

c) The change is under rough negotiations. Very important interests are being touched and are fighting back. So the law will be subject to discussions, negotiations and agreements in the political system under the presure of those interest groups. However, no doubt the general trend is what the law draft is expressing. So everybody should assess his/her situation according to the new rules of play (new rules that, as I told you before are not just local, but global).

d) Unfortunately, the expats in Uruguay are not one of those strong groups of interst. I would like to say they are, but they are not. Anyway, that doesn't mean they will be negatively affected but what is happening. I would say they won't change anything of the basis, but they still have the possibility to get exceptions if they manage to express their objections to the political system. Being "not so important", for the economy also has some advantages, and exceptions could be obtained.

So, sorry if I'm being less than diplomatic here. But I think it's more usefull for you guys.

And Jorge, thanks God you are not an oncologist... your patients would dye thinking it was just a flu!

Con cariño, the rooster. :-)))

I went to a party this afternoon and was chatting to neighbours about the proposed taxational changes. Several of them are second and third generation Europeans who kept their nationalities and who have assets overseas.

Later on one of them cornered me and told me not to worry. "We avoid these problems by not using ROU banks and by lying about our incomes and assets" he said. He went on to recommend a couple of local lawyers skilled in the art of obfuscating ownership and doing rapid pre-dated transfers. Perhaps my problem is that I'm not yet Uruguayo enough to just lie, ignore and evade the problems in a calm and laid-back manner :-)

Must try harder :-)

With respect to taxes... the expats pay mostly IVA and Rental income tax (via the property owners), so those numbers never appear with an attribution to the expats (regardless of their numbers).

With very rare exception the expats can't vote, so they have no political voice. Many don't even get residency so they are completely invisible!

But for the economies of where they chose to live, they offer "free" money. Money that is inject into the economies simply because they desire to live there. That is different from the "olden" days when people lived somewhere because they "had to", ie: jobs, natural resources, birth, etc.

One of the most significant changes in the world today is the shift of people starting to live where they want, and for no reason other than a whim or their desire. An important aspect of that is also their ability to relocate on a whim.

It is NOT about: financial movements, bank secrecy and tax information. The changes you talk about are the old systems, the drug dealers and money laundry. The expats are based in a new economic model based on feelings.

Their money goes where they feel good.

Do some research on the so-called baby boomers... and that reflects only the possibilities with respect to retired folks. I believe the working "telecommuters" have the potential to offer a much larger impact.

With incomes are are not fixed they are likely to be bigger spenders in general, and are likely to look at engaging in entrepreneurial type activities, increasing the employment of skilled workers wherever they chose to live.

I saw that the in Philippines but not in Uruguay. I met many Americans and Canadians in the Philippines that had a bunch of people working for them... one Canadian had 8 or 9 Filipinos working in his house all day. Doing high tech computer work.

And several others with fewer workers and I was only there for a short time. In 5 years, I have yet to see one North American in Uruguay with a living room full of geeks working.

I know of hundreds of small and not so small businesses started in Thailand in similar ways.

When I started Phu Kradung Packers in 1968 there were 4 of us but at the height of its success we had 191 on the payroll. Those GIs, sailors and later on tourists could eat an amazing tonnage of french fries :-)

Some places have business-friendly regimes and some don't.

What you describe is part of the Uruguayan culture. I guess most of your neighbours are of age. They are not assimilating some changes that have been taking place. A few years ago, no one had to declare income for income taxes porpuses. The only income taxes to be payed were the IRP that was payed only by workers and pensionists, and therefore directly discounted of your pay check. Also, the IP was widely evaded with multiple tricks in which lawyers and accountants mastered. There was a lot of inmunity, since the DGI didn't have the media to investigate, their inspectors were not very motivated to go after tax payers, and, when they found an infractor, penalties were so light that nobody felt threatened. That lasted for decades, and many people in Uruguay (enterpreneurs more than individual citizens) hadn't changed yet. The country started to change in taxing matters and in the efficiency of its taxing and BPS collecting services a few years ago. This is too new. But evation is now much lower and people know that in some cases they could even go to jail. Belive me, you are being mislead. You are not only being shown the picture, but and old one; you are missing the movie... Your neighbours can tell you how it was before, but I think they have no idea of where Uruguay or the World is going to.

I agree with you in some of your arguments. I think that inmigration of wealthy families implies a development oportunity for the country. By the way, some of the activities that now forms part of the Uruguayan economy where introduced or fueled up by foreing inmigration in various points of our history. We cannot use as examples some developments in the Philipines or Thailand since they are making use of some very special conditions there in terms of cost of labour. Skilled labour in Uruguay is not that cheap. Anyway there may be oportunities of new jobs originated by expats here. But we shouldn't overestimate the weight of this in Uruguay, both in numbers and influence. Most expats in Uruguay are retirees, and most are certainly not starting families or enterprises here. They are, of course, contributing inderectly with the creation of jobs, as any other local wealthy or middle class family of retirees, and that's positive. What I think I don't completely buy is the somehow "romantic" view about the reasons of migrations that I can interpret from your post. As you are an intelligent reader of this and other fora, I know you would agree with me in that expats in Uruguay mostly came for three reasons: 1) Cost of living (mostly link to the exchange rate), 2) Tax beneffits (especially when countries of origin impose a heavy tax burden), 3) The Health System.

Fortunatelly the third reason is a permanent "structural" characteristic of Uruguay, and it won't deteriorate easyly. In fact, it has being enhacing in recent years. The other two, are more changeable. Exchange rate is not that convenient now, since the rulling US dollar and the Euro had suffered a deep value crisis and the Peso stayed relatively healthy. As I said in another post, nobody can asume that the "real" conditions that make the US and Europe rich, have dissapeared. So the dollar and the Euro will recover in the future. However, if the Uruguayan economy continues to grow (and we all hope it will), the conditions that made Uruguay a very cheap place to live in, may not come back. The second reason (the taxing benefits), will also change permantly. Uruguay used to be a financial/tax free heaven. That is changing in a permanent basis, and no matter the hours we can spend in discussing the convenience or inconvenience of this change, it'll be good for everybody to acknoledge that the change will take place. As I tried to explain in other posts here, Uruguay is shifting its development model. It's doing that for a local interest: The "heaven" model brought money to the country but all that money remained in the banks and some specialized lawyers and accountants studios, but never drained to the rest of the people. Most of the exclusion in our society (the carritos, the windshield washers in every corner, the children in the streets, the youngsters with no education and no job stealing purses in the streets, etc..), were the other face of the coin of that model. But even if it had been a successful development model for Uruguay, in the last few years the World and the Region has changed a lot, and are forcing Uruguay to change even more rapidly. It is good for those expats that are motivated by the taxing differences between countries that not only Uruguay but the whole World is changing. There may be progressively fewer and less attractive places where to go if that is your motivation.

But anyway, again, it's not me that you have to convince. Nor any other forumers. As you say, you may be "hidden" for many reasons. Maybe it's time to come up to the surface, organize, learn what your actual numbers and strengh is, evaluate your alternatives, and participate of the discussion where it really matters, within the media and the politic system.

1) Cost of living (mostly link to the exchange rate), 2) Tax benefits (especially when countries of origin impose a heavy tax burden), 3) The Health System.

I think it is really more politically based. As Terry would say, people don't like Obama's policies. Having lived in Uruguay since before the name Obama meant anything to anyone... and people would mention "Bush" as the reason for leaving the USA... it is a deeper political concern than Republican or Democrat. But a deep dissatisfaction with with the evolution of the culture of the USA.

They are looking for a simpler life. A less consumer based life.

Of course an expat when deciding where to live will look at issues of Cost of Living, Tax benefits, Health Care, etc.

I don't believe Uruguay ranks well on Cost of Living (ie: its not a cheap place to live). Other places offer good health care and few tax hassles. Uruguay is simply their choice because they like it here.

"Most expats in Uruguay are retirees" how do you determine that? How do you know how many retired expats are here? How do you know how many "telecomunting" expats there are?

When I say they are "hidden, " I mean they just blend in, not that they are trying to hide.

Asking them to "organize" is contrary to the desire for a simpler life! They aren't looking to fight an aggressive or oppressive "State".

There is where their political power will come from... being nomadic in nature and simply going where they like it best.

The expats are not looking for your "old world".. or your "new world" (USA style oppression and aggression). They are looking for a simple life of balance. The countries that offer that will benefit greatly.

I think it is a completely abstract concept and impossible to understand in your line of thinking. You simply wake up tomorrow and life wherever the hell you feel like it, simply because you feel like it!

When a few people do it, there is little meaning in the big picture. As the world moves to a place where millions are doing it, the economic significance will be tremendous.

Quite possibly Uruguay was quite close with its simple IVA tax system (which of course with slight adjustments would benefit the poor, 'punish' the luxury spenders, and encourage local savings, all with the least bureaucracy).

Here is something to ponder...

• Relinquishing citizenship

I believe that a gang of bandits is plotting to rob me :-)

If evasion is no longer possible all the people with substantial assets (Uruguayos and foreigners) will have to leave as nobody can afford to pay more in taxes than their total income. Alternatively, the nasty gang of bandits masquerading as the government will have to imprison most landowners.

I'm beginning to suspect that there some sort of class warfare going down. The plan seems to be that those who aren't poor Uruguayos are to have all their income and a chunk of their assets sequestrated each year to the greater glory of the FA and any resistance will be dealt with by imprisonment. Perhaps using firing squads might be a cheaper and kinder solution :-)

Only the most stupid and inept bandits rob their victims of all their assets. Intelligent bandits just mug their victims for around 50% so that they can rob the same victims on a regular annual basis. I love living here but I wouldn't if the government took more than my total income annually. How could I pay BPS, UTE and buy food to eat?

Your comment about the proposed law not applying IP to residents' overseas assets just isn't true. I've dug out the law on returning Uruguayos and note that both that law and the proposed tax laws use the term "Uruguayan citizen" to describe the victims. If foreign pensioners with cedulas were viewed as a "Uruguayan citizen" for the returning Uruguayos law, I strongly suspect that the same will apply to the new tax law. The term seems dependent on possession of a cedula rather than nationality or possession of a passport.

Could you afford to pay more than of 100% of your income in taxes? Could anyone?

America's greatest success as a nation has been its ability to provide freedom of choice for its people, in every sense of the word, including and especially in term of the issue of consumption.

Again, what's wrong with that???

And by they way, people who are leaving America to settle in other lands may or may not be disillusiones with this or that. But it is an indisputable fact that there are still a lot more people who want to come to America and pursue the American Dream.

1. From a taxational point of view foreigners with cedulas are 2nd class Uru citizens (as confirmed by the Uruguayan courts) and will be liable to income and capital taxes world-wide.

2. In the case of those whose income derives from owned assets, the combination of income and wealth taxes are likely to exceed total gross income.

3. What would you call a bunch of people who want you to give them more than you earn on an annual basis?

So you are right... the correct FA response is silence because trying to justify extortion will just make them look like bandits :-)

Sorry if I came over as angry with you... I'm disgusted by the actions of Lorenzo and his chums. You say you are a practical person so maybe you can explain to me the practical reasons why the FA wants to take all the world wide income and more from the likes of me on an annual basis? Wouldn't you be a bit concerned if they were proposing to remove all your income and more?

Do you really believe that people like me deserve to be treated in such a way? In my youth I knew people who viewed property as theft and really did believe that it was their civic duty to take the assets of anyone who owned more than they did in the style of Robin Hood. Perhaps this is what Pepe means by Social Justice?

As far as I see it, the foreign resident with a cedula (who I'll call a quasi-citizen for short) has three legal choices should the law be passed.

He can hand over his entire income plus a proportion of his capital each year and try to live on the remaining capital until that is gone. Once it was all spent, being only a quasi citizen, I doubt if he would qualify for the various hand-outs that fully configured impoverished citizens receive.

He can attempt to rid himself of his wealth by reorganizing his affairs using overseas holding companies to "own" his former assets and pay himself income in the form of a non asset based pension. This would leave him liable to no more than double taxation on income (about 45% in my case) but maintaining such overseas holding companies isn't cheap.

He can leave the ROU and keep both his income and capital.

If these were your choices and like me, you enjoyed living in the ROU, wouldn't you be upset with the perpetrators?

Your accusation to the Frente Amplio are not fair and I want to remind you with all my respect, that the Leaders (Lacalle and Larranaga) of the Partido Blanco agree with the Frente Amplio about this PROJECT so I think that you should take your anger to all the Politicians in Uruguay and not one sector.

I'm not PRO Frente if I'm something, I'm a proud Democrat in the United States and according to my Wife a pain in the ...

I think you need a drink, Jameson sounds good.

Alberto the taxes in the United States went down since The Democratic Party is in the White House, the Automobile industry is back, the Banks already paid back most of the Loans, the Stock Market, S&P for example is up 39% for the last 12 months. It's not easy to fix what took 8 years to screw up. The propaganda in Colonia is like the one in the United States.

I keep insisting that a long table, Pasta, a few Patricias and friends is the best for good and friendly discussions.

I would like to know better what exactly happened with your in flight container, and what exactly was the interpretation of the Customs Authorities and the Supreme Court. I tend to believe there is no arbitrary intentions there (specially in the Supreme Court), but changes in regulations and errors in interpretation (including errors of the Supreme Court) may occur. However I cannot tell for sure if I don't see the documents.

As far as I know, there is a law allowing uruguayan emigrants to bring in their personal belongings when returning to Uruguay after 2 years abroad; the law (18.250) was regulated by a latter decree (330/2008) a few months later. After all that discussion I tried to get both documents. In none of them (law and decree), there are excemptions of custom duties for foreigners. The exact word used is "uruguayos" (always meaning citizens in Uruguayan legislation, never for residents). For foreigners in general, there is no exception, though there was an earlier Decree of 1994 that applied exclusively for foreigners comming from the Mercosur, which is not your case. If anybody told you in the first place that you could use that fanchise to bring in your belongins, that seem to be an evident error. If that was told to you not by your personal advisors but by some official in the Customs Authority, I could understand your anger. However, exceptions for non-citizens were never in the law's letter nor in its intention. The law was created to incentivate uruguayans that have emigrated to other countries to come back. We may have a similar incentive to make foreign people come and live here, but we don't have it and as far as I know we never had that.

Please tell me at least if it was the exception estated at the law and decree that I mentioned wich you were trying to use. If these regulations are the one you are talking about, it's not that you are being considered a "2n class uruguayan", it's that you are being considered as what you really were: a resident. Neither a uruguayo comming back, nor a foreigner coming in from the Mercosur. The only sense in that you were treated as a "uruguayo" is that you reside here and as any uruguayo (me for example) are subject to import duties (high ones I'm afraid).

I hope your worst fears are as unfunded as I think they are. We don't want to lose you!

I came with 2 suitcases so I have no personal experience in that regard.

Visto: la Ley 16.340 de 23 de diciembre de 1992, por la que se conceden beneficios a extranjeros que hayan adquirido la situación de retiro o jubilación en el exterior y obtengan residencia permanente en la República

Resultando: que la misma debe ser reglamentada por el Poder Ejecutivo

Atento: a lo expuesto, y al lo dispuesto en el numeral 4° de Artículo 168 de la Constitución de la República

El Presidente de la República

Actuando en Consejo de Ministros

Decreta:

Artículo 1°. Toda persona extranjera que haya adquirida la situación de retiro o jubilación en el exterior y que, con posterioridad al 15 de diciembre de 1992, hubiere obtenido y obtuviere la residencia permanente en la República, tendrá derecho a los beneficios establecidos en el artículo 3° de la Ley que se reglamenta, siempre que acredite ante la Dirección Nacional de Migración lo siguiente: A. Su situación de retirado o jubilado y la percepción, en forma regular y permanente, de un mínimo de U$S 1.500 (dólares americanos mil quinientos) mensuales, por concepto de jubilación, pensión u otros ingresos o rentas generados en el exterior. Esto se comprobará con documentación fehaciente, traducida cuando correspondiere, y visada por él Consulado Uruguayo del lugar de su expedición, en el caso de que no exista en el lugar agente consular se admitirá prueba supletoria, la que será evaluada por las autoridades migratorias. B. La adquisición, con posterioridad a la fecha indicada, de una propiedad inmueble ubicada en el territorio nacional con destino a casa habitación de un valor mínimo de U$S 100.000 (dólares americanos cien mil), que no podrá enajenar durante un período de diez años; debiendo presentar el título de propiedad o certificación notarial. En su defecto, la adquisición de valores públicos emitidos por el gobierno del Uruguay, por un valor nominal mínimo de U$S 100.000 (dólares americanos cien mil), los que permanecerán bajo custodia del Banco de la República Oriental del Uruguay, por un período mínimo de diez años. El inmueble podrá ser cambiado por valores públicos y vicecersa, o cualquiera de ellos por una inversión de riesgo de igual monto mínimo, que deberá ser previamente aprobada por la Oficina de Planeamiento y Presupuesto. Asimismo, cuando el valor del inmueble no alcance el mínimo exigido, podrá complementarse con valores públicos. Para efectuar cualquiera de estos cambios será necesaria la autorización del Ministerio; del: Interior.

Art. 2°. Las personas que hubieren acreditado hallarse en las condiciones del artículo anterior, tendrán derecho a los siguientes beneficios: A. La introducción, dentro de los seis meses de autorizada la residencia permanente en el país, por única vez, libre de todo trámite cambiario y exenta de toda clase de derechos de aduana, tributos o gravámenes conexos, de los siguientes bienes: 1) Los, muebles y efectos de su casa-habitación, en cantidades adecuadas a sus necesidades, según estimación que efectuarán las autoridades aduaneras. 2) Un, vehículo automotor, que no podrá ser transferido por un plazo de cuatro años contados desde que es introducido a la República, cuyo régimen especial se hará constar en los documentos de empadronamiento y en el Registro de Vehículos Automotores; y deberá ser asegurado por responsabilidad civil extra-contractual por el monto máximo admitido por la, compañía aseguradora, antes de entrar en circulación. B. El otorgamiento de pasaporte común, cuya expedición se regirá por lo dispuesto en el articulo 17 del Decreto 167/993 de fecha 13 de abril de 1993, incluyéndose en este beneficio al cónyuge e hijos menores de 18 años del titular de la gestión que hubieren obtenido la residencia permanente. C. El mantenimiento en el territorio nacional de los seguros de vida y aquellos destinados a cobertura jubilatoria que hubieren sido contratados en el exterior.

Art. 3°. Los extranjeros interesados en acogerse á los beneficios de la Ley que se reglamenta podrán iniciar, conjuntamente con sus familiares, gestión para obtener la residencia permanente, ante el Consulado uruguayo más próximo al lugar de su domicilio habitual o ante la Dirección Nacional de Migración, si hubieran ingresado al territorio nacional en calidad de temporarios; dando cumplimiento, en ambos casos, a los requisitos previstos en el artículo 6° del Decreto de 28 de febrero de 1.947. Para la comprobación de los medios de vida, bastará que el titular de la gestión acredite su situación de retirado o jubilado en las condiciones señaladas por el artículo 1° literal A) del presente Decreto y, manifieste bajo su firma, su propósito de efectuar la inversión prevista en el literal B) del mismo artículo. Cuando el trámite para obtener la residencia se inicie directamente ante la Dirección Nacional de Migración se admitirá, a los efectos de la justificación de la buena conducta, la presentación del certificado expedido por las autoridades policiales o judiciales competentes del país donde hubiere residido el gestionante los últimos cinco años, traducido, cuando correspondiere, y legalizado; el estado sanitario satisfactorio podrá ser comprobado con certificado expedido por las dependencias del Ministerio de Salud Pública habilitadas a esos efectos o por instituciones privadas de asistencia médica oficialmente habilitadas para ello. La condición de retirados, jubilados y pensionistas extranjeros de organismos internacionales, de embajadas, de consulados y de misiones militares y comerciales extranjeras acreditadas en la República, que al 15 de diciembre de 1992 reunieran los requisitos establecidos en la Ley que se reglamenta, deberá ser justificada al presentarse la solicitud de residencia permanente en la República, con certificación expedida por el Ministerio de Relaciones Exteriores.

Art. 4°. Resuelta favorablemente por el Ministerio del Interior la solicitud de residencia permanente, la Dirección Nacional de Migración lo comunicará a la Dirección Nacional de Aduanas, a fin de que autorice la introducción de los muebles y enseres de la casa-habitación.

Art. 5°. Una vez que el interesado acredite haber dado cumplimiento a lo previsto en el literal B) del art. 1° de este Decreto, la Dirección Nacional de Migración librará comunicaciones a la Dirección Nacional de Aduanas para la introducción del vehículo automotor y a la Dirección Nacional de Identificación Civil para la expedición de pasaportes.

Art. 6°. La violación de la prohibición contenida en el artículo 2° literal C) de la Ley que se reglamenta, que refiere a la enajenación de la propiedad inmueble, o de la dispuesta en su artículo 5°, por la que se impide el ejercicio de una actividad remunerada en relación de dependencia, significará la pérdida de las exenciones aduaneras previstas en el artículo 3° literal B) de la referida Ley, así como la caducidad del pasaporte obtenido de conformidad con el literal C) de este último artículo

Art. 7°. Comuníquese, etc.-

..

I really do wish you were right and I hate to contradict you but it is the existing situation here in the ROU today... its not some ghastly imaginings about a possible future tax regime.

Example...

One million U$S invested in an ROU bank yields 9, 000 U$S/annum gross.

The income tax liability is 12% = 1, 080 U$S

The IP liability on the capital @ 2.45% = 24, 500 U$S

The IP liability on the taxed income @ 2.45% = 194 U$S

Income = 9, 000 U$S

Tax = 25, 874 U$S

This is the existing situation today.

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