Argentinians have traditionally looked first to Uruguay and then to the United States when considering international tax planning. Recent political and fiscal developments, however, suggest that these traditional approaches may no longer provide sufficient diversification.

Argentina’s approval in December 2020 of a one-time wealth tax on individuals with substantial assets is an important illustration of the changing environment. The measure imposed a levy of at least 2% on assets above ARS 200 million, with the government expecting to raise approximately US$3.7 billion.

The significance extends beyond Argentina. Across Latin America and North America, wealthy individuals should increasingly consider how changes in taxation, regulation and political policy could affect the location and structure of their wealth.

Traditional tax planning based on a single alternative jurisdiction may therefore be insufficient. Residency diversification, international investment structures and access to alternative jurisdictions should form part of a broader wealth-planning strategy.

For individuals with substantial assets, the objective is not simply to reduce today’s tax burden. It is to maintain flexibility as governments confront increasing fiscal pressures and tax policies continue to evolve.