Doing Business in Latin America
Kreston Global
Unlocking business potential by connecting ambitious global entrepreneurs with our accounting experts in 114 countries
Kreston Global Latin America spans 17 countries, with 25 firms and over 1200 staff, ranking as the 15th largest global accounting network in the region (according to the International Accounting Bulletin).
In this issue, we analyse the impact of the 2024 elections, the rapid growth of the Brazilian economy and what the future of doing business in Argentina could look like.
Our experts share insight on regional hot topics, including the nearshoring opportunity in Mexico, the low tax jurisdiction appeal of Puerto Rico and the impact of Ecuador's Investment Contract.
2024: The year of the election
This year, five countries in Latin America are due to have elections: Mexico, Panama, Uruguay, Venezuela, and the Dominican Republic. El Salvador elections have already taken place.
Francisco Bracamonte, Tax Director at Kreston BSG, Mexico, shares his insight on the upcoming elections and how impact voter disillusionment, political stalemate and accusations of corruption will affect the economy and the ESG agenda in the region.
Argentina: The gold rush
A rush to invest in Argentina may happen sooner than you think. Political turmoil and economic headaches have given Argentina miles of bad press in recent years. Yet another story is that the country is opening up to overseas companies, with foreign direct investment increasing 122.5% to USD 15 billion in 2022, according to the World Investment Report published by UNCTAD.
Argentina’s economic landscape has been transforming under President Javier Milei’s leadership since his November 2023 victory. As well as providing investment opportunities, there is a possibility that nearshoring could become more attractive on Argentinian soil. Ricardo Gameroff from Kreston BA Argentina shares his view with Che Golden on the recent developments.
Investing in Puerto Rico: Low tax jurisdiction for investors
Investing in Puerto Rico has proven lucrative, experiencing an 11% growth in its economy since 2019, despite?the challenges felt globally from COVID-19, a global recession and increasing supply chain challenges. So far in 2024, the International Monetary Fund records the island as having the highest GDP per capita in the Caribbean.
Frank Sanchez Ruiz from Kreston PR shares his thoughts on what is driving the growth and how international businesses can take advantage of recent legislative updates.
Peru: Macroeconomic stability appealing to Foreign Investors
Martín Quevedo, Quality Control Partner at Kreston Perú, discusses investing in Peru, and explains the factors influencing the increase in Foreign Direct Investment (FDI). The article highlights the nation’s favourable environment, macroeconomic stability, and specific policies, positioning Peru as an attractive destination for international investors despite lingering challenges.
ESG in Brazil: Carbon market to transfer pricing challenges
Discussions about ESG strategies have become increasingly more common globally, with ESG in Brazil actively developing its own initiatives. A complex and strategic move, shifting dynamics in the global economy, the culture of environmental, social, and corporate governance brings issues that warrant careful analysis. Che Golden interviews Tatiana Andrade at Kreston KBW Auditores.
领英推荐
Investing in Brazil: Beating analyst’s expectations
Brazil’s economic activity expanded by 2.45% in 2023, surpassing initial forecasts that growth would be tepid in the face of high-interest rates. At the beginning of last year, private economists estimated that the economy would grow by less than 1%, current forecasts indicate an expansion of 2.9%, according to a weekly survey conducted by the Brazilian central bank.
Tatiana Andrade, Partner of Kreston KBW Auditores, shares that investing in Brazil will see economic growth, driven by market reform and ESG, attracting international and local business optimism.
Tax reform in Brazil: Impact on businesses
Tax reform in Brazil, a topic that had been stagnant for decades, is gaining momentum. As a thriving economy in Latin America, the pace at which regulation is now being brought into law is testing the business industry.
Wellington Calobrizi partner at Kreston KBW Auditores, Brazil explores the impact of the reforms on SME businesses.
Ecuador Investment Contract
Germán Moya, Tax Manager at Kreston Ecuador, explores the significance of Ecuador’s Investment Contract, a tax incentive for Foreign Direct Investment. Are reduced income tax rates, exemptions and successes in the mining sector attracting investors?
Nearshoring: Setting up a business in Mexico
Setting up a business in Mexico has been a strategy of global businesses in the region, looking for ways to sidestep geopolitical challenges creating pinch points in supply chains. This presents an opportunity, as businesses pull operations geographically closer to avoid costly delays and unpredictable prices.
Mexico is a benefactor of the US moving away from manufacturing in Asia, with US firms setting up operations closer to home Mexico, capitalising on lower labour costs, geographical proximity and free trade agreements.
Enrique Pastor, Tax and Business Processes Partner at Kreston FLS in Mexico City shares his experience in setting up businesses in Mexico for the last two decades
Investment shift in Latin America: A focus on sustainable energy
The 2023 World Investment Report highlights a significant increase in Foreign Direct Investment in Latin America, reaching USD $208 billion. This increase goes against the global figures of a 12% decrease, caused by geopolitical tensions. This growth, peaking at 51% in 2022, has been driven by commodities, a growing sustainable energy sector in the region and an uptick in cross-border M&A.
Learn more about the role of the Sustainable Development Goals 2030 in the Latin American economy in this article written by Mauricio Gonzalez, Legal Manager, Kreston BSG, México.