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Repatriation of Funds

Move dividends, royalties, and capital out of your LATAM entity compliantly, with withholding and central bank rules handled correctly.

Repatriating profits out of a Latin American entity, whether as dividends, royalties, management fees, or a capital reduction, is subject to local withholding tax and, in some countries, central bank or foreign exchange reporting requirements. The compliant path and the applicable withholding rate depend on the payment type, the jurisdiction, and whether a tax treaty applies between the local country and your home country.

NavviPal advises on the compliant route for repatriating funds from your LATAM entity, coordinating with your tax advisory engagement so dividends, royalties, and capital movements are structured, withheld, and reported correctly in the local jurisdiction.

What's included:

Advisory on the compliant repatriation route for dividends, royalties, management fees, or capital reductions
Coordination on withholding tax obligations for cross-border payments out of your LATAM entity
Advisory on how an applicable tax treaty between the local jurisdiction and your home country affects a specific payment
Guidance on central bank or foreign exchange reporting requirements where they apply
Coordination with your tax advisory engagement so repatriation is structured consistently with your entity's overall tax position
Advisory on jurisdiction-specific capital control considerations, including Argentina's foreign exchange framework

Withholding rates

Treaty-dependent and jurisdiction-specific. NavviPal advises on the rate and route that apply to your specific payment rather than a single published figure.

Frequently asked questions

How much withholding tax applies to dividends paid out of a LATAM entity?

It depends on the jurisdiction and on whether a tax treaty applies between that country and your home country. Withholding rates are treaty-dependent and jurisdiction-specific rather than a single fixed number, so NavviPal advises on the rate that applies to your specific payment.

Can we legally move money out of Argentina?

Argentina applies its own foreign exchange framework to cross-border payments, and the compliant route depends on the payment type and current regulations. NavviPal advises on the applicable process rather than a workaround, and timelines can differ materially from other LATAM markets.

Does a tax treaty reduce withholding on royalty payments?

Where a tax treaty exists between the local jurisdiction and your home country, it may reduce the withholding rate on royalties compared to the domestic rate. Treaty application is specific to the payment type and both countries involved, so NavviPal reviews your specific treaty position rather than quoting a general rate.

What's the difference between repatriating via dividends and via a capital reduction?

Dividends and capital reductions are typically taxed differently and may carry different withholding treatment and procedural requirements in a given jurisdiction. NavviPal advises on which route fits your entity's structure and timeline.

Do we need central bank approval to repatriate funds?

Some LATAM jurisdictions require central bank registration or foreign exchange reporting for cross-border payments above certain thresholds or for certain payment types. Requirements vary by country. NavviPal confirms what applies before you initiate a transfer.

Ready to get started?

Whether you're forming your first LATAM entity or need ongoing compliance and accounting support, NavviPal has you covered.