Latin America comprises various emerging economies that have been conquering the global market during the past decades. The growing middle class with its increasing purchasing power provides a profitable economic environment with extensive opportunities for the development of the consumer goods business and other industrial sectors. Additionally, the gas and oil sector is promising in the area, which is rich in natural resources. Along with these opportunities, prospective investors are facing serious challenges: strict labor laws, particular tax regulations and other kinds of governmental barriers are often identified as issues that have to be dealt with when establishing a business in the region.
Covering an area of 3.2 million square miles, Brazil is the size of a continent. Diversity is the essence of the Brazilian society, which is well-known for being peaceful and welcoming foreigners with respect and consideration. Responsible for half of Latin America’s economic output, Brazil has the largest and most diverse industrial base of the Latin American region.
Mexico is the world’s most populous Spanish speaking nation. The historical formation of the country, rooted in Hispanic culture, has conferred diversity to the social scenario. The process of fundamental reform which the country has been going through in the past years has modernized regulations related to labor, education, telecommunications and fiscal affairs. Together with Brazil, this giant in Latin America accounts more than a half of the total population, exports and GDP.
Located between two oceans and connecting two continents, Panama has historically been an important hub. Panama’s geographically strategic location combined with the country’s progressive and liberal trade policy have been decisive in its development as a key market. The Colon Free Trade Zone (CFTZ), which after Hong Kong is the largest free trade zone in the world, is a trading and transshipment center of major local and international significance.
Colombia is a large country that has enjoyed a long tradition of economic and political stability. It is the third largest country in Latin America in terms of population and the region’s fifth largest economy. The rapid expansion of the oil and mining industry in the past decades has earned the country a good position on the investment radar.
Other countries in the region have significantly increased their attractiveness for foreign investors in the past decade. In Uruguay, for instance, tax benefits were added to the free repatriation of capital and profits. In Peru, manufacturing and infrastructure are the building blocks of the country’s economy. Peru aims to double its production of steel, refined metals and other products. Chile is undergoing one of the world’s most transformative legislative reform efforts targeting various sectors, including its state-owned entities and environmental, financial and capital markets.
The KPMG Latin America Desk
The KPMG the Netherlands Latin America Desk team consists of top-level experts that can assist you and have in-depth knowledge and understanding of the particularities of the Latin American markets. The team assists and advises both Dutch companies with (prospective) activities in Latin America and Latin American companies doing business in the Netherlands.
The KPMG the Netherlands Latin America Desk team speaks Spanish and Portuguese, has experience with international projects and knows both the Dutch and the Latin American markets and culture. We will help you discover which type of investment is best suited to your international ambitions. Please feel free to get in touch with Eric van Deursen or Karina Toriz Contreras.