Mega Blanqueo Incoming in Argentina

[Avocado]

Mega Blanqueo Incoming in Argentina

Argentina’s libertarian President Javier Milei is set to unveil sweeping reforms aimed at drawing billions of undeclared U.S. dollars back into the formal economy, according to a recent Financial Times report.

The move, which centers on loosening tax evasion rules, targets an estimated $270 billion in cash savings hidden in homes, safety deposit boxes, or held abroad — a phenomenon long known as Argentina’s “mattress dollars.” These savings, driven underground by chronic inflation, erratic tax policies, and a lack of faith in the banking system, represent a massive untapped reservoir of capital.

Milei, known for his provocative rhetoric, framed these savers not as tax dodgers but as victims — or even heroes. “Those who hid money aren’t criminals, they’re heroes who managed to escape from politician sons of bitches who wanted to screw you over with inflation,” he told business leaders last week.

The plan is expected to soften regulatory oversight, allowing individuals to bring legally earned dollars back into the system without facing retroactive punishment. Critics argue that such amnesties may enable money laundering, but the government insists Argentina’s anti-money laundering agency, UIF, will maintain vigilance, and the effort will align with Financial Action Task Force (FATF) guidelines.

Nearly half of Argentina’s labor force operates off the books, with informal transactions — including real estate and car sales — often conducted in cash U.S. dollars. Tax experts suggest the current regulatory environment, which requires identification and tax agency reports for purchases above a certain threshold, deters reintegration of these funds into the legal economy.

According to the Financial Times, analysts expect Milei’s reforms to chip away at such restrictions to stimulate stalled consumer spending. Argentina’s inflation, which peaked at 289% last year, has gutted purchasing power and dampened economic activity.

“This is an effort to revive domestic demand using available but dormant cash,” said Gabriel Caamaño, an economist at financial consultancy Outlier. He believes the policy could help “bring back some dynamism” and possibly regularize a few billion dollars.

However, uncertainty persists. One Buenos Aires worker told the Financial Times he was “intrigued” but wary: “If participating means that my name ends up on any list anywhere, I’m not doing it. They say it’s fine now — but with the next government, who knows?”

Milei’s initiative builds on past tax amnesties — Argentina has issued similar programs roughly every four years over the past two decades. While Congress approval may be needed for certain elements, the reforms could offer the president a much-needed economic lever ahead of the midterm elections in October.As Financial Times notes, the challenge will be finding the right balance between incentivizing savers to return their money and preventing illicit funds from entering the system. In a country long scarred by financial whiplash and distrust, that will be no easy task.

I have been advocating this government to do a Mega Blanqueo for the past 6 months.

This only helps rich people! How this help poor? They already are using their dollar savings cashing in each day to get by. All the rich just get richer and poor get poorer. Not fair!

 

[earlyretirement]

More on the Mega Blanqueo that I recommended to the Milei administration a few months ago that they are acting on now. Feels good. 🙂

Milei unveils plan to draw dollars out from under mattresses

Government announces measures to encourage the use of undeclared savings; Decree on way and a bill to “protect savers.”

batimes.com.ar

 

[lemonade]

One thing I learned is never never never mess with the IRS. Or at least if you do, don't go around posting how you are evading taxes on a public message board! We live in interesting times.


You have a knack for calling and predicting things in Argentina @earlyretirement! I have been following you since the old forum. I didn't know it was you all those years posting and sharing info. I saw you jumped in real estate in 2002. Then you sold most of your properties in 2017 and saw your X recommending to jump back in mid 2023. How do you know all the time?? Some of your calls are bonkers! I saw that Travelsur forum and your posts and those were also all correct.

What do you think about this blanqueo? Will people go ahead with it? I saw you predicted that too last month before it was in the news. I assume you have friends in the government?

It seems like if they did the mega blanqueo as you are predicting, all the companies would just use it to bring all their previous years earnings in tax fee. They could send it back out and then redo it over and over for some tax free gains. Seems like you could do this over and over. Why would the little guy on the street want to pay any taxes if the big money was just using this.

He probably is working with the government or has a friend who works for Milei. Only way you can post what is going to happen before. I chalk it up to friends in high places.

 

[JonJLA]

He probably is working with the government or has a friend who works for Milei. Only way you can post what is going to happen before. I chalk it up to friends in high places.

I don't doubt that. I have been working with Mike since 2006. I purchased two properties with him. His clients know he had a grand office in Recoleta. Two floors of an entire building. There was an Embassy of a country on one floor and he had the third floor where I would see him and the accounting team. And the girls that paid the bills. Then on the 5th floor he had a reservations team that handled all the hundreds of properties. One day I was going from one floor to the other when I saw Shakira. Yes the music artist! She said hi and my then girlfriend was in awe. I knew who Shakira was but I did not know the male she was with.

We get back to our apartment and my girlfriend shows me a popular magazine and it had a picture of Shakira with a handsome young man. I read the caption and it was ex President De la Rua's son that Shakira was dating. Her father's office was in the same building as Mike's. When I asked Mike the next time I was in his office if he knew him he did. They even had coffee sometimes. Mike told me that he was a very nice man and took the fall for the corralito but so many people were to blame.

In subsequent visits to his office I found out that he had personally met with several presidents of Argentina over the years including Cristina and her husband Nestor.

 

[Wally]

He probably is working with the government or has a friend who works for Milei. Only way you can post what is going to happen before. I chalk it up to friends in high places.

With all the investment activity he has done in Argentina over the past 2 decades no doubt he has contacts high in the government. One of the only foreigners that has started a business and sold to a big multi-national company. Impressive.

 

[JonJLA]

With all the investment activity he has done in Argentina over the past 2 decades no doubt he has contacts high in the government. One of the only foreigners that has started a business and sold to a big multi-national company. Impressive.

I have been a client since 2006. He was already around a few years when I hired him. I remember in his office in Recoleta he had a photo of him and Cristina and Nestor Kirchner at the Casa Rosada. And another with him and President De la Rua who was in the same office building as he was in. I think it is safe to say with the amount of investing he has done in Argentina he probably has met a few ex Presidents in Argentina. Great guy.