As real state agents we offer farmland and rural residential properties in Uruguay and Paraguay. We stopped offering land inArgentina a while ago when we saw no more value there anymore.
Below a brief May 2011 market overview
-The best price/value for land you find in Paraguay, and the bestchance/risk ratio. The most profitable farms (soya, sugar cane), intensively operated and close to possessing plants currently cost U$S 4000-5000 per hectare, cattle ranchland U$S 200-200, virgin land forest covered in the semi arid Chaco region with good soil fertility costs U$S 150-400 per hectare.
It is significant to note thatUruguayan, Argentinian and even more so, Brazilian farmers invest heavily in Paraguay.
Paraguay has the region’s most favorable tax regime, 10% personal income tax, 10% VAT. Onthe down side Paraguay ranks rather low when it comes to transparency, quality of public services, rule of law, public security.
-Uruguay is in many aspects the oppositecase. A mature civic society with strong rule of law and distinctive European flair.
Just it isn’t cheap any more. With U$S 8000-10000 per hectare for prime crop land(soya, corn, wheat), U$S 3000-5000 per hectare for good cattle pasture (which would include some minor fraction suitable for cropping) it is difficult to achieve anoperational return above 4 or 5% annually. Virgin land does not exist anymore in Uruguay.
Income is taxed in the 15-25% range, VAT being 22%
Prices for land in the region rose10-15% in U$S over the last 12 month, roughly in line with rising global soy and grain prices.
Argentina and Bolivia are briefly discussed here: Farmland as inflation hedge.