[7][8] By 1838, the Scottish community in Buenos Aires was an important part of the population,[9] so they decided to create the St. Andrew's Scots School to educate their children in their language.

During the Industrial Revolution England found numerous commercial opportunities in Argentina, where the British-owned companies built most of the railway lines and stations, operating them until their nationalization in 1940 when Juan Perón was president.

Palermo established its headquarters in Paraguay street, although it later moved to Juan B. Justo avenue until 1927, when the club returned to its original location.

Its first field was on the corner of Soler and Humboldt streets of Buenos Aires, then moving to Mendoza and Freire in Belgrano neighborhood.

The team soon switched to the official league (AFA) again where lasted from 1924 to 1926, until the squad was relegated to the second division after both associations merged at the end of the season.

Palermo's most prominent player was Ricardo Primitivo González, who took part of the Argentina national basketball team that won the 1950 FIBA World Championship.