|
|
Baby Boomer Retirement
in Uruguay
by
Kathleen Peddicord
We like Uruguay not only for its four mild seasons, long stretches
of coastline, charming old quarter
 (in
Montevideo), and laid-back way of life...but also for its friendly
tax legislation, its absolutely low cost of living, and its real
estate investment opportunities right now. Montevideo's old town is
being rejuvenated, thanks to foreign (not only American) investment,
but it's not too late to get a super-good buy on a classic-style
apartment in a good location. Beyond the capital, you can find even
better buys, on estancias and big tracts of productive land.
Best known beach buy in the country is Punta del Este, which has
been a draw for Argentine and other South American sun-seekers for
decades. This Gold Coast, but an hour-and-a-half from Montevideo,
has been enjoying such a boom that rental owners we know have lately
reported extraordinary returns, as much as 12% net and more per
year. Best unknown beach buy in the country is in Rocha Province.
Uruguay is also one of the easiest countries in the world to
establish full-time foreign residency and, as well, a jurisdiction
where opening a bank account can be a super-straightforward process.
You should be able to open an account as a foreign resident or even
as a non-resident simply by walking into a local Uruguayan bank and
showing ID. And an account at a local Uruguayan bank (as opposed to
one at an international bank in the country) can be all you need to
manage your local expenses.
 
Medical facilities are top-notch in Uruguay, and comprehensive
health coverage can cost less than US$100 per month. This is not
"health insurance," per se, but full coverage at a particular
Uruguay hospital. These kinds of "hospital plans" can be a good
option if your plan is to be in one country full-time.
Top Health Insurance Options For The Retiree Abroad
Uruguay's approach to taxation is as good as it gets for the foreign
resident. Living here, you're taxed only on money you earn in the
country. You can bring ("remit") as much money as you want into the
country to cover your living expenses; however, as long as you earn
no income locally, you have no local tax bill.
Finally, cost of living. Uruguay qualifies as highly affordable. Not
as cheap as, say, Ecuador or Nicaragua, but not expensive either. A
couple could live comfortably in this country on a budget of about
US$1,600 to US$1,800 per month, including rent.
For all these reasons, therefore, and all things considered, Uruguay
makes my short list of world's top retirement havens.
Uruguay qualifies as sleepy, which is both a pro and a con. But
un-sleepy Buenos Aires is only a quick flight or ferry ride away.
View Larger Map
Uruguay at a Glance
| Population |
3.5 million (July 2007) |
| Gross Domestic Product (GDP) |
$37.05 billion (2007) |
| GDP Per Capita |
$10,700 (2007) |
| Inflation Rate |
8.3% (2007) |
| Currency |
Uruguayan Peso (UYU) |
| Exchange Rate Versus U.S. Dollar |
23.947 Uruguayan pesos = 1 U.S. dollar (March 2008) |
| Language |
Spanish |
| Capital |
Montevideo |
| Population of Capital City |
1.3 million |
| Time Zone |
UTC minus 3 |
| Seasons |
Temperate; warm summers, cold winters |
| International Dialing Code |
598 |
| Electricity |
220V / 50 Hz; Plug Type: C, F, I, L |
| |
Constitutional Republic |
Name and Party Affiliation
of Current Leader |
Tabaré Vázquez, Broad Front Party |
| Income Tax Rate for Residents |
0% to 25% |
| Property Tax |
0.84% to 1.6275% for residents; 8.4% to 16.275% for non-residents |
| Capital Gains Tax |
12% |
| Inheritance Tax |
0% |
| Rental Income Tax |
12% |
| Transfer Tax |
14% |
| Sales Tax |
23% |
Restrictions on Foreign
Ownership of Property |
None |
| Local Chamber of Commerce |
www.cncs.com.uy
Rincon 454 P.2
Montevideo 11000
Tel: (598) 2 916 12 77 |
| American Chamber of Commerce |
www.ccuruguayusa.com
Plaza Indepencia 831
Office 209
Montevideo 11000
Tel: (598) 2 908 91 86 |
| Primary Exports |
Meat, rice, leather products, wool, fish, dairy products |
| Residency and Visa Requirements |
Tourist Visa: automatic 90 days upon entry
Residency: temporary residence, permanent residence
Citizenship: after legal residence for 5 years if you practiceany art, science, or industry in Uruguay |
| Special Benefits for Foreign Residents or Retirees |
None |
| National Airline |
PLUNA
www.flypluna.com |
| Preferred Contact |
|
Information on this page is provided in partnership
with Kathleen Peddicord, Publisher of
Live and Invest Overseas.
|
|
