Safe, Cheap, Charming and Tax-friendly
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. Watch this space (and read your Overseas Opportunity Letter) for details.
Uruguay qualifies as sleepy, which is both a pro and a con. But un-sleepy Beunos Aires is only a quick flight or ferry ride away.
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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 |
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