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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) |
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Exchange Rate Versus U.S. Dollar |
23.947 Uruguayan pesos = 1 U.S. dollar (March 2008) |
|
Languages |
Spanish, Portunal, Brazilero |
|
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 |
| System of Government |
Constitutional Republic |
Name and Party
Affiliation
of Current Leader |
Tabaré Vázquez
Broad Front Party |
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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 |
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Capital Gains Tax |
12% |
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Inheritance Tax |
0% |
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Rental Income Tax |
12% |
|
Transfer Tax |
14% |
|
Sales Tax |
23% |
Restrictions on Foreign
Ownership of Property |
None |
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Local Chamber of Commerce |
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American Chamber of Commerce |
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| Primary Exports |
meat, rice, leather products, wool,
fish, dairy products |
| Residency and Visa
Requirements |
Tourist: automatic 90 days upon entry
Residency:
temporary residence, permanent residence
Citizenship: after
legal residence for 5 years if you practice
any art, science, or industry in
Uruguay |
Special Benefits for Foreign
Residents or Retirees |
None |
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National Airline |
PLUNA
www.flypluna.com |
| Preferred Contact |
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