If you are retiring to Uruguay on a budget, the ideal location will depend on whether you’re looking for a seaside or a city lifestyle.  Let’s take a look at the seashore first.

My pick on the coast for budget living is Atlántida.

A small town with a permanent population of just over 3,500, Atlántida swells to over 19,000 when the summertime visitors arrive. Its shady, tree-lined streets and large, older homes have the feel of a year-round home town, rather than that of a vacation resort. The calm, crescent-shaped cove is ringed with a sandy beach, and its seaside park is a frequent destination for both residents and visitors from Montevideo .

Frequent public transportation is available between Atlántida and Montevideo , including the airport. While Atlántida has enough commercial activity to provide for most staples, larger purchases will need to come from nearby Montevideo .

Atlántida is the heart of a section of coast known as Costa de Oro, which feels like it’s been left back in time. The more-popular international destinations of Punta del Este, La Barra, and José Ignacio have attracted the wealthy vacation crowd up the coast, leaving Atlántida with a more sedate pace of life and lower property prices.

It’s possible to live in Atlántida without a car. But it won’t be as convenient as being “carless” in the big city. If you can afford the extra $300 per month, do it. If not, you’ll get by with public transit.

If city living is more your style, I’d recommend Salto. Located about 300 miles upriver from Montevideo , Salto is like a mini version of the capital city. Just about every major store that has a branch in Montevideo has one in Salto as well. What Salto doesn’t have is Montevideo ’s crime, property prices, or tax rates. You’ll notice a markedly lower cost of living.

As Uruguay ’s second-largest city with just over 100,000 people, Salto is one of the few cities in Uruguay that you never have to leave. Its commercial district, entertainment scene, restaurants, and municipal services should provide everything you’d need and want without having to own a car.

The famous hot springs in the area draw tourists from around Uruguay , as well as from Argentina and Brazil , giving an international flare to Salto, as well as some nice restaurants and hotels. The riverfront parks are green and pleasant, a refreshing place to spend a Sunday afternoon.

While Salto may be “self-contained”, it’s not convenient to the international airport, which is a seven-hour bus ride away.