Retirement in Uruguay

Uruguay is located in the temperate zone of the Southern Hemisphere and has four seasons.

When it’s winter in North America and Europe, it´s summer in Uruguay. Temperatures average 70° F to 80° F (21° C to 27° C) in summer and 50° F to 60° F (10° C and 16° C) in winter. There are periods of “cold” (relative term) weather, but freezing temperatures are unusual.

Uruguay’s climate is fairly uniform with the exception of the northwest part of the country which is often warmer and dryer. Rain occurs in all seasons but is generally heavier in the fall.

For weather and climate data for Uruguay in Celsius and Fahrenheit:

World Weather Information Service http://www.worldweather.org/094/c00326.htm

There are no earthquakes or hurricanes in Uruguay. On occasion, there are strong southwest winds that come from the Argentine pampas. There are also occasional droughts.

Uruguay has the highest literacy rate in Latin America: 98% of the population over the age of 15 can read and write. And, as mentioned, the government of Uruguay offers free education for all citizens, including college and post-graduate studies.

The most authoritative source for comparative cost of living information is Mercer Human Resources Consulting. As stated in their online press release, Mercer’s annual Cost of Living Survey covers 143 cities across 6 continents and measures the comparative cost of over 200 items in each location, including housing, transportation, food, clothing, household goods, and entertainment. It is the world’s most comprehensive cost of living survey and is used to help multinational companies and governments determine compensation allowances for their expatriate employees. Mercer’s report is modified to include housing and is updated to reflect constant weighting. In the study, New York City is the base city, scoring 100 points.

According to the “Quality of Living global city rankings 2009 – Mercer survey”, in Central and South America, San Juan in Puerto Rico retains the highest ranking at 72, followed by Montevideo at 79.

Quality of Life Summary

Uruguay has 200 miles of coastline dotted with beach resorts. When it’s winter in North America and Europe, it’s summer in Uruguay, with daytime temperatures between 70 and 80 degrees.

Uruguay does not have earthquakes or hurricanes.

Uruguay has one of the world’s most pristine environments.

Uruguay has the highest literacy rate in Latin America. The government offers free education for all citizens (including college and post-graduate studies).

Uruguay has the lowest poverty level in Latin America, with fewer extremes between rich and poor.

Uruguay has the lowest birth rate in Latin America, more similar to Europe and developed countries.

Uruguay has an extensive and sanitary water supply (you can drink from any tap).

The South American gaucho and native Charrúa are important to Uruguay’s heritage.

The tango originated in Uruguay, where it is still very popular.

Soccer is popular with Uruguayans from all walks of life.

Traditional foods are barbequed meats and chivitos.

Uruguay has the lowest overall crime rate of the Latin American republics, but there is purse snatching and camera grabbing in Montevideo.

Uruguay’s capital, Montevideo, is rated as one of the most affordable places to live, but your results may vary depending on your lifestyle.
New telephone service is available in most places in 48 hours
Uruguay has broad cell phone reception and widespread availability of high speed Internet service.

A foreigner can usually open a Uruguayan bank account with a passport, a second form of identification.

Uruguay has very good medical services and affordable health plans

Uruguay has a good public transportation system.

Montevideo, Uruguay’s capital, is rated as providing the highest quality of life in South America.

Current taxes

Personal income is taxed on a graduating bracket from 10 to 25%.
Bank interest earned on Uruguayan accounts is taxed – the rate is 12% on interest earned from foreign currency accounts and 3 % on accounts in Uruguayan pesos.

Net worth of individuals and companies has a yearly tax based on assets over a given dollar value. This tax is called “Impuesto al Patrimonio” Assets are excluded up to a value of $ 1.800.000 (approx U$S90.000) and thereafter on a sliding scale between 0.75% and 2.75%.

Value Added Tax (VAT) is 22% on the purchase of most goods and services.

There is a capital gain tax of 12% for individuals and 25% for local corporations.

Corporations pay a 25% tax on profits.

This general information about taxes is provided for background purposes only. Tax rates, tax laws, and currency exchange rate change. For specific tax advice we can provide you with specific tax advice.

Banking and Monetary Policy

Uruguay’s banking sector is headed by the Central Bank of Uruguay (Banco Central del Uruguay), founded in 1967 and charged with regulating the nation’s banking and financial system.

Uruguayan banks have never expropriated, frozen, or forced exchange of deposits. Uruguayan banks also maintain banking privacy, with the exception of US citizens for whom private banks must report annual account information to US tax authorities.

Depositors in Uruguay have a choice of having their account in one of three currencies (Uruguayan pesos, US dollars, or euros).

Retire in Uruguay - 10 Good Reasons

(source: www.expatdailynews.com/2009/04/retire-in-uruguay-10-good-reasons.html)

Uruguay, the small South American country famous for its beach resorts and secure banking services, is attracting attention as a great place to retire. Here are 10 reasons why:

1) Uruguay is safe
Safety is the number one reason people from other South American countries relocate to Uruguay. Uruguay is known for having the lowest rate of crime in Latin America.

2) Uruguay is stable
Uruguay is currently one of the most politically and economically stable countries in South America. Uruguayan banks have never resorted to expropriating, freezing, or forcing a currency exchange of deposits.

3) Uruguay does not tax foreign source income
Uruguay does not tax foreign source income, meaning that your pension, social security and all money that is generated outside of Uruguay is not taxed.

4) Good medical care is available in Uruguay
Uruguay has private hospitals that provide excellent patient care at affordable rates. Some retirees pay out of pocket for the care they need and others purchase health plans with a fixed monthly fee.

5) Uruguay has a comfortable climate
Uruguay is located in the temperate zone of the Southern Hemisphere and has four seasons. Daytime temperatures average 21° C to 27° C (70° F to 80° F ) in summer and 10° C and 16°C (50° F to 60° F) in winter.

6) Uruguay offers a variety of lifestyle settings

6.1 City Life: Montevideo is Uruguay’s capital and is made up of many interconnected but distinct communities with tree lined streets, neighborhood shops and outdoor cafes. Montevideo has a wide seaside walk, great restaurants, theater and several tango clubs.

6.2 Beach life: Uruguay has 200 miles of beautiful coastline that turns into a vacationland during the summer. The coast is dotted with resorts including the continents premier beach resort, Punta del Este, which offers a 24-hour menu of recreation, events and entertainment.

6.3 Country life: Once you leave the coast, most of Uruguay is green rolling prairies. The country has large estates (called chacras), ranches (called estancias) and several agricultural supported communities, most with a town square (plaza) where people come in the evening to socialize.

7) Uruguay does not have hurricanes or earthquakes
Uruguay has never had an earthquake or a hurricane.

8) Uruguay has first world infrastructure
Uruguay has good roads, safe drinking water, good public transportation, broad cell phone coverage and widespread availability of high-speed internet.

9) The people of Uruguay are well educated and friendly
Uruguay has the most highly educated population and the largest middle class in Latin America. The people of Uruguay are generally friendly and tolerant with a strongly European culture.

10) Uruguay has a reasonable residency procedure
Applying for residency in Uruguay includes a criminal background check, a health check up, and a verification of a regular source of income, such as social security or a pension.

Uruguay provides the opportunity for a retiree to live a quiet life. It is Uruguay is a great place to retire. Wherever you go, the nature beauty will seduce you. You will find friendly people and the remarkably affordable cost of living will entice you to stay. Uruguay is first world infrastructure, excellent highways, drinkable water, good communications, and stunning beaches. The climate is mild thought the year, which baby boomers love. The major places to visit are Montevideo, Paysandú, Salto, Punta Del Este and Rocha. Uruguay is a safe, peaceful country which you would love.