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Uruguay a potential gem?

FlipnShip

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Hello Gents,

Since we are in turbulent times I was looking at options to relocate out of Europe. While gathering intel I discovered Uruguay, which appartently does not get a lot of coverage here.

Summary:

- Geopraphics:
It is a country in South America. It shares borders with Argentina to its west and southwest and Brazil to its north. Uruguay covers an area of approximately 176,000 square kilometers and has a population of an estimated 3.51 million.
Therefore it is not densely populated, far away from the US, Europe, Russia & China in case of overreaching and/or miliarty conflicts.

- Demopraphics:
Uruguayans are of predominantly European origin, with over 87.7% of the population claiming European descent.
Especially as an European/caucasian this could be a big plus, during a financial bust, in comparison to being a farang in Thailand.

- Food & energy production:
More than 60 percent of Uruguay's total exports are agricultural-based products. It's main agricultural products are indigenous cattle meat, whole fresh cow milk, paddy rice, wheat, soybeans, grapes, greasy wool, indigenous chicken meat, indigenous sheep meat, sunflower seed.
The country currently generates over 98 percent of all electricity from renewable sources, primarily wind and hydropower. Uruguay is currently one of the most electrified countries in the hemisphere, with 99.9 percent of homes receiving electricity.

- Financial incentives & residency visa:
In June 2020, a new decree was introduced to improve access to tax residency in Uruguay. Investment in properties for a value greater than UI 3,500,000 (approximately US$370,000) made as of 1 July 2020, and an effective presence in Uruguayan territory for 60 days in the calendar year. The Uruguyan government has formulated a bill to extend by 10 years (effectively 11 year tax holiday) or being subject to a 7% rate forever on yields of foreign capital.

Additonally I had a look at some homepages (most likely overpriced) in regards of ranches which were not totally overboard pricewise. The biggest issue that I have are the current entry requirements for none residence requiring 2 therapeutic energy boosters., which would have to be tackled with. All in all it up it looks like an interesting option to me.

Since I have personally never been to Uruguay, I would appreciate if you could chime in sharing your experiences and possibly contacts. Cheers.
 
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Urugay is interesting. In the last 10 years or so cleaned up a lot of laws that made it ripe for tax evasion and fast-tracked passports with little to no oversight or control. It used to have something that was eerily close to IBCs.

But today, it's worth noting that Uruguay has territorial taxation, similar but not identical to Costa Rica and Panama. If you set up your business correctly, you're looking at a low overall tax pressure.

For those seeking citizenship, approval rate seems quite high for those who fulfill the five year residence (unlike in the past when you could get it in 2-3 years and barely spend time there). Three years if you're married a couple.

If we take it as a measurement of personal freedoms, recreational cannabis usage is legal (not just decriminalized), which I believe is still unique in the whole region unless you go as far north as Mexico.
 
If we take it as a measurement of personal freedoms, recreational cannabis usage is legal (not just decriminalized), which I believe is still unique in the whole region unless you go as far north as Mexico.
how much North you have to go in Mexico to avoid to be killed by a bullet :) ?
 
Uruguay WAS really good for tax evasion. I live across the pond in Argentina and plenty of us moved money there. Is not so appealing nowadays. I can't recall the specifics but it seems that sail has shipped now.
Interesting choice of words, people are talking about legal tax avoidance, (structures) and you come in stating 'x great for tax evasion'.
 
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For those seeking citizenship, approval rate seems quite high for those who fulfill the five year residence (unlike in the past when you could get it in 2-3 years and barely spend time there). Three years if you're married a couple.
Living there is not enough. You must prove that you have assimilated into society and show membership in various civic organizations. Otherwise, a judge will arbitrarily deny your citizenship application, although you complied with the letter of the law. Just ask Expat Bob (look through his archives for when he lived in Uruguay). That guy is funny as hell.

 
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I have been living in Uruguay for about 8 years. I really love it. There are some free trade zones you could set up your business without tax.
ZoneAmerica still there as a 0% tax zone ?
 
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I stay in Uruguay :D
I looked into obtaining residency in 2015 and the application process was easy. However I met several expats that submitted their applications and were waiting for years and never received a reply. Also they could not leave the country while the applications were pending without invalidating them. Do you have any recent information about the process and how long it takes to receive a permanent residency now?
 
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I looked into obtaining residency in 2015 and the application process was easy. However I met several expats that submitted their applications and were waiting for years and never received a reply. Also they could not leave the country while the applications were pending without invalidating them. Do you have any recent information about the process and how long it takes to receive a permanent residency now?
What you just described is exactly why the bureaucracy in Uruguay so notorious for being so arbitrary and capricious. It likely depends on who you see that day and what they ate for breakfast.

I am not joking. Read through the archive section on Expat Bob's website (post #10) for when he lived in Uruguay. He is funny as hell and he provides an insight into life in Uruguay and the bureaucracy there.

You most definitely need a laid back personality to live there. And you need to adapt to the country and its lifestyle -- or you will drive yourself crazy.
 
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I have been living in Uruguay for about 8 years. I really love it. There are some free trade zones you could set up your business without tax.
I have not seen anything so far about free trade zones, do you have personal expierence opening one there. If so I would really appreciate it I you could point me in the direction of a service provider and/or additonal information about it.

Furthermore how are captial gains in regards of stock market, crypto and futures profits been taxed? Do they fall under the 12 %, or income tax IRPF scheme (up to 36 %?
 
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I have not seen anything so far about free trade zones, do you have personal expierence opening one there. If so I would really appreciate it I you could point me in the direction of a service provider and/or additonal information about it.
I just did a quick Google search. There is plenty of information. Eleven free trade zones in Uruguay.

 
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A webinar on Uruguay and Paraguay residence is scheduled for Dec 8, 2023. Below is the registration link.
ps. I have no idea of who the "experts" speakers will be, but in general this company is quite reliable.

 
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