Europeans increasingly choose Uruguay as a country to emigrate

My life changed the day I signed the deed to buy the first acre of land: suddenly I felt that, no matter what, I had a place where my family and I could always go – no matter what – and make a living.

1
Hectares sold this year
1
European citizens applied for a residence permit

This is much more than an investment. It sets your mind free. Literally.

If you landed on this page, we hardly have to explain to you what we are talking about. We all agree that the western world is undergoing a deep crisis, taxes increasingly confiscated, and the recent war next door does not improve things. We identified the only and best country to get away from taxes, asphyxiating government administrations, and war dangers. The perfect plan B if you want – or plan A as it has been for us for many years now. A country the size of half of France but with only 3 million inhabitants, democracy, nature. A country in which you can safely buy your property a diversify your wealth, investing in the best hard asset there is – agricultural land. A country in which you can easily take a resident status and stop paying taxes for many years.

Welcome to Uruguay, the top well-kept secret, the best choice for retiring, working remote, or hiding from the tax office. The best and safest place for investors but also for idealists or just for all those tired of being harassed by governments.

Why do people choose Uruguay?

Uruguay is European-style far-off war zones and intrusive authorities. One of the best Taxation treatments one can find is a cheap-dirty, there is safety and a beautiful countryside.

Uruguay is an eye of calm in a global storm. My original decision to settle in – 30 years ago – was based on countryside, nature, society, vast spaces and taxes.

Let us explore in more detail the benefits and the opportunities many people already have spotted recently: 2021 has seen a steep acceleration of real estate sales to foreigners mainly Europeans looking for a new residency or just a “plan B” place in case things get even worse.

Europeans increasingly choose Uruguay as a country to emigrate. During the first six months of this year some 52,277 citizens of the European Union applied for a residence permit. That means more than 40 per day and a 44% increase from 2020.

Applying for residency

Uruguay is probably one of the easiest countries in the world to immigrate and to obtain residency status. You need a clean criminal record and be able to prove a monthly income of around 1500 USD per person to cover living expenses. We will be happy to assist and advise you.

Tax residency

This new measure introduced in 2020 is aimed at attracting wealthier foreigners to move to the country and increasing the low number of inhabitants while improving the economy. The application is uncomplicated, the main requirement is an investment of prox. 400k dollars in real estate and a physical presence of 2 months every calendar year. Careful: Just getting a certificate of fiscal residence in Uruguay does not automatically mean that a person is not still also fiscally resident in another country. We will be glad to guide and assist you.

Buying real estate

You can buy a house or an apartment in many countries in the world, including in Uruguay, of course, but not in many countries you can feel safe buying agricultural land.

I bought my first piece of agricultural land back in 1995. At the time, it cost me 0,10 dollars for each square meter. Things have changed but the land is still dirt cheap comparatively.

Over the last ten years, a growing number of Europeans have been investing in real estate in Uruguay. They often choose to spend European winters in the pleasant southern summer (November-April), living in their residencies in beautiful Punta del Este and surroundings or on the farms they bought for living and as a smart investment. There are a vast number of reasons to buy a ranch, but it comes down to global factors, increases in the value of farmland, assets diversification, geographical diversification, and the stability of Uruguay’s economy.

There are no restrictions on who can purchase a property.

Whether you buy a house, an apartment, or agricultural land, there is no restriction for anybody. It is safe to buy, private property is respected in Uruguay.

Thousands of hectares available for foreign investors.

Currency for real estate transactions

Uruguay has a legal regime that provides for the free entry and exit of foreign currency and also permits it to be freely converted into the local currency. All real estate transactions are carried out in US dollars.

So why are Europeans buying farmland in Uruguay?

  • an excellent asset diversification
  • better than gold
  • every day there is less farmland, not more
  • protect your capital
  • increasing yields through higher product prices
  • long term price appreciation
  • space, safety, freedom, off the (military) radar of big powers
  • extremely advantageous taxation
  • an astonishingly modern public registry guarantees a proper registration of all properties.
  • my life changed the day I signed for the first farmland purchase: I suddenly felt that, no matter what happened, I had a place where to go and make my living on. This is much more than an investment. It sets you free. Literally.

We will be happy to discuss why we recommend investors to choose Uruguay, and specifically the attraction of farmland.

More about Uruguay

Uruguay, also called “the Switzerland of Latin America” has been an open secret for Latin American investors for decades. Just recently interest from Europe has multiplied.

Uruguay is a discreet little country, which rarely makes it to the news. It is often confused with Paraguay which is a different story. The legal system works, courts work and corruption is at OECD standard levels. It’s a country one can rely on.

The commodity boom of the early 2000s changed Uruguay. Today Uruguay is the fifth biggest exporter of beef, the fourth exporter of rice, and the sixth exporter of soybeans in the world. When a third pulp mill opens next year, Uruguay will become the second exporter of short fiber for pulp for paper in the world after Brazil.

Managing assets is our vocation and we recognized that land is as good as gold, with the difference that you can actually make a living on it and combine a solid investment with pleasure and an interesting tax treatment.

Energy

We have just experienced how important energy is. Uruguay relies on two water dams on the Rio Negro River, a thermal central in Montevideo; for a few years various wind energy projects have been successfully developed and the country brags an overproduction that is exported to Brazil. The distribution network is not perfect, there are regular mini power interruptions for a few seconds.

What kind of yields are investors seeing? I will be honest: I live on a (for the standards small) 250 hectares farm and I am generally breaking even i.e., the production pays all costs and my living. The past two years have generated very interesting yields.

Larger farms can be very profitable; that depends on the kind of soil which allows different kinds of crops.

We live on our farm, and the pleasure and living values, the fantastic days we spend on the farm and the stress-less life, eating house-grown veggies are our biggest compensation. Besides, Land prices have been rising constantly, tenfold during the past 20 years. Remember: farmland cannot be multiplied or created, to the contrary: every day there is less of it, due to asphalt, erosion, or over-exploitation. The most standard crops are soybeans, wheat, and corn; next is cattle and the third is timberland which supplies pulp from eucalyptus trees for the production of paper.

Uruguay leads green energy charge in Latin America Over the past 10 years, Uruguay has gone from being dependent on fossil fuel imports for power to a renewable energy pioneer.

How much land do I have to buy?

One can buy five or five thousand hectares. Yields are directly related to costs, the smaller the farm, the higher the fixed costs. Efficiency is the magic word. We have the experience; we will help you get started and manage your property.

Land prices correlate with the productivity index of a specific unit. The scale goes from some $4500 for forestry land to up to $15000 for prime agricultural land. Smaller surfaces are proportionately more expensive of course.

We have the best contacts and experience to help you find the property that suits you best.

Vineyard

My advice: plant some vine trees but stop being romantic. It’s ok if you produce your few bottles of the vine, it is different if you pretend to start competing with France, Italy, California, Australia, New Zealand, Chile, Argentina, South Africa, Spain, etc. Standards are so high you will never be able to compete, face it.

Getting the residency

This is all standard practice we will be glad to help you with. Unfortunately, as in every Latin country, red tape is terrible and you will have to take a deep breath and bear patience.

Passport

As it is easy to get residency in Uruguay, it is also easy to obtain a Uruguayan passport after 3-5 years in the country. I got it and I can tell that it was very useful during the covid times.

We have a guide explaining what documents are needed and the process to start any via in uruguay. Ask me for more information

Healthcare: Uruguay’s got a good healthcare system

Uruguay has a very good health care system and there are different options to suit different circumstances. You can get a local or under circumstances, international insurance is more appropriate. Montevideo has quite good hospitals. We have been through it; we have the necessary experience.

Retiring to Uruguay

If you are eligible for residency in Uruguay, you are eligible to retire to Uruguay. As simple as that.

Taxes in Uruguay

If you don’t apply for a special tax residency for foreigners, taxes are not cheap but can still be very interesting.

We will answer and address all tax-related issues personally since every situation is different. Standard tax rates are between 0 and 36%. If you earn income generated abroad, obtained from sources abroad you are not supposed to pay

locally; in any case, just two types of income generated internationally are taxed: interests and dividends. All other income is not taxed.

Still, don’t think the state is Santa Claus: VAT is 22% and – should you get a salary – Social security is 22% for the employee and 22% for the employer, i.e., all in all, more than half your income is gone BEFORE taxes.

People get tax residency and legal residency mixed up all the time

You can get confused by legalese terms. Forget about Portuguese Spanish, Italian, British, Dutch, or Swiss Golden Visas. This is the best you can get. You can be a tax resident and you are asked to live only 2 months in the country. Spend the European coldest months at your farm or at one of the beautiful Uruguay beaches, you will enjoy life while saving taxes.

Uruguay passed a very generous law in 2020, which comes down to the following: investing $400,000 in real estate and being here 60 days during the year you get your tax break residency. The tax break is actually for eleven years—ten plus the year that it took to become a tax resident. So, what happens in year 12? Uruguay’s going to say: we’ll charge you tax on dividends and interest only, at a low rate of 12%.

Opt for a pension away from the chaos taking advantage of a smart long-term investment

Ask us for advice and guidance

We are of Swiss origin, multi-lingual, specialized for decades in global investments, and have 30 years of hands-on experience in Uruguay, with our investments in agriculture, timber, and real estate investments in Uruguay.

Our team includes real estate, tax, and administrative specialists, technicians, and we are set up to help you get through the admins as effortlessly as possible.

    Ask us for free advice and guidance

    We are a Swiss origin partnership, multilingual, specialized for decades in global investments ando over 30 years of practical experience in Uruguay



    Your data is safe and will never be shared with anyone.

    Thousands of hectares available for foreign investors.
    Opt for a pension away from the chaos taking advantage of a smart long-term investment
    There are many better options instead of paying taxes
    With the growing popularity of remote work, many Europeans chose to move to Uruguay while they continued with their tasks to any part of the world, finding in the country a good educational offer for their children.

      Ask us for free advice and guidance

      We are a Swiss origin partnership, multilingual, specialized for decades in global investments ando over 30 years of practical experience in Uruguay



      Your data is safe and will never be shared with anyone.

      Europeans increasingly choose Uruguay as a country to emigrate. During the first six months of this year some 52,277 citizens of the European Union applied for a residence permit. That means more than 40 per day and a 44% increase from 2020.
      We have a guide explaining what documents are needed and the process to start any via in uruguay. Ask me for more information
      Uruguay leads green energy charge in Latin America Over the past 10 years, Uruguay has gone from being dependent on fossil fuel imports for power to a renewable energy pioneer.
      Uruguay is sometimes described as “one big farm”. It’s a country, albeit a small one, where cattle outnumber people by four to one and farming is the most important part of the economy.

        Ask us for free advice and guidance

        We are a Swiss origin partnership, multilingual, specialized for decades in global investments ando over 30 years of practical experience in Uruguay



        Your data is safe and will never be shared with anyone.