'What are the prospects for Americans in Uraguay?' Retirement

What are the prospects for Americans in Uraguay?

Robert Stevens (12.64.12.231) -

We have a nice place in NW Indiana with a large, very nice house, land, horses, etc. Nothing wrong except the weather, lack of affordable help, the cost of heath care insurance, the very low property values in Indiana, and George Bush et al.

I have looked at Mexico - politically unstable at the moment; Costa Rica - appears to have had their fill of foreigners and lack an infrastructure; Panama - property prices are as great as the depressed US prices in Indiana; and now Uruguay.

Can anyone interpret the meaning of the election of a Leftist government? What about the cost of living and more importantly to me, the cost of buying a nice house on a nice piece of land?

Reply #1 Jim (152.163.34.201) -

Your analysis on Costa Rica is right on. Mexico you missed that the State Department recently referred to it as one of the most dangerous places (kidnappings).

In Uruguay you can find prices low and high. Once you get away from Montevideo it becomes rural... most of the highway bill boards are for farm products.

You will probably find land (with a house) more than affordable (compared to Indiana). You will probably find property taxes to be insigficant (in comparison).

The key is an extended trip to explore and experience the culture.

Reply #2 Patrick McDonnell (86.132.27.214) -

Great minds think alike :-)

We live in rural Suffolk, England where there are similar problems and have spent the last 4 years looking for the right retirement destination. We spent a month touring the country last year and are going again next month to look at Colonia department more closely. If it still seems as excellent as it did last visit, I'm planning to throw myself into small town life next February on a 3 month rental basis to get my Spanish up to speed. If I survive that, I'll be ready to buy or have built house and land.

> Can anyone interpret the meaning of the election of a

> Leftist government?

El Presidente may have banned smoking but you have Bush and we have Blair both of whom have done worse. I'll be talking to tax lawyers in Montevideo next month as I hear that the Prez is doing some tax adjustments. I also have appointments with the British consul and the Irish consul in BA so I should know more after that.

> What about the cost of living and more importantly to me,

> the cost of buying a nice house on a nice piece of land?

Its hard to say as I live in a very expensive country. Everyday stuff seems reasonably priced but gas and electricity might seem expensive to you though living here on Treasure Island, they seem cheap to me.

I've been averting my eyes from Se Vende signs until I'm sure but there are numerous agencies on line. "Chacras" are probably what you are looking for. Broadly speaking a 4 bed rural Uruguayan house with 5ha of land costs between one tenth and one twentieth of the British price for similar.

Jim's advice is sound. You've really got to go and look but in my view, it is well worth doing so.

Patrick

Reply #3 George from Dead Like Me (Contact Member) -

What a very interesting conversation. I feel like a fly on the wall. I have learned so much. No I think I could successfully move to Uruguay and be prepared.

Reply #4 peekaboo from my frozen igloo (Contact Member) -

Where I live, I better any where is better tax wise! Our taxes here are so outreageous. I get tire of supporting other people. I would love to move to another country where I am welcome.

Reply #5 Lee from Pocitos (Contact Member) -

In Uruguay *currently* there is no personal income tax, no personal capital gains tax, income from outside the terrority of Uruguay is not taxed at all.

The "sales" tax (IVI) is 23% and prices are always shown included IVI. Import taxes are high, if you receive a package valued more than US$50, you wil be assesed a 60% import tax by the customs service (which includes the IVI).

So the country is basically supported by the sales tax and imported items are very expensive. Corporations of course pay income tax, etc.

The employment taxes for health and pension are probably quite high % wise as well.

If you consume you pay. If you save you don't.

Property taxes are quite low compared to what you would find in the USA. In Montevideo there is a quarterly tax of about $15 per property (house/apt) which goes for the street lights, etc.

There are significant tax law changes in the works that keep getting delayed.

Reply #6 Steve Bowman (68.220.39.42) -

Robert-

I’ve watched this conversation for a while….the answer to the question, “Is Uruguay right for me?” depends on your national/regional and personal profile. One size ain’t gonna fit all!

Since you’re in Indiana, city and coastal real estate may not be the bargain many of us see. But if you’re looking for farmland and an inexpensive house, Uruguay may be pretty reasonable. You can get decent land, not to far into the boonies for $200, 300/acre and a nice house for less than $100, 000. The house may not be a deal by IN standards, but I don’t suspect there’s much good farmland in the US, near desirable population centers for that kind of money. For many people in North America and just about anyone in the EU, this is drop dead wonderful deal!

Stop by Coastal Uruguay, this is the type of question we’re trying to answer.

Steve Bowman

Reply #7 Lee from Pocitos (Contact Member) -

You will also find that the seasons are much milder than Indiana... but unlike living in Costa Rica you'll still have seasons and higher quality food.

Reply #8 Milly from Wisconsin (Contact Member) -

Sounds like I should brush up on my spanish. I hope to retire very soon and I know here in the US it is pretty impossible to someone to retire unless you have a very nice nest egg.

Reply #9 Linda from Montevideo (Contact Member) -

You may find some cheaper places to retire, but you can't beat the quality of living here. Don't be scared by that, to meet the immigration requirements to live here you need to show your pension is US$500/month, or more.

Reply #10 Cynthia (71.55.227.161) -

Hi, I'm an American living in Florida, originally from northern New Jersey (about 30 minutes from Manhattan). I am the first American in my family as the rest of my family is from Uruguay. Consequently, we've done a lot of traveling back and forth. My family live in Montevideo, Maldonado, Colonia Suissa, Rocha and some other rural areas.

I think it's accurate to say that you will find some high prices and some low prices for real estate in Uruguay, with real estate just outside of Montevideo being significantly less. An interesting note is that that you will sometimes even find multiple prices for the same property (that is something to watch for). The homes cannot be compared to homes in the United States. We are very spoiled here and have the best of everything, especially as far as construction materials, decorating capabilities and furniture, etc. But if you can get used to the "lifestyle" changes, then you are good to go with less money as far as real estate goes.

Property and food are more than reasonably priced while "luxury" items such as cars, clothing, well made shoes, any electronics (televisions, digital cameras, computers, cd players, stereos, etc.) can be on the expensive side.

For example, I just sent a pair of Nikes to my 20 year old cousin who was literally HOWLING over the phone about the sneakers. The Nikes cost me $45 bucks here, while over there they retail for about $95 American dollars. Anything that even insinuates "USA" - more mula. For example, Levi's Jeans because they are synonymous with the good old USA can retail for up to $125 American at a posh store in Montevideo. While we buy them for $20 at Walmart.

The cheap Walmart personal cd player that I paid $24 dollars for over here, went over really well over there considering that it retails over there for about $40 American dollars. Computers can be expensive relative to what you get. For example, my cousin purchased a computer for $300 that we wouldn't even use here it's that old. We are talking the thing practically runs DOS, it is so old. A laptop runs you $1200 American, while a regular flat screen computer with substantial memory can run anywhere from $800 and up.

A popular complaint over there are the shoes. You pay $30 American dollars for a pair of shoes made in China that are a piece of C(#&. The nicer imported shoes are more expensive, the really good quality LEATHER Uruguayan made pair of shoes that will last you for years are $100 American dollars (how is that for irony?) The jack up the price of a product they produce.

However, here are some good things: tickets to a good show (as in the Montevideo Arts Theatre) will cost you anywhere from $14 - $20 American for awesome seats. Dinner out for four - no probs! You've got it made with $20 American dollars. They eat lots of grilled meats there, and staples like mashed potato, salad and bread. Almost every meal is served with wine and Coca Cola and the food is wholesome and fantastic.

Quick Story: I nearly sent my cousin Gabriela into cardiac arrest when for her birthday a few weeks ago (March 2007) I decided to send her "lunch for 10". Basically, I purchased lunch from a "confiteria" (bakery and sandwich shop)in Montevideo who, for $120 American dollars brought it to her office in Montevideo for she and 9 of her friends. This is what was delivered: a tray of 25 sandwiches, 20 pastries, 20 assorted appetizers, 3 dessert cakes, 2 bottles of champagne, soft drinks, caviar for 10, a vase of fresh flowers and 1 bottle of imported whiskey. She nearly fell over when the delivery boys came in with everything. She asked me how much I spent, she couldn't help herself. She said it was like being treated like royalty. Again, $120 boys. What would that have cost here in the States? I haven't a clue. But caviar? Let's be serious.

Then there are the beaches...PUNTA DEL ESTE...the beaches in Uruguay are absolutely gorgeous.

The people are the nicest people you'll ever find. Everyone greets one another, it's a more relaxed atmosphere. Most Uruguayans are open, friendly and helpful (very different from my experience of the French Canadians who give us "the finger" every living moment they get).

Someone who recently had been to Uruguay described it as Ohio with beaches. I'd say this is accurate. The weather is pretty nice most of the time, but the winter is quite cold with lots of rain. In the winter, as it about to begin now (April) it can rain for days there with a very over cast sky. It gets very damp and chilly, and if you don't have a car - traveling in Montevideo on public buses (as most people do) with that weather is miserable.

If you are going to travel there, to get the best idea of the "high point" or the "best time you'll ever have" go there during February when carnaval (the 3 week festival) is going on. There are a million things to do and see. Maybe not as huge as that of Brazil's, but still well worth it.

Average maximum temperatures during the year: January 83 F, February 83 F, March 79 F, May 65F, June 59 F, July 58F, August 63 F, September 63 F, October 38 F, November 74 F and December 79 F.

Depends what you are looking for, I'd say visit once in February (to get an idea of the best time) and again in July (to get an idea of the worst time).

Mucha suerte y espero que esto te ayude,

Good luck and I hope this helps you,

Cynthia

Reply #11 M. Anthony (169.253.4.21) -

I recently left Uruguay after having lived there for 4 years. I must say that Uruguay is a lovely country and I truly enjoyed my time there.

I miss the little country. The slow pace and relax ambiance that is characteristic of the place. Pocitos, Carrasco, Malvin, La Rambla and my favorite restaurant, La Corte. I wouldn't hesitate to go back and retire there. The standard of living is good and unlike many other LATAM capitals, Montevideo is relatively still a safe place.

I found that charruas (Uruguayans)are very nice folks and ONCE you get to know them, they can be very friendly and open. I underline ONCE because at first glance uruguayans tend to be somewhat shy and reserved. In my opinion they are not as friendly when compared to other LATAM cultures (at first). A good morning or a good afternoon is rarely uttered towards strangers, and one gets used to this eventually. This is not to say that they are rude or anything like that, it's just they way they are. But like I mentioned before, once you get to know them, they open up and let you in their circle of trust.

I can't wait to return to the land of Artigas and perhaps to stay longer.

Reply #12 Gregory Benson (204.108.8.5) -

My wife and I are looking to retire in the next 9 years and have talked extensively about moving to another country and Uraguay is at the top of our list. I keep hearing that the government there are currently considering changing some laws, are these tax laws? Is the infrastructure solid and are there any horror stories of american attempting to reside there, but, found it difficult do to the culture or people? Just form what I've heard it is certainly a place I would like to visit.

Reply #13 Lee (4) from Montevideo, Uruguay (Contact Member) -

They did infact make some changes to the tax laws effect July 1, 2007.

BEFORE there was no personal income tax and no personals capital gains tax.

Now: personal income tax, capital gains tax on sale of real estate, income tax on rental of real estate. Reduction of sales tax from 23 to 22% (for good from 14% to 10%). Though my personal observation is that prices were not reduced as they are always listed including tax... so it was a boon for the companies telling stuff not a benefit to the purchasers of goods.

They still do not tax income or finanical matters that occur outside their terroritory.

There are some that have left or decided not to come/stay. One was a north american couple currently living in Panama... the winter here (never below freezing) was too harsh for them.

Reply #14 myaa (169.253.4.21) -

I just wanted to add to this topic one point, and I don't intend to be controversial, however I did live in Uruguay for more than 3 years...If you're African-American, the prospects are not good. Sorry, Uruguay is lovely, but black people are not well received.

Reply #15 Johnboy from New York City (Contact Member) -

That is disappointing to hear. In the time I was in Uruguay I saw few black people. However, the Uruguayans seemed to accept everyone well (except maybe the Argentinians).

But with any new place you move to, it is best to try and spend an extended time period there... 3 months.. 6 months or more to decide if you like the place (and it likes you).

Reply #16 Laurie Anderson (205.188.117.202) -

I would like to visit uruguay as a place for potential retirement. Are there any retirement tours? I prefer rural areas, but would like to be able to get to Montevideo occasionally. Laurie

Reply #17 Lee (6) from Montevideo, Uruguay (Contact Member) -

I might suggest you do the opposite... find an apartment in Montevideo for a couple months and then explore the rural areas from here.

Uruguay is basically, Montevideo, a few small resort areas and then a big farm.

And, remember to visit in the Winter here too (coming up shortly) so you know the near freezing temperatures are ok.

Reply #18 henry (201.240.53.11) -

Im english, but now living in peru for past four years. Uruguay has always facinated me, ever since watching the natural wildlife programs on tv many years ago.My wife and i (who is a peruvian doctor)would be very interested in learning more about uruguay as a place to live and from my wifes point of interest to work as adoctor. My interest is farming and livestock, being an exfarmer , and the agriculture sounds appealing , only little is known regarding the economics of this business. Everything else ive read sounds inviting. We are here to listen and learn

Henry

Reply #19 Jim (12.46.251.141) -

Cynthia.. Great info thank you. I am considering Montevideo as a retirement location. I have a question based on your comment that American made goods are expensive there. Is it possible to send down, for example, American jeans and have them sold to stores there? Would the customs duty devour all the profit? Sounds to me like if they are buying and want American products, I ought to be sending them there. Can you advise me through the likelyhood of that. Im at herotyme2@aol.com.. Thanx..

Reply #20 Lee (4) from Montevideo, Uruguay (Contact Member) -

Would the customs duty devour all the profit?

That is exactly why the import products are expensive in the stores here!

The combined sales tax and import duties come to about 60%. The sales tax is 22% (it used to be 23% but they reduced it 1% and added an income tax).

For example, to look at Cynthia's Nike's example a bit:

The Nikes cost me $45 bucks here, while over there they retail for about $95 American dollars. $45 + 60% tax = $72... so retailing for $95 isn't an unlikely figure.

Of course you just might find that you can live a full and happy life without having the Nike name plastered all over your feet!

Reply #21 Richard (207.200.116.72) -

What would a decent, but modest apartment in an inland Uruguayan city cost per month?

What would it cost to eat three meals a day in good, but modest restaurants?

What might it cost per month for one person to eat well at home.

In Thailand, for example, a nice little apratment or a hotel suite might rent for as little as $250 a month.

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Reply #22 libertysilver (72.231.214.29) -

What would an American have to do legally to live there?

Reply #23 Alfred (71.53.106.21) -

...it always surprises me to see comments Like: "I am sorry, but Blacks are not well received"...are we on the same planet?....but more to the point why are the whites in these countries still so ed-up? Black people are like like white people, but it is true they tend to be more attractive...especially to white women...and we all know white men love nothing better that a young black woman. What a shame.

Reply #24 Jorge from Florida USA (205.188.117.202) -

Uruguay as United States is home for me.I moved to United States in 1969 and divide my living between New York and now Florida.

I also thinking about retiring with my American wife for all the benefits that this Country offers.

I'm reading about some of you worrying about the Party from the left being in power.

STOP worrrying, Uruguay is a Country open to free market, open to have friends everywhere and respect different opinions. Is no more left that the one in Canada or France.

Probably in the next Election you will see a Party more to the right run the Country, one or the other will be no different for you or your family.

You will come to Uruguay to enjoy the beauties this country has to offer with a lot less money than in your country.

The best way to find out if you like Uruguay and it's people is to come on vacation for at least 2 months, renting an apartment

I will rent in the Pocitos area for one month and the other month I will rent in Atlantida or Piriapolis.

Pocitos if you like the Beach and City life.

Atlantida or Piriapolis if you like the Beach and a quiet life with everything around you. Also Farms near these areas.

Your will enjoy with your Wife a nice dinner with a good Uruguayan Wine for abouth $ 25 Dollars in a nice Restaurant.

Food is cheap and good. Uruguay is a country mostly European and so are there Restaurants.

Like Italian food ? your are in the right place.

People in Uruguay are friendly, reserved at first until you open to them and they will become very helpful.

Like Shows, Music, Sports ? the best Tickets under 20-30 Dollars.

The last time we visited Uruguay we meet a young couple from my neighborhood High School in USA as they said" It's a small world" and Uruguay is not to far.

Good luck - Maybe one day we will meet drinking a "Pilsen" or "Mate"

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