Why Uruguay? - Live and Invest Overseas

Uruguay:
a Favorite for Investing,
Banking & Residency
Panama
September 2011
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Real Estate: Montevideo
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PONGO APTOS POCITOS
CAMPO CHICO, CON RENTA
CAMPO GRANDE
INMUEBLE CIUDAD VIEJA
APTOS PUNTA
CASAS PUNTA
TIERRA EN ROCHA
SUGAR LOAF
PRESTAR $$$$$$
Hago fichas de aptos, campos, chacras
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RESIDENCY AND IMMIGRATION
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Obtaining Uruguayan Residency
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Simple process, but bureaucratic
It takes 6 to 10 months to obtain resident status
After 3/5 years, one can apply for citizenship/passport
Steps to obtain residency:
 First, gather all the necessary documents (abroad)
 Then, enter Uruguay, as a tourist
 Within 90 days (extendable for another 90 days), submit the
application at DNM
 Once the request is submitted, the person may stay in the country
indefinitely, as a “temporary resident”
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FOTO POCITOS
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Real Estate: Montevideo
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Uruguay's capital
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Largest city, 1.5 M people
Main airport, port
Banks, industries
Main hospitals, universities
Montevideo has two main choices for the investor:
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Old City
Shoreline condos, residential neighbourhoods
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Why Uruguay?
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Latin America's safest country
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Politically stable, solid democracy
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No large social differences, blend-in
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Excellent, affordable, health care
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Corruption not an issue
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Why Uruguay?
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Great infrastructure
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Free entrance and exit of capital
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No inheritance tax
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Banking secrecy, solid banking system
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Safe, solid, investment options
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What does Uruguay have to offer?
A. Residency: a safe, stable option
B. Second home/summer home
C. Banking
D. Investing:- real estate
- farmland
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RESIDENCY
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Obtaining Uruguayan Residency
Apply in one day
It takes 10-12 months to become a resident
After 3/5 years: citizenship & 2nd passport
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Steps
First, gather documents (abroad)
Then, enter Uruguay, as a tourist
Within 90 days submit the application
Once the request is submitted, you may
stay in the country indefinitely, as a
“temporary resident”
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What documents do I need?
1.Birth certificate
2.Clean police record (U.S. citizens:
obtained in Uruguay, at Interpol)
3.Proof of income (USD 500 / month)
4.Marriage certificate *
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Remember to “legalize” the
documents before sending them
The documents obtained abroad
require “legalization” (a stamp) at the
Uruguayan Consulate in country where
they were issued
Other requirements: in Uruguay
(medical, pictures, translations)
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Benefits of Residency
Stay in Uruguay indefinitely
Get ID for different activities
Bring household goods import duty-free
Get the clock ticking for citizenship/2nd
passport
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Requirement to reside in Uruguay?
You must have an address (own or rent
a place)
And spend part of your time in Uruguay
(you may come and go)
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Citizenship
Uruguay allows dual, triple, citizenship
When gaining citizenship, you obtain a
full passport
Requirements:
 3/5 years of resident status
 Connection: example: a home
 Presence: 6 months per year
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Tips on Residency
# 1: Send your immigration lawyer
copies of the documents you intend to
submit, before travelling, so they can
be verified
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Tips on Residency
# 2: Send your immigration lawyer and
customs agent the list of belongings you
plan to bring, previously
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Tips on Residency
# 3:Open a bank account in Uruguay
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BANKING
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Uruguay's Banking system is solid
 Few banks, all foreign-owned plus one
government bank (BROU)
 Banking Privacy Law
 No history of forced conversion or
freezing of deposits
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Opening a Bank Account
Foreign non-residents can open accounts in
any currency (a few banks do not open
accounts to U.S. Citizens)
No special requirements for foreigners:
•ID (passport)
•Proof of Address (utility bill)
•Bank reference letter
•Proof of income source
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INVESTING
IN URUGUAY
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Investing in Uruguay
Foreign investors, locals: same treatment
Freedom to move capital: when investing
and when moving profits
3 A’s:
 Who can buy/invest? Anyone: No discrimination of
foreign buyers of property or investors
 How? Any way: individual(s), corporate vehicle
(local/foreign), IRA.
 What? Anything: No limitations (such as restrictions on
borderline property, beachfront, etc.).
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Investing in Uruguay: Diversity of Choices
Farms
Forestry
Offshore
services
Exports
Toursism &
hotels
Logistics
Real Estate:
Colonia
Real Estate: Montevideo
Real Estate:
Atlantic
coast
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Farmland
 Uruguay is a big farming
country
 Agriculture, Wine
 Forestry, Cattle
 Options:
 Farms of any type
 Small farms to live in
Farms
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Advantages of farmland
Global demand for food, increasing trend
Consistent long-term appreciation
Annual cash return
Non-volatile asset
Store of value
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Why farmland in Uruguay?
Most suitable country
Turnkey, easy
Transparent market
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Why farmland in Uruguay?
MAPA DE
CHRIS ACA
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Source: Atlas of the Biosphere
Center for Sutainabitity and the Gtobal Environment
Universitv of Wiscornin - Madbon
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Global soil degradation, and
where Uruguay stands
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Global water shortage and
where Uruguay stands
Source: Intergovernmental Panel on Climate Change, 2007
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Why Uruguay?
Most suitable country, and…
 Turnkey, easy:
 Investor may farm the land directly
 Or hire a farm management company
 Or simply rent the land (there’s a very liquid
rental market for agricultural land)
 A transparent market:
 An online system (“CONEAT” productivity index)
allows to compare properties and their value
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Farmland: the “Coneat” Productivity Index
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Real Estate: Montevideo
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Farms:
For productive use
 Example # 1: Farm with
high productivity index in
Colonia
 54 Hectares (133 Acres)
 High productivity index:
178
 Ask price: USD 394,200
(7,300/hect, 2,920/acre)
 Rental: 3.5 - 4%
 Run by owner: 6-12%
 Good appreciation
potential
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Farms: As a home
 Example # 2: 5 hectare
(13 acres) “chacra”
 Located in hills, Lavalleja
province
 Modern house, 1,450
sq.ft.
 3 BR, 2 bath, pool, deck,
jacuzzi
 Ask price: USD 320,000
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Rocha
Rocha
 Easternmost province
 Oceanic
 Next development
after Punta del Este
 Options:
 Houses in small
beach towns near
Lots in subdivisions
near ocean
 Raw beachfront land
for development
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Real Estate: Eastern Shore (Rocha)
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Rocha : Lots
 Example # 3: Three
contiguous lots
 Between La Paloma and
La Pedrera
 One block from ocean
 Total: 1,747 sq.m.
(18,784 sq.feet)
 Ask price: USD 74,500
(USD 43/sq.mt)
 Good appreciation
potential
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Montevideo
 Uruguay’s capital: 1.5 M
 Main schools, hospitals,
cultural life
 Options:
 Shoreline condos
 Buildings in Old City
 Large homes in
residential areas
Montevideo
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Montevideo: One
bedroom apartment
 Example # 4: Condo in
Punta Carretas
 3 blocks from shore
 430 sq.ft, 1 BR, 1 bath
 Ask price:USD 135,000
 Rental yield: 7%
 Condo fees:USD 125
 Moderate appreciation
potential
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Montevideo: three
bedroom apartment
 Example # 5: Large
condo on shore drive
 1,600 sq.ft, 3 BR, 2
bath
 Ask price:USD 445,000
 Rental yield: 7%
 Condo fees:USD 400
 Moderate appreciation
potential
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FOTO VILLA BIARRITZ, RAMBLA
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Montevideo: the Old City
 Example # 6: Old style
house, one block from
main square
 4,337 sq.ft., three
floors, 4 BR, 4 bath,
garage, fireplace
 Ask price:USD 360,000
 Rental yield: potential:
8-10%
 Good appreciation
potential
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Punta del Este
 South America's most
exclusive summer
destination
 Low population in
winter, but enough
activity for year-round
 Options:
 Shoreline condos
 Houses near beach
Punta del Este  Lots in subdivisions
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Real Estate: Punta del Este
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Real Estate: Punta del Este
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Punta del Este:
shoreline condo
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Example # 7: 16th Fl.
1300 sq.ft
2 blocks: downtown
3 br, 2 bath
Ask price: USD 260,000
Condo fees:
Rental: summer, 4%
Moderate appreciation
potential
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Remember:
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EASY
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TRANSPARENT
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SAFE
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Contact information
Juan Federico Fischer
jfischer@fs.com.uy
Check our site for detailed presentations
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