Why Uruguay?

URUGUAY: LATIN
AMERICA’S HIDDEN JEWEL
Residency ● Banking ● Investing
Panama
July 2012
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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?
Investor-Friendly Country:
 Foreign and local investors treated equally
 No limitations to ownership by foreign buyers
 No currency exchange controls or forced conversion
 Foreign currency can be used: Dollars, Euros, etc.
 No restrictions or taxes when transferring money
into, or out of the country (repatriation of capital)
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Why Uruguay?
Stability and Safety:
 Latin America’s safest country
 Tops rankings in political and economic stability
 Tops rankings in transparency and lack of corruption
 No social turmoil: existence of middle class and
Latin America’s lowest income gap
 Solid legal system with strong reputation for respect
of contracts and private property
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What Uruguay Offers You
 Residency and Citizenship
 Banking
 Real Estate
 Farmland
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RESIDENCY
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Obtaining Uruguayan Residency
Apply in one day
It takes 12-18 months to become a resident
After 3/5 years (since you applied for
residency): citizenship & 2nd passport
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Steps
First, gather documents (abroad)
Then, enter Uruguay, as a tourist
Within 90 days submit the application at
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
4.Marriage certificate (optional)
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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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Requirement to reside in Uruguay?
You must have an address (own or rent
a place)
And spend most of your time in Uruguay
(you may come and go)
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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 (from day one)
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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: Diversity of Choices
Farms
Forestry
Offshore
services
Hotels
Real Estate:
Atlantic
Real Estate:
Colonia
Real Estate: Montevideo
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The Top Choice: 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 Investing in Farmland
Increasing global demand for food
Consistent long-term appreciation
Annual cash return
Non-volatile asset
Store of value
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Why Farmland?
“Would you rather own ALL the
gold in the world or ALL the
farmland . . . ?”
(Warren Buffet, CNBC, March 2, 2011)
“Farmland Is Where the Money Is”
(Jim Rogers, August 10, 2011)
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Why Farmland in Uruguay?
A) Most suitable country
B) Turnkey, easy investment to operate
C) Transparent market
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A) Uruguay’s Suitability
 Non-degraded soil
 Even rainfall year-round
 World’s largest aquifer beneath region
 Temperate climate
 Two crops per year (over long run, 1.7-1.8)
 Competitive producer
 No government intervention in the market
 Developed land rental market
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MAPA DE
CHRIS ACA
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Source: Atlas of the Biosphere
Center for Sustainability and
the Global Environment
University of Wisconsin - Madison
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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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B) Turnkey, Easy Investment
 The investor may farm the land
directly…
 Or have a farm management company
handle every aspect of the operation…
Or lease out the land (there is a very
liquid rental market for cropland)
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C) Transparent Market for Land
 The country is mapped, with soil types
classified according to their productivity
 Each type of soil is has a productivity
index (“CONEAT” index)
 The map is available online
 Thus, land productivity is verifiable
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The Online CONEAT System: Example
Map of the property, with
different soil types
Location of the property
Water
resources
Average CONEAT index for
the property
Property number
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Real Estate: Montevideo
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The Cost of Land (per Hectare)
USD 3,200
USD 2,700
USD 3,700
USD 5,500
USD 9,000
USD 8,000
USD 3,700
USD 10,000
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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
(8,500/hect, 3,300/acre)
 Rental: 4%
 Run by owner: 4-12%
 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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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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