Uruguay: a Favorite for Investing, Banking & Residency...Uruguay's capital Largest city,...

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Uruguay:

a Favorite for Investing,

Banking & Residency

Panama

September 2011

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Real Estate: Montevideo

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

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

Uruguay's capital

Largest city, 1.5 M people

Main airport, port

Banks, industries

Main hospitals, universities

Montevideo has two main choices for the investor:

Old City

Shoreline condos, residential neighbourhoods

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Why Uruguay?

Latin America's safest country

Politically stable, solid democracy

No large social differences, blend-in

Excellent, affordable, health care

Corruption not an issue

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Why Uruguay?

Great infrastructure

Free entrance and exit of capital

No inheritance tax

Banking secrecy, solid banking system

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

Offshore

services

Forestry

Toursism &

hotels

Exports

Real Estate:

Atlantic

coast

Logistics

Real Estate:

Colonia

Real Estate: Montevideo

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Farmland

Farms

Uruguay is a big farming

country

Agriculture, Wine

Forestry, Cattle

Options:

Farms of any type

Small farms to live in

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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

**********

********

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

Montevideo

Uruguay’s capital: 1.5 M

Main schools, hospitals,

cultural life

Options:

Shoreline condos

Buildings in Old City

Large homes in

residential areas

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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

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

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

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:

EASY

TRANSPARENT

SAFE

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Contact information

Juan Federico Fischer jfischer@fs.com.uy

Check our site for detailed presentations

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