Is Uruguay the best place to emigrate to if, for example, things went wrong in Europe? What is the immigration procedure like? Is it a tax-friendly country? What about education and healthcare?
Uncertainty.
We don’t want to be doomsayers, but these are strange times, to put it mildly. Of course, the ongoing war in Ukraine leads to much uncertainty. There are economic woes and sky-high government debts in many countries. Rising crime in many larger cities and unbridled immigration… all make many, especially well-educated people, think. And the EU’s control drive! Not to mention the increasing tax burden, which governments, to camouflage their mistakes, are targeting more than ever. You know … ‘the broadest shoulders bear the heaviest burden’. Whoever is successful must be the first to fill budget craters.
Where to?
We could go on for hours analyzing why people might think of emigrating from Europe. But suppose you make the decision. Where do you go next? It is not obvious.
After all, within the EU, where people can freely move, and you can live in any country of your choice. But if tomorrow I say you want to live in Canada, you will be off for years and have to go through a difficult and complex immigration procedure. Besides, there are a lot of countries that are also just not fun or safe. So, what are the options?
Possible immigration countries?
Several countries are open to immigration or have made it a business model. Here’s a brief overview.
UAE/Dubai. For years, it has been quite easy to settle in the UAE by, for example, setting up a company there or, in some cases, investing in real estate. These are so-called’ freezone companies’, which are still tax-free. This is in contrast to ‘mainland companies’, which are now subject to 9% corporate tax and usually a 5% VAT rate.
Malaysia. In Asia, Malaysia has a ‘second home programme’ (MMH2) that allows you to settle there under certain circumstances. However, this has also been tinkered with and made less attractive.
Hong Kong and Singapore set the bar quite high, and you especially have to open your wallet to live there.
However, Central and South America are the most open to emigration. There are already Caribbean islands and countries like Panama, Costa Rica, and Paraguay…but our favourite is the Switzerland of Latin America, particularly Uruguay.
Why Uruguay?
Well, Uruguay is a particularly stable and very European country. Furthermore, it is like going back in time: the 1980s, but with mobile phones and the internet, in short, it is the best of both worlds. You can usually park for free everywhere; there is still a relaxed atmosphere and little crime. Life is still clear there.
Climate. And it’s not exactly a tropical sticky climate. You have four seasons there, and there is a lot of room.
Space and affordability. In an area 2.5 times the size of the Benelux (with its population of 30 million), only about 3.5 million people live there, almost half of them already in the capital, Montevideo. Daily life is costly, let’s say, at European prices, but real estate is very affordable. Prices in Montevideo are cheap, and already half of comparable properties in the major European cities.
In the fashionable seaside resort of Punta del Este (THE top resort not just in Uruguay but in South America), prices are less than a third of those in Marbella, for example.
Furthermore, it is important to know about Uruguay that:
° It is a democracy
° It has a stable economy
° Low crime rate
° No racial tensions
° controlled immigration.
What else do you need to know about Uruguay?
It is a Spanish-speaking country, though. So, if you decide to live there, it is recommended to learn Spanish; otherwise, you will never be integrated. Uruguayans are very positive towards Europeans and European culture. So, being European does give you an edge. Sometimes, it is said that Uruguay is a boring country. If this were true, the good news would be that you could take a ferry from Montevideo to Buenos Aires in just over two hours. And believe me, this is a bustling, captivating metropolis that is a delightful mix of Paris and Madrid.
Healthcare and education in Uruguay. Semi-private healthcare is affordable and of quite a high standard. Public education is not thriving, but private education is often much better, and there is a wide choice (competition then ensures good quality at a reasonable price).
Taxation in Uruguay? Taxation is one of the most important assets, in addition to what we described above. Uruguay is one of those countries that opted for a territorial tax system, as is the case with Hong Kong, Singapore, and many Caribbean islands. What does this mean concretely?
Uruguay as a tax haven? Everything you earn outside Uruguay’s territory is NOT taxed. So, suppose you emigrate to Uruguay and, e.g., set up a business, export meat from Argentina to Europe, and run everything through your company in Uruguay. You will NOT be taxed or, at most, at 0.75%.
But even if you were to work locally in Uruguay, all sorts of tax legal constructions would bring your tax burden down to a very acceptable level. For example, there are particularly many tax incentives for software companies where profits are taxed particularly favourably.
Freezones in Uruguay. There are also numerous freezones! So here you are not taxed on profits either.
Personal income tax is also much more attractive than in Europe, as the maximum or so-called marginal rate is 36%; in most European countries, this can go up to above 50%. There is also no inheritance tax.
So, what is the emigration procedure in Uruguay?
Of course, knowing the procedure for emigrating to Uruguay is the most important thing. We can organize this perfectly, and every case is different. But below are still the broad outlines.
You will first have to be able to present several documents, such as:
° that you have had certain vaccinations such as tetanus
° a birth certificate and possibly a marriage certificate if you are married.
° you will have to undergo a short medical examination in Uruguay
° a certificate of so-called ‘certificate of good conduct.’
Of course, everything will be neatly translated into Spanish and provided with the necessary stamps.
About the medical examination… Medical tests, for example, are contracted out to recognized centres. Subsequently, it is not the lawyer at immigration who double-checks your cataracts … In other words, once a document from a health centre is submitted, the migration officer can do his job: tick it off. And some centres are more flexible. You would already have a real medical problem if they were to refuse you on medical grounds.
Real estate in Uruguay. Next, you either have to prove that you bought a property or that you signed a lease. A long-term rental contract (12 months or 24…)!
Then you have to prove (there are several options here) that each person has a monthly income of 24,000 pesos, which is about EUR 650.
You should expect to be in the country for six months to complete this procedure. After that, will you get a residence card for three years?
Permanent residence permit in Uruguay. After that, you will be granted permanent resident status and get a residence card to prove this status. This is valid for three years and will be renewed upon expiry without renewed scrutiny of your file. So, without checking once again whether you meet all the criteria you had to meet initially.
Action! If you want to emigrate to Uruguay or have any questions, please get in touch with us at info@dehoon-dhp.com. We will be happy to help.
