The few homes visible from the road do not tell you much. You have to venture in to see more. There you will find a variety of attractive homes along quiet streets amid shading trees. Bella Vista is residential; there are few services and no town core. There are no unkempt houses. There is no noise from the passing traffic; yet the beach, from any home, is not a long walk. Even on a hot summer day this beach will not be crowded like the beaches of nearby Punta del Este. The families who live in Bella Vista all year round and those who only use their houses in the summer share “their” beach and it feels almost private. Shopping is done in Piriapolis, just ten kilometers away. Bella Vista is a privileged residential area—beautiful, quiet, and safe.

A nearby attraction is Sierra de las Animas, an amazing recreation area that was closed for decades for conservation reasons and is now open for hiking. The feature items are the Pozo Azules, blue holes. Eight beautiful pools, three of them linked by cascading water, are worth the one and a half hour hike along gently sloped trails.

Idyllic? Certainly. And a perfect spot to put down roots.

A year and a half ago, I was invited to an asado at a small home in Bella Vista. It was a wonderful summer day and I really liked the little house where the asado took place. Recently, I learned that the owners of that house have decided to sell it. Although they used it only as a summer/weekend residence, it could also be a full-time residence.

Entering through the fence gate, a neatly graveled driveway spreads to allow parking for several cars in front of the attractive green brick structure. Shrubs in blue macetas flank the large wood and glass entrance doors leading into the living room. On your right, with shuttered windows that face the front, is the master bedroom. An en suite bathroom separates it from the second bedroom, which looks out over the hedged and fenced backyard. To your left is a large and attractively designed fireplace, which serves as a room divider, separating the living room from the large windowed dining area, and a neat, efficient kitchen. Behind the kitchen is the main bathroom. Beyond the glass doors leading to the back is a glassed in “half bedroom” area suitable for summer nights.

The main feature of the backyard is, of course, the parilla area. This one is covered with a wooden roof. The parilla is large and preparation areas flank on both sides. The parilla, a bench table, and stools sit on a very stylish ceramic tiled concrete pad. Just beyond is the horno, an outdoor, wood-fired oven suitable for pizzas or breads. The rest of the back yard is lawn.

The house is 85 square meters and the covered parilla adds another 25 square meters. The lot is 500 square meters. The house is approximately six years old so all electrical and plumbing are recent and problem free. Water and electricity are provided by utility companies. The septic system is hidden in the front yard and easily accessible for periodic draining. All necessary fees to BPS and the local government were properly paid so no pre-sale paperwork is required.

The house is being sold fully furnished. The appliances and equipment include: fridge, stove, microwave, two hot water heaters, and air conditioning in the master bedroom. There are also two ceiling fans for summer air circulation.

The listed price for this little piece of tranquility in beautiful Bella Vista is just US$70,000. Interested? Of course you are. So am I, but I don’t need another house. Drop us a mail at editor@olauruguay.com to be put in touch with the owners.

But one thing I did not touch on is buying real estate in Uruguay, with the intention of renting it out. If you already have experience buying to rent in your home country, all the better, but if you don’t, it’s still an option that will teach you management skills, as well as keep you on your toes. It’s a lot of work, but if you love projects, then buying a home to rent could be just for you. If buying seems like too much commitment, another job opportunity would be to seek out expats who have bought properties to rent, and see about managing their homes and acting as a go-to for their renters. You could manage one or a few properties for a handful of expats, which would help them and keep you busy.

Previously Ola has provided you with ample resources about the process of buying property in Uruguay. My recent article, Financing the Purchase of Your Dream Property in Uruguay, will walk you through finance options, OU’s Montevideo Apartment Real Estate Price Guide will give you a sense of market prices for different neighborhoods. Then you can check local classified sections to calculate going rental rates. I find that El Pais’ is particularly good. It is called El Gallito Luis. You can search it online at: http://www.gallito.com/ (just be sure you are looking at the most current version). For a personal narrative of purchasing a home, you should check out Suki’s 2009 article, Buying an Old Style Home in Uruguay.

I got some additional general advice this week with regard to buying and managing a property from Jeff Anderson, proprietor of Farwest Properties in Seattle. He buys land and builds custom homes. The projects are usually so detailed that he will only do a few a year. He works with one master carpenter who does all the building.

He also buys homes to remodel and resell, as well as homes to rent. Though he does not work in Uruguay, I asked him for some tips about the process state-side, assuming his wisdom could translate to a similar experience abroad.

Christina: If the house you are buying to rent requires a remodel, what factors should you consider? How do you decide if you gut it all or preserve some design?

Jeff: Deciding to gut or not usually depends on the age and condition of the electrics, plumbing, furnace, etc. If they are old and in bad shape you need to gut because you have to open the walls to get to the electrical system and plumbing. If you do that you should then redo almost everything. You can still keep things with character like the outside detail, special trim, doors, etc. if they are special. The big question is: What is the objective of the remodel? If it is as an investor with the objective to resell—then only do the things that add value. These are usually, new paint, carpet, maybe new kitchen, and/or bath. If you are buying the house for a long-term investment, then redoing everything will eliminate most problems because it will be like having a new house. If you decide to go with an architect, I would recommend talking to people who have used the architect you’re considering. Some architects want to convince you to do what they like, some will do what you like, some get very involved with all details—often too many details. Look for a fixed cost rather than a percentage of project. Percent of project encourages costs to be higher so the fee is larger.

C: In terms of buying to rent, what are things people should consider?

J: In the U.S., today more than ever in recent history, a homebuyer cannot assume appreciation. Historically you could buy a building, do minimal alterations, and it’d still go up in value by 40%. Now it isn’t the case. When you buy a property, at least in the states, you will have debt service, or a mortgage. You need to ensure that your rent can cover your mortgage, real estate taxes, and maintenance costs. You want a cushion, but it’s even hard to make money on rent. Any positive cash flow is rare. Usually your money comes from the write-off’s you get for depreciation. However, if your rent can absorb more than just what covers your mortgage, you’re in the money (literally). Since rent will increase with inflation, starting off positive will keep your investment extra worth it. Also, when selling in the states, buyers want to know what has been the historic positive cash flow of your property, so you’ll be in a great position to resell.

As always, we encourage you to seek legal advice before investing in Uruguay. You want to understand the in’s and out’s of the law before anything. Law firm Fischer & Schickendantz has Uruguay’s leading real estate acquisition advisory team. They also have a helpful online Powerpoint presentation about property purchase. You can download it from their website here. It gives you the 411 on the process of buying real estate in Uruguay, including structuring a property purchase and obtaining a clean title.

You will want to ask about real estate taxes in Uruguay, available depreciation write-off’s, the domestic resell market, and any related income tax issues in your home country. Lastly, you will want to think about who is your target renter, as this will determine your marketing strategies.

Recently I spoke with a friend who is considering using her savings to buy an apartment to rent out. When I asked her if she was going to rent to foreigners or to Uruguayans, she responded quickly, “definitely Uruguayans.” She felt that renting to locals was more stable as you knew they would be around for the long-term. However, one could argue that renting to foreigners is optimal if linguistically you feel more comfortable in your native tongue vs. in Spanish. Moreover, you might be able to provide some expat-friendly amenities and charge a little bit extra. Other things to consider? Do you want to do long-term rental in Montevideo—a house or apartment—or short seasonal rentals at higher prices in Rocha or Maldonado?

If you or someone you know has bought to rent in Uruguay, I’d love to hear how that experience was. Anything you’d change or do differently? Any helpful tips? Warnings? Leave a comment, or email editor@olauruguay.com.

Fischer was originally alerted by an email in early May that a draft copy of the new tax bill had appeared and that all expats would be taxed. As he told the group, “…that wasn’t justified and was overblown…” He further added, “I’m not sure it was smart of the government to leak it beforehand, but that’s what they did.” Since the beginning, Fischer has studied the information and has sought and received clarifications of any issue as they arose. He has tracked the official government announcements made in May, June, and August. He has posted his explanations on various websites. Once again, for the benefit of the Uruguay Phyle, he restated his knowledge.

The announcement of the Ministry of Finance on May 28, assured there will be “no new taxes on Uruguayan companies and that their offshore assets will not be taxed”. Furthermore there will be “no taxes on assets owned abroad by foreign residents of Uruguay”. Fischer explained the asset tax is only for citizens, the rate is not excessive, and the tax is being reduced annually until it disappears in 2017.

The Ministry’s June 1 announcement stated “the law will in no way jeopardize the country’s policy of attracting foreigners to relocate in Uruguay…and that their income will not be taxed or double taxed”. This announcement is also consistent with the focus of the meeting of business entrepreneurs held in Punta del Este in February (see An Outside Look Inside).

On August 3, the Minister of Finance announced, as he submitted the final draft of the bill to the Congress, that “it contains an explicit solution to avoid double taxation: a tax credit is granted to those who pay income tax abroad. This ensures that foreign residents in Uruguay are not double taxed”.

Fischer told the Phyle that he had met with the government four times and even though he “didn’t vote for them”, he was pleasantly surprised by the openness with which they facilitated meetings.

A number of questions arose following his address. One question involved existing tax treaties with other countries and it was noted that Uruguay does not have an agreement with the U.S. He listed Spain, Germany, and Hungary as the countries with which Uruguay has reciprocal agreements. As pressure has been put on Uruguay to add to that list, new agreements were being formulated with Andorra, Vietnam, South Korea, and Finland. He said that Uruguay was not keen on these reciprocal agreements, which is why such obscure countries have been chosen to add more to the list. Without a reciprocal tax treaty, the ability to discover tax information is virtually non-existent. In fact, even with an agreement, it is limited to a court process, and then, only if a crime has been committed.

Another question was about the current status of the bill, the likelihood of passage, and the possible date of implementation. Fischer replied that the bill is likely to be voted on in the next couple of months, is very likely to pass and would be made effective no sooner than the beginning of 2011. He further added that the bill is not retroactive.

Before leaving, Juan Fischer provided copies of a February 2010 publication from his office, Fischer & Schickendantz, regarding Immigration and Residency, The Property Purchase Process, and Taxes and Banking. He also referred everyone to a website: www.uruguaytaxes.com that fully explains all the points he had again covered at this meeting.

Regardless of previously released information, the expats in attendance were quite satisfied to be receive the message – “Don’t Panic”. After all, Uruguay is now our home country.

“A marketing genius.”

Buying in Garzon isn’t cheap. It will never be featured in a story about real estate bargains in Uruguay. It is not for those looking to pinch a peso or two. It is pure chic and is being considered the real estate hot spot in Uruguay. Mr. Summers and his wife came to Uruguay thanks to their great friend—the master chef—Francis Mallmann, who is half Argentinean and half Uruguayan. Mallman is a world-renowned culinary figure. He has won the award for Medaille d’Or de Gastronomie in Paris and is what Jose-Ignacio-based realtor Ignacio Ruibal calls “a marketing genius.” According to Ruibal, “[Mallman] could sell you a rack of lamb that costs your salary, like he was selling a frying pan door to door.” Diligent, detailed, and quality-based, Mallman is said to be charming and committed to excellence—in and out of the kitchen. He is evidently a real estate visionary as well. In the late 70’s he opened up Jose Ignacio. When that became too crowded he started looking for new pastures. He bought some properties near to Jose Ignacio, in the unknown inland town of Pueblo Garzon. While the town once had a population of around 2,000 people, when the railways went bankrupt in the ‘70s everyone—but a few—left. Mallman took a risk and opened a hotel and elegant restaurant, which he named simply, Hotel Garzon. In 2002 he started showing friends, like Martin Summers, the small abandoned town as a potential real estate investment.

Whether it was the charm of Mallman, or the charm of Garzon, his friends fell in love with the place. Three years ago the Summers bought some land near the hotel and built the house that The New York Times featured. The couple is delighted that they did, because they love their new home. They also now own property in one of Uruguay’s most coveted locations.

It helps to have neighbors like the Hotel El Garzón.

A luxury hotel and restaurant, Hotel Pueblo Garzón commands a whopping US$660 per night. The rate includes four meals a day. The Hotel Pueblo Garzón is remote, exclusive, and pricey. Consequently it, and its owner, do not attract the run-of-the-mill tourist. No, they attract those who can buy a rack of lamb that cost another man’s salary. Located in the town of Garzon, 20 minutes from Jose Ignacio, the hotel has been featured in publications as esteemed as The Wall Street Journal. In the article Mallmann describes Garzon as a “ghost town.” It lies 30 minutes from the beach, it has no shopping, nothing, ni nada. Those who love it, stay, like he did. They fall in love with the little quaint town, and they set-up camp in the silence. Instead of running back to Punta, they eat good meals in the good company of cousins of queens, sisters of dukes, educated people, beautiful people. People like Martin Summers, brought to the middle of nowhere, thanks to the vision of one man; people who can’t believe that a place like Garzon exists still.

Whether or not guests stay year-round or just come to dine for the night, it goes without saying that Francis Mallmann, single-handedly, has transformed what was a gastronomic wilderness into a region full of excellent restaurants. The chefs at the nine best restaurants around Jose Ignacio were all trained by Mallman.

But for residents like Mr. Summers, it isn’t just the world-class food, or the modern architecture that keeps him coming back to Maldonado. It is also Uruguay. “I find the Uruguayans are warm people,” he wrote me. “Uruguay was for a long time a well-kept secret. Now everybody is talking about it. For those who need sophisticated banking services, it is the Switzerland of South America.”  He noted that there seems to be a misconception that visiting Uruguay is only worth it in January (during the high season the Uruguayan population of 3 million rises to about 10 million!). He thinks, as I do, that nothing could be more wrong. He has been in Pueblo Garzon during every month of the year and thinks it is wonderful in all weather. He ended saying, “people are starting to invest heavily in Uruguay and I think they are right to do so.” We agree!

Read more about Hotel Garzon in the Wall Street Journal here, or the entire New York Times article about Mr. Summers’ home in Garzon, here.

Very important in the purchasing process is legal counsel. You will want professional advice to ensure that you obtain a clean title. A legal expert will perform due diligence on a property’s deed, and walk you through the ownership options.

Like with banking in Uruguay, there is no differential treatment, restrictions, or impediments for foreign buyers of property. You can buy your property as an individual, a company or corporation, or as an individual through a fully owned corporation.

According to Juan Fischer, of Fischer and Schickendantz, transaction costs associated with buying are approximately 8% in Uruguay, which is broken down as follows:

• Real estate agent fee: 3% plus 22% VAT= 3.66%,
• Notary public’s fee: 3% plus VAT =  3.66%,
• Deed registration stamp duties (“montepios”) is 0.55%,
• Registry and tax certificates stamp duties: US$200 on average,
• Property transfer tax works out at 2% of the fiscal value of the property (which is usually substantially lower than the market value).

In 2009 we posted an article with how to finance a home; here’s some updated options for you, when considering a property purchase in Uruguay:

Seller financing: Usually short-term (less than two years). Interest rate is usually approximately 8%

Mortgage with a Uruguayan bank: It’s difficult to get a mortgage with a bank in Uruguay, and if you do negotiate one, the terms probably won’t be great. One example I found is: Up to 10 years, up to 50% of the property’s value, 9% interest rate, and income proof required. While this is a possible option, Ola doesn’t recommend you take this route unless you have exhausted all other options.

Mortgage with your bank back home: If you own property in you home country, you can use it as leverage and organize a loan with your home bank. You will likely negotiate a much better deal than with any Uruguayan bank. Before remortgaging a property of yours, be sure to contact an expert in remortgaging and equity release. You will want to be sure you understand the costs and returns of this option.

Using savings: If you have enough savings to buy a property outright, you may be able to finagle the purchase price down. Sometimes a large withdrawal can trigger a penalty, so wiring the money from your home account to a Uruguayan bank could be an option. In the case of transferring money to/from a foreign country, you will want to research the best exchange rate possible.

Developer financing: If you are considering buying a property in a planned community, many developers provide financing on the properties they sell. Deals are dependent on the developer, but they’ll typically offer up to 80% of the price of a property, but with a rate that could be higher than you get with your bank back home, so it’s always best to shop around for the best rate.

Sugar Loaf Ocean Club & Spa in Piriapolis asks that the buyer pays 30% down. The first two years are interest free. If you pay the total off in 24 months, you pay no interest at all. During the last three years, interest does apply. However, even with interests on the last 36 months, when averaged over five years, it is only 4.2% annualized interests.

Off-plan purchasing: When you buy a property off the plans, before the building begins, you will pay a deposit to secure your purchase, then make a number of pre-determined payments at different stages of the building process. This is only a short-term method of financing as you’ll need to come up with the capital at each stage of construction, which normally lasts around a year. Be sure to work with a project manager who is good with budgets, as you will want to plan your payments appropriately throughout the building process.

Purchasing your property through your IRA: You can purchase property in Uruguay through your IRA, but only as an investment. You will not be allowed to reside in the property either short term or long term, nor can you use it as an office. You can sell the property (not to a family member) and the proceeds will remain in your IRA account, and can be used to make another property purchase if you wish. Once you reach retirement age you can use the property. To proceed with this option, you’ll have to hire the services of an IRA custodian who will make the purchase and hold the title to the property. For more about finding an IRA custodian, see http://www.iravestor.org.

Again as with most expat financial affairs, we recommend that you hire the help of good legal counsel. Fischer & Schickendantz have a variety of specialized work areas, one of which is assisting foreign nationals in structuring property purchases. They will help you understand Uruguay’s estate laws. They structure and advise in acquisitions throughout Uruguay: dwelling and commercial real estate alike. From condominiums in Colonia to undeveloped beachfront in Rocha, to farmland in the north of the country. They are also one of the few firms in Uruguay authorized to issue title opinions by First American Title Insurance Corp, which is the world’s largest title insurer.

“World Cup: Five lessons England can learn from Uruguay?”

“World Cup stunner as Uruguay wins on penalty kicks”

“The Greatest of the World Cup’s Greats?”

More than journalists calling Uruguay the biggest surprise of the World Cup; more than the enlivening/enraging handball from Luis Suarez at the 120-minute of the match against Ghana, what caught my expatriate eye was a Vanity Fair article entitled Uruguay: The Only Civilized Latin Americans. It was written by a Peruvian novelist who has spent the last month in Montevideo.

While it may be bold to call Uruguayans the only civilized Latin Americans, I couldn’t help but agree with Santiago Roncagliolo’s reasoning. I am of course 100% biased. I love Uruguay.

Writing for Ola has given me a lot of opportunities to reflect upon my time as an expatriate living in Montevideo. But it isn’t often that I identify with other accounts about the country I have come to call my second home. Roncagliolo’s insights were an affirmation to what I strive to convey each week: Uruguay is a favorable option for foreign investment, and a wonderful place to call home.

Uruguay was the first Latin American democracy, and the first country to let women vote. Conflicts are solved by referendum, and Uruguayan politics generally lack the renowned drama of Argentina. As a people, Uruguayans tend to be modest, they are not usually boastful. They are known for being friendly, family-oriented, and conservatively ambitious. They wait for results. They, like their soccer team, are workmen. Their cautious culture is one that careful investors can appreciate (as well the nation’s secure banking laws, ones that view foreign and national investors as equal). Socio-economically Uruguay is also very notable: it has high national literacy rates, a large urban middle class, and relatively even income distribution. Compared to other Latin American nations, the standard of living is high. You can drink the water from the tap, ride the bus comfortably to and from Montevideo; catch an opera performance at Teatro Solis, a cappuccino at SOA art gallery, and take a long walk along the rambla. You can buy your fruits and vegetables at a famer’s market almost every day of the week. These and perhaps the presence of the widest river in the world, lend for social calm that I love.

Politically, Uruguay is also solid. According to the US State Department, “Uruguay is a strong advocate of constitutional democracy, political pluralism, and individual liberties.” It shares with the US “a common outlook and emphasis on democratic ideals.” Uruguay also has “strong political and cultural links” to Europe, especially Spain. In international affairs, Uruguay is guided by the principles of non-intervention, multilateralism, and respect for national sovereignty. The country often presides over international bodies thanks to its well-trained professional diplomatic corps and  the nation’s general political neutrality. Domestically, governing bodies rely on the rule of law to settle disputes. The last point lends for a stability that benefits export markets as well as foreign investments, and dare I say is quite civilized. Uruguay’s low drama is yielding high results, on and off the soccer field.

According to the 2009 Governance Barometer, which assesses perceptions and prospects of 21 countries of Latin America and Ibero-America, Uruguayans are among the most positive minded in the region. When asked about presidential performance and an adequate management of political stability, 48% of the populace surveyed said Uruguayan president Jose Mujica was acting in a “good” way and 61% supported his performance so far. This internal optimism breeds external confidence. Real estate investments abound in Montevideo, Piriapolis, and Rocha. Argentines, despite having arguably the best topsoil in the world, are flooding to Uruguay looking for a safe place for their money. Just this week the Uruguayan newspaper El Observador featured a story about Punta del Este’s experiencing an uncommon rise in year-round expat residents, which is supplementing the city’s strong summer economy with perennial cash-flow.

While cost of living is not the cheapest in Latin America, what Uruguay affords is a great quality of life. Don’t take my word for it, according to Mercer Human Resource Consulting’s Quality of Living Ranking of 215 cities taking New York as reference, with 100 points, Montevideo was chosen as the best city to live in Latin America! With sound physical and social infrastructure, a temperate climate, and favorable banking laws, Uruguay is becoming a go-to destination for investors and retirees alike.

It is hard to say whether Uruguay is the most civilized of Latin American countries, but without a doubt, expats like myself and Mr. Roncagliolo are moving to Uruguay because it is a place unlike any other. And their winning soccer team is the icing on the cake!

Read the full Vanity Fair article, Uruguay: The Only Civilized Latin Americans, here.

One of the main oceanic bathing resorts in the Department of Rocha, La Paloma was named by sailors, most of them fishmongers, who would spot the silhouette of a bird on the coast.

Characterized by its beautiful beaches, the resort offers visitors a range of activities and good quality facilities for an enjoyable stay, both in the warm summer nights and in the wintertime.

Its steady population does not surpass 5,000, but during the summer, with tourists and part-time inhabitants, that number increases significantly.

Avenida del Navío (Ship’s Avenue) takes visitors from the main road to the small commercial and shopping center that has emerged at La Paloma.  It is considered to be the main street, and crosses the city up to the intersection of Solari Avenue and the bays known as Grande (Big) and Chica (Small), right off the shores of small La Tuna Island. The most modern and luxurious buildings are in this area. There are also schools, a cultural center, a police department building, a fire department building, and the old cinema. Solari Avenue has the most stores, the casino, the handicrafts markets, the Town Hall, and one of the most emblematic hotels in town: Hotel Cabo de Santa María.

The old city shell is ideal to go for a walk. Follow the streets to the sea, where you’ll find the lighthouse and the most ancient and traditional houses in town; this is where the first dwellers used to reside. Apart from being rented during the high season, these houses are the best-preserved historical heritage in the city, and most of them even date back to the days of La Paloma founding.

Then there are the beaches, each of them with their own geography. Some of them feature quiet waters, such as the ones around the bay; others have big waves perfect for surfing such as La Balconada, El Cabito, and Los Botes.

What are the most important considerations when planning your retirement abroad? For most, the cost of moving from your current location, and ongoing living cost after the move, is a big concern. How easy it is to gain residency in your new homeland is also important. The quality of health care is a major factor. Then of course you’ll want to move somewhere that gives you lots of culture and leisure options in your new locale—once you become settled, and have dealt with the nuts and bolts of the move, this becomes one of the most important requirements for an enjoyable retirement.

Money talk

First, you will need to assess how much money you’ll need to retire to Uruguay. A normal rule of thumb is that you will need 70% of your annual pre-retirement income to live comfortably. However, that’s a rule normally geared for domestic retirement. You might need less than that in Uruguay, but maybe not, depending on your planned lifestyle. Take a look at last week’s Quick Guide (http://www.olauruguay.com/2010/06/27/cost-of-retiring-to-uruguay-an-ou-quick-guide) article for more on the cost of retiring in Uruguay. From my research a pensioner’s budget is somewhere around US$900, without a mortgage.

Residency for retirees

Specific to living in Uruguay, you don’t need a visa to enter the country. You will be granted a 90-day tourist visa. In this time, you can apply for residency. As we often state, Uruguayan residency is easy to obtain. You will need your birth certificate (stamped by the Uruguayan consulate in the country of birth), a clean police record from the country of origin and from those countries where you resided in the past five years, and proof that you can support yourself throughout the residency process (the “income requirement,” which is US$6,000 a year). You can demonstrate this through a pension, a mutual fund, lease income from an asset inside or outside Uruguay, dividends of any nature, or a wage. Whatever your income, you will need to be sure it can be proven as permanent. After five years of having filed for residency (three in the case of families) you can apply for citizenship.

A special law that applies to retirees with a government pension of over US$18,000 per year guarantees a Uruguayan passport more rapidly (from a year to eighteen months). However, the income requirement is higher. Your income must be from an official pension, and at least US$18,000 per year, but you also must also own a property in Uruguay valued at US$100,000 or more. You can bring a car into the country tax-free, but since bureaucratic delays can make the process very expensive, it is not recommended.

Health care

Health insurance can be got for as low as $76 each per month. This is a big draw for expats to come to Uruguay. Doctors are well trained, and many have studied in the U.S.

As an alternative to traditional medical insurance, private hospitals each offer a medical coverage scheme which, depending on the hospital and level or coverage offered, typically covers treatment and medication within that hospital, and often visits to pre-appointed GPs outside of the hospital. All private hospitals have an age-limit for their scheme, which is usually 65 to 70 years, and require a medical examination. Occasionally a hospital will take an older person who has passed the exam. Hospital Britanico is one of the more prestigious hospitals in Uruguay.

• Hospital Britanico, Av. Italia 2420, Montevideo, Uruguay; tel. (598-2)487-1020; fax (598-2)487-4080; e-mail: info@hospitalbritanico.org.uy; website: www.hospitalbritanico.org.uy/english/index.htm. (From their website, click on the “The British Hospital Scheme” link for more on their medical coverage scheme.)

Do your research

Now, you might be thinking, “Um, I need more information before I up and move to Uruguay.” Lucky for you, the internet is a wealth of information on the topic of retirement. Need reasons why to choose Uruguay? Expat David Hammond has you covered. You can check out his 10 Reasons to Retire in Uruguay on the site Boomers Abroad. His reasoning is very similar to what we mention here on Ola each week: Uruguay is safe, stable, there are no taxes on foreign source income, etc. In addition, Uruguay has a comfortable climate, and offers a variety of lifestyle choices ranging from the city to the beach, to the campo, to a high rise. People are friendly and residency is easy to obtain. If David doesn’t have you convinced, you can read Ola’s Top Ten Reasons Why Uruguay is a Great Retirement Destination.

For more tips about retiring in general, check out CNN’s Planning for Retirement. For ideas about how to live the retired life well in Uruguay, check out Ola’s Retirement Section.

How two couples planned their retirement to Uruguay

I spoke with two expat couples living in Uruguay about their planning process. Interestingly, both couples thought they would not be good candidates for the article because their planning was fairly organic. However, it seems that each person and each couple does things as they see best, which could either result in a studious investigation of the chosen destination, or a whirlwind adventure of packing up and seeing how it goes. Though both couples were a bit more spontaneous than methodical in their retirement planning, the most important part is that both are very happy with their life in Uruguay.

Syd and Gundy do not do things in typical fashion. They are a couple that chooses their own path, even if it is unconventional. According to Syd, they did not plan thoroughly before they came here. They came for a two-week look at Uruguay in November 2006 and started the process to buy a house before the end of the first week. That house had appeared on an internet listing less than two weeks before their departure. They had been looking at several sites at that time featuring houses in coastal Uruguay. They also had some interest in Colonia del Sacramento but had no desire to live in Montevideo. The strongest targeted community for them was Atlantida as it was close to Montevideo, coastal, and affordable. Syd added, “the universe took care of us by showing us a house at exactly the right time.” They flew home from Uruguay suddenly realizing they had businesses to sell and that their lives were about to change. While far more impulsive than most people are willing to be in life, it worked for them. They have chosen to live in Uruguay for the rest of their lives.

Similarly, Denise and Wally didn’t exactly plan for retiring in Uruguay. They told me that perhaps they should have been more pro-active, but that it has never been their style. After just six months of considering the move, they sold their home in the States and bought a house here in Uruguay with cash. They found the practice to be normal in Uruguay, as they believe that people here generally value living debt-free. Another reason to buy their home using cash was to keep their monthly expenses down. They considered a condo, but felt that the monthly association fees, doorman tips, and assessment fees would be out of their control, and would be a constant unknown cash liability.

Along with purchasing their house outright (so no mortgage payments), their additional (non-traditional) retirement planning has involved:

1. Buying a “Solar” Hot Water heater, thus reducing their electricity usage a little. (Read more about how to Save Money with Solar.
2. Buying an efficient Wood Burning Stove. It has a motor and they installed vents to heat the various rooms in their homes. They only heat their house by wood (though Wally has an electric heater under his desk for really cold mornings).
3. Buying affordable Health insurance here. As you age, you need more care, so they said they definitely included health costs into their retirement budget.

The Glass’ stressed that Uruguay is not as inexpensive of a place to live as other places in the Latin American world. Two years ago Uruguay added local income taxes; there is also a rental investment tax now. That said, permanent residency was easy for them to obtain in Uruguay. The water is drinkable, the streets are safe to walk around, and the people are kind and helpful to foreigners. Denise and Wally feel at home. They find that Uruguay is not an overly materialistic nation. I would agree. People are more interested in family and friendship, reusing and simple living (clearly sometimes out of necessity, sometimes as a lifestyle choice). Denise and Wally moved here because they can live as they please and because they feel well off here. They don’t think they could be able to say the same if they would have stayed in the states.

You can read more about how these couples fill their retirement days in this week’s article “Retiring in Style in Uruguay”.

I have had the chance to talk with some retired couples here in Uruguay, whose retirement activities are as diverse as the couples themselves. From the arts to baking, writing to cycling, retiring in Uruguay allows you to discover new hobbies, new cities, and maybe even a whole new you. What gives meaning to our lives is personal, but from talking to the different couples, it seems there are common threads in their new lives: in opening themselves up to a new culture, they opened themselves up to trying things they never had before, and they are enjoying every step of the journey.

When describing how he and his wife spend their days, Ola writer Syd told me that their chosen activities are very personal and may not at all appeal to someone else. However, I found their list to be quite delightful. Since retiring Syd has become a gardener (which he never was before) and a painter (he had never painted anything other than the walls in his house before). He enjoys simple pleasures like walking, cycling, and activities where he is able to feel at one with nature. He reads, and of course, writes—not just for Ola Uruguay, or expat forums, but also for other publications and most importantly, for his own enjoyment. He writes a lot of poetry.

Like him, his wife Gundy enjoys nature, gardening, and reading. She also does a lot of knitting. Since retiring, she now bakes her own multi-grain breads and prepares meals from scratch, from simple, natural ingredients; a past-time that is both enjoyable and healthy. Syd added that in their working lives, Gundy never had the time to cook as she does now. A perfect example of how retirement frees up time for one to enrich their days with a new, albeit simple pleasure. In addition Syd said that the couple has three dogs (all rescued as puppies), and that walking the dogs is an important part of their lives. Together he and Gundy have explored different communities in Uruguay and have made three trips to Argentina. Soon they will make their first foray into Brazil, and would like to explore other areas in South America when time and money allow.

“Semi-retired” couple Ted and Lidia Von, have made the arts a priority in their new life in Montevideo. Born in Poland, the Von’s were high-school sweethearts and have been together for 34 years. They have lived in Afghanistan, Austria, Germany, New Zealand, and then for about 20 years in Sydney, Australia. For the last two years they have lived on and off in Uruguay, and boy have they not missed a cultural beat! Last year they went to more than 100 concerts, mostly classical music, along with some jazz shows and opera performances. This year they have already attended about 20. Ted explained that by international standards concerts here are “dirt cheap.” He added that he believed that Radio Sodre is great for world music presentations, and despite the presenters’ “funny British accents”, from his experience, it’s the most balanced broadcast in the World.

Denise and Wally Glass—whose retired life in Uruguay is made public in their blog, Wally in Uruguay—fill their retired days with simple pleasures like beach admiring and taking care of their pets. Wally keeps busy with baking efforts, which are often nicely photographed and featured on their blog. The Glass’ are involved with their local congregation of Jehovah’s Witnesses and are learning Spanish (very slowly, admitted Denise). They also read. Denise said that a large portion of their days are consumed by getting day-to-day tasks done like paperwork (driver’s licenses etc.) and gardening (they grow their own vegetables).

Uruguay affords retired couples and individuals access to time, lush surroundings, and a new culture and language to explore. You can pick up a new habit, or perfect an old one. You can travel by horseback to a remote fishing village, taste a local wine for the first time, or explore a castle in the middle of the campo. Like the Glass’ you could dedicate yourself to learning Spanish, or just as the Vons do, you could explore the theater and opera for the first time (Need tips? In my recent article Montevideo—A City of the Arts you can find links to indie cinemas and the national theater, as well as daily listings of cultural events). If traveling is a passion, take a cue from Syd and Gundy and explore Uruguay and neighboring Argentina. Ola offers you a wealth of travel tips for destinations like La Pedreda, La Paloma, and my favorite, Cabo Polonio. Explore Ola’s Attraction section for endless suggestions on how to fill your retired days with adventures.

The city: Montevideo
There are people (like me) who just can’t imagine living outside of the city. If I travel outside of its bustle for too long, I get anxious; I start to feel that I am missing out on something. I start to crave the noise. Cities often hold the bulk of a nation’s cultural happenings, and Montevideo is no different. It is home to the national theater, endless dining options, an international airport, and a sprawling rambla! Living in Montevideo you are minutes from the beach, and never far from a concert, show, movie premiere, or festival. If you like soccer, you can catch the National Selection play against the likes of Peru, Ecuador, and Israel. Prefer rugby? Pack a picnic lunch and check out the classic match-up between Carrasco Polo and Old Christians. Don’t just take my word for it. According to the 2010 World Ranking of Mercer’s Quality of Life, Montevideo is considered the second most liveable city in South America (right after Buenos Aires). Categories considered include political and economic environment, medical and health considerations, public services and transport, housing, recreation, schools and education, and socio-cultural environment. This year, Mercer added another qualifier, ecological quality, based on water availability and water cleanliness, waste removal, quality of drainage systems, air pollution, noise, and congestion. The top city (at the world level), was Buenos Aires at #78 followed directly by Montevideo at #79. However, when it comes to ecological quality, Montevideo figures top of the South American list.

The city/campo: Colonia
Topping the national rankings of highest quality of life is the department of Colonia, home to the ever-popular (ever-adorable) tourist destination of Colonia Del Sacramento, Uruguay’s oldest and most picturesque city. Because culturally rich Colonia is more of a year-round destination compared to the busy coastal resorts, long-term rentals here tend to be around the 10% mark. Moreover, with the country’s lowest unemployment rates, highest number of bank branches, lowest crime rates, and the highest rates of completion of secondary education (with 81.5% of students being promoted), Colonia is very much on the national podium when it comes to calidad de vida (quality of life). Colonia ranks second in per capita GDP and regional competitiveness, and has the third highest life expectancy rate in Uruguay. The department of Colonia has attracted significant investments thanks to increasing tourism potential, its hotel infrastructure, agricultural wealth, and its port services (Colonia, Nueva Palmira, Juan Lacaze, and Carmelo). For retirees looking for a blended experience of city and farm life, Colonia provides both. It also offers a historical quarter, and is only 45 minutes away from Buenos Aires by ferry, and a two-hour drive from Montevideo. On top of that, there are the lovely beaches of the Río de la Plata. Like golfing? Have your pick between two of the best courses in Uruguay: The Four Seasons Golf Course in the charming town of Carmelo, or the Sheraton Colonia Golf & Spa Resort.

The interior: Villa Serrana (in the province of Lavalleja)
I have never been, but I am taking my cues from Ola here and listing it. Living in Villa Serrana is about the simple pleasures: watching the sun rise or set over the hills, a dip in the Banado de la India or La Olla (two of several natural swimming holes in the area), a good book, a good meal, or maybe a horseback ride. At night stargazing is the only entertainment. There is no light pollution, so on a clear night, you can see every star in the sky. There is an observatory for a closer look at the night sky through a telescope; that is if it happens to be open while you are there. As I quoted in my recent article, The New Tuscany, realtor Ricardo Weiss, of the real estate group, Atijas Weiss, believes “the triangle of Maldonado-Rocha-Lavalleja is one of the most beautiful sites in the world, along with the Spanish Coast and French countryside.” If peace and quiet is what you’re after for your retired years, beautiful Villa Serrana could be a great option.

The beach (close to Montevideo): Atlantida Area
After having explored everywhere in Uruguay except for the very central communities of Durazno and Paso de Toros, retired couple Syd and Gundy chose Villa Argentina Norte, an Atlantida neighborhood, for their home base. To them, nowhere else offered anything better. They like that they live in their own tiny world peacefully, along with their quiet neighbors. They also like the proximity of Atlantida to Montevideo. Most services are available in Montevideo (like doctors, consulates, entertainment, more extensive shopping, and dining options), so being near to the city keeps the couple feeling connected. Atlantida is also safe, an important factor for your retirement.

Likewise Denise and Wally Glass wanted to live near the beach but also near to modern conveniences. They narrowed their housing search to one of the many balnearios (coastal towns) outside of Montevideo. They decided on the small town of Marindia, which is a 1.5km walk east of Salinas. They have all the amenities that they need in Salinas, but can enjoy the peace of living outside of it. Horses regularly gallop along their beach, and in summer there is a manned lifeguard station. Now there is even a local (year-round) restaurant called Resto Marindia. They told me that one of the joys of living by the beach is that you don’t need money to enjoy its pleasures. “You can watch small, colorful fishing boats go by, as the joggers and horses come into view and sea gulls fly overhead; you can watch thunderstorms at sea approach, and witness the most incredible sunsets in person.” I could sense her joy when I read Denise’s words, “I am living a truly spectacular lifestyle.” For an up close look at the neighborhoods of Atlantida, check out Syd’s article of the same name here.

The beach (close to Punta del Este): Piriapolis

This picturesque coastal town, just an hour’s drive east of Montevideo was one of the original tourist hot spots in Uruguay. I visited Piriapolis right when I moved to Uruguay, and it remains one of my favorites—probably because its aesthetic, similar to that of Europe’s Côte d’Azur, is absolutely charming. The city is book-ended by lush green rolling hills on one side, and on the other, by white-sand beaches, perfect for swimming, sunbathing, and water sports. It is said that Piriapolis is the only place in Uruguay where the hills and the ocean meet, giving it a special energy. During the summer months, huge numbers of visitors flock to the town. Peak tourist season is from mid-December until the beginning of March. Retirees interested in renting out their home to make a little extra money will be happy to know that as a seaside resort, Piriapolis holds great rental potential. Rental prices often reach double the off-peak prices ($700 to $1,300 per month, and more for shorter-term rentals). For foreigners looking for an all-inclusive retirement option, Sugar Loaf Ocean Club & Spa offers a range of superior-quality villas and lots with incredible ocean views. The developers are currently offering 5 year financing, with the first two years 0% interests. If you are interested, email David at ola@sugarloafuruguay.com, or visit the Sugar Loaf website for more information, including property info and pricing.

The beach: The coast of Rocha

For retirees looking to get away from big city living, the coast of Rocha offers countless breathtaking beach communities that come in all sizes and flavors. For the daring, there is the electricity-free option of Cabo Polonio, where daily activities are simple and perfectly limited. Fill your days with sun-bathing, long-walks, or trips to the lighthouse, the fish market, artisan fairs, or the nearby sand dunes. For surf enthusiasts, there is Punta del Diablo in Northern Rocha. Though not as rustic as Cabo, Punta del Diablo still has the feel of a real fishermen’s village (but one that has been developed by architects). Retirees can find a range of home designs, and there are plenty of in-town dining options (boasting fresh seafood, good steak, and even a full-service vegetarian restaurant).

Rocha is home to arguably the finest beaches in Uruguay, but it also has the country’s largest lagoons, which are abundant with wildlife, and some of the country’s hottest investment opportunities. Some of the world’s biggest-name developers have bought land here, and a number of projects are underway. Just outside of La Pedrera and close to a protected and pristine beach known as Mar de Tranquilidad, the Laguna Tranquila community (www.lagunatranquila.com), offers home sites from half an acre and up with great views of the large Laguna de Rocha and surrounding nature preserve. Lot prices have not been released yet, but if you are interested, you can contact them at info@lagunatranquila.com.

Whether you like the quiet hum of an Atlantic beach town, the peace and quiet of the campo, or the bustle of the city, you can find your perfect retirement haven somewhere in Uruguay.