During the pandemic, Uruguay began to receive a lot of Argentine immigration. And many did not return to their country. According to official data from the Uruguayan Foreign Ministry, in 2019 there were 2,042 Argentines who requested residency. In 2020, there was a jump to 6,816 residency procedures, and in 2021 the number reached 12,489. And in recent years the trend has continued, and even increased with some emblematic cases of renowned Argentine businessmen who have decided to reside in Uruguay.
Now, let’s analyze this phenomenon. What are Argentines looking for in Montevideo, Punta del Este, Colonia and other locations in Uruguay? Are tax benefits the only factor why foreigners settle in this country? The answer is no. It is correct to affirm that Uruguay offers a series of very interesting tax incentives, added to the attractive taxation criteria. The above is very interesting for the purposes of iinvest in or use Uruguay as a hub or logistics platformin order to work from the country abroad, especially with technology, a tool that today allows us to stay connected with the rest of the world.
To the above, and continuing with the tax aspects, we must keep in mind that Uruguay does not constitute a tax haven, companies and their different legal types, whether (SAU, SAS, SRL) are institutions resident in UruguayThat is to say, there are no off shore companies of Uruguayan origin, which is a myth to debunk. Having analyzed the aforementioned aspects, we must mention other reasons why Argentine citizens and other foreigners decide to migrate and reside in Uruguay. There are different reasons why it is the country chosen to settle, both by Argentines and by other immigrants.
Uruguay has positioned itself among the 40 best options worldwide, according to a ranking prepared by CS Global Partners. These figures are obtained based on five characteristics: 1) security and protection, 2) economic opportunity, 3) quality of life, 4) global mobility and 5) financial freedom. Security, as well as protection, is supported with state-of-the-art video surveillance systems and software in various locations throughout the country, starting with Montevideo.
There is an aspect not mentioned, and that is legal stability and security. That is to say, regardless of the government in power, Uruguay has drawn up a matrix or growth development plan that generally converges with the interests of citizens and the political approach. Democracy and the construction of a solid political system constitute pillars, added to the independence of powers, with a ironclad concept of independence in judicial matters. This is recognized by international credit agencies, transparency measurement, and social justice indicators. They highlight the predictability and transparency of the Uruguayan economy and society, as well as its frontal fight against money laundering.
In terms of quality of life, the country has low levels of visual and noise pollution, also a product of the country’s small population, which, although positive on the one hand, also has an unfavorable aspect when it comes to addressing internal consumption and job placement possibilities. Education and especially the civic education of the Uruguayan people adds value to the proposal, given that the rules are respected, starting from examples as simple as the pedestrian’s preference to cross a pedestrian path.
The country’s natural beauties are also very attractive, having concentrated a large number of migrants in the department of Maldonado, specifically in Punta del Este and all its surroundings. Is about a true paradise according to the majority vision and opinion of the operators. It is the main exclusive resort in South America. Furthermore, the influx of people with great purchasing power from the United States, Europe and other nations is becoming more frequent.
Is it worth saying that Uruguay is a country to find job opportunities? This variable depends on the type of work to be done. That is, remote work adapts perfectly to the situation of middle-aged migrants or young families who work remotely abroad. We reiterate, being a country of low demographic level local job opportunities are not their strong point. However, for entrepreneurs and technology officials, all the conditions and opportunities would be in place, given that the influx of residents demands consumer services and businesses.
For many reasons, without a doubt, Uruguay has become an increasingly sought-after destination. Consequently, the infrastructure must adapt in the short term to population demand. A clear example of all this is that in the educational field, the schools and educational institutions in Maldonado are full, and with waiting lists given the demand and immigration that does not stop.
* Lawyer and investment advisor in Uruguay
by Carlos Ruiz Lapuente
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