Expert: David Finzer - 4/1/2007

Question
QUESTION: A few questions, actually:
1. What is the legal environment like for non-Uruguayan citizens owning
property (such as a house) in country?
2. What is the tax climate like for non-Uruguayan citizens not part of the
diplomatic corps?  (When I lived there (1966 to 1970) as part of the
diplomatic community, the taxes on imports were prohibitive for non-
diplomats.)
3. What is the telecomm (Internet, cellular/satellite communications)
infrastructure like in places such as Punta Del Este and the suburbs of
Montevideo?
ANSWER: 1.  Uruguayans and non-Uruguayans are treated exactly the same in law for virtually everything except voting rights.  If there is any other level of legal distinction at all, it is between residents and non-residents.  For Example, a resident, whether citizen or not,  may acquire a driving license or purchase a weapon, whereas non-residents may not.

2. The tax climate is evolving.  Uruguay just passed it first ever personal income tax, but it will not go into effect until either the middle or end of 2007--that has not been decided yet.  The good news for most immigrants and expats is that all Uruguayan income taxation, both personal and corporate, is bases SOLELY on locally derived income!
Taxes on various import remain high, but exemptions can be arranged on a one-time basis for new residents, and if you know how to work the system, you can reduce annoyance taxes as well.
Anything brought in by visitors is pretty much untaxed.  If "gifts" or even purchases come in from abroad, the first US$50 is entirely untaxed and goes right through to your house.  The next US$50 is taxed at some fixed rate and is easy to deal with.  Anything over $100 per package incurs the full attention of the Aduana.

3.  Telecoms are my pet peeve.  But pretty good ADSL is available in all of the built up Areas from Colonia in the West through Punta del Este in the East.  There is now competition in everything except land phone lines, which the government telecom company has reserved for itself.  Most of the time the government ADSL is the best service, but there are also two wireless services and now satellite service is available as well.  This is a situation that is definitely getting better here, not worse.

---------- FOLLOW-UP ----------

QUESTION: Thank you for your VERY informative response!

Following up on your response to my question on the tax climate, are there any taxes on bringing funds (such as U.S. dollars) into the country?  Following the theory that you are bringing something into the country with a value in excess of $50....

One more follow-up question on ADSL, what is the typical speed quality of the service?  768 kbps down/256 kbps up?  6.0 mbps down/768 kbps up?  Or????

Answer
GOOD NEWS!  There are no taxes on bringing foreign funds in to the country--you can open an account here and just wire the money in--it is relatively hassle free and entirely tax free.  The $50 rules is because of customs not taxes per se.  

With regard to opening a bank account I suggest you may want to read:  http://www.uruguayliving.com/2006/10/02/opening-a-bank-account-is-uruguay-is-a-e

Re ADSL, we currently use the top end residential service which is 1024/256 and costs US83/month.  It is pretty good 90-95 of the time.