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Charming, Historic Colonia del Sacramento, Uruguay Offers Old World Architecture, Friendly People and an Affordable, Unhurried Lifestyle Along the Water
Cost of Living: Below the U.S. National Average
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Small, stable and peaceful, Uruguay is sandwiched between Argentina and Brazil in southeastern South America. European explorers first arrived here in the early 1500s, and in 1680, the Portuguese built a fort along the Rio de la Plata just to the east of Buenos Aires. Named Colonia del Sacramento, the fort became a battleground between Spain and Portugal, changing hands numerous times throughout the years. Things started to settle down in 1825 when Uruguay became a nation, and Colonia del Sacramento became a peaceful fishing port. Today, this delightful city, commonly referred to as Colonia (population 23,000), boasts old world architecture, quiet beaches, good infrastructure and an understated grace. Perhaps best of all, the cost of living is less than in most U.S. cities.
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With tree lined avenues and Spanish Colonial buildings, Colonia feels caught in a different era and has a distinctly southern European feel. The Barrio Historico, a walled, six square block section of the city that retains original 16th century cobblestone streets and Lisbon-inspired architecture, was named a UNESCO World Heritage Site in 1995 and exudes European storybook charm. Rough, winding streets are lined with colorful, weathered adobe masonry and stone houses that stood witness to the city's early tug of war history.
Today, outdoor cafes, pubs and cozy restaurants beckon, and pink and purple bougainvilleas bloom along the side of buildings. Classic automobiles from the 1930s, suggesting a resistance to contemporary life, are parked along the streets. Tourists, primarily from Buenos Aires and Montevideo, Uruguay, come here during summer months (December through March) to take a step back in time and escape city hassles, if just for awhile.
Homes for sale in the Barrio Historico are not plentiful, and prices are high. Not too long ago, an 18th century, 1,720 sq. ft. home with original Portuguese carved wooden doors, wall murals, an inner courtyard and river views was for sale for $375,000
USD. Outside of the historic district, homes are in better supply and less expensive. Small dwellings with 2 bedrooms, a bath, a small patio, a small front yard and about 1,000 sq. ft. can be found for less than $100,000
USD. Larger homes on sizeable lots sell for $150,000 to $250,000 USD.
Colonia has a large yacht port, museums, art shops, the oldest church in Uruguay (Iglesia Matriz), a pretty shoreline, shopping malls, modern apartment buildings, brand name hotels (a Sheraton recently opened) and modern conveniences, including an Internet cafe (online prices are $1.25 USD per hour). It is a compact and easily navigable place, and bicycles, golf carts and mopeds, instead of cars, are the most popular modes of transportation. Buses run about every half hour and are cheap. Three ferry lines from Buenos Aires, 45 minutes across the river, service the city.
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And even though Colonia draws tourists (the ferries from Buenos Aires arrive about mid-day), the city is not touristy (although some of the markets cater to tourists and sell trinkets, et cetera). Prices do rise about 10%, however, during the summer months. Spanish is the official language in Uruguay, but a bit of British English is spoken in
Colonia.
Overall, Uruguay is one of the least expensive relatively modern places to live in the world. In
Colonia, monthly utilities for a single family residence usually run $50 to $75 a month. Cable TV is about $30 per month. A telephone line is around $10 per month, plus charges for each call (which can reach 50 cents per minute). A housekeeper may cost $2 to $3 per hour. Food is inexpensive - meat (lamb and beef) and dairy products are produced locally and are very good. Tasty restaurant meals average $7 to $10
USD, including wine.
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U.S. citizens do not need a visa to stay in Uruguay for fewer than 90 days. When it comes to retirement, any foreign visitor can apply for a residency visa. Generally, the requirements include owning property in the country, having a bank account with adequate funds, having a clean police record and having proof of income, such as Social Security, of $6,000 a year or more. The government encourages foreigners to settle in Uruguay so obtaining residency is fairly easy (as is obtaining a Uruguayan passport and dual citizenship). Except for voting
privleges, residents are treated the same as citizens.
A nice perk of a Uruguayan retirement is that offshore income, such as Social Security, is not taxed by the Uruguayan government. In May of 2010, there was some panic within the expatriate community over the fact that Uruguay might begin taxing the offshore income of expats, but as of January 1, 2011, only three types of income generated outside of Uruguay will be taxed: interest on deposits, interest from loans to a foreign company and dividends. The rate will be a flat 12%, but if a person already pays income tax abroad on any of those three types of income, he or she will not have to pay tax in Uruguay. Thus, salary, capital gains on sale of shares or property, pensions, lease, income and any other type of income are not taxable. However, any income earned in Uruguay, including rental income, bank interest, et cetera, will be taxed.
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When it comes to housing, Uruguay is foreigner-friendly and gives foreign investors the same property rights that citizens enjoy. For many years, affluent Argentines purchased most of the real estate here, but that is changing as more Mexicans, Europeans, Chileans and North Americans are stepping into the market. Buying real estate requires hiring a notary (similar to a lawyer), putting down 10%, securing four guarantees that the property has no liens and registering the property locally, but, overall, the process is fairly straight forward.
As is common in Latin America, medical care costs are much less in Uruguay than in the U.S. Paying for Uruguayan health care upfront is often less expensive than paying a monthly health insurance premium in the U.S. Low income foreigners and nationals are entitled to free medical care in public hospitals, but this is not recommended. Instead, most people buy a membership at a private hospital (an interview, blood tests, et cetera are required to buy a membership). Hospital de Colonia is the local medical facility (cash only), but many English-speaking expatriates favor membership at Hospital Britanico (British Hospital) in Montevideo, 90 minutes away by car. This modern facility is staffed with doctors trained in the U.S., Canada and Britain and caters to the expatriate population.
Colonia's climate is temperate, as is the climate throughout the country. Average temperatures are 60 degrees F in spring, 78 degrees F in summer, 65 degrees F in autumn and 50 degrees F in winter. Snowstorms, earthquakes and hurricanes are unknown. And the sunsets are amazing.
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Uruguay is a constitutional democracy and is often recognized as the least corrupt country in Latin America. Characterized by an educated, prosperous middle class, it has a solid economy, first-class infrastructure and low crime rates (although petty street crime is common in the capital city of Montevideo). Uruguayans are friendly and generally welcoming of foreigners as more and more discover this appealing country.
Retirement in Uruguay has a couple of drawbacks. Once here, getting back to the U.S. is a 13 hour flight. And even though a little English is spoken here and there, it really is necessary, and respectful, to speak and read some of the local language.
Overall, though, the Colonia's positives vastly outnumber its negatives. It offers a high quality of life at an affordable price in a welcoming city by the water, and for many expatriates, it is indeed the perfect retirement spot.
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Uruguay Real Estate Active Adult
Developments in Uruguay Retirement Communities
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