gabo_uy
http://fromuruguay.blogspot.com

However, the new personal income tax will only extend to income earned within the territorial limits of Uruguay. So, as far as we understand, at present, that will not affect you. Further, I suspect it will take along time, if it is ever possible, to extend the income tax beyond that. Everyone here except the socialists is reacting to income tax as if it were the Bolshevik Revolution (which shows the innate good sense of the people here).

I should note that the rules on foreign income, as opposed to pensions are a little arcane. We are working with our Accountants on a complete report on the subject.

The main VAT rate is 23%. There is a reduced rate of 14% for some items, and a few items are exempted. The VAT rates are supposed to be lowered when the income tax begins.

Frankly, I do not expect the VAT rates to stay reduced as the income tax will, in my opinion, turn out to be largely unsuccessful.

Many thanks for the information, look forward to your proposed more detailed report. The VAT rate seems very high, but I suppose if the pre-vat total is low the effect is diluted.

It would seem that health care, property, food/eating out, and most importantly, wine, are a great bargain.

However cars, gasoline, insurance and electricity are expensive? ( what heating system do most people use in the city)
I can see that a diesel car would overcome some problems.

Property prices seem so good I am thinking that it might be feasible to buy 2 apartments in MVD, and rent 1 out, (did I read somewhere that they are planning to tax rents? – man the barricades comrade! )

By the by did you ever consider Chile, as if you did I would be very interested in any comments you feel you could pass along.

Kindest regards,
Adrian.

Health insurance is cheap. Home insurance and auto insurance are both pricey by local standards, but compared to the US, or Costa Rica for that matter, not bad.

I think rents will be taxed. We are working on a comprehensive tax report with our Accountants on the effect of the new tax law on expats.

I admit to a bias against Chile. They have the highest cost of living in Latin America at present. And they are far too cozy with the Yankee Government in Washington for this Southron.

Thanks, Adrian.

A very rough rule of thumb is that advertisments for things have the tax included, but advertisements for services do not.

I noticed that VAT (Sales tax) was reversed on my credit card for purchases of restaurant meals, hotels, car rental…in fact anything related to tourism. I was told that was the case because I was paying with a foreign credit card. Guess I’ll be keeping my foreign credit card when I live there!