Comments on: The Taxman cometh… http://www.uruguayliving.com/2007/07/20/the-taxman-cometh-2/ Sun, 10 Jul 2011 12:30:58 +0000 hourly 1 http://wordpress.org/?v=3.0.1 By: einstein1498 http://www.uruguayliving.com/2007/07/20/the-taxman-cometh-2/comment-page-1/#comment-750 einstein1498 Tue, 25 Nov 2008 23:53:58 +0000 http://www.uruguayliving.com/2007/07/20/the-taxman-cometh-2/#comment-750 Well, I think the best way to live from rentals in Uruguay is to buy in Punta del Este. There is a catch, you can rent only/ probably starting in december trhu march, the only months of the year when Punta del Este is full of people. To get the idea,for instance an apartment of u$s50.000 value can be rented for u$s1,500 december, u$s3,000 january and u$s2,500 february more or less. Our house is locate 2 blocks from the beach somebody offered for the entire month of january u$s8,500, the house is valued at u$s230,000 and is fully furnished with climatized pool.3 bedrooms/3 baths/playroom/etc. We are not selling this one, just saying to compare. We are living in Punta del Este since july 2005 and is a change of pace compare with Montevideo. We are avalaible for any questions and help to get here.We are native uruguayans missing USA. Regards, Einstein1498 Well, I think the best way to live from rentals in Uruguay is to buy in Punta del Este. There is a catch, you can rent only/ probably starting in december trhu march, the only months of the year when Punta del Este is full of people.
To get the idea,for instance an apartment of u$s50.000 value can be rented for u$s1,500 december, u$s3,000 january and u$s2,500 february more or less.
Our house is locate 2 blocks from the beach somebody offered for the entire month of january u$s8,500, the house is valued at u$s230,000 and is fully furnished with climatized pool.3 bedrooms/3 baths/playroom/etc.
We are not selling this one, just saying to compare.
We are living in Punta del Este since july 2005 and is a change of pace compare with Montevideo.
We are avalaible for any questions and help to get here.We are native uruguayans missing USA.
Regards,
Einstein1498

]]> By: misstango1 http://www.uruguayliving.com/2007/07/20/the-taxman-cometh-2/comment-page-1/#comment-746 misstango1 Fri, 07 Nov 2008 09:27:49 +0000 http://www.uruguayliving.com/2007/07/20/the-taxman-cometh-2/#comment-746 hi there my husband and i are looking to migrate to uruguay next - we are looking to buy property and live off rental income. what sort or rental income could we expect and what is the national average salary - in otherwords how much income would we need to have to live. Do we have to pay rental taxes on properties? thanking you - misstango.. >>I'm not sure the national average income really applies, or is reliably reported for that matter.  Uruguayos have a family support system that is very hard to quantify. Based on discussion with several people, I would say that you would not want to have an income of less than US$2000 per month to live comfortably. With regard to rentals--that can be a nightmare here. The reason that landlords require a deposit equal to 5 months rent is that it can take that long, or even much longer to evict a non-paying tenant.  On the other hand, rents are relatively high, about 10% of the property value per year. I am not a real estate expert, and I am NOT giving you investment advice, merely making an observation:  one thing Montevideo lacks is short-term rentals designed for foreigners with good internet and some other amenities.  (For example, there are VoIP services that you could use to offer free phone calls to the US and Canada). I hope this helps. -The Southron hi there

my husband and i are looking to migrate to uruguay next – we are looking to buy property and live off rental income. what sort or rental income could we expect and what is the national average salary – in otherwords how much income would we need to have to live. Do we have to pay rental taxes on properties?

thanking you – misstango..

>>I’m not sure the national average income really applies, or is reliably reported for that matter.  Uruguayos have a family support system that is very hard to quantify.

Based on discussion with several people, I would say that you would not want to have an income of less than US$2000 per month to live comfortably.

With regard to rentals–that can be a nightmare here. The reason that landlords require a deposit equal to 5 months rent is that it can take that long, or even much longer to evict a non-paying tenant.  On the other hand, rents are relatively high, about 10% of the property value per year.

I am not a real estate expert, and I am NOT giving you investment advice, merely making an observation:  one thing Montevideo lacks is short-term rentals designed for foreigners with good internet and some other amenities.  (For example, there are VoIP services that you could use to offer free phone calls to the US and Canada).

I hope this helps.
-The Southron

]]> By: kiwi http://www.uruguayliving.com/2007/07/20/the-taxman-cometh-2/comment-page-1/#comment-638 kiwi Tue, 28 Aug 2007 23:12:28 +0000 http://www.uruguayliving.com/2007/07/20/the-taxman-cometh-2/#comment-638 Thanks for the detail but I am a little confused! I am a New Zealander and my husband is Uruguayan. We are coming to live in Uruguay next year with our children. I will earn off shore dollars from a company that I have shares in. Will I need to pay tax either personal or business tax? As our business is in fact a ‘trade intermediary’ is there any advantge in registering the company in Uruguay now that there is no longer the SAFI. Thanks for the help >>Hello Kiwi: The good news is that you will not pay tax on foreign arising income.  A Uruguay SA can still be a very tax efficient vehicle because it is not tax on many kinds of foreign income.  Uruguay's tax system still remains essentially territorial, which creates many wonderful opportunities.  A very small amount of creative, but entirely legal structuring and you will be set. Thanks for reading and asking such a good question. The Southron Thanks for the detail but I am a little confused! I am a New Zealander and my husband is Uruguayan. We are coming to live in Uruguay next year with our children. I will earn off shore dollars from a company that I have shares in. Will I need to pay tax either personal or business tax? As our business is in fact a ‘trade intermediary’ is there any advantge in registering the company in Uruguay now that there is no longer the SAFI. Thanks for the help

>>Hello Kiwi:

The good news is that you will not pay tax on foreign arising income.  A Uruguay SA can still be a very tax efficient vehicle because it is not tax on many kinds of foreign income.  Uruguay’s tax system still remains essentially territorial, which creates many wonderful opportunities.  A very small amount of creative, but entirely legal structuring and you will be set.

Thanks for reading and asking such a good question.

The Southron

]]> By: Fish http://www.uruguayliving.com/2007/07/20/the-taxman-cometh-2/comment-page-1/#comment-610 Fish Fri, 20 Jul 2007 21:35:30 +0000 http://www.uruguayliving.com/2007/07/20/the-taxman-cometh-2/#comment-610 I'd like to comment on Juan's statement below: 'Uruguay will continue taxing only income generated inside Uruguay and assets located inside the country. Thus, for citizens and foreign nationals alike, any type of income obtained from a foreign source, or assets abroad, will remain untouched by the Uruguayan tax collector.' The statement is technically correct, but it may be interpreted incorrectly by many readers. 'income earned from a foreign source', may be interpreted by the average reader as income gained from working for a foreign company. For example, a Uruguayan or foreigner, resident in Uruguay does translation work for a company in NYC, renders architectural plans for a firm in Chicago, or specifies job descriptions for a bank in Canada. The income derived from these activities is taxable in Uruguay. Because the 'asset' used to generate the income, the computer, the drafting board, the typewriter is an asset located in Uruguay. There is an exception, within the act, that specifically makes IT activities, (programming, support, etc), exempt from the IRPF. I'd gladly stand corrected if I'm wrong, but this is the way myself and my accountant friends interpret the law. We joke around about all the new IT managers that appeared in Uruguaay on July 1st. I’d like to comment on Juan’s statement below:

‘Uruguay will continue taxing only income generated inside Uruguay and assets located inside the country. Thus, for citizens and foreign nationals alike, any type of income obtained from a foreign source, or assets abroad, will remain untouched by the Uruguayan tax collector.’

The statement is technically correct, but it may be interpreted incorrectly by many readers. ‘income earned from a foreign source’, may be interpreted by the average reader as income gained from working for a foreign company. For example, a Uruguayan or foreigner, resident in Uruguay does translation work for a company in NYC, renders architectural plans for a firm in Chicago, or specifies job descriptions for a bank in Canada. The income derived from these activities is taxable in Uruguay. Because the ‘asset’ used to generate the income, the computer, the drafting board, the typewriter is an asset located in Uruguay.

There is an exception, within the act, that specifically makes IT activities, (programming, support, etc), exempt from the IRPF.

I’d gladly stand corrected if I’m wrong, but this is the way myself and my accountant friends interpret the law. We joke around about all the new IT managers that appeared in Uruguaay on July 1st.

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