Investing in Uruguay is business…

In addition to Uruguayans, Argentines have been doing so on a sustained basis, and recently there has been an increase in inquiries from Brazilians about investments and tax residences derived from possible tax changes that are being discussed in the neighboring country.

In this sense, Uruguay is an attractive market for foreign investments as a result of:

• Its strong political and social stability, as well as a consolidated democracy.
• Your legal security.
• Foreign investors enjoy the same incentives as local investors, protected by a Law of National Interest that puts companies – from a tax point of view – on equal terms.
• Freedom of capital movements and banking secrecy.

At VLL since 1953 we have accompanied investors by helping with the creation of their companies, and in recent years as a comprehensive services hub.

Investing in this real estate sector involves more than just looking for a good property, it also requires an analysis prior to the investment, a topic that we will delve into in other instances.

Regarding general issues, as reflected in the Uruguay XXI report for the Construction and Real Estate Sector in Uruguay of December 2022, investments in our country represent important opportunities, considering:

• The construction sector is responsible for 65% of the Gross Fixed Capital Formation.
• Housing construction usually represents two-thirds of the sector’s total investment.
• The Association of Private Construction Promoters of Uruguay has estimated that in 2022 more than 2 million square meters were under construction in Montevideo and Maldonado.

All of this is reinforced with the enactment of Law 18,795, on promoted housing, which has granted tax benefits for the construction of social housing.

According to the aforementioned Uruguay XXI report, the office market in Montevideo has had strong development, with new proposals, increased demand in A and A+ offices, and hand in hand with investments in technological services, outsourcing, software sectors, financial services, professionals, and companies linked to commerce.

Thus, in the report for the second quarter of 2023 carried out by Mercado Libre there is some data on this type of investments:

• One-bedroom apartments continue to be the most sought after in Montevideo, especially in Pocitos, Cordón and Centro as well as in Punta del Este.
• The rentals in Carrasco, Punta Gorda, Puerto del Buceo, Villa Biarritz, Punta Carretas and Pocitos appear to have the highest prices in that order.
• In terms of buying and selling, the areas of Puerto del Buceo, Carrasco, Villa Biarritz, Punta Gorda, Punta Carretas and Pocitos Nuevo are the best positioned in that order.
• The average price per square meter for the sale of apartments in Montevideo is USD 3,016.

There are opportunities in the sector… we can help you find them…

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Sources:

Invest in Uruguay

https://www.uruguayxxi.gub.uy/uploads/informacion/48aea32a81cdb62dc408a07f847bc6c99bdf3993.pdf

https://www.mercadolibre.com.uy/inmuebles/blog/informe-inmuebles-uruguay