Not so Uruguay, which is bigger than Switzerland and the Benelux countries combined and has enjoyed years of relative stability. Mercado Libre co-founder Marcos Galperin is just one of the more than 22,400 Argentines who opted for permanent Uruguayan residency between 2020 and 2022, according to data compiled by Uruguay’s Foreign Ministry—four times the number in the previous three years.

It’s basically a country that I would say embraces democracy and embraces capitalism. And those two things are generally good for business.

Marcos Galperin, Mercado Libre co-founder

So what happened in 2020? Within weeks of taking office in March 2020, new Uruguayan President Luis Lacalle Pou, eased rules for foreigners wishing to domicile themselves there for tax purposes. To be eligible, immigrants must spend at least 60 days in Uruguay and buy property worth at least about $500,000 or invest a minimum of $2.2 million in a business. In return they pay no taxes on foreign investment income for 11 years.

Meanwhile, countries like Columbia and Brazil have been legislating to tax the rich harder and Argentina saw its consumer price index rocketing 138% year-on-year in September, compared with just 3.9% in Uruguay. The consequences for where people are choosing to live are palpable, according to Bloomberg and other media. In Uruguay the “signs of an influx of wealthy residents are everywhere”, from year-round opening of yacht clubs, to growing numbers of gated communities, to hundreds of places opening up at new international schools costing tens of thousands a year.

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As well as having a secure agricultural economy with few food supply risks and lower risks of kidnap and extortion for the wealthy, “Uruguay made a conscious decision to be a services hub,” says Rodolfo Castilla, sales manager at wealth management platform Insigneo Financial Group. 

By the end of last year, that meant just less than 1000 financial advisers were managing almost $29 billion on behalf of more than 36,000 high net worth clients in Uruguay, according to central bank data. Many of these services firms are based in and around the capital, Montevideo, in special zones that exempt them from taxes.

While gated living is not everyone’s idea of luxury, 140 km of Atlantic beach living rivalling the ecru-washed aspirational beach towns of USA’s Hamptons, might be.

L’article Uruguay is proving popular with rich expats thanks to new tax rules est apparu en premier sur Travel Tomorrow.

A small village on the eastern coast of Uruguay in the Rocha Department, Cabo Polonio is a cluster of buildings hugging the peninsula extending out into the Atlantic Ocean. There are no roads leading to it, the nearest highway being about 7 km away, meaning the only way to reach it is by foot through the miles of sand dunes, or by 4×4 vehicles. Arriving in the latter after a bumpy ride, the uneven sand bouncing both us and our large rucksacks in every direction, was how I first set eyes on Cabo Polonio.

The place has no mains electricity or running water, with wind power and generators used to power the shops and hostels and only the lighthouse, warning ships to stay away, is powered from the national grid. Water for residents and visitors is collected from wells or rain water, and you can spot the water tanks attached to the colourful, barn like houses around the village. Life here is not easy; the features that make it a haven for tourists in high season (January-March) also mean it is not particularly habitable, and according to the 2011 census, it had a population of only 95 inhabitants, most of whom rely on making crafts or fishing, with a few there seeking an alternative lifestyle.

The other inhabitants are a colony of sea lions, making their home on the rocks facing the lighthouse and the two islands to the east and north of the village. This is home to one of the largest sea lion colonies in South America. Once exploited, their number has greatly increased since sea lion trade was banned in 1942, and they have become another attraction of the village. Visitors and locals alike watch the hundreds of sea lions resting, or fighting, on the rocks, adding an extra edge of wild to the atmosphere and making you feel that much closer to nature. The lighthouse itself can be visited, open since 1881, and offers the best views of Cabo Polonio, the dunes, the beaches and the nearby Torre islands.

For the tourist, Cabo Polonio is an unforgettable place. Dunes stretch out as far as the eye can see in one direction, whilst the sea stretches out in the other. Hostels are relaxed, friendly places, fully embracing beach life and any sense of time is lost. A sort of caribbean meets the rugged Atlantic ocean crossover. There are no ATMs, so come with cash and spend only what you need. It is all about the minimal. Days are spent walking the beaches, relaxing on the sand, watching glorious sunsets, scouting for sea lions and chatting with others who have come to explore this rare place.

When you have soaked up the atmosphere, felt the magic and seen all there is to see, you can leave the way you came, or walk further across the dunes to reach the neighbouring town of Barra de Valizas, 10 km along the coast. That may not sound too far, but remember it is sand the whole way, and those dunes can be tall. It is hard work walking; the sun beats down on you, the wind whirls sand at you, it is the nearest I have ever experienced to being in a desert.

Valizas is separated from the dunes by an inlet, and a boat will carry you across at certain times of day, so be prepared to wait, or take a long detour round. The experience of this walk is incredible, and Valizas offers a similar stay to Cabo Polonio, this time slightly larger with 330 or so residents. The peaceful, surreal atmosphere continues here, and arriving to another welcoming hostel, we look forward to exploring this new town, only for my travel mate to realise she had left her flip flops in Cabo Polonio…

L’article At the end of the world in Cabo Polonio est apparu en premier sur Travel Tomorrow.

As a long-standing UNWTO member and as one of the co-hosts of World Tourism Day 2020, Uruguay has long shown its commitment to harnessing the power of tourism for growth and opportunity. Secretary-General Pololikashvili thanked President Lacalle Pou for his strong support for the sector during the pandemic and his efforts to restart tourism safely and responsibly. This includes a focus on growing domestic tourism and, in line with the theme of World Tourism Day, using this to provide opportunities for rural communities across Uruguay.

1. UNWTO cites example of Uruguay

Over the past decade, Uruguay has emerged as one of the strongest destinations in the Americas region. In the wake of the 2009 Global Financial Crisis, UNWTO singled the country out as an example of the sector’s unique resilience. Now, on this latest official visit to the country, the UNWTO leadership recognized the ongoing commitment to tourism, with the sector remaining a priority throughout changes in government.

“Uruguay showcases just how resilient tourism is and how it can bounce back and drive recovery when given the right support, benefitting both the overall economy and local communities,” said Pololikashvili. “I thank President Lacalle Pou and his government for their unwavering support for UNWTO and for our sector, and I look forward to continuing working together to strengthen cooperation over the challenging months ahead.”

2. Collaboration key to recovery

The UNWTO delegation also met with Minister of Tourism Germán Cardoso to hear his plans to support and restart tourism with a focus on sustainability and inclusivity. This also presented UNWTO with the opportunity to share the outputs of the most recent meetings of the Global Tourism Crisis Committee, including plans to bring governments and private sector leaders together to boost confidence in international travel, most notably through the creation of a first International Code for the Protection of Tourists.

Further highlighting UNWTO’s determination to foster high-level collaboration in order to accelerate the restart of tourism and ensure that innovation and sustainability are at the heart of future recovery, Secretary-General Pololikashvili brought together the Tourism Ministers of both Brazil and Uruguay for a special meeting with President Lacalle Pou. The two Ministers signalled their commitment to working together towards shared goals, including not just greater sustainability but also promoting investment in tourism so as to drive economic growth and job creation.

L’article Uruguay: Celebrating Resilience and Tourism’s Sustainable Restart est apparu en premier sur Travel Tomorrow.