The Question We Get Asked Most:
"Why don't you offer Uruguay residency? It's beautiful, it's stable, it's popular with expats..."
I hear you. And yes, Uruguay is lovely. But here's why I deliberately chose not to include it in our services - and why this decision actually protects your long-term financial interests.
The Tax Trap Most Consultants Won't Tell You About:
Uruguay offers a "tax holiday" for new residents - typically 10-11 years of exemption on foreign-source income. Sounds great, right?
Here's the catch: After that holiday ends, you're subject to Uruguay's worldwide taxation system. That means your foreign investments, rental income, dividends, and pension could all become taxable.
Paraguay's Permanent Advantage:
Paraguay operates on a territorial tax system - permanently. There's no sunset clause, no expiration date, no "tax holiday" that eventually runs out.
Panama: Same Principle, Different Region:
I also offer Panama for the same reason - it's another territorial tax jurisdiction with no expiration on foreign income exemption. Different geography, same permanent benefit.
The Real Cost of Uruguay's "Tax Holiday":
Let's do the math. Suppose you have $100,000 in annual foreign investment income:
In Paraguay or Panama:
Why This Matters for Your Plan B:
A "Plan B" residency should be a permanent solution, not a ticking time bomb. When you're planning for retirement, generational wealth, or location independence, you need certainty - not an approaching deadline.
But Uruguay Is So Nice...
We agree! Uruguay has excellent infrastructure, beautiful beaches, and a high quality of life. If lifestyle is your only consideration and taxes don't matter to you, it's a fine choice.
But if you're reading this, you're probably thinking strategically about your financial future. And strategic thinking means choosing jurisdictions with permanent benefits.
Our Recommendation:
The Bottom Line:
I could easily add Uruguay to our services and make more money. But I'd be setting clients up for a tax surprise down the road. That's not how I operate.
Plan B Expat exists to provide permanent solutions. Uruguay's expiring tax benefits simply don't fit that mission.
Ready to explore permanent options?Ready to explore permanent options? Contact us for a free consultation about Paraguay or Panama residency.
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