Investing in Uruguay – why it’s such an attractive proposition

Uruguay has long been called the Switzerland of South America, being the first nation in Latin America to establish a welfare state, having a strong and stable government and being ranked first in Latin American for democracy, peace and lack of corruption. It is located on the Atlantic Coast of South America and has the same land area as the UK, with a small population of around 4 million people. Half these people live in the capital Montevideo, so the rest of the country is sparsely populated and full of fertile farmland, rolling hills and a good year round climate.

The Economist named Uruguay "country of the year" in 2013, acknowledging the innovative policy of legalizing the production, sale and consumption of cannabis. Same-sex marriage and abortion are also legal, leading Uruguay to be regarded as one of the most progressive nations in the world, and one of the most socially developed in the region. It ranks highly on global measures of personal rights, tolerance, and inclusion issues.

Investing in Uruguay has long been an attractive proposition, with pro-market government policies and tax incentives encouraging international investors to choose the country. There is an effective legal system which offers guarantees for investors and tax exemptions for industries which facilitate direct foreign investment.

Earlier this year, the investment and financial news website ValueWalk highlighted the possibilities in Uruguay to grow your wealth. In the article, the editor of the Sovereign Daily recommended investing in land to diversify your portfolio to achieve steady growth, outside of the ups and downs of the stock market. The article showed that land prices in Uruguay have temporarily pulled back, as they did in 2002, before 13 years of steady growth and so now is a great time to invest in this country.

Ted Bauman wrote in International Living that he would invest in Uruguay and buy up land while the US Dollar was strong, as they welcome investors with open arms, have a safe and flexible banking system and plentiful and inexpensive property and farmland. He concludes, “Given that the long-term returns to Uruguayan property investment range up to 8% to 9% per annum, this is an offshore investment goldmine.”

We certainly agree, and have access to more than 2,000 hectares of land in the prime locations in Uruguay which make perfect land and forestry investments. There is huge scope for growth in forestry in Uruguay, with plenty of land and predictions that forestry will soon be the best performing sector in terms of GDP. Purchasing land and using it for forestry is a great way to generate income, as land prices rise and investors also get yields from the sale of the fast growing eucalyptus timber. With two of the world’s largest pulp and paper mills in the country and another due to be constructed, the demand for timber is growing strongly, so the smart money is being invested in forestry in Uruguay.

We have turn-key investment packages with projected returns of about 70% for the first 10 years and 85% for the second 10 year cut. If this is of interest and you want to learn more about investing in forestry please fill in the form below and download our free guide.

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