Cost of Living in Uruguay

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Cost of Living in Uruguay

Due to its mild temperature and low cost of living, Uruguay has become a favorite retirement destination. This South American country, which is sandwiched between Argentina and Brazil, is recognized for its welcoming population and diverse culture. It’s no surprise that pensioners all around the world love it. If the idea of retiring in Uruguay appeals to you, there are a few things you should know first, such as the cost of living, healthcare, and immigration rules.

Uruguay is a popular retirement destination, and it’s easy to see why. This dynamic country has a stable economy, pleasant temperature, clean drinking water, affordable healthcare, beautiful beaches, low taxes, and low crime rates. While Uruguay isn’t the cheapest country in South America, living costs here are significantly lower than in the United States.

Is Uruguay Expensive to Live in?

Uruguay’s average monthly cost of living is US$770. The cost of housing varies by city. Montevideo is Latin America’s most expensive city, with prices increasing by more than 20% year on year. An apartment in the countryside is less expensive than one in the city. Basic utilities are very costly, costing roughly USD 30 per month for power, water, gas, rubbish collection, and other services.

In Uruguay, basic utilities like power, water, and gas will account for a considerable amount of your salary. Sharing an apartment with a roommate can help you save money on rent, but the bills will be significant. The second most expensive item is food. A full supper will set you back around 840 dollars. As a result, hiring a roommate or renting an apartment near the city center can save you up to 50% on food costs.

Uruguay’s healthcare costs are likewise quite inexpensive. In the United States, health insurance costs almost $17,000 per year, whereas, in Uruguay, it costs only USD$2,000. A visit to the family doctor costs about $10. In New York, for example, a basket of food worth $1,000 costs USD$56. In addition, a benchmark sedan costs around USD25661. Overall, it is possible to live in Uruguay on a budget without sacrificing quality.

How Much Money Do You Need to Live Comfortably in Uruguay?

It depends. The cost of renting an apartment will eat up a large chunk of your monthly income. If you share a room with a roommate, you can split your rent and minimize your extra costs in half. A one-bedroom apartment in the city center can set you back between $500 and $840. Food is another significant cost. Food will cost roughly USD 550 per person per month, which is considered a good price gave the high quality of Uruguayan cuisine.

Uruguay also has a lower cost of living. Health insurance for expats will likely cost around US$2,000 per year. A visit to the family doctor can set you back around $10. Overall, Uruguay’s healthcare system is ideal for people seeking a luxurious lifestyle at a reasonable cost. However, if you aren’t expecting pricing variations, you will likely be pleasantly pleased by the country’s cost of living.

Clothing in Uruguay is quite inexpensive when compared to other European countries. The majority of worldwide clothing brands and companies have a presence in this city. Retailers sell low-cost Chinese-made clothing. The cost of entertainment in Uruguay is quite low, with a wide selection of options available for guests for roughly $7 per movie and $10 for a theatre show. Similarly, a trip to the movies will set you back around $10.

Is Healthcare Expensive in Uruguay?

Many seniors are looking for low-cost healthcare options. Fortunately, Uruguay has a well-developed healthcare system that is free of constraints and provides high-quality medical care to all residents. Uruguay’s private hospital membership model, known as Mutualista, is what sets it apart. Following membership acceptance, the hospital provides members with healthcare services ranging from doctor appointments to emergency room visits. This plan often has a monthly membership fee of less than $100 and a minimal co-pay when you visit a doctor.

It’s important to note that Uruguay is not a popular destination for medical tourists. This means that if you need medical assistance while visiting Uruguay, it could be rather costly. Long-term healthcare insurance, on the other hand, can provide stability and value to both expats and locals.

Although healthcare in Uruguay is more expensive than in other Latin American countries, most expats can still afford it. A healthy, well-cared-for family in Uruguay will be less likely to get a tropical disease and will be able to afford a more frequent medical checkup. If you have medical problems, this is extremely crucial. Other sorts of economical medical services can be found in the country in addition to health care.

Is Housing in Uruguay Cheap?

Purchasing real estate in Uruguay is simple. A one-bedroom apartment in Uruguay costs on average $223 per square foot in the city center and $170 per square foot outside of the city center. This figure rises in Montevideo, the most costly city in the country. However, it is still cheaper than New York City, where the typical apartment costs $1,373 per square foot.

Uruguay is renowned for being one of the safest countries to buy a home in South America. Over the last decade, a rising number of Americans and Europeans have purchased real estate in Uruguay.

There are a variety of housing alternatives available. While renting a home is less expensive than buying one, it will end up costing you more in the long term. You can, however, rent an apartment in the city for the same amount as in the United States. Despite the fact that healthcare in Uruguay is more expensive than in other Latin American nations, the majority of expats can afford it. In Uruguay, a healthy, well-cared-for family is less likely to contract a tropical disease and can afford more frequent medical checkups. This is especially important if you have medical issues. In addition to health care, the country offers a variety of low-cost medical services.

A wide range of housing options is offered. Although renting a home is less expensive than purchasing one, it will cost you more in the long run. However, you may rent an apartment in the city for the same price as in the US.

When it comes to purchasing real estate in Uruguay, both Uruguayans and non-Uruguayans are treated equally. You must, however, use a public notary to prepare any legal documents and to certify that they are in good order. For example, they will tell you if the property has any outstanding debts or anything else that would prevent you from purchasing it.

Remember that Uruguay has all four seasons when you’re looking for a place to live. Furthermore, some locations appeal to expats more than others. Be sure to engage the help of a lawyer, notary, and real estate agent as you conduct your investigation.

Why Is Uruguay So Expensive?

Technically it is cheaper for housing, but healthcare may cost you a fortune. Uruguay is a popular retirement destination, and it’s easy to see why. This dynamic country has a stable economy, pleasant temperature, clean drinking water, affordable healthcare, beautiful beaches, low taxes, and low crime rates. While Uruguay isn’t the cheapest country in South America, living costs here are significantly lower than in the United States. The cost of living in Uruguay is 27.95 percent lower than in the United States, according to, a website that collects pricing data from citizens.

While the cost of living will vary depending on your lifestyle and particular region, you should spend around $3,000 per month. In Uruguay, quality homes can be relatively affordable for seniors. According to, the national average for a one-bedroom apartment in a city is $450, and the national average for a one-bedroom apartment in the suburbs is $343. If you need a bit more space or extra rooms for when your family visits, a three-bedroom apartment in the city center costs around $770 per month, while a three-bedroom apartment in the suburbs costs approximately $610. You may anticipate paying around $315 per month for essential utilities such as power, heating, cooling, water, waste, internet, and transportation. Your housing costs will, of course, vary based on the city you choose to live in.

Does Uruguay Tax a Lot?

Uruguay has a system of territorial taxation. This means that various sorts of income obtained outside of Uruguay are not have to be reported if you are an Uruguayan resident. Retirement pensions, Social Security payments, rental income, and capital gains are all examples of this. This is a positive for this place because many other countries force people to pay taxes on their international income. Interest and dividend payments, on the other hand, are subject to territorial taxation. As a result, if you’re a resident, you’ll have to pay a flat tax of 12 percent on your earned income.

This restriction was enacted to deter Uruguayans from storing their money outside the nation. If you paid 12 percent in taxes to a jurisdiction outside Uruguay then you may not have to pay taxes in Uruguay.

You would just pay the difference if you paid less. As a result, many retirees will be unaffected by this tax. If you earn money in Uruguay, you will be subject to an income tax known as impuesto a la renta para personas fsicas (IRPF). This tax applies to income of more than $700 per month (adjusted for the current exchange rate) and can range from 10% to 36%.

As an expat, you’ll still have to file a tax return in the United States. Even if you don’t have to pay any US taxes, this is true. In retirement, it’s doubtful that you’ll have much money coming from outside the United States. The overseas earned income exclusion, foreign tax credit, and foreign housing exclusion are only a few of them.


There are a number of compelling reasons to choose Uruguay as a retirement location. Uruguay is a small country in South America; only Suriname is smaller. Uruguay is about the size of the state of Missouri, at 68,000 square miles. Its population is also modest, with only 1.8 million people living in the capital, Montevideo, out of a total population of 3.8 million. Despite its small size, there is plenty of room to move around. It is situated in the rich plains and hills to the south of Brazil and east of Argentina, with a coastline that runs along the Atlantic Ocean and the Rio de la Plata.

The geography is quite simple, especially in comparison to South American standards. There are no gigantic Andes sticking up; Uruguay’s highest point is barely 1,686 feet. The landscape consists primarily of rolling hills, river basins, lakes, and the fertile coastal lowlands—in fact, it is some of the world’s most productive territory. Uruguay is also one of the few countries in South America without a volcano or a severe earthquake. The weather is also rather pleasant. Seasons are reversed in the Southern Hemisphere, and some expats believe it has the best of all worlds in terms of climate: seasonal fluctuations but no extremes. Because there are no big mountains to act as barriers, the weather is uniform across the country, and fronts move freely across the landscape.

The growth season is lengthy, and the winter is mild. In Montevideo, for example, the coldest months (June and July) have average highs of 57 degrees Fahrenheit (14 C). Uruguayans have a profound respect for a wide spectrum of culture and arts as a result of their cosmopolitan history. Montevideo is a cosmopolitan metropolis, having art museums, ballet, theatres, and music halls, among other things. Tango, folk music and jazz are popular among Uruguayans, as are candome drum beats with African influences.

Montevideo attracts world-class artists, musicians, and other forms of entertainment on a regular basis. Perhaps the most appealing feature of Montevideo is the 14-mile-long Rambla, a continuous walkway along the waterfront with parks, bike paths, outdoor exercise pavilions, restaurants, and other amenities. It winds its way around the city and provides access to some of the more popular neighborhoods.

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