Uruguay power point presentation (sep2010)

International Real Estate Investment ForumInternational Real Estate Investment Forum

Las Vegas, Nevada – September 2010Las Vegas, Nevada – September 2010

URUGUAYURUGUAY

Uruguay on the World MapUruguay on the World Map

Why Uruguay?Why Uruguay?

Important infrastructure and advanced technology

Challenging Investment opportunities from tourism area

Beautiful and varied geography

Moderately temperate climate, free of intense extremes temperature

Population: 3,339,237

Two international bridges and 4 highways connecting Brazil & Argentina

Two international airports

Three major cities, Montevideo, Colonia & Punta del Este

Land Surface: 67500 sq miles, density 48 inhabitants p/sqm

Current economic conditions promote tourist influx 1 US$ = 20.78 Uruguayan pesos

Data & InfrastructureData & Infrastructure

TheThe People People

Predominantly Urban, with only 12.5 % living in the country side.Predominantly Urban, with only 12.5 % living in the country side.

Comparing Latin American countries, Income and wealth fairly evenly distributed.Comparing Latin American countries, Income and wealth fairly evenly distributed.

Small upper class controlling business and commerce.Small upper class controlling business and commerce.

Large influential middle class.Large influential middle class.

Culture predominantly European.Culture predominantly European.

Cost of LivingCost of Living

• Medical assistance (Hospital Británico Montevideo): USD 480.- (2 adults + 2 kids)

• Private University: USD 540 / 650.- per month

• Dinner out for two, vino included!: USD 30.- per person

• Bottle of good wine (“Tannat”: the uruguayan Malbec) : USD 15 / 30.-

Flight InformationFlight InformationLan ChileLan ChileMVD – MIA: Daily flights (stopover on SCL)

Departure MVD 5:40 pm / Arrival MIA 05:40 am.

MVD – NYC: Daily flights (stopover on SCL) Departure MVD 5:40 pm / Arrival NYC 08:35 am.

MVD – Toronto: Flights Tuesday, Wednesday, Thursday & Friday (stopover on SCL) Departure MVD 5:40 pm / Arrival YYZ 12:45 pm.

American AirlinesAmerican Airlines MVD – MIA/NYC: 3 weekly direct flight

Departure MVD 7:15 pm / Arrival MIA 05:25 am. Departure MIA 7:00 am / Arrival NYC 09:45 am.Daily flights (with stopover) to Miami, Dallas, New York.

Tam Tam MVD – MIA: Daily flights (stopover on SAO)

MVD – SAO: 6:00 am – 8.30 am / SAO – MIA: 10:30 am – 6:05 pm.

MVD – NYC: Daily flights (stopover on SAO)MVD – SAO: 2:00 pm – 4.25 pm / SAO – NYC: 8.10 pm – 5:45 am.

MVD – Toronto: Daily flights (stopover on SAO)MVD – SAO: 2:00 pm – 4.25 pm / SAO – NYC: 8.10 pm – 5:45 am.

• Departments• Capitals• Main Routes

Economic OutlookEconomic Outlook

EconomyEconomy

Nowadays, diversifying into tourism, forestry & computer Software

Unemployment Rate: 7%

State health programs or private health system

Traditionally based on agriculture (mainly wool and rice), leather, beef & textiles

Annual GDP Variation

8,5% 8,7%

7,0%

-1,5%

7,0%7,4%

11,0%

1,3%

3,9%

5,7%5,1%

-1,3%

5,1%

3,4%

1,0%

4,5%3,9%

5,0%5,5%

4,3%

-4,0%

-2,0%

0,0%

2,0%

4,0%

6,0%

8,0%

10,0%

12,0%

2006 2007 2008 2009 2010 Project

Argentina Uruguay Brasil Chile

Uruguay Law for foreign investorsUruguay Law for foreign investors

No restrictions on foreign investment

100% foreign ownership of local corporations allowed

No restrictions on profit and capital repatriation

Capital Investments receive favorable tax treatment

Foreign investor anonymity allowed

No limitation on bank accounts for foreigners

MontevideoMontevideo

The City of Montevideo is the capital of Uruguay and is located in the South center of the country. It features the charms of modern times and progress, as well as the bohemian atmosphere and the history represented in its streets.

With a moderately temperate climate, free of intense temperature extremes, it offers various alternatives for tours, entertainment and shows for all tastes and expectations.

Montevideo lies 170 kilometers away from Colonia del Sacramento and 130 kilometers from the City of Punta del Este. Only a 3-hour away from Buenos Aires by boat.

Some Tours and Activities …Some Tours and Activities …

Promenades:Promenades: There are so many and so beautiful that you There are so many and so beautiful that you cannotcannot miss them. miss them.

The Port Market:The Port Market: Visiting this place is fascinating. Behind its porticos, each stall displays Visiting this place is fascinating. Behind its porticos, each stall displays delicious meat, ”achuras” and ”pamplonas”. Outside, ”candombe” and handicrafts. delicious meat, ”achuras” and ”pamplonas”. Outside, ”candombe” and handicrafts.

““Ciudad Vieja”:Ciudad Vieja”: The origins of Montevideo. A walk into the past times where the political and The origins of Montevideo. A walk into the past times where the political and economic center of the country can be seen.economic center of the country can be seen.

El Milongon:El Milongon: At the heart of Old Montevideo tourists can enjoy a dinner theater with an At the heart of Old Montevideo tourists can enjoy a dinner theater with an amazing display of music and choreography of candombe, tango, milonga and folk music. amazing display of music and choreography of candombe, tango, milonga and folk music.

The Great Classic of Uruguayan Cuisine: “chivito”The Great Classic of Uruguayan Cuisine: “chivito”

““Las Llamadas”:Las Llamadas”: (the Calls) are the largest popular celebrations in Uruguay. Every year in (the Calls) are the largest popular celebrations in Uruguay. Every year in February, Montevideo is ornamented for “candombe” and “comparsas”. February, Montevideo is ornamented for “candombe” and “comparsas”.

MONTEVIDEO’S DIFFERENT NEIGHBORHOODSMONTEVIDEO’S DIFFERENT NEIGHBORHOODS

““Barrios” of MontevideoBarrios” of Montevideo

CIUDAD VIEJACIUDAD VIEJA



One of the nicest tours is to the “Ciudad Vieja” wich can be enjoy day or night. This area still preserves the Citadel Gate, which up to 1829 used to protect the place from possible invasions as well as the most beautiful and picturesque colonial buildings: the Metropolitan Cathedral, the Cabildo, the Solís theater and the Torres García Museum, to name a few them.


A place where the past and the present coexist among historical buildings, bookstores and the busy city life. In order to discover this important tourist sector of the city, visitors need to be curious and willing to walk.

Sarandí Pedestrian Boulevard Sarandí Pedestrian Boulevard

Most of the art galleries are concentrated there and the street craftsmen are gathered to display their products. Music shows, open workshops and a true flea market can be visited while touring along this important artery.

SHORT TERM RENTAL &SHORT TERM RENTAL &PROPERTY MANAGEMENTPROPERTY MANAGEMENT

Short Terms Rental Service:Short Terms Rental Service:

• Market your property.

• Find tenants.

• Draw the temporary rental contract up.

• We are present at hand in and restitution.

Property Management Service:Property Management Service:• Being present at hand & restitution.

• Receiving the payment made by the tenant & forward it to the owner.

• Paying all bills that are the owner´s responsibility.

• Coordinating the different jobs between tenants.

• Replacing any items that may have broken by a tenant, or have deteriorated over time.

• Ensuring a smooth rental of the property.

One bedroom Apartment located on Brecha St, near Solis Theater and Plaza Independencia.

Covered Area: 52 sqm / 560 sqft

Monthly Rental: USD 406.- Temporary Rental: USD 350.- p/ week USD 800.- p/ month Estimated Yearly Rental: 6%

Asking price: USD 75,000.-

18 de Julio, Plaza del Entrevero18 de Julio, Plaza del EntreveroCovered Area: 89 sqm / 958 sqftBedrooms: 2

Monthly Rental: USD 700.- Temporary Rental: USD 500.- p/ week USD 1,200.- p/ month

Estimated Yearly Rental: 8%

Asking price: USD 95,000.-

REAL ESTATE SALESREAL ESTATE SALES

Apart 356 Building Apart 356 Building Ciudad Vieja, MontevideoCiudad Vieja, Montevideo

Monthly Rental: USD 500.-

Covered Area: 51 sqm / 548 sqft

Bedroom: 1

Apart 356 Building Apart 356 Building


Apart 356 Building Apart 356 Building

Asking price: USD 87,000.-Asking price: USD 87,000.-

25 de Mayo Street (Ciudad Vieja)25 de Mayo Street (Ciudad Vieja)

Brand new building, for residential orcommercial use.

Amenities: conference room, parking space, terrace & BBQ.

Unit 107Built: 86 sqm / 796.5 sqftMonthly Rental: USD 1,350.-Estimated Yearly Rental: 9%

Asking Price: USD 175,000.-

Rincon StreetRincon Street

10.764 sqft house in the heart of the financial centre. Only 2 blocks from the Independencia Square and the brand new Government house. Totally refurbished. Ideally office space.

Built: 1000 sqm /10.764 sqft

Long Term Rental: USD 7,000.-Estimated Yearly Rental: 9%


25 de Mayo Street (Ciudad Vieja)25 de Mayo Street (Ciudad Vieja)

1173 sqft Colonial style building, located on 25 de Mayo St. near Zabala St. and Matriz Park.

Built: 109 sqm/1173 sqft

Monthly Rental: USD 700.-Estimated Yearly Rental: 9%


Juncal Street

Stylish house with 3 bedrooms, 2 bathrooms. Good conditions. Suitable for commercial purpose or offices.

Built: 300 sqm/3229 sqft.


Asking Price U$S 300,000.-Asking Price U$S 300,000.-

ROCHAROCHA

Punta del Diablo

La PedreraLa Paloma

Roc

ha

Rocha is a department located in the east of Uruguay. Geographically it is beautiful. You can find seaside resorts like, La pedrera, La Paloma, Punta del Diablo, Cabo Polonio, Vlizas, Santa Teresa. Rocha is well known for its beach towns which swell during the summer holidays.

Punta del DiabloLa PedreraLa Paloma

One of the main oceanic swimming resorts in the Department of Rocha, La Paloma is also one of the most ancient and beautiful in Uruguay. Located exactly on Cape Santa María, La Paloma lies 240 kilometers away from Montevideo and 100 kilometers away from glamorous Punta del Este..

La Serena BeachLa Serena BeachLa Paloma – RochaLa Paloma – Rocha

Lot size: 1.575 sqm / 16953.16 sqft Front length: 30 sqm / 97.5 sqftWater front

Asking Price: USD 200,000.-Asking Price: USD 200,000.-

La Serena BeachLa Serena Beach

La Balconada BeachLa Balconada BeachLa Paloma, RochaLa Paloma, Rocha

Lot Size: 360 sqm / 3875.007 sqftBuilt: 120 sqm / 1291.669 sqft Bedrooms: 3Bathrooms: 2


The views of the lagoon, the ocean and La Paloma light house are beautiful and invite further exploration of the area …

“Laguna Tranquila” is located 3.5 miles outside of La Paloma.

Lot Size: 2,000 sqm / 21527.820 sqft


The property is in the protected area “Rocha Lagoon” with the beach and ocean nearby. The lagoon and beaches are home to a variety of plants, butterflies, and fish, as well as over 220 bird species.

MASTER PLAN (“Laguna Tranquila”)MASTER PLAN (“Laguna Tranquila”)

Punta del Diablo Is a Uruguayan seaside resort located on the Rocha Department, 298 kilometers from Montevideo. Originally it was a small fishing village with 10 kilometers of coastline and beaches. During summer time it is one of the main Uruguayan resorts, with a large numbers of visitors from Argentina, Brazil and Europe. You can find in Punta del Diablo: transport agencies, bars, camping, pharmacies, cafes, surf schools, fish markets, hotels, hostels, police and craftsmen.

Punta del Diablo Punta del Diablo

La Viuda BeachLa Viuda BeachPunta del Diablo - RochaPunta del Diablo - Rocha

Caracol Blanco House

Modern house with 3 bedrooms, 3 bathrooms, terrace, garage, BBQ, exterior showers and a bathroom in the ground floor.

Guests house: One bedroom with kitchenette and bathroom.

Built: 120 sqm / 1,291 sqftLand: 504 sqm / 5,425 sqft

Summer Monthly rental: January: USD 7,500.-

February: USD 6,300.-

Asking Price: USD 350,000.- Asking Price: USD 350,000.-

Colonia is the oldest town in Uruguay, capital of the department of Colonia and is located across the river “Rio de la Plata” from Buenos Aires

This delightful city may be visited at all seasons, as its weather is mainly temperate.

The astonishing layout of Colonia makes a remarkable contrast with the architectural mapping shared by all cities of Spanish origin. That is precisely the reason why it has been declared a World Historical Heritage City.

San Benito (Colonia del Sacramento)San Benito (Colonia del Sacramento)

Modern duplex in contemporary style, located in the San Benito area in Colonia del Sacramento. Beautiful view.

Lot Size: 250 sqm / 2,691 sqftCovered Area: 102 sqm / 1,098 sqftBedrooms: 2Monthy Rental: USD 550.-Estimated Yearly Rental: 8%

Asking Pirce: USD 79,500.-

Punta del EstePunta del Este• Most exclusive Beach Resort location in Uruguay

• 372 km from Buenos Aires

• Population: 10,000, growing to 100,000 in Jan-Feb

• Important touristic location (Hotels, restaurants, spas, etc)

Punta del Este

Distance from Montevideo 135 Km

Population 8252 inhabitants

PUNTA DEL ESTEPUNTA DEL ESTE

The tourism industry brings inThe tourism industry brings inUSD 1 billion annually in UruguayUSD 1 billion annually in Uruguay



Punta del Este is considered the most up scale sea resort in Punta del Este is considered the most up scale sea resort in Latin America.Latin America.



The port, with a capacity for 500 berths hosts The port, with a capacity for 500 berths hosts international Worldwide international Worldwide nautical competitions. nautical competitions.

Parada 4 - Brava BeachParada 4 - Brava Beach

Lot Size: 58 sqm / 624 sqftCovered Area: 44 sqm / 474 sqftBedrooms: 1

Temporally Rental: • January: USD 2,500 / 2,800• February: USD 1,500.-


Punta Ballena – Punta del EstePunta Ballena – Punta del Este

Lot Size: 85 sqm / 915 sqftCovered Area: 56 sqm / 603 sqft

Bedrooms: 2


Montoya BeachMontoya BeachPunta del EstePunta del Este

Lot Size: 500 sqm / 5,382 sqftCovered Area: 130 sqm / 1,399 sqft

Bedrooms: 3 (1 suite with jacuzzi)Bathrooms: 3


OCEAN DRIVE BUILDINGOCEAN DRIVE BUILDING

Punta del Este - UruguayPunta del Este - Uruguay

Ocean Drive BuildingOcean Drive BuildingRoosvelt Street Roosvelt Street

Main features:• Covered area: 882.3 sqft.• 2 Bedrooms• 2 Bathrooms.

Ocean Drive Building was built over 3.7 acres.

Other features:• Tennis court• Swimming pool• Indoor heated swimming pool• Sauna• Golf driving range• Hydromassage• 24 hs Security

Condo expenses: USD 600.- aprox.


Taxes on CapitalTaxes on Capital: gradual elimination of current tax applied to individuals : gradual elimination of current tax applied to individuals

(between 0,7% - 2,75% of net worth on capital in excess of: USD 65,000)(between 0,7% - 2,75% of net worth on capital in excess of: USD 65,000)

Direct taxes:Direct taxes: Individual non-residents: 12% on rental income

Corporate Income Tax: 25% to 30 1/4%

Uruguay Tax SystemUruguay Tax System

Capital gains tax for individuals:Capital gains tax for individuals: 12% on gain

The Purchase process in UruguayTransaction Costs for the BuyerTransaction Costs for the Buyer

The Transaction Costs when selling are lower:

Real Estate Agent Fee: 3% plus VAT (22%) = 3.66%Property Transfer Tax: 2% of the Fiscal Value of the Property

Transaction Costs total approximately 8-9% in UruguayTransaction Costs total approximately 8-9% in Uruguay

• Real Estate Agent Fee: 3% plus VAT (22%) = 3.66%

• Notary Public´s Fee: 3% plus VAT (22%) = 3.66%

• Deed Registration Stamp Duties (“Montepios”): 0.55%

• Registry and Tax Certificates Stamp Duties: USD 300 on average

• Property Transfer Tax: 2% of the Fiscal Value of the Property (which is usually substantially lower than the market value)

Since1966 Since1966

Members of:

ERC – Employee Relocation Council (U.S.A.)

NAR - National Association of Realtors (U.S.A)

RELO – Leading Real Estate Companies of the world

Argentine-British Chamber of Commerce

Argentine-Canadian Chamber of Commerce

Come and visit us! Come and visit us! … … We´re ready when We´re ready when you are!you are!