As a result of all the changes that are taking place in some governments in terms of their economies and finances, many people are looking to store their savings overseas.
Specifically, governments are starting to impose barriers for those who look to save in foreign currency, as well as for purchasing dollars.
Therefore, all this adds to the volatility of the market and the devaluation that is happening in some countries in the increasingly popular decision to create an account abroad.
So, those who don’t want to lose their savings nor be left empty handed look for jurisdictions and banking entities which are more flexible and above all, without traps.
We know that in the current financial framework that it’s important to devise a strategy to diffuse your risks where you can choose a new place to store your money in different currencies, choosing one or more banks in different countries.
Similarly, Uruguay presents tax benefits and juridical protection what allows you to manage your business assets with total flexibility and with wide advantages in terms of prices when compared with other countries worldwide.
What types of accounts are on offer there?
· Investment accounts for businesses -with nominative shares, or bearer shares
· Current accounts for businesses -with nominative shares, or bearer shares
· Individual investment account
· Individual current account
· Individual savings account
It is worth highlighting that many of the banking entities in Uruguay are flexible and allow the user to be able to create their account remotely, without needing to attend in person.
In this case, an important aspect that you should bear in mind is the type of account that you are eligible to open in Uruguay as a foreigner, and not a resident.
If you make investments of more than six million dollars or have property worth more than 1.8 million dollars you can apply for tax residency in Uruguay, obtaining the benefit of not paying taxes for the first five years you’re in Uruguay, this is because all tax residents will be exempt during this time frame.
You can also open a bank account as a resident where the costs will be almost zero and the most innovative element of the criteria is the possibility to obtain tax residency by purchasing property valued at US$400,000 and spending 60 days in the country.
What are the requirements and how long does it take to open the account?
The documents you should present when opening a bank account in Uruguay, whether in person or remotely, are:
For individuals:
· ID card, other document for identification, MERCOSUR card or passport
· Tax bill or public service which shows your current address and name
· Bank reference letter
· Proof of declaration of taxes in your country of residence
For legal entities
All of the business documents, duly certified, apostilled and translated to Spanish in the event that the original is in another language.
Furthermore, for associates, shareholders, final beneficiaries, attorneys and or directors, the following documents are needed:
· ID documentation
· Proof of address
· Bank reference card
· Proof of declaration of taxes in country of residency
What’s needed to open a bank account in Uruguay as a foreigner?
The required documents for opening a Uruguayan bank account are:
· ID document
· Proof of address
· Payslip
· Complete and sign the Forms and Contracts with the chosen institution
· Sworn affidavit for non-Uruguayan residents
· Due diligence process (process by which the applicant is assessed to ensure no relation with money laundering, tax evasion, financing terrorism or drug trafficking)
Those who already have legal residency ought to present their Uruguayan ID card, proof of address, payslip, forms and contract, tax declaration and pass the bank’s due diligence checks.
The procedure is completed in just a few days. The candidate will be given a debit and or credit card to use and will be orientated in using the Home Banking portal to manage their accounts.
Do I have to keep a set amount in the account?
As a rule, the banks try to maintain low average balances for their accounts. For example, in some Uruguayan local banks, the minimum demanded sum is US$2,500 for current accounts and US$750 for savings accounts. If these average balances are not complied with, the banks will probably charge a commission. The amounts of these commissions depend on the bank.
Are there monthly charges to keep my account active?
The average monthly charge in Uruguayan local banks is US$40. Additionally, fees will be charges for incoming and outgoing transactions.
Can I apply for a credit card from the bank?
Once you have your account it will be very simple, and you’ll be able to access numerous benefits that different banks offer. Some cards allow purchases overseas without any extra charges.
So, if you are interested in finding out more about opening a bank account in Uruguay, as well as other opportunities to develop your business, contact us today! Below this article, you will find a link to set up a free fifteen-minute consultation with us to discuss your options further.
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