High-net-worth clients are choosing the country as a center for estate planning and tax residency.
Brazil has long been a major buyer of Uruguayan goods and a key source of foreign direct investment, especially in industry and agriculture. This established economic relationship has set the stage for the recent surge in Brazilian investment in Uruguay, which has expanded notably in recent years.
Following the pandemic, this relationship gained momentum and diversified. New investor profiles have emerged, and interest has broadened. Experts note that Brazilians are now motivated by both business opportunities and lifestyle and long-term wealth planning.
Experts report that this trend is accelerating due to global uncertainty and recent tax reforms in Brazil. These factors are reshaping decisions and strategies for companies, investors, and prospective residents.
“There are high-net-worth clients who look to Uruguay as a center for estate planning or tax residency. We see this reflected in the closing of deals aimed at obtaining tax residency in Uruguay, as well as in relocations to the country’s interior and to areas such as Punta del Este. These decisions show that Uruguay is consolidating itself as an attractive center for estate planning and tax residency for high-net-worth clients,” said Javier Elenberg, managing partner at RSM Uruguay. This firm provides accounting, auditing, consulting, and tax services.
In terms of investments, Sebastián Risso, former executive director of Uruguay XXI and now director of his own consultancy, El Faro Advising, explained that new trends involve Brazilian companies seeking to establish a services and logistics hub in Uruguay. In addition, investors from this country are beginning to focus on the real estate, hospitality, and manufacturing sectors, taking advantage of free-zone regimes and temporary admission systems, among other tools offered by the country. These developments further reinforce the profile of Brazilians investing in Uruguay as a diverse and expanding segment.
This, he clarified, does not mean that Brazilian companies are considering leaving their country, but rather that they are interested in having a foothold in Uruguay to support their operations in Brazil. Moreover, the Uruguayan market is appealing as a first step abroad or as a testing ground for operations.
“The sectors currently generating the most interest among Brazilian investors are land and real estate. These areas offer strong and secure opportunities that align with the expectations of those seeking to diversify their assets or settle in Uruguay,” Elenberg noted. This aligns closely with the broader profile of Brazilians investing in Uruguay who prioritize stability, asset diversification, and long-term residency options.
Meanwhile, Francesca Magno, a partner at the global legal and tax services firm Andersen in Uruguay, said that many Brazilian family offices are planning part of their investment structures in Uruguay.
Beyond investments, consultants are also identifying a growing number of Brazilians interested in residing in Uruguay. In addition to tax considerations and the country’s stability, security is a fundamental factor, said Magno.
Punta del Este and Montevideo are the main hubs of interest for this group, which, according to Risso, consists mainly of families with parents aged 30 to 40 and school-age children.
RSM added that the profiles showing the greatest interest in relocating are, socioeconomically, middle- and upper-income individuals. They also note growing interest from young freelancers attracted by the country’s quality of life, as well as from business owners seeking to retire in a peaceful and safe environment.
“That stimulates the economy, because these are high-income families who use schools, hospitals, and local gastronomy,” said the former head of Uruguay XXI. The growing flow of Brazilians investing in Uruguay is therefore also having a secondary economic effect on services and local commerce.
The Reasons Behind the Increase in Inquiries
One of the most recent reasons that has accelerated the volume of inquiries, according to consultants, relates to the tax reform promoted by the government of Luiz Inácio Lula da Silva and unanimously approved in both chambers, which significantly redefines how the tax burden is applied in Brazil.
The proposal eliminates income tax for those earning up to 5,000 reais per month — about US$936 — and increases the burden on taxpayers with annual incomes above 1,000,000 reais.
“This type of change tends to generate greater interest in seeking more stable and favorable alternatives, and Uruguay is positioning itself as a concrete option for those looking for security and tax advantages,” Elenberg said.
But these changes, which will be implemented gradually over the coming years, represent only the tip of the iceberg for broader reasons. Some business owners are even observing the process cautiously, preferring to remain on standby and avoid anticipating major shifts until they see how the reform actually unfolds.
Another contributing factor is the presidential election scheduled for next year, which is generating strong uncertainty regarding Brazil’s political and economic direction.
Beyond political issues, Magno noted that economic factors also play a significant role in this trend.
One such factor is the limitation Brazilians face when trying to save in U.S. dollars within their own banking system. This restriction forces them to keep their wealth and investments tied to the real. Uruguay, by contrast, allows saving and transacting in dollars, enabling them to access the international economy more directly.
Although they could also do this in the United States or Europe — in euros — Uruguay emerges as a much closer option, making it particularly attractive for those looking to protect their capital. Along these lines, the greater interest in Uruguay is also explained by recent regulatory changes in countries such as Portugal and the United States, markets that until recently captured much of Brazilians’ attention.
“The global context makes Uruguay a country people are keeping an eye on,” Magno said.
The consultancy stressed that in order to sustain and further encourage these trends, it is essential to “take care of the country”: maintaining and strengthening security, as well as ensuring strong connectivity — two pillars considered indispensable for preserving Uruguay’s appeal in the region.
Other Investor Profiles Growing in Importance
In addition to Brazilian investors, Santiago Pierro, founder and chairman of the real estate developer Liderus Holding, communicated that Chilean interest in real estate investments has grown sharply, increasing by more than 30%, although their overall share remains small. In Punta del Este, this group is especially drawn to annual rental income, the quality of the beaches, the glamour of Uruguay’s eastern coast, and the variety of tourism options.
Another group on the rise is Paraguayans. “It has increased much more sharply — it has more than doubled — and what we’re seeing is that they are seeking to spend a large part of the year in this area,” he said.
“They generally settle in La Brava up to San Rafael and in La Mansa up to Las Delicias. They look for a store of value, a second home, and the feeling of belonging to a place internationally valued for its beauty and vast range of options in every sector,” he explained.
Conclusion
The current wave of Brazilians investing in Uruguay reflects a broader regional shift driven by economic uncertainty, tax policy changes, and the search for security and quality of life. Uruguay’s stability, favorable tax framework, and strong institutional environment have positioned it as a preferred destination for Brazilian capital and residency planning. As these trends continue to grow, Uruguay is likely to consolidate further its role as a strategic hub for South American investors seeking long-term opportunities and greater peace of mind.