Uruguay, often referred to as the “Switzerland of South America,” is far more than just a country known for its impressive landscapes and thriving agriculture. For expats and business people, it offers a unique combination of stability, high quality of life, and attractive business opportunities.
Uruguay Overview: Geography, Climate, and Population
Uruguay is strategically located in South America, between Brazil and Argentina, with coasts on the Atlantic Ocean. It is the only South American country located entirely within the temperate zone, which leads to small variations in temperature and precipitation. The climate is mild year-round, ideal for agriculture, forestry, and livestock farming.
The landscape primarily consists of gently rolling plains crossed by wide rivers. The total land area is 176,215 km², plus rivers and territorial waters.
With a population of around 3.4 to 3.5 million inhabitants, Uruguay is one of the smaller countries in South America. The majority of the population (about 95%) lives in urban areas, with approximately 60% concentrated in and around Montevideo, the capital. Uruguayans are predominantly descended from Europeans, mainly Spanish and Italians.
The official language is Spanish. English is the most commonly used foreign language in the business community, and due to the long border with Brazil, Portuguese is also widely spoken. Information on the population’s English proficiency can be found, for example, in the EF English Proficiency Index.
Uruguay Overview: Political System and Stability
Uruguay is a consolidated democratic republic with a presidential system and three independent branches of government: the Executive, Legislative, and Judiciary. The President and Vice President are directly elected every five years and cannot be immediately re-elected. The Legislative consists of a General Assembly with two chambers: the Chamber of Representatives and the Chamber of Senators.
The country is characterized by long-standing traditions of democracy as well as legal and social stability. Respect for political, social, and economic freedoms, along with solid institutions, ensures a stable framework. Uruguay consistently achieves high rankings in global indices for democracy, transparency, the rule of law, and corruption control. For example, in 2021, it ranked as the most democratic country in Latin America and globally as 13th in the Democracy Index. Uruguay also holds leading positions in press freedom in South America.
Uruguay Overview: Quality of Life and Safety
The quality of life in Uruguay is also highly rated. In the Mercer Quality of Living City Ranking 2021, Montevideo ranked 78th globally and 1st in South America. Factors such as internal stability, effectiveness of law enforcement, crime levels, medical facilities, infrastructure, and public transport contribute to this rating.
People in Uruguay enjoy a safe and healthy environment; public gatherings take place peacefully. Traffic, even in urban centers, is quite fluid. Cities have large green spaces, and thanks to constant winds and the absence of polluting industries, there is no significant environmental pollution.
The distances to recreational areas such as the countryside, beaches, and river shores are short. The most famous resort town, Punta del Este, is only 140 km east of Montevideo.
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Overall, Uruguay offers an attractive environment for those seeking stability, security, and a high quality of life, whether for personal or business purposes.
This post is the first part of our series on Uruguay. In the next post, we will explore Uruguay’s economic structure and its strategic importance in the region. Other topics in the series will cover the business environment, taxes, and investment incentives. Stay tuned! For specific questions, experts like Deloitte Uruguay or PwC Uruguay are available to assist (Please note the specific service offerings of these firms).
