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How to open a bank account in Uruguay: who can do it and what are the requirements

2021-06-04T10:59:52.473Z


Since March, deposits made by Argentines in the eastern country have been increasing. How long does the process take and how much does the maintenance cost?


Silvana Saldisuri

06/04/2021 6:01 AM

  • Clarín.com

  • Services

Updated 06/04/2021 6:01 AM

In the midst of the crisis the country is currently going through and as a consequence of economic and financial instability and uncertainty, many Argentines are seeking to protect their savings by placing them

abroad

.

They generally choose neighboring countries with

clear rules of the game

, and among them, historically Uruguay predominates.

There are many

obstacles

that the government of Alberto Fernández imposed for all those who want to save in foreign currency such as buying dollars.

Another important factor is the volatility of the local market and the great

devaluation

that the peso is suffering from the stocks.

Faced with the devaluation of the peso, many Argentines seek to protect their savings abroad.

Photo: Martín Bonetto

According to

statistics from the Central Bank of Uruguay

(BCU), since March of this year

the deposits

of non-residents in the eastern country increased, most of whom

are Argentines

.

The March data indicates that there were about US $ 3,431 million, which represents about US $ 280 million more than in March of last year, when there were US $ 3,151 million of deposits from non-residents.

The

increase is 9%

, although last December they had fallen to US $ 3,318 million, but in the three months of this year they already increased to US $ 113 million.

Uruguay, a tax haven?


It should be clarified, first of all, that the fantasy that

opening a bank account

in the neighboring country is the same as doing it in a

tax haven

is

far from reality

.

What is called a tax haven?

They are told this way to those places where they do not ask you to report the origin of the funds you deposit, they do not charge taxes, nor do they inform the regulators of your country or the treasury about the sums of money you handle.

In Uruguay the opposite happens.

For some time, the neighboring country

It works together with the government of

Argentina

and with the 

AFIP

to be able to

cross the data

of all those who create a bank account there, collect the pertinent taxes and it is mandatory to declare the origin of the funds.

What are the advantages of opening a bank account in Uruguay?


First of all,

the currency

in which the funds were transferred

is respected

, which can be of all kinds: pesos, dollars, euros, pounds, etc.

The regulations do not oblige them to be settled in Uruguayan pesos.


In addition, Uruguay has

legal stability

and a

reliable financial system

with headquarters abroad.

In Uruguay, the currency in which the funds were transferred is respected.

Photo: EFE

What are the disadvantages of opening an account at a bank in Uruguay?


The

maintenance

costs

of

the accounts are monthly, in dollars and very

high

.

The

procedures

are

more expensive

when living in another country.

From long distance calls to postage costs with authenticated paper documentation.

Is it possible to open an account remotely or do I have to go there?


Before the pandemic and the restrictions to be able to circulate, many Argentines

crossed to the neighboring country

to personally open an account.

It was a simple procedure

.

Currently

the situation is not the same

since although it is possible to proceed remotely, only

half of the banks are allowing it

.

In this context, the 

procedure for foreigners

can become somewhat tedious, since there are several documents that must be gathered in order to comply with the requirements of each financial institution.

In this sense, the accountant and managing partner of the Vuille Lafourcade study in Uruguay,

Federico Vuille

, explained to

Clarín

that "the advisable thing, to shorten times and simplify the operation, is to

hire an advisor to an accounting firm in Uruguay

 to carry out the procedure from there ".

Along these lines, he remarked that in order to properly choose a representative it will be essential "to have

previous references

, to know what types of clients they work with and to make a comparison with other firms."

Before the pandemic, opening an account in Uruguay was easy.

Today it is more complicated by the restrictions to travel.

Photo: EFE

For his part,

Carlos Picos,

the director of the accounting consultancy in Uruguay that bears his name, explained that "in general, people who seek to open a bank account through a legal entity opt for traditional Stock Companies (SA ) or the Uruguayan Simplified Stock Companies (SAS), which can also put into operation 100% remotely ".

"This allows the account holder to

be considered as a Uruguayan tax resident

at the time of the automatic exchange of information," he said.

"For these cases, it will be necessary to take into account that the Uruguayan legal entity must be up to date with its tax obligations," said Picos.  

What types of accounts exist for individuals?


In Uruguay there are no special restrictions for being a foreigner to open a bank account, so

it is not necessary to have residence

in that country.


Savings banks: it 

is to save the money that is obtained.

For example, the payment of salaries, rents, business profits or others.

Investment accounts:

you can have the opportunity to obtain certain returns, depending on the amount invested.

Can I choose any bank to open the account?


You can select any bank in Uruguay

.

However, the one that best suits the profile and requirements of the applicant should be chosen.  


In Uruguay there are no restrictions for being a foreigner to open a bank account.

Photo: Bloomberg

"

Choosing the same bank with which you have an account in Argentina

, which also operates in Uruguay, will help to facilitate the process, since the entity has previous customer references and will only transfer information," said Vuille.

What are the requirements to open a bank account in Uruguay?


  • Identity document and passport.


  • Proof of address (service in your name no more than 3 months old)


  • Letter of reference from the bank where you have an account in Argentina


  • Proof of tax return from the country where you reside.

  • Proof of income through pay stubs or with a sworn statement issued by an accountant.


In the event that the deposits of large amounts of money have been the result of the

sale of a property

, for example, the receipt must be attached.

If instead, they come from

personal savings from jobs

, the statement of the bank account where they were previously must be sent.

However, depending on the policies that the company manages, they may request some other documentation.

This will largely depend on the type of account that you want to open and the sums of money that are going to be handled.

What are the monthly account maintenance costs and charges?


Opening a bank account in Uruguay

no cost

.

In the case of choosing an

accounting

firm to carry out the procedure through an advisor in Uruguay, the cost for foreign individuals ranges from US

$ 1,000


Then, the average monthly maintenance charge for an account in Uruguayan banks is

approximately US

$ 60

How long does the process take?


The deadlines that must be waited from the moment the procedures began until the final opening of the bank account is usually

approximately one month

.

“There are fifteen days in Argentina that carry the legalization and apostille, then four more days for sending physical documents by mail.

Once the documentation is in Uruguay, the management of the studies takes another two weeks.

But it can take longer if you are not on top of it, ”Vuille explained.

Once

the bank account number

is obtained

, you can start

receiving funds

immediately.

LN

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Source: clarin

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