Mercedes boasts some stunning architecture.

First-World infrastructure, an honest culture, a beach-strewn coast, and a heartland of small cities and towns with cobblestone streets and historic stone homes…a place where gauchos still tend their herds on the rolling pampas, as they have for centuries….

I first came to Uruguay on vacation, in 2004, expecting a Third-World adventure. But what I found was a European corner of Latin America that I didn’t know existed.

I moved to Uruguay full-time in 2006. And since then I’ve explored more than a dozen different countries, from Spain to Argentina. I’ve lived in Brazil, have a second home in Colombia, and bought property in Nicaragua.

Yet Uruguay is where I call home; and I can’t think of a better place to be right now. The lifestyle is unbeatable, and the cost of living and of properties is reasonable.

When I first came here, Uruguay was completely off the expat radar. The value and the lifestyle this tiny country offers were little-known secrets….

In the years since that first visit, I’ve watched a steady stream of expats settle in. They’re looking for a country that’s truly laid-back… for a culture of honest, friendly, and non-confrontational people who enjoy the finer things in life without the social tension or international conflict that plagues most of the world.

New residents also came for the low crime, low poverty, and a high standard of living… with Latin America’s lowest level of corruption. North Americans began to settle in all corners of the country.

But then in 2008, the world changed. Housing crashed in the U.S. and Europe, and the Great Recession began.

But Uruguay posted a solid gain during the recession, while economic powerhouses like the U.S. and Brazil suffered losses. And property values have not missed a beat since 2003, in this still sought-after market.

This got the world’s attention; people saw Uruguay in a new light. Not only was it a great place to live and invest, but it was earning the reputation as a safe haven for troubled times— both economic and political.

Today, expats are arriving in record numbers, with new residents from North America tripling in number last year.

People have traditionally been drawn here to experience some of the world’s best beaches… where you can explore miles of golden sands bordering deep blue seas, offering everything from small villages to South America’s most popular resort. Or for the exciting city life, to enjoy Uruguay’s rich, predominately Italian influence… and the excitement and convenience that comes with living in a world capital.

But now in 2011, expats have expanded their horizons to the small cities of Uruguay’s interior… wholesome, safe towns reminiscent of the American Midwest. And for the first time, I’m also seeing a significant number of individuals buying agricultural property, taking advantage of the premium the world now places on productive land.

Regardless of why expats come to Uruguay, what keeps them here is the quality of life—it’s hard to beat. Here are three attractive lifestyle options you have in this country.

Life by the Beaches

Uruguay’s springtime is in full swing in October. The trees are green with new leaves, and flowers are just coming into bloom. Flocks of bright green parrots are crisscrossing the dark-blue skies, carrying unbelievably large branches used to make their nests.

I’m three blocks from the ocean, but I can hear the waves crashing to shore as they roll in from the open sea. Despite the still-chilly mornings, the season’s first beachgoers are spending a sunny afternoon on the sand.

Winters are mild on the coast—most days reached 60 F this year—but springtime still has the same magical feeling that it does anywhere with four seasons.

I’m about two miles outside famous Punta del Este, South America’s premier seaside resort. October’s a transition month, as the permanent population of around 19,000—me included—prepares to receive over 500,000 visitors.

From miles away, you’ll see the sparkling highrises set against the deep-blue ocean. But as you get up close, you’ll discover the high-end shops, a multitude of world-class restaurants, artisan fairs, and upscale marina facilities.

Visitors and residents alike enjoy walking the miles-long boardwalk, watching the boat traffic, the beachgoers, or stopping to enjoy a fresh seafood dinner or a glass of wine on the waterfront. In the evenings, many will take in a show, featuring the likes of Ricky Martin, Bob Dylan, or Tom Jones.

But here on the edge of town, our beach never fills up, and the quiet gravel roads don’t see many cars. But as the part-year neighbors show up to enjoy the summer, I do see people walking by on their way to the beach, and notice the homey smell of wood smoke as everyone fires up their nightly barbeque on the parrilla.

To me, it’s a perfect setting. We’ve got miles of beaches at the end of our street… a sleepy residential neighborhood… and all the high-end resort amenities minutes away. I think Punta del Este offers the highest quality of life for the money in Uruguay.

It’s also the most expensive town in Uruguay… yet you can live here reasonably if you want to. My friend Mary lives in the heart of downtown, within walking distance to everything… yet she lives on a Social Security check of $1,424 per month. And that includes not just food, utilities, and entertainment, but also her rent, health insurance, and all co-payments.

Properties in Punta del Este rose 80% between mid-2007 and the end of 2010… a period that included the big recession. Last year, property transactions in this small town reached an amazing $7.2 million… per day.

You can buy an apartment for over $7 million. But I also found a completely-furnished home for sale in the La Barra area, with almost 1,100 square feet, including four bedrooms and three baths—in a completely walkable location—for an asking price of $140,000.

And I saw a furnished brick home in my neighborhood—Rincón del Indio—with two bedrooms and two baths, three blocks from the beach, for $180,000.

In downtown Punta del Este, an 807-square-foot apartment with two bedrooms and two baths is on offer for $150,000.

And there is much more seashore to discover outside of Punta del Este.

Between Punta and Montevideo, you can still find a nice waterfront home for around $75,000. And going the other way toward Brazil, you’ll find Uruguay’s most beautiful beaches, on vast stretches of undeveloped coastline.

If you’re looking for a beach lifestyle, there will be a perfect option for you in Uruguay.

Life in the Big City

Montevideo’s a town that goes through the motions of being a world capital… but it’s really just a neighborhood place.

On a brilliant springtime Saturday morning, the local café proprietor is setting up the bright yellow table umbrellas, while his partner rinses the sidewalks with a garden hose. In the leafy park next to the café, two women are chatting while their little white dogs race in circles around the fountain.

From local bakeries the smell of fresh bread wafts through the air. An ancient 1940s delivery truck is double-parked on the street, offloading a mountain of firewood at a parrilla restaurant. Their wood fires will be flaring by late morning, preparing to serve an amazing selection of wood-grilled meats and colorful vegetables to the lunchtime crowds.

There’s nothing like the fresh, scrubbed feel of a big city on a Saturday morning, before the bustle of the day begins.

And there’s plenty to do.  You can attend the national theater, hosting a world-famous orchestra… or spend the night watching local performers in a tiny tango club that looks like an abandoned building… or just watch the old couples dancing tango to scratchy old recordings in the park.

You can treat yourself to world-class dining at Panini’s for close to $100… or dig into a sizzling array of grilled meats at the neighborhood parrilla for less than $20… or just feast on fresh-roasted nuts from the “Peanut Man’s” pushcart, the smokestack signaling his approach from a block away.

You’ve got modern supermarkets and malls; but it’s more fun to patronize the street ferias, where traveling vendors close the street and set up an open-air market in the neighborhood on Tuesdays and Fridays.

Expats—including a fair number of IL readers—love the lifestyle here. And since properties in Montevideo jumped 23% over the past year, it’s proven to be a profitable play here, too.

Just today, I found a 1,356-square-foot apartment in the historic center, completely remodeled, for just $135,000. And overlooking the landmark Plaza Independencia, there’s a large, remodeled three-bedroom unit on the 5th floor going for $139,000.

I recently saw a classic 1,475-square-foot apartment, built in 1911 and overlooking Plaza Cagancha, with period high ceilings and rich wood molding. They’re asking $180,000.

For big-city life with a laid-back character, you won’t beat Montevideo.

Life in a Small Town

Almost four hours from Montevideo into the interior, Mercedes is my favorite small city in Uruguay. This safe town of just over 45,000 is large enough to have all the city services you need, but small enough so that everyone knows everyone. To me, it represents Uruguay’s heartland.

Mercedes sits on the banks of the broad, lazy Río Negro, which is free-running from here to the Uruguay River and the ocean beyond… making Mercedes a popular boating destination. The river also provides the town with a number of popular sandy beaches, a huge riverfront park, and an island park that hosts a couple of restaurants, more beaches, and a campground.

Unlike most Latin American towns, the riverfront in Mercedes, rather than its beautiful town square, serves as the town’s social center….

Mercedes sees a bit of tourism, but most of the people you’ll meet here are local, full-time residents. It’s also perfect for a growing number of expats who are looking for a relaxed, affordable, and secure lifestyle.

Mercedes is quiet… and if you want a wide selection of fine dining, casinos, and nightlife, it won’t be for you.

It does, however, host an international jazz festival, and a popular Formula One powerboat competition. And for an evening out, you can try the newly-remodeled theater, which hosts plays, concerts, and dance festivals.

The cost of living is as low here as you’ll find anywhere in Uruguay, and a homeowner could live here comfortably for less than $1,300 per month. Many store items are 25% to 30% less than in Montevideo.

The Mercedes property market is a pleasant surprise as well… even in the best section of town, which lies between the town square and the river, three blocks away.

My favorite home here was a colonial-style house with Uruguay’s signature hand-painted floor tiles, skylights, and a small courtyard. With three bedrooms, two baths, and a garage, the asking price is $80,000. Nearby, a large, five-bedroom fixer-upper is going for $75,000.

There aren’t many apartments in town, but I saw a third-floor unit with three bedrooms, ceramic floors, and a terrace going for $50,000.

If you’d like some land, there’s a gentleman’s farm for sale about four miles outside town. With a house, pond, and river on the premises, this large, 30-acre property (12 hectares) lists at $100,000.

Unless you’re a jazz musician, you’ve probably never heard of Mercedes. But that’s exactly why expats find it attractive. It’s the perfect safe haven: a pleasant, safe, and friendly town, with abundant fresh water, clean air, and a plentiful, renewable energy supply.

And while Mercedes is my favorite, you can find that same “heartland” feel in a number of towns throughout the interior, if you do some exploring.

Stake Your Claim Now

Uruguay has long been a top choice for retiring, living, and investing… and today, it’s become a safe haven for those who want to diversify outside their home country.

Whether you’d like a posh resort or a beautiful deserted beach… a small, homey town or a big capital city… Uruguay offers the best-in-class. For now, at least….

As more new residents and investors arrive, home prices are going up… and agricultural land prices are rising, as supplies dwindle. If you think Uruguay may be for you, book a flight and check it out. There’s no better time to make your move.

Becoming a Resident in Uruguay

For a retiree visa, you must have an income of at least $500 per month, with no age restriction. Here are three things that set Uruguay’s process apart from that of most other countries.

• The process is designed to be done from within Uruguay, not at a consulate. So you come to Uruguay first, and then petition for residency if you decide to stay.

• You get your resident’s ID card at the beginning of the process—when you turn in all your paperwork—not at the end. So you have the benefits of residency from the start. (The critical approvals occur at the time you apply.)

• By posting a bond, you can import your household effects—duty free—at the beginning of the process rather than after final approval.(A quick note: You can buy anything you could need in-country. I’ve never met an expat who moved his or her belongings who didn’t say, afterwards, “I shouldn’t have bothered.” You may have some heirlooms you can’t part with. I understand. But think long and hard before you move a household’s worth of goods.)

Once you’ve been a resident for three to five years—depending on your personal situation—you’ll be eligible for Uruguayan citizenship and a passport. You can keep any other citizenships that you have.

For expert immigration support, my preferred attorney is Juan Fischer. Email Juan here.

Uruguay: How It Has Become a 21st-Century Haven

In recent years, Uruguay has earned a reputation as a safe haven… a hedge against troubled financial and political times.

First it was just the “basics” that made so much sense. Uruguay has a stable government and a solid and still-confidential banking system. It’s a strong agricultural producer with abundant water… sitting on the continent’s largest aquifer. Also, Uruguay has a surplus of electrical generating capacity from renewable resources–all key elements of a safe haven.

But then its reputation grew with recent economic trends. Uruguay’s growth in 2010 was a robust 8.3%, compared to 2.8% for the U.S. Even tourism was up a dramatic 40% this past season, bringing still more stimulus to this country of only 3 million people.

And today, people have learned that diversifying their physical and financial presence outside their home country is a prudent way to protect themselves… and a great way to make money.  This brings more people than ever to Uruguay.

Real Estate Resources

For Punta del Este, contact Alberto Prandi, at info@albertoprandi.com, or visit: www.albertoprandi.com.

In Montevideo, I like Cecilia Campbell, of Reynolds Properties. Write to Montevideo@realestate.com.ar or see www.reynoldspropiedades.com.

When in Mercedes, call Juan Francia, of Piloni Desarrollos Inmobilarios. You can email him here: juanfrancia@adinet.com.uy, or visit his company’s website here.