What if I told you there is a country that will not tax your foreign income for 11 straight years?
It’s one of the three most developed countries in Latin America, celebrated for its economic and social stability, and it has world-class beaches that are not overrun with tourists.
Despite all these advantages, it’s 56% cheaper than living in a similar place in the US.
Imagine waking up each day knowing your retirement is secure, your healthcare is affordable, and you’re part of a welcoming expat community. I helped hundreds of expats to decide about their next country.
While countries like Costa Rica always dominated the headlines of the best places to retire, lately Uruguay has quietly soared with glowing reviews from satisfied expats.
I reached to many of them and with the help of data, I will give you today the five best places to move to and retire in Uruguay.
These five cities are quite distinct among themselves.
One city scored a perfect 10 for beaches.
Another costs 60% less than you would expect and has thermal hot springs that locals swear it increases longevity.
But you might wonder – how do you even begin to rank the best cities in an entire country?
How I Ranked the Best Cities to Retire in Uruguay
To rank the best cities in Uruguay, I consider the essential factors that matter for you. Some people care more about beaches, others about healthcare, and some just want the cheapest rent possible.
So I created a scoring system that considers the six factors that matter most to retirees moving abroad.
Each factor gets scored from 0 to 10, where zero means poor and 10 means excellent. Then I add up all the scores to get the final ranking for each city.
- Infrastructure gets a score of internet speed, roads, and general city development. Nobody wants to feel like they’re living in the stone age when they move abroad.
- Connectivity to Montevideo matters because that’s where the international airport is. We will also find the best medical specialists there if you need serious healthcare.
- Weather gets evaluated on year-round temperature and rainfall patterns. Uruguay can surprise you here. It’s not always sunny like many people expect from South America.
- Healthcare looks at both public and private options available to expats with residency status.
- Coast and beach access matters because most people moving to Uruguay want to enjoy that famous coastline.
- Cost of living is crucial because housing costs alone can vary by 310% between cities. This makes this factor crucial for budget planning.
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5th Place: Salto – The Thermal Springs Paradise
Here some locals believe the water can help you live longer, and that might make sense.
Salto, Uruguay’s second largest city, sits in the northwest along the Uruguay River. It’s famous for something most people don’t expect in South America: thermal hot springs that have been attracting visitors for decades.
The Termas del Daymán and Aquamania water park offer more than just relaxation. These natural hot springs provide therapeutic benefits, and the water contains lithium, sodium, and other minerals that many believe promote health and longevity.
Beyond that, what makes Salto interesting for retirees is that it just got a major infrastructure upgrade.
The Salto International Airport Nova Clase opened in 2024 with a brand new passenger terminal. The runway received upgrades to meet international standards.
Plus, 5G internet reached the city in September 2023 with mobile speeds hitting 149 megabytes per second. The city features well-maintained roads, modern shopping centers, and all the amenities you would expect from Uruguay’s second largest urban area.
The downside: you are completely inland, so no ocean beaches.
If your retirement includes morning walks on the sand and ocean breezes, Salto won’t deliver. Connectivity to Montevideo presents another challenge.
Bus travel or driving to the capital takes anything from 6 to 8 hours. Flights to Montevideo by the airline Paranair have limited schedules, which means you need to plan trips to the capital well in advance. But at least the flights are not that expensive, and I found tickets for less than $100.
Housing costs are the lowest of all five cities we are covering today.
One-bedroom apartment rents for just $237 to $447 per month, earning Salto the best cost of living score at 8 out of 10. That’s a difference of hundreds of dollars compared to coastal cities.
You can rent a nice apartment in Salto for what you would pay for a small room elsewhere in Uruguay. The low housing costs extend to purchasing property too. Houses that would cost $200,000 in coastal areas sell for $80,000 to $100,000 in Salto.
Healthcare in Salto includes both public and private options, and it’s quite average.
The local hospital offers basic care, but serious conditions may require a trip to Montevideo for specialized treatment. Private health insurance costing from $150 per month onwards covers most emergencies and hospitalization.
Talking about weather, it stays mild for most of the year with summer temperatures reaching 28°C and winter lows around 8°C. Rainfall is even throughout the year without extreme wet or dry seasons.
Salto scored 41 out of 60 points overall, ranking 5th on our list. The combination of extremely low cost and modern infrastructure makes it appealing for budget-focused retirees who don’t mind being inland.
4th Place: Colonia del Sacramento – Where History Meets Future
The next city is the fourth best to live in Uruguay. If you ever travel to Buenos Aires, you might be familiar with it.
I started the section about the city with what a local told me about Colonia del Sacramento:
“I am from Colonia and my wife moved here from Montevideo 9 years ago and have not returned. The peace and quiet here is very beneficial. Rents are cheaper than Montevideo and life is even cheaper. Everything is closer than in Montevideo.”
But Colonia del Sacramento is not just another pretty quiet town. It’s Uruguay’s window to the past and future at the same time.
Walk through the historic quarter and you step on cobblestone streets that have been there for centuries. The colonial architecture tells the stories of Portuguese and Spanish settlers who built this place in 1680.
UNESCO recognized this area as a world heritage site, and tourists come from around the world to see these historic buildings.
The historic quarter attracts tourists worldwide with its old lighthouse and colonial churches. Meanwhile, new development projects are transforming the city. You can enjoy morning coffee in a 300-year-old building and have afternoon meetings in modern facilities built for the digital economy.
The Plus Colonia project is creating a 515-hectare smart eco-city designed to be a hub for the knowledge-based economy.
This massive development covers an area larger than 500 football fields. The project intends to turn Colonia del Sacramento into a connection between Buenos Aires and the Uruguayan capital Montevideo.
Talking about connectivity, of all the cities in this list, Colonia is the closest to the Argentinian capital.
Take a ferry and arrive in Buenos Aires in 75 minutes, or drive to Montevideo in about 2.5 hours. Imagine having Buenos Aires as your weekend destination for theater, shopping, and dining.
There are also frequent buses to Montevideo. It takes 2 hours and 15 minutes and costs between $11 to $17.
The Rio de la Plata provides riverfront beaches, though they are not quite the same as ocean beaches. Playa Fernando and Playa Puerto offer calm waters perfect for swimming and relaxing. The Rambla Costanera runs along the waterfront, giving a perfect spot for evening walks with river views.
Housing costs sit in the middle range.
A one-bedroom apartment runs $290 to $842 per month. Two-bedroom apartments or houses range from $342 to $1,184 per month.
Properties in the historic quarter cost more due to tourist demand and UNESCO protections.
Colonia scored 44 out of 60 points overall, ranking fourth on our list. It didn’t perform either bad or spectacular in any category.
3rd Place: Piriápolis – Coastal Charm Meets Affordability
Piriápolis blends charming Belle Époque architecture with modern coastal living. It was inspired by Francesco Piria’s early 19th-century visions of an ideal seaside retreat.
I would say that Piriápolis is for Uruguay what Necochea is for Argentina, albeit Piriápolis is much smaller than Necochea. In both cases, they are relatively small cities that are a huge success for their beaches and relaxed atmosphere.
For retirees, Piriápolis offers a high-quality coastal lifestyle at an affordable price.
You enjoy stunning beaches, a lively boardwalk, vibrant coastal culture, and excellent infrastructure all without breaking your retirement budget.
The town is located halfway between Montevideo and another major Uruguayan city, Maldonado. Hourly buses and a 1 hour 32-minute trip link you to Montevideo.
Playa de Piriápolis’ protected bay offers calm waters and soft sands. It’s one of Uruguay’s top beach experiences, scoring 9 out of 10.
Temperatures hover between 15 to 30 Celsius year-round, with pleasant shoulder seasons ideal for beach strolls. The temperate coastal environment means you get warm summers without extreme heat and mild winters that rarely require heavy heating.
Housing costs more than inland cities but less than Punta del Este.
One-bedroom apartments range from approximately $374 to $776 per month for annual rentals. Two-bedroom apartments or houses cost approximately $526 to $1,279 per month.
Healthcare includes some local private and public clinics. But it relies on the proximity to the city of Maldonado for specialists.
Piriápolis performed very well in connectivity and beaches but worse in healthcare and cost of living. Piriápolis is tied for second place with a total score of 47 out of 60 points, making it one of Uruguay’s top retirement destinations for those wanting coastal elegance at reasonable prices.
2nd Place: Atlántida – Perfect Balance of Beach and City Access
Of all the cities in this ranking, this is the closest to the capital.
In Atlántida, you can catch a bus to Montevideo every 10 minutes, arriving in just over an hour. That’s exactly what makes this resort town special.
It sits along the Canelones coast, perfectly positioned between beach living and urban access.
It’s a traditional Uruguayan beach destination and draws families seeking affordable seaside vacations. The real appeal here is affordability combined with connectivity to the capital.
The transportation system works like clockwork.
Multiple bus operators, including COPSA, provide buses every 10 minutes for $4 to $6. The trip takes around 1 hour and 11 minutes, while driving takes around 45 minutes. That’s a perfect 10 out of 10 connectivity score.
You get the best of both worlds: peaceful beach living with metropolitan convenience.
The beaches are in a family-friendly, lightly developed coastline that earned an 8 out of 10 rating for that classic resort town feel.
Housing is surprisingly affordable.
In Atlántida, you can find a three-bedroom house available for 36,000 pesos per month. This is the equivalent to $864.
Local clinics in Atlántida offer basic care, but good hospitals in Montevideo are only an hour away.
This is what a local told us about Atlántida:
“The quality of life is better, more peaceful, with cleaner air and less of the typical general pollution of Montevideo. Atlántida is primarily a resort area, so outside the season the number of people there drops drastically but increases slightly on weekends.”
Atlántida ranks high for retirees seeking convenience with affordable seaside living and easy access to city amenities.
Atlántida performed decently in every factor except infrastructure. Remember, it’s a 6,000 people town after all.
But what if you are willing to pay more for the absolute pinnacle of coastal luxury?
1st Place: Maldonado – The Top Pick of the Best Cities to Retire in Uruguay
Topping our list is Maldonado, anchored by Punta del Este’s beaches and luxury amenities. This is not just Uruguay’s premier retirement destination – it might be one of South America’s best.
This is how a resident described the city for us:
“Maldonado is a very good place to live. There is little insecurity, cool events, and some of the best beaches in Uruguay. On the other hand, it’s more expensive to live here than the average of Uruguay. So come if your salary allows it.”
The coastline here gives you incredible variety.
Surf Brava’s Atlantic swells and relaxing Mansa’s calm waters, both free and maintained at resort standards. The sand quality, water cleanliness, and beach maintenance standards match what you’d find at expensive private resorts anywhere else in the world.
Infrastructure is top-notch, with the World Trade Center Free Zone completing construction in 2025. This brings year-round economic activity.
This development extends Punta del Este’s tourist season beyond the traditional summer months, creating a more stable local economy.
Frequent buses every 20 minutes link you to Montevideo for under $14 with comfort and flexibility. The trip takes a bit over two hours.
This frequent, affordable connectivity means you never feel isolated from the capital’s services, international airport, or specialized medical care.
Healthcare coverage is very broad.
The public hospital Dr. Abib Rivera Moreno offers emergency care and private Mutualista options at around $250 per month. You get comprehensive care without traveling to Montevideo.
But the catch: after Montevideo, this is Uruguay’s most expensive area.
Still, it’s half the price of any major coastal city in Florida.
A one-bedroom apartment in Punta del Este with a sea view goes for $550 per month, with rental prices reflecting the quality of life and amenities available.
But if you don’t mind not having a sea view and living a few more blocks away from the beach, you can find options below $400. You get the same world-class coastline and connectivity at lower prices if you are willing to live a bit inland from the main resort areas.
The warm weather, restaurants, cultural events, and international community create an active social environment year-round.
Summers are warm, while winters remain mild enough for outdoor activities.
Despite higher living costs, Maldonado’s premium lifestyle and service quality make it the first place among the best cities to retire in Uruguay.
The combination of beautiful beaches, excellent infrastructure, reliable healthcare, and good weather creates a retirement experience that is hard to match anywhere else in South America.
Now, there is one place that might be a good rival to Uruguay, and while not offering the 11 years tax-free of Uruguay, it offers other very interesting benefit – it is Argentina.
And in this article, I made the comparison that NOBODY made before: Argentina vs Uruguay. At the end, I arrived at a surprising conclusion that made some people angry.
Levi Borba is the founder of expatriateconsultancy.com, creator of the channel The Expat, and best-selling author. You can find him on X here. Some of the links above might be affiliated links, meaning the author earns a small commission if you make a purchase.
