The South American country has a high standard of living, a European feel and affordable property prices. Expats also talk about lower taxes, cheap health care and friendly locals.

At the same time Uruguay has a stable government which is keen to bring in more foreign workers, as well as encourage Uruguayans who have emigrated to return home. Many moved to Spain to escape its previous economic woes.

Ratings agency Fitch recently raised its outlook on Uruguay's economy, saying it was becoming increasingly diversified and supported by robust foreign direct investment (FDI).

Its expanding economy has led to more job opportunities and worries that the local workforce will not be able fill an increasing number of roles.

The lion's share of expats are heading to Uruguay's capital Montevideo which is home to 3.5 million people, nearly half the country's total population. Coastal locations such as Costa del Oro, Piriapolis and Punta del Este are very popular with retiring expats.

Bill Tickle, a British expat who has retired to Uruguay, said: "There's a real sense of optimism here. People are working, they're getting ahead, and the international community is attracting that type of person, too. They see opportunity."
Uruguay was briefly a British colony and its architecture has been heavily influenced by British, Spanish and Portuguese settlers, giving it a very European feel.
Property prices to buy and rent are also cheap compared with European standards. To rent a small two-bedroom, two-bathroom house on an annual basis you'll pay, on average, US$500 (310) to $700 (433) a month. A small house would typically sell for around $80,000 (49,500).
Sterling is close to this year's peak against the Uruguayan peso, where 1 will get you 32 pesos.
Suzan Haskins of said: "While expats in Uruguay say living there is not rock-bottom cheap, they also say they wouldn't consider living anywhere else. Savings are huge, not just on public transport, but on big-ticket items like health care and health insurance, property taxes and wine."
Everyone is entitled to quality medical care in Uruguay via the national health care system, and this includes foreign residents. But most expats opt for private coverage through a private hospital. Montevideo's British Hospital is one of the country's best.