You're 100% correct about the incredible amount of bureaucracy for getting residency in Uruguay. After almost a year of waiting, and being told it would probably be at least another six months to a year to have my residency completed, I gave up and moved to Paraguay.

Getting permanent residency in Paraguay was fairly simple. I completed it in about seven months (partially because I needed to wait for my FBI background check). Other people I know had theirs completed in four to six months.

I also find Paraguay to have less government intrusion than Uruguay. Not that Uruguay felt oppressive, but the Uruguayan government is certainly involved in more aspects of business, welfare, regulations, etc., than the Paraguayan government.

Most Paraguayans only speak Spanish, or Guarani (the native language). However, if you're working in the tech sector, it isn't unusual to find people who speak a decent amount of English.