Visa for retirement

I live in Nicaragua now but want to find out about retirement in Uruguay and If I have to return to the States or can do all the paperwork in the country of Uruguay.

You will need your birth certificate, police clearance and proof of income (US$1,500 pm). The first two will need to be apostilled and translated if not in Spanish. Your evidence of income will have to be notarized. If you have someone in your home country, you could ask them to help with the certificates. You will also need to either buy a property to use as your home for a minimum of US$100,00 or buy that amount of government debt in the form of a bond. You could, of course come as a tourist for 90 days and extend to another 90 at migraciones office. You would need to do that in any case and start your residency within that time.