domicile.wiki

Uruguay

Taxes, residence and daily life for people moving to Uruguay: for a wealthy family, an expat employee and a remote worker. Researched .

Open Uruguay in the interactive guide

At a glance

For an EU-citizen family of five living off a €30M portfolio, the guide's default reader. The interactive guide recomputes everything for other passports and situations.

Score for a wealthy family
69 / 100
Can EU citizens live here?
only work or business permits
Can US citizens live here?
only work or business permits
Other passports
only work or business permits
Tax on a €30M portfolio
€105,590 a year · Tax holiday for new residents (Law 20.446, from 2026)
Wealth tax
yes
Children inherit
tax-free, with conditions
EU member
no
Currency
UYU
Capital
Montevideo

Tax on investments, inheritance and wealth

Uruguay taxes residents' foreign interest and dividends at 12% and, since 1 January 2026, also foreign capital gains (12% of the gain, or an elective 2.4% of sale price). New residents from 2026 can opt for an 11-year holiday on foreign capital income if they spend 183 days a year or make a qualifying investment (USD 2m real estate or about USD 100k a year in funds). There is no inheritance tax (3% ITP on inherited Uruguayan real estate) and a 0.1% wealth tax on Uruguayan assets only.

Income tax for employees and remote workers

Uruguay taxes employment income of residents with IRPF at 0% to 36% (annual scale in UYU, as at 31 December 2025), and social security of about 18-23% of salary for employees. New tax residents can claim a tax holiday: no IRPF on foreign-source income for the year of application plus ten years. Montevideo adds no local income tax.

How to get residence

Uruguay gives legal residence without any investment: proof of lawful income, housing and a clean record is enough, and Mercosur-area nationals have an easier route. A separate tax regime from 1 January 2026 grants an 11-year foreign-income tax holiday for buying about USD 2.1 million of property or investing about USD 105,000 a year in innovation funds. Remote workers get a 6-month renewable visa with no income test.

RouteKindWhoStatusIn short
Legal residence (temporary or permanent)OtherEU citizens, US citizens, other passportsopenOrdinary residence in Uruguay needs no investment: apply with proof of lawful income, housing, clean record and health certificate. Right to work comes with the residence card.
Mercosur residence agreementOtherother passports (some nationalities)openNationals of Mercosur members and associated states (almost all of South America) get residence on simpler terms, with fewer documents and no income proof.
Tax residence by investment (new regime from 1 January 2026)OtherEU citizens, US citizens, other passportsopenA 11-year tax holiday on foreign income for new tax residents who buy about USD 2.1 million of Uruguayan property or put about USD 105,000 a year into 'Uruguay Innova' funds. Presence of 183 days is the alternative.
Digital nomad visaDigital nomadEU citizens, US citizens, other passportsopenSix-month visa for unsponsored remote workers, renewable once for six months. No minimum income; a good-faith affidavit is used.

Citizenship: Five years of legal residence for single applicants, three years for married applicants living with their family; Spanish, clean record.

Inheritance law and trusts

Children, parents and a spouse are protected: with one child half the estate is reserved, with two two thirds, with three or more three quarters (Civil Code art. 887). Without descendants, ascendants have half. Uruguay has a trust law (fideicomiso) but trusts cannot be used to override the reserved share, and I found no private-foundation regime.

Daily life, scored out of 100

From public indicators (World Bank, UNDP, Transparency International and others); higher is better.

MeasureScore
Safety and personal security42
Political and institutional stability69
Corruption and government integrity76
Legal system and property rights70
Healthcare quality and access76
Education quality37
Human development and quality of life72
Infrastructure and connectivity73
Business opportunities and economy66
Cultural fit and lifestyle39

Research notes

Uruguay — family-office tax dossier

Last reviewed: 2026-10-15 Tax year: 2026 Reviewer: research agent (Claude), unreviewed by a tax adviser

Summary

Uruguay taxes residents' foreign interest and dividends at 12% and, since 1 January 2026, also foreign capital gains (12% of the gain, or an elective 2.4% of sale price). New residents from 2026 can opt for an 11-year holiday on foreign capital income if they spend 183 days a year or make a qualifying investment (USD 2m real estate or about USD 100k a year in funds). There is no inheritance tax (3% ITP on inherited Uruguayan real estate) and a 0.1% wealth tax on Uruguayan assets only.

Residence and eligibility

183 days, centre of interests, or investment presumptions (PwC reviewed 2 Sep 2026). Law 20.446 (Diario Oficial 8 Jan 2026, effective 1 Jan 2026).

Capital gains

Standard: 12% IRPF on actual gain; election of deemed 20% of price (2.4%) or 15% for real estate (1.8%). Foreign gains newly taxed from 2026; pre-2026 listed assets stepped up to 31 Dec 2025 value. JSON 0.12 across classes.

Dividends

Foreign dividends/interest 12% with credit; Uruguayan dividends 7%. JSON 0.07 / 0.12.

Inheritance and gifts to children

No inheritance tax. ITP 3% of cadastral value on Uruguayan real estate inherited by children (DGI, 2006 publication; Título 19 TO 1996 art. 6). JSON basis none, taxed_low.

Wealth tax

Impuesto al Patrimonio: residents 0.1% (PwC) on Uruguay-located net wealth above UYU 6,653,000 (family unit 13,306,000). JSON broad, net_wealth_local, exempt 6,653,000, 0.1%.

Special regimes

new_resident_holiday_2026: year of arrival + 10 years under IRNR for foreign capital income. 183-day route needs no investment; other routes need real estate > UI 12.5m (~USD 2m) or UI 625,000/year fund capitalisation. After the holiday: 50% rate for 5 years (with UI 6.25m real estate or UI 625,000/yr), or a fixed UI 1,875,000 a year for 20 years. The permanent 7% option (2020-2025 arrivals) is closed to new arrivals.

Re-check 2026-10-15 (Law 20.446): the law's text on IMPO shows article 653 rewriting T.O. 2023 Title 7 art. 6 (foreign capital income and gains of residents now within IRPF from 2026, see article 3 on entry into force). The consolidated wording of the new-resident holiday itself was not located on IMPO, so the 1+10-year IRNR election and the closing of the permanent 7% option for 2026 arrivals still rest on Galante & Martins and Forvis Mazars. Confidence left at medium.

Company taxation (kept separate from personal tax)

IRAE 25%; 7% dividend WHT; minimum top-up tax from 2026.

Cost of living notes

City: Montevideo (Carrasco) / Punta del Este.

Open questions

Sources

Change log

Residence and succession sources

Tax sources are cited in the research notes above.