# Uruguay: taxes, residence and cost of living

Source: https://domicile.wiki/places/uruguay/ (domicile.wiki, researched 2026-10-15). Data licence CC BY-SA 4.0. Research, not tax or legal advice.

## At a glance

For an EU-citizen family of five living off a EUR 30M portfolio (the guide's default reader).

- 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.

- **Ordinary tax residence**: Residents pay IRPF at a flat 12% on capital income, including foreign interest and dividends and, from 1 Jan 2026 (Law 20.446), foreign capital gains and foreign rents. Dividends from Uruguayan companies 7%. Net wealth tax at 0.1% on Uruguay-located net assets above about UYU 6.65m.
- **Tax holiday for new residents (Law 20.446, from 2026)**: Individuals becoming tax resident from 1 Jan 2026 may elect to be taxed under IRNR (non-resident tax, territorial) on foreign capital income and gains for the year of arrival plus 10 years. Foreign dividends, interest and gains are then untaxed. The former permanent 7% option is not available to 2026 arrivals.

## Income tax

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.

- **Legal residence (temporary or permanent)** (Other; EU citizens, US citizens, other passports; open): Ordinary 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 agreement** (Other; other passports; open): Nationals 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)** (Other; EU citizens, US citizens, other passports; open): A 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 visa** (Digital nomad; EU citizens, US citizens, other passports; open): Six-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 (0-100, higher is better)

- Safety and personal security: 42
- Political and institutional stability: 69
- Corruption and government integrity: 76
- Legal system and property rights: 70
- Healthcare quality and access: 76
- Education quality: 37
- Human development and quality of life: 72
- Infrastructure and connectivity: 73
- Business opportunities and economy: 66
- Cultural fit and lifestyle: 39

## 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.

- Prime rent: USD 5,500 a month, the median of 20 four-bedroom houses for rent in Carrasco on InfoCasas (checked 15 Oct 2026; range USD 3,300-12,000).
- Price per m2: USD 4,266 (Carrasco average, mid-2025, El Observador via Global Property Guide). Punta del Este frontline luxury apartments USD 7,000-10,000/m2.
- International school: not sourced. The Uruguayan American School does not publish its fees online.
- Health insurance and housekeeper: not sourced.

#### Open questions

- Law 20.446 implementing decree (6 May 2026) details on the holiday investment routes and post-holiday options (50% rate for 5 years; fixed annual payment of UI 1,875,000 for 20 years) not read in the original.
- Residents who opted for the old regime before 2026 (including the permanent 7% option) keep it; not modelled.
- [standard/capital_gains] Implementing decree of 6 May 2026 not read in the original; withholding mechanics (possible 8% final rate via local agents) still pending as of April 2026.
- [standard/wealth_tax] Conflict: PwC/calculator give a single 0.1% resident rate; another source describes progressive 0.1%-1.6% bands being phased down. 0.1% used.
- [standard/inheritance] ITP rate for inheritances confirmed only by a 2006 DGI publication.
- [new_resident_holiday_2026/capital_gains] Implementing decree details for the investment routes.

#### Sources

- PwC Worldwide Tax Summaries: Uruguay, Individual - Income determination: https://taxsummaries.pwc.com/uruguay/individual/income-determination
- Puesta al día: cambios en el IRPF de residentes y en el Tax Holiday (Ley 20.446): https://galantemartins.com/ley-20446-presupuesto-2025-2029-irpf-rentas-exterior-tax-holiday-uruguay/
- Nueva Ley, Nuevas reglas: Modificaciones previstas en la Ley de Presupuesto 2025-2029: https://www.forvismazars.com/uy/es/insights/nuestras-publicaciones/impuestos/modificaciones-previstas-en-la-ley-de-presupuesto
- IRPF y Rentas del Exterior en Uruguay: cambios relevantes y situación actual en 2026: https://www.gro.com.uy/single-post/irpf-y-rentas-del-exterior-en-uruguay-cambios-relevantes-y-situaci%C3%B3n-actual-en-2026
- Deloitte International Tax: Uruguay Highlights 2026: https://www.deloitte.com/content/dam/assets-shared/docs/services/tax/2026/dttl-tax-uruguayhighlights-2026.pdf
- PwC Worldwide Tax Summaries: Uruguay, Individual - Taxes on personal income: https://taxsummaries.pwc.com/uruguay/individual/taxes-on-personal-income
- PwC Worldwide Tax Summaries: Uruguay, Individual - Other taxes: https://taxsummaries.pwc.com/uruguay/individual/other-taxes
- Calculadora impuesto al patrimonio Uruguay (MNI 2026): https://hacecuentas.com/uy/calculadora-impuesto-patrimonio-uruguay
- Impuesto al Patrimonio de Personas Físicas: aspectos clave ante los próximos vencimientos: https://www.forvismazars.com/uy/es/insights/nuestras-publicaciones/impuestos/impuesto-al-patrimonio-de-personas-fisicas
- DGI: Trasmisión causa muerte, heredero hijo natural - tasa aplicable (ITP): https://www.gub.uy/direccion-general-impositiva/comunicacion/publicaciones/trasmision-causa-muerte-heredero-es-hijo-natural-es-tasa-aplicable
- PwC Worldwide Tax Summaries: Uruguay, Individual - Residence: https://taxsummaries.pwc.com/uruguay/individual/residence
- InfoCasas: casas en alquiler, Carrasco (Montevideo), 4 dormitorios: https://www.infocasas.com.uy/alquiler/casas/montevideo/carrasco/4-dormitorios
- Global Property Guide: Uruguay residential property market analysis (price history): https://www.globalpropertyguide.com/latin-america/uruguay/price-history
- Ley 20.446 (Presupuesto Nacional 2025-2029), texto en IMPO: https://www.impo.com.uy/bases/leyes/20446-2025
- T.O. 2023 (DGI), Título 7, artículo 6 (aspecto espacial del IRPF), redacción dada por Ley 20.446 art. 653: https://www.impo.com.uy/bases/todgi2023/101-2024/6_T7

#### Change log

- 2026-10-15: initial research.
- 2026-10-15: added cost of living (Carrasco rent sample from InfoCasas, price per m2 from Global Property Guide); re-checked Law 20.446 on IMPO and sharpened the holiday open question.
- 2026-10-15: children_treatment set to exempt_with_conditions: there is no inheritance or gift tax; only Uruguayan real estate bears 3% transfer tax on its cadastral value, which the structured model cannot express as a rate on the estate.
- 2026-10-15: family rent re-checked against the upper-middle-class standard: kept (USD 5,500).


## Residence and succession sources

- [Corporate Immigration 2026: Uruguay](https://practiceguides.chambers.com/practice-guides/corporate-immigration-2026/uruguay) — Chambers and Partners
- [Uruguay 2026: nueva hoja de ruta para residentes fiscales e inversores](https://www.forvismazars.com/uy/en/insights/our-publications/tax/uruguay-2026-residencia-fiscal-e-inversores) — Forvis Mazars Uruguay
- [Reglamentacion de inversiones para residencia fiscal y tax holiday](https://uy.andersen.com/documents/REGLAMENTACI_N_DE_INVERSIONES_PARA_RESIDENCIA_FISCAL_Y_TAX_HOLIDAY_pdf_1788273355.pdf) — Andersen Uruguay
- [HCCH status table: Convention on the Law Applicable to Trusts and on their Recognition (1985)](https://www.hcch.net/en/instruments/conventions/status-table/?cid=59) — HCCH
- [Código Civil de Uruguay (as modified by Ley 16.603), art. 887](https://impo.com.uy/bases/codigo-civil/16603-1994/887) — IMPO
- [Ley 15.855 (1987), modifying Civil Code succession articles](https://docs.uruguay.justia.com/nacionales/leyes/ley-15855-mar-25-1987.pdf) — Justia Uruguay