Destinations
Uruguay
Uruguay is South America’s stability play: a strong passport, a reliable rule of law, and, since the 2026 reform, a ten-year exemption on foreign-source income for new tax residents. It rewards people who actually settle — legal residency needs no minimum investment, but citizenship in three to five years, and the tax holiday via investment, both demand real presence or roughly 2,000,000 USD in property.
Key facts
- From
- $100 000≈ $133 500 — estimated total, family of four, fees included
- Processing time
- 6–12 months
- Physical presence
- Uruguay expects genuine presence. The route to citizenship — three years for married applicants or those with dependent children, five years otherwise — can reset if you leave the country for more than six consecutive months, so this is not a passport for someone who will not spend real time there.
Tax at a glance
- A ten-year exemption on foreign-source income for new tax residents (2026 reform)
- After the holiday, foreign financial income is taxed at a flat 12%
- Local income is taxed progressively, up to 36%
- A net wealth tax applies to Uruguay-situated assets above a threshold
- No inheritance tax
Frequently asked questions
What is Uruguay’s foreign-income tax holiday?
New tax residents are exempt from Uruguayan tax on foreign-source income for ten years under the 2026 reform. You qualify by spending 183+ days a year in Uruguay with no investment, or by investing about 2,000,000 USD in property or 100,000 USD a year for eleven years in the innovation fund. After the holiday, foreign financial income is taxed at 12%.
How long until I can get Uruguayan citizenship?
Three years of legal residency for married applicants or those with dependent children, five years otherwise — but the Electoral Court expects genuine presence, and leaving for more than six consecutive months can reset the clock.
Is there a minimum investment for Uruguay residency?
Not for legal residency itself, which can be based on your means or income. The large investment figures apply to the tax holiday via the investment route, not to residency as such.