Uruguay — Taxes
- 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
A tax holiday, then a moderate system
Uruguay’s draw is a ten-year exemption on foreign-source income for new tax residents, reshaped by the 2026 reform (Law 20.446). During it, foreign dividends, interest, royalties and capital gains are not taxed by Uruguay. It is a holiday, not a permanent zero — plan for what comes after.
After the holiday
Once the exemption ends, Uruguay taxes foreign financial income at a flat 12% (raised in the 2026 reform), while Uruguay-source income is taxed progressively under IRPF, up to 36%. Corporate income tax is 25% and VAT is a high 22%.
Wealth is taxed, inheritance is not
Uruguay levies a net wealth tax (Impuesto al Patrimonio) on assets located in Uruguay above a threshold — something the Caribbean and Gulf options do not. There is, however, no inheritance tax.
Residency, tax residence and a passport that rewards presence
Legal residency needs no minimum investment, and holding it does not automatically make you tax-resident — nor does it remove obligations to a country that taxes on citizenship, such as the United States. Uruguay’s real trade is stability and a strong passport in exchange for actually living there: citizenship in three to five years, but a long absence can reset the clock. Weigh it against the lighter-touch territorial options of Paraguay and Panama, read our tax hub and residency hub, and see how each figure is checked in our methodology.
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What we do for you
Citizenship or residence, the honest answer often is not the one you arrived with. We take the whole procedure with you — eligibility, the route that fits your situation, the file, the follow-up — with one person on your side throughout.
For Uruguay specifically, you are talking to someone who already knows the file: who to speak to on the ground, what the unit actually asks for, and the points where applications stall.
- One point of contact, from the first call to the certificate
- Vetted partners on the ground — law firms, licensed agents, banks — introduced, not listed
- It starts with a short qualifying call, and no, it is not a sales call
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