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Uruguay Tax Guide

South America
Updated January 2025
Sources + last updated

This page includes citations to the sources used for this entry. Always verify with official sources before making decisions.

Personal Tax Score
75/100
Tax Friendly
Business Tax Score
72/100
Tax Friendly

Personal Income Tax

Tax Residency

Day Threshold
183 days
Note
183 days or center of vital interests

Income Tax Rates

Top Marginal Rate
36%
Structure
Progressive 0-36% on Uruguayan-sourced income

Foreign Income Treatment

System
Territorial
Details
Foreign passive income exempt for first 5 years of residency; after that may be taxed if remitted

Investment Income

Capital Gains
0-12%%
Dividends
7%
Interest
0-12%%

12% on real estate; exempt on securities after holding period


Wealth & Inheritance

Wealth Tax
No - No wealth tax
Inheritance Tax
No - No inheritance tax

Special Regimes

Tax Residence for Digital Nomads
Special regime for remote workers

Practical Notes

High quality of life. Progressive country. Good infrastructure.

Business & Corporate Tax

Corporate Income Tax

Headline Rate
25%
Effective Rate Note
25% corporate tax; lower rates for small businesses
Free Zone / Incentives
Free Trade Zones available with incentives

Withholding Taxes

Dividends
7%
Interest
0-12%%
Royalties
0-12%%

VAT / GST

Rate
22%
Note
22% VAT (highest in region)

Compliance & Substance

Substance Requirements
Moderate
Compliance Friction
Moderate

Notable Regimes

  • Free Trade Zones
  • Software law incentives

Data Sources

Last updated: January 2025. Always verify with official sources before making decisions.

FAQ

What is the personal income tax rate in Uruguay?

Uruguay has a top personal income tax rate of 36%. The tax structure is: Progressive 0-36% on Uruguayan-sourced income. See the detailed breakdown above and verify with official sources.

Do I need to pay tax on foreign income in Uruguay?

Uruguay uses a territorial system for foreign income. Foreign passive income exempt for first 5 years of residency; after that may be taxed if remitted

What are the residency requirements for Uruguay?

Tax residency in Uruguay generally requires 183 days of physical presence. 183 days or center of vital interests. Always verify current rules with official sources.

Is there a wealth tax in Uruguay?

No, Uruguay does not have a wealth tax. No wealth tax

What is the corporate tax rate in Uruguay?

The corporate tax rate in Uruguay is 25%. 25% corporate tax; lower rates for small businesses