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Uruguay Tax Guide

South America
Last verified June 2026
Sources & verification

Figures on this page were last verified against the cited sources in June 2026. Always check official sources before making a relocation or incorporation decision.

PwC Worldwide Tax Summaries — UruguayIMI Daily — Uruguay tax holiday threshold raised to US$2MOutbound Investment Group — Uruguay Law 20.446 update
TerritorialSpecial Regime

Best for

  • Zero capital gains

    No CGT on investment, property, or crypto disposals (subject to "investor" classification).

  • Foreign income exempt

    Territorial system — overseas income generally outside the local tax net.

  • No inheritance tax

    Estate and lifetime transfers not subject to inheritance tax.

  • Crypto-friendly

    0% CGT plus favorable foreign-income treatment make this strong for crypto holders.

  • Special regime available

    Tax Holiday — 10-Year Foreign-Income Exemption (2026 rules) — Law 20.446 replaced the prior 11-year blanket exemption from 1 Jan 2026 with a 10-year election. To …

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 in Uruguay

Income Tax Rates

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

Foreign Income Treatment

System
Territorial
Details
Under Law 20.446 (effective 1 Jan 2026): foreign-source capital and investment income (dividends, interest, foreign rentals, foreign capital gains) is taxable at 12% for Uruguayan tax residents unless covered by the new tax-holiday election (see special regimes).

Investment Income

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

12% on most capital gains for residents under Law 20.446; exempt on certain securities; 12% on real-estate sales

Wealth & Inheritance

Wealth Tax
Yes - Impuesto al Patrimonio (IP) — modest wealth tax on net assets above threshold, progressive rates
Inheritance Tax
No - No general inheritance tax

Special Regimes

Tax Holiday — 10-Year Foreign-Income Exemption (2026 rules)
Law 20.446 replaced the prior 11-year blanket exemption from 1 Jan 2026 with a 10-year election. To qualify: (a) 184 days/year physical presence, OR (b) qualifying real-estate investment of ~USD 2M, OR (c) ~USD 100K/year contribution to a government-approved innovation fund for 11 years. Applicant must not have been Uruguayan tax resident in the prior 2 years and must not have used the holiday before.

Practical Notes

High quality of life, stable rule of law, good infrastructure. The 2026 changes meaningfully tightened the previously generous regime — most movers will need the USD 2M property route or actual long-term residence to keep foreign income exempt.

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

OECD Pillar Two (15% global minimum tax)

No implementation

No Pillar Two legislation enacted (separate from the 2026 Law 20.446 changes affecting individual foreign-income taxation).

See full implementation tracker

Tax Treaty Network

US treatyNo
UK treatyYes
US totalizationYes
Total treaties~25

No US tax treaty but US totalization in force (rare combination). UK and Germany treaties in force.

See full treaty matrix

Data Sources

PwC Worldwide Tax Summaries — UruguayIMI Daily — Uruguay tax holiday threshold raised to US$2MOutbound Investment Group — Uruguay Law 20.446 update

Last verified: June 2026. Always check official sources before making a decision.

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. Under Law 20.446 (effective 1 Jan 2026): foreign-source capital and investment income (dividends, interest, foreign rentals, foreign capital gains) is taxable at 12% for Uruguayan tax residents unless covered by the new tax-holiday election (see special regimes).

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 in Uruguay. Always verify current rules with official sources.

Is there a wealth tax in Uruguay?

Yes, Uruguay does have a wealth tax. Impuesto al Patrimonio (IP) — modest wealth tax on net assets above threshold, progressive rates

What is the corporate tax rate in Uruguay?

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

US citizen moving to Uruguay? Read this first.

Uruguay uses a territorial system for foreign income. For US citizens this often combines well with FEIE.

  • •Foreign-source income may be exempt or only taxed on remittance in Uruguay, but the US still taxes US citizens worldwide. FEIE (~$130k earned income) plus FTC on any Uruguay tax paid is the standard combination.
  • •Self-employment tax (15.3%) can usually be exempted via the US-Uruguay totalization agreement.
  • •Carefully document whether income is "Uruguay-source" or foreign-source. The classification drives both Uruguay and US tax outcomes; getting it wrong is the #1 audit risk in this category.
  • •Residency requires 183 days. Special regimes may further reduce Uruguay tax — check the country page for current options.
Read the full US-citizen moving-abroad guide

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