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Uruguay Tax Guide
South AmericaLast verified November 2026Territorial system
- Top income tax
- 36%
- Capital gains
- 0-12%
- Corporate
- 25%
- VAT / GST
- 22%
- Residency test
- 183 days
Progressive 0-36% on Uruguayan-sourced income
In short
- Uruguay is South America's most stable democracy, with strong rule of law, good infrastructure and a calm, European-feeling capital.
- Tax Holiday — 10-Year Foreign-Income Exemption (2026 rules): Foreign capital income exempt instead of taxed at 12% (10 years).
- Watch out: Prices are high for the region, winters are damp and grey, and property crime has risen in Montevideo.
Verified November 2026 · 4 sources
Recent changes
- 2026-11-01 correctionTax-holiday regime under Law 20.446 was described as a 10-year election replacing an "11-year blanket exemption"; EY describes the current regime itself as the 11-year tax holiday (the year tax residency is acquired plus the following 10). Corrected the special-regime name and description; duration did not shrink to 10 years.
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 — 11-Year Foreign-Income Exemption (2026 rules) — Law 20.446 (effective 1 Jan 2026) runs for the fiscal year tax residency is acquired plus the follow…
Personal Income Tax
Residency, rates, foreign income, capital gains, wealth and inheritance, special regimes+
Personal Income Tax
Residency, rates, foreign income, capital gains, wealth and inheritance, special regimesTax Residency
Income Tax Rates
Foreign Income Treatment
Investment Income
12% on most capital gains for residents under Law 20.446; exempt on certain securities; 12% on real-estate sales
Wealth & Inheritance
Special Regimes
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 rate, withholding, VAT, substance, Pillar Two and treaties+
Business & Corporate Tax
Corporate rate, withholding, VAT, substance, Pillar Two and treatiesCorporate Income Tax
Withholding Taxes
VAT / GST
Compliance & Substance
Notable Regimes
- Free Trade Zones
- Software law incentives
OECD Pillar Two (15% global minimum tax)
No Pillar Two legislation enacted (separate from the 2026 Law 20.446 changes affecting individual foreign-income taxation).
See full implementation trackerTax Treaty Network
No US tax treaty but US totalization in force (rare combination). UK and Germany treaties in force.
See full treaty matrixBeyond tax
Living in Uruguay
Uruguay is South America's most stable democracy, with strong rule of law, good infrastructure and a calm, European-feeling capital.
- Expat hub
- Montevideo
- Monthly budget
- ~$2,500
- Climate
- Temperate, 17°C
- Time zone
- UTC-3
- Tax75 → 95
- Cost of living$$$
- Safety62
- Healthcare74
- English45
- Internet230 Mbps
- Warm climate60
- Residency access75
- Scores 0-100, higher is better. Editorial composite ratings; see method.
Newcomer tax regime
Tax Holiday — 10-Year Foreign-Income Exemption (2026 rules): 0%
Foreign capital income exempt instead of taxed at 12%. 10 years. Who qualifies: New residents with 184 days/year presence, ~US$2M real estate, or an innovation-fund contribution.
Ways to get residency
- Legal residenceProof of stable, sufficient income from any source; no fixed statutory minimum
- Digital nomad permitRemote work for foreign clients or employers; 6 months, renewable
Watch out: Prices are high for the region, winters are damp and grey, and property crime has risen in Montevideo.
See how Uruguay ranks for remote workers, retirees and familiesData Sources
Last verified: November 2026. Always check official sources before making a decision.
FAQ
What is the personal income tax rate in Uruguay?
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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?
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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?
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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?
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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?
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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.
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