Tax System and Advantages of Residency in Uruguay
Uruguay attracts investors and high-net-worth individuals from around the world thanks to its stable economy, transparent laws, and favorable tax conditions. A key factor contributing to Uruguay's popularity is its flexible tax system, offering unique opportunities for efficient tax planning.
Key Features of Uruguay’s Tax System
Uruguay applies a territorial taxation system, meaning only income generated within the country is subject to taxation. Income earned abroad is generally tax-free in Uruguay, with certain exceptions such as dividends and interest, taxed at a fixed rate of 12%.
New tax residents benefit from attractive fiscal incentives:
- Exemption from taxes on foreign-sourced capital income and dividends for up to 10 years.
- The choice between full exemption or significantly reduced tax rates.
Ways to Obtain Tax Residency in Uruguay:
- Staying in the country for at least 183 days per year.
- Demonstrating significant economic or personal ties to Uruguay (such as employment or family).
- Investing at least USD 506,000 in real estate or USD 2,900,000 in government-approved projects.
How to Apply for Tax Residency
The process involves:
- Submitting an application to the Uruguayan tax authority (DGI).
- Clearly indicating the grounds for residency (time spent in the country, family ties, or investments).
- Receiving an annual tax residency certificate confirming your status.
Why Uruguay’s Tax System is Advantageous
Tax laws are straightforward, and there is no double taxation, greatly simplifying financial planning.
Foreign residents enjoy the same rights as Uruguayan citizens, including unrestricted repatriation of funds.
Permanent residence in Uruguay is not mandatory to benefit from tax incentives; qualifying investments alone can provide access to these advantages.
Uruguay's tax system provides excellent opportunities to optimize taxes while enjoying a comfortable and stable lifestyle. It is ideal for those seeking tax efficiency as well as a secure and attractive place for living and investment.
If you wish to learn more about obtaining tax residency or exploring its benefits, our specialists are ready to assist you.
If you wish to learn more about obtaining tax residency or exploring its benefits, our specialists are ready to assist you.
Frequently Asked Questions
Yes, but it is essential to consider international tax regulations carefully.
Economic investments, family ties, or staying more than 183 days per year in the country.
Yes, under certain conditions, particularly through real estate investments.
Fill out the form
and we'll get back to you shortly
