South America
Uruguay: tax at a glance
The system is broadly territorial for individuals, with a new-resident tax holiday on foreign income and a stable, moderate tax regime.
Ways to relocate to Uruguay
The residency and citizenship routes that lead here, weighed against the tax picture above.
The taxes
- Personal income (top)
- 36%Labour income is taxed on a progressive scale up to 36%. Investment and capital income, such as interest, rents and gains, is taxed at a flat 12%. Foreign income is largely outside the scope of tax for individuals.
- Corporate income
- 25%
- Capital gains
- A flat 12%.
- VAT / IVA
- 22%
- Dividends (WHT)
- 7%
- Interest (WHT)
- 7%–12%
- Royalties (WHT)
- 12%
- Social security (employee)
- Around 18.1%–23.1% (BPS).
- Social security (employer)
- Around 12.6% (BPS).
- Wealth tax
- The Impuesto al Patrimonio applies to Uruguay-situs assets, at around 0.1%–0.4% for individuals.
- Inheritance / estate
- None, though a 2% ITP transfer tax applies to property.
- Property tax
- A municipal contribución inmobiliaria applies, along with a 2% ITP tax on transfers.
- Other
- New residents get a tax holiday. Foreign income is effectively exempt in the year of the move and for up to 10 years after that, then taxed at 6%. There is also a 7% flat election.
How the system works
- Tax system
- Territorial
- Foreign income
- Largely outside scope (territorial)
- Taxes by citizenship
- No
- Exit tax
- No
- CFC rules
- Yes
- CRS
- Participating
A special regime for new arrivals
This is a tax holiday for new tax residents. It gives IRNR treatment, effectively nil, on foreign passive income for the year of arrival plus ten more years. That is 11 years in total, for those becoming resident from 1 January 2026. After that, the choice is either roughly 6% for five years or a fixed annual IRPF sum.
The rates below are indicative headline figures (top marginal, standard, and headline rates), reviewed 2026-07. Brackets, surcharges, and state, provincial or cantonal taxes vary. Treat this as a reference map, not advice.
Sources (2)
Secondary references