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%
- 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
- Special regime
- New-resident tax holiday, with a choice between the tax holiday itself or a 7% flat election.
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 (1)
Frequently asked
What is the income tax rate in Uruguay?
The top marginal personal income tax rate in Uruguay is 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.
What is the corporate tax rate in Uruguay?
The headline corporate income tax rate is 25%.
Does Uruguay tax capital gains?
Capital gains for individuals: A flat 12%..