Uruguay: tax residency, rates & nomad visa

Tax residency rules in Uruguay

An individual is a tax resident if physically present in Uruguay for more than 183 days in the calendar year, or, on substantial criteria, if the base of activities or economic and vital interests is in Uruguay. The income test treats a person as having their base of activities in Uruguay when more income is derived from Uruguay than from any other country. [source]PwC Worldwide Tax Summaries“Presence in the country for more than 183 days (formal criterion).”View source · accessed 2026-09-08

Center of vital interests

Beyond the day count, residency is established where the base of activities or economic or vital interests is in Uruguay. The law presumes this is met when the individual's spouse and dependent minor children habitually reside in the country. [source]PwC Worldwide Tax Summaries“The base of its activities, or economic or vital interests, is settled in Uruguayan territory (substantial criteria).”View source · accessed 2026-09-08

Territorial taxation principle

Uruguay taxes individuals largely on a territorial source basis, so income from activities, property or rights used within Uruguay is taxed while foreign labour income is generally not taxed. Since 2011 the source rule was widened so residents' foreign movable-capital (passive) income is taxed, subject to the new-resident holiday election. [source]PwC Worldwide Tax Summaries“The source principle for levying taxes includes income derived from activities developed in, property located in, or rights economically used within the Uruguayan territory.”View source · accessed 2026-09-08

Residency by investment

Tax residency can also be acquired through qualifying investment, ranging from real estate of more than 3.5 million Indexed Units (about USD 560,000) combined with at least 60 days of presence, up to 45 million Indexed Units (about USD 7.2 million) in an Investment Law promoted company. This makes obtaining tax residency by ordinary routes straightforward for investors. [source]PwC Worldwide Tax Summaries“More than 45 million 'Indexed Units' (approximately USD 7.2 million) in a company with projects or activities promoted by the Investment Law.”View source · accessed 2026-09-08

Income tax rates in Uruguay

As of 2026, the headline personal income tax rate in Uruguay is 36%^ⓘPwC Worldwide Tax Summaries“progressive rates ranging from 10% to 36%”View source · accessed 2026-09-08. IRPF Category II labour income is taxed on a progressive scale with a top marginal rate of 36 percent. The scale runs from 10 percent up to 36 percent.

Vat standard rate

22% (as of 2026)^ⓘPwC Worldwide Tax Summaries“Uruguayan VAT is levied at a general rate of 22% on the provision of services and on the circulation of goods within the limits of the Uruguayan territory.”View source · accessed 2026-09-08 — Uruguayan VAT (IVA) applies at a general rate of 22 percent on services and on the circulation of goods within Uruguayan territory.

Capital gains and investment income rate

12% (as of 2026)^ⓘPwC Worldwide Tax Summaries“The tax is levied on capital investments (e.g. interest, rents, royalties, capital gains) at a flat rate of 12%, with some exceptions.”View source · accessed 2026-09-08 — Capital investment income such as interest, rents, royalties and capital gains is taxed at a flat rate of 12 percent, with some exceptions.

Social security employee contributions

Employees have between 18.1 and 23.1 percent withheld for social security, made up of 15 percent for retirement plus health insurance of 3 to 8 percent depending on income and family status. Retirement contributions apply only up to a monthly ceiling of UYU 288,826 until 31 December 2026. [source]PwC Worldwide Tax Summaries“withholds 18.1% to 23.1% from the employee”View source · accessed 2026-09-08

Pit income brackets

0–36% (as of 2026)^ⓘPwC Worldwide Tax Summaries“Annual taxable gross income (UYU*) Tax rate (%) Over Up to 0 576,576 0 576,576 823,680 10”View source · accessed 2026-09-08 — PwC presents the resident labour-income scale as annual taxable gross income in Uruguayan pesos (UYU) as of 31 December 2025, with rates of 0, 10, 15, 24, 25, 27, 31 and 36 percent. The underlying statutory brackets are defined in BPC units, but PwC states them here in the equivalent UYU amounts.

Special tax regimes in Uruguay

Under amendments in force from 1 January 2026, eligible new tax residents may elect a one-time tax holiday under which their foreign-source passive income and capital gains are effectively untaxed (taxed as non-resident IRNR) for the year residency is obtained plus the following ten fiscal years, eleven years in total. This replaced the earlier regime that offered a permanent reduced 7 percent rate as the alternative. [source]PwC Worldwide Tax Summaries“Eligible individuals may opt (on a one-time basis) to be subject to non-residents income tax (IRNR) (which results in effective no taxation on income) exclusively on capital-yields (passive income) and on capital-gains from foreign sources during: the fiscal year in which tax residency is obtained, and the following ten fiscal years.”View source · accessed 2026-09-08

New resident holiday eligibility

To access the holiday an individual generally invests over 12.5 million Indexed Units (about USD 2 million) in real estate or over 625,000 Indexed Units (about USD 100,000) a year into qualifying investment funds. Individuals who are resident each year on the physical presence test, more than 183 days, get the holiday with no investment condition. [source]PwC Worldwide Tax Summaries“investments in real estate in amounts exceeding 12.5 million 'Indexed Units' (approximately 2 million United States dollars [USD]), or capital contributions on investment funds to finance productive projects, research, or innovation in amounts exceeding 625,000 'Indexed Units' (approximately USD 100,000) on an annual basis.”View source · accessed 2026-09-08

New resident post holiday options

After the ten-year holiday, the individual can make a one-time election on foreign-source passive income between a fixed annual IRPF amount of about 1,875,000 Indexed Units (roughly USD 300,000) for 20 years, reduced to about 1,250,000 Indexed Units (roughly USD 200,000) if the 183-day presence test is met, or a reduced rate equal to 50 percent of the standard 12 percent rate, that is 6 percent, for five fiscal years. This 6 percent option is the closest current equivalent to the former 7 percent flat rate. [source]PwC Worldwide Tax Summaries“After the ten-year period referred to above, for the mentioned foreign-source passive income, the Budget Law includes the possibility to opt (on a one-time basis) between being subject to: a fixed annual income tax on resident individuals (IRPF) amount for the following 20 years of approximately 1,875,000 'Indexed Units' (approximately USD 300,000) per year; this amount is reduced to 1,250,000 'Indexed Units' (approximately USD 200,000) per year if the individual meets the physical presence criterion for tax residency purposes in such period (more than 183 days in a calendar year), or IRPF for the following five fiscal years, applying a reduced rate equivalent to 50% of the standard applicable rate (currently 12%)...”View source · accessed 2026-09-08

Digital nomad visa in Uruguay

Digital Nomad Permit (as of 2026)^ⓘCitizen Remote“Uruguay introduced a legal framework for digital nomads in 2023, making it possible for remote workers, freelancers, and self-employed professionals working for companies outside the country to apply for a Digital Nomad Permit.”View source · accessed 2026-09-08 — Uruguay does have a dedicated Digital Nomad Permit created in 2023 for remote workers, freelancers and business owners earning income from abroad, valid for 180 days and renewable for a further 180 days with no investment requirement and a path to permanent residency. Its territorial system means foreign remote-work income is generally not taxed unless the person becomes a tax resident.

Frequently asked questions

Sources

• PwC Worldwide Tax Summaries individual / residence · big4, accessed 2026-09-08
• DGI (Dirección General Impositiva) Uruguay publicaciones / causales residencia fiscal · tax_authority, accessed 2026-09-12
• PwC Worldwide Tax Summaries individual / taxes on personal income · big4, accessed 2026-09-08
• KPMG (Taxation of international executives: Uruguay) 01 / TIES Uruguay.pdf.coredownload.inline.pdf · big4, accessed 2026-09-12
• PwC Worldwide Tax Summaries individual / other taxes · big4, accessed 2026-09-08
• PwC Worldwide Tax Summaries individual / significant developments · big4, accessed 2026-09-08
• Citizen Remote visas / uruguay digital nomad visa · other, accessed 2026-09-08
• Investment Migration Insider (IMI Daily) uruguay digital nomad visa · other, accessed 2026-09-08

Explore more

• Not sure you count as resident? Am I a tax resident of Uruguay?
• Working remotely? Digital nomad taxes in Uruguay — the visa, when you become tax resident, and your effective rate.
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• Planning your days in Uruguay? Track them with the free 183 Days residency tracker — it checks your travel log against verified thresholds like the ones on this page.

When to talk to an advisor

This page maps Uruguay’s general rules — it cannot weigh your treaty position, your family and asset ties, or the timing of a move. If meaningful money depends on the answer, have a qualified advisor in Uruguay (and in your home country) review your situation before you act.