Formal requirements
Foreign citizens can obtain the Uruguayan tax residence by making an investment in the country, meeting a minimum stay requirement or a combination of both.
Economic requirements
To apply for the tax residence, foreign citizens must make one of the following investments:
a) Real estate investment of approximately USD 540,000 plus a minimum 60 day stay requirement.
b) Real estate investment of approximately USD 2,300,000, without a minimum stay requirement.
c) Direct or indirect investment of approximately USD 2,300,000 in a Uruguayan company which generates at least 15 jobs.
d) Direct or indirect investment of approximately USD 6,900,000 in a Uruguayan company with an activity declared of national interest by the Uruguayan Government.
Minimum stay requirements
- 183 days minimum within a year without need of an investment or proof of ‘main vital interests’ in the country.
- 60 days minimum stay within a year in case of a real estate investment of USD 540,000. Other minimum investments do not require a minimum stay.
Investment options b), c) and d) do not require a minimum stay in the country to obtain the tax residence.
Ongoing requirements
Must provide proof that the investment maintains its minimum value on the 31st of December of the year in which the individual wishes to obtain the tax residence.
Ability to bring in family
There are no restrictions for foreign individuals to bring their families with them. Individuals must provide proof of economic living means within the country to support themselves and their family.
Language requirements
Not applicable.
Tax implications or related issues
Only income of Uruguayan source will subject to taxation in the country.
Uruguay has 39 Double Taxation Agreement currently in force with others countries which include: Argentina, Brasil, Mexico, UK, Germany, Switzerland, Spain, and India
New tax residents have right to opt for either:
- 10-year tax holiday on any income obtained from interests, dividends, royalties and other forms of passive income paid by foreign entities or individuals.
- Permanent 7% tax rate on any income obtained from interests, dividends, royalties and other forms of passive income paid by foreign entities or individuals (usual rate is 12%).
Other benefits/considerations
Foreign capital gains income is not taxed, even without the tax holiday.