Uruguay
11-year tax holiday on foreign income for new tax residents, stable Latin American democracy, and a clear residence pathway.
The position in figures.
Headline treatment for an individual tax resident. Source, asset and treaty rules can change the payable result.
Where the jurisdiction fits.
Best for
- New tax residents using the 11-year exemption on foreign capital income
- Stable Latin American base for portfolio investors
- Buyers of the alternative 7% indefinite rate (after the holiday) on foreign capital income
Consider carefully
- Anyone needing fast escape — physical presence and economic-interest tests are taken seriously
- Operators with primarily Uruguay-source income
Programmes that matter.
Tax Holiday (11 Years)
New tax residents are exempt from Uruguayan tax on foreign capital income (dividends, interest) for 11 years. After that, choose a perpetual 7% rate or revert to standard 12%.
Permanent Residence Pathways
Investment route ($380k real estate or $1.7M business with 15 jobs); pensioner route (foreign pension); or general residence based on intent and substance. Citizenship after 3–5 years of legal residence.
Pitfalls to resolve early.
- 01
You must establish genuine residence — economic and personal centre of interest matters as much as days.
- 02
Local banking due diligence is increasing under FATF pressure.
- 03
Spanish language is essential for daily life and administration.
Direct answers.
How does the Uruguayan tax holiday work?
New tax residents benefit from an 11-year exemption on foreign-source capital income (dividends, interest). After year 11, you can elect either the standard 12% or a perpetual 7% rate.
Can I get a Uruguayan passport?
Yes — naturalisation typically after 3 years (married to Uruguayan) or 5 years (single), subject to demonstrated integration and presence.
Continue the comparison.
Put Uruguay against your current position.
See a first-order comparison, then bring the open questions to your advisor.