In Uruguay, it is possible for foreigners to obtain fiscal residency when they live 183 days per year in the country OR when they have vital economic activities in the country.
The advantage of fiscal residency is a ´tax holiday´ and who wouldn’t wish to enjoy this. For a period of five years you don´t have to pay tax on foreign-sourced investment income. This is the case for interest paid by foreign banks, interest paid by foreign borrowers, and dividends from non-Uruguayan companies. After the 5 year period a person pays 12% with a fiscal credit over tax amounts already paid abroad.
An individual is considered to have his “main economic interests” in Uruguay when he owns the following investments in Uruguay:
- Real estate properties in Uruguay with a value exceeding approximately US$1.8 million (the tax value is determined as follows: acquisition price adjusted in accordance with the inflation rate).
- Business activities valued at more than approximately US$5.6 million, provided that such activities have been declared “promoted” under Uruguay’s investment promotion regime.
Such tax exemption can be obtained after making an application with professional help at the fiscal authorities in Uruguay. Upon request we can put you in contact with the right professional advisors.