In Uruguay, obtaining tax residency through investment offers flexibility regarding physical presence requirements. Here’s how it works:
Tax Residency via Investment: Key Options
Uruguay provides several pathways to tax residency, notably:
- Real Estate Investment of Over USD 2.2 Million
- Investment Amount: Exceeding 15 million Indexed Units (approximately USD 2.2 million).
- Physical Presence Requirement: None.
- Additional Conditions: The property must be located in Uruguay.
- Business Investment of Over USD 2.2 Million with Job Creation
- Investment Amount: Exceeding 15 million Indexed Units (approximately USD 2.2 million).
- Physical Presence Requirement: None.
- Additional Conditions: The investment must result in the creation of at least 15 new full-time jobs in Uruguay during the calendar year.
- Real Estate Investment of Over USD 520,000 with 60-Day Stay
- Investment Amount: Exceeding 3.5 million Indexed Units (approx. USD 520,000).
- Physical Presence Requirement: At least 60 days per calendar year in Uruguay.
- Additional Conditions: The investment must have been made after July 1, 2020.
Tax Implications for New Residents
Uruguay operates a territorial tax system, meaning:
- Domestic Income: Subject to taxation.
- Foreign Income: Generally exempt, with exceptions:
- Interest and Dividends: Taxed at a flat rate of 12%.
However, new tax residents can choose between
- Option 1: A 10-year tax exemption on foreign income, including interest and dividends.
- Option 2: A permanent 7% tax rate on foreign interest and dividends.
Other forms of foreign income, such as rental income, royalties, or capital gains, remain tax-free.
Important Considerations
- Annual Certification: Tax residency status is determined annually. To maintain it, you must meet the criteria each year.
- Legal vs. Tax Residency: Tax residency is separate from legal residency. It’s possible to be a tax resident without holding legal residency status, and vice versa.
- Investment Maintenance: The investment must retain its minimum value at the end of each calendar year to sustain tax residency status.
| Investment Type | Minimum Amount (USD) | Physical Presence Requirement | Additional Conditions |
| Real Estate | >2.2 million | None | Property must be in Uruguay |
| Business with Job Creation | >2.2 million | None | Create at least 15 new full-time jobs |
| Real Estate (Post-July 2020) | >520,000 | 60 days per year | Investment made after July 1, 2020 |
For personalized advice tailored to your specific situation, consulting with a tax professional experienced in Uruguayan law is recommended.
