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Tax in Uruguay

Under Uruguay's personal income tax law (Title 7, article 2) you are resident if you spend more than 183 days in the calendar year in Uruguay, or if the main base of your activities or of your economic or vital interests is there; a spouse and dependent minor children in Uruguay are presumed to be a vital interest. DGI counts every day you are present, leaves out transit days, and counts absences of up to 30 calendar days as days in Uruguay unless you prove tax residence elsewhere with a certificate. A stay on the provisional identity sheet (180 days, renewed once) can pass 183 days in one calendar year. [T1] [T6] [V1] Residents are taxed on income from activities carried out, assets located and rights used economically in Uruguay, and on capital income and gains from non-resident entities (article 6). Non-residents pay the non-resident tax (IRNR) only on Uruguayan-source income, at 3% to 12% according to Uruguay XXI, the government's investment promotion agency. We found no DGI ruling on pay for work done in Uruguay for a foreign employer, so how it is treated is unknown. [T2] [T9]

What we found

The research, with its sources.

Research information, not advice. Rules change, so check the source before you act on one.

  • Under Uruguay's personal income tax law (Title 7, article 2) you are resident if you spend more than 183 days in the calendar year in Uruguay, or if the main base of your activities or of your economic or vital interests is there; a spouse and dependent minor children in Uruguay are presumed to be a vital interest. DGI counts every day you are present, leaves out transit days, and counts absences of up to 30 calendar days as days in Uruguay unless you prove tax residence elsewhere with a certificate. A stay on the provisional identity sheet (180 days, renewed once) can pass 183 days in one calendar year. [T1] [T6] [V1]
  • Residents are taxed on income from activities carried out, assets located and rights used economically in Uruguay, and on capital income and gains from non-resident entities (article 6). Non-residents pay the non-resident tax (IRNR) only on Uruguayan-source income, at 3% to 12% according to Uruguay XXI, the government's investment promotion agency. We found no DGI ruling on pay for work done in Uruguay for a foreign employer, so how it is treated is unknown. [T2] [T9]
  • A resident's pay and self-employment income is taxed on a progressive scale: nothing up to 84 BPC a year, then 10%, 15%, 24%, 25%, 27%, 31% and 36% above 1,380 BPC a year. The BPC base unit is reset each year and we did not open an official 2026 value, so the bands in pesos are unknown. Capital income is taxed at 12% for most income and 7% for some, such as certain dividends. These are rates, not your bill. [T5]
  • People who become tax resident from 1 January 2026 can opt, once, under article 24-bis (Law 20,446, article 648), to pay the non-resident tax for the year they become resident and the ten years after, only on foreign capital income and gains. If you are resident because you were present more than 183 days, no investment is needed; the other routes ask for large property or fund investments. You cannot use it if you were a Uruguayan tax resident in either of the two previous years. It does not cover salary or freelance fees. People on the 2020 regime keep it for its term. [T3] [T4] [T7]
  • Decree 188/026 (published 19 August 2026) regulates the new-resident option, but IMPO shows only a list of the articles it changes, so how to claim the option is unknown. A separate skilled-worker programme (Law 20,446, articles 190 to 192) is for employment contracts with companies active in Uruguay. Rates, units and rules change during the year, so confirm them for your filing date with a Uruguayan accountant. [T8] [T7]
  • Your home country may keep taxing you. The US taxes citizens on worldwide income, with a 2026 foreign earned income exclusion of up to $132,900 and an FBAR for foreign accounts above $10,000 together. Canada treats you as resident while you keep significant ties, and Australia if you go overseas temporarily and set up no permanent home elsewhere. New Zealand stops treating you as resident only with no permanent place of abode there and more than 325 days away in 12 months. [T13] [T14] [T15] [T18] [T21] [T23]
  • None of the four launch countries has an income tax treaty with Uruguay: DGI's treaty table lists none of them, and the IRS, Finance Canada, Australian Treasury and Inland Revenue lists do not show Uruguay. So no treaty tie-breaker settles a double claim. Tax information exchange agreements exist with the US (signed 24 October 2023), Canada (in force 27 June 2014) and Australia (in force 1 July 2014); New Zealand's lists show none. They share information and do not settle who taxes what. [T10] [T12] [T16] [T19] [T22] [T11] [T17] [T20]
  • Social security agreements: the US–Uruguay agreement has been in force since 1 November 2018 and does not apply to Medicare or SSI; Canada's has been in force since 1 January 2002 and covers CPP and OAS. Australia's, signed on 26 August 2025, is not in force and could take up to two years. New Zealand has none with Uruguay. Which country's system covers you if you work from Uruguay for a foreign employer or as a freelancer is unknown for all four. [T24] [T25] [T26] [T27]

The country

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Topics

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Questions about Tax in Uruguay.

What makes someone a tax resident of Uruguay?

Either test is enough: more than 183 days in a calendar year, or your main base of activities or your economic or vital interests in Uruguay. A spouse and dependent minor children in Uruguay are presumed to be a vital interest. Your visa does not decide it; your days and ties do. Ask a Uruguayan accountant.

Title 7 (IRPF), article 2: who is resident, IMPO, the official legislation database of Uruguay (Texto Ordenado 2023); Information on residency for tax purposes: Uruguay, Dirección General Impositiva (DGI), as published by the OECD. Checked 15 October 2026

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What is the tax holiday for new residents in Uruguay?

If you become tax resident from 1 January 2026, you can opt once to pay the non-resident tax on foreign capital income and gains for the year you arrive and ten more. If you qualify through more than 183 days, no investment is needed. It does not cover salary or freelance fees. How to claim it is unknown.

Title 7 (IRPF), article 24-bis: new-resident option for capital income (from 2026), IMPO, the official legislation database of Uruguay (Texto Ordenado 2023); Law 20,446 (2025-2029 Budget Law), including article 3 (in force) and articles 190 to 192, IMPO, the official legislation database of Uruguay; Decree 188/026: regulation of the new-resident (impatriate) regime, IMPO, the official legislation database of Uruguay. Checked 15 October 2026

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What income tax rates do residents of Uruguay pay?

Pay and self-employment income goes on a scale of 10%, 15%, 24%, 25%, 27%, 31% and 36% above the exempt band, which ends at 84 BPC a year. We did not open an official BPC value, so the peso bands are unknown. Capital income is taxed at 12% for most income and 7% for some. These are rates, not your bill.

Title 7 (IRPF), articles 37 and 48: tax rates, IMPO, the official legislation database of Uruguay (Texto Ordenado 2023). Checked 15 October 2026

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Will I be taxed twice, and is there a tax treaty with Uruguay?

No income tax treaty links Uruguay with the US, Canada, Australia or New Zealand, so no tie-breaker settles a double claim. The US taxes citizens on worldwide income; Canada, Australia and New Zealand keep taxing you while you remain resident there. How credits apply to you is a question for an adviser.

Status of Uruguay's double taxation treaties (CDI), Dirección General Impositiva (DGI) on gub.uy; United States income tax treaties, A to Z, Internal Revenue Service; US citizens and residents abroad: filing requirements, Internal Revenue Service; Determining your residency status, Canada Revenue Agency; Australian resident for tax purposes, Australian Taxation Office (Internet Archive copy); Tax residency status for individuals, Inland Revenue (New Zealand). Checked 15 October 2026

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Do I pay social security in both Uruguay and my home country?

It depends on the country, and for working from Uruguay it is unknown. The US agreement has been in force since 2018 and Canada's since 2002. Australia's, signed in 2025, is not in force, and New Zealand has none. The provisional identity sheet requires no Uruguayan social security registration.

Program Operations Manual: effective date and scope of the agreement with Uruguay, US Social Security Administration (POMS GN 01760.105 and GN 01760.110); Uruguay: pensions and benefits (Canada–Uruguay social security agreement), Government of Canada (Service Canada); International Social Security Agreement between Australia and Uruguay (Internet Archive copy), Australian Government, Department of Social Services (DSS); Social security agreements, Work and Income (Ministry of Social Development, New Zealand); Decree 394/009 (regulation to the Migration Law 18,250), articles 8 and 13, as updated, IMPO, the official legislation database of Uruguay. Checked 15 October 2026

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Sources

Where each figure comes from.

Every figure on this page links to the page we read, with the date we checked it.

  1. [T1] Title 7 (IRPF), article 2: who is resident, IMPO, the official legislation database of Uruguay (Texto Ordenado 2023). Checked 15 October 2026.
  2. [T6] Information on residency for tax purposes: Uruguay, Dirección General Impositiva (DGI), as published by the OECD. Checked 15 October 2026.
  3. [V1] Decree 394/009 (regulation to the Migration Law 18,250), articles 8 and 13, as updated, IMPO, the official legislation database of Uruguay. Checked 15 October 2026.
  4. [T2] Title 7 (IRPF), article 6: what is taxed, IMPO, the official legislation database of Uruguay (Texto Ordenado 2023). Checked 15 October 2026.
  5. [T9] Investor's guide: the Uruguayan tax system, Uruguay XXI (investment promotion agency of the Government of Uruguay). Checked 15 October 2026.
  6. [T5] Title 7 (IRPF), articles 37 and 48: tax rates, IMPO, the official legislation database of Uruguay (Texto Ordenado 2023). Checked 15 October 2026.
  7. [T3] Title 7 (IRPF), article 24-bis: new-resident option for capital income (from 2026), IMPO, the official legislation database of Uruguay (Texto Ordenado 2023). Checked 15 October 2026.
  8. [T4] Title 7 (IRPF), article 24: the earlier new-resident regime, IMPO, the official legislation database of Uruguay (Texto Ordenado 2023). Checked 15 October 2026.
  9. [T7] Law 20,446 (2025-2029 Budget Law), including article 3 (in force) and articles 190 to 192, IMPO, the official legislation database of Uruguay. Checked 15 October 2026.
  10. [T8] Decree 188/026: regulation of the new-resident (impatriate) regime, IMPO, the official legislation database of Uruguay. Checked 15 October 2026.
  11. [T13] US citizens and residents abroad: filing requirements, Internal Revenue Service. Checked 15 October 2026.
  12. [T14] Figuring the foreign earned income exclusion, Internal Revenue Service. Checked 15 October 2026.
  13. [T15] Report of Foreign Bank and Financial Accounts (FBAR), Financial Crimes Enforcement Network (FinCEN). Checked 15 October 2026.
  14. [T18] Determining your residency status, Canada Revenue Agency. Checked 15 October 2026.
  15. [T21] Australian resident for tax purposes, Australian Taxation Office (Internet Archive copy). Checked 15 October 2026.
  16. [T23] Tax residency status for individuals, Inland Revenue (New Zealand). Checked 15 October 2026.
  17. [T10] Status of Uruguay's double taxation treaties (CDI), Dirección General Impositiva (DGI) on gub.uy. Checked 15 October 2026.
  18. [T12] United States income tax treaties, A to Z, Internal Revenue Service. Checked 15 October 2026.
  19. [T16] Tax treaties in force, Department of Finance Canada. Checked 15 October 2026.
  20. [T19] Income tax treaties in force, Australian Treasury. Checked 15 October 2026.
  21. [T22] Tax treaties: double tax agreements and tax information exchange agreements, Inland Revenue (New Zealand), Tax Policy. Checked 15 October 2026.
  22. [T11] Law 20,351: agreement with the United States on exchange of tax information, IMPO, the official legislation database of Uruguay. Checked 15 October 2026.
  23. [T17] Entry into force of the tax information exchange agreement between Canada and Uruguay, Department of Finance Canada. Checked 15 October 2026.
  24. [T20] Tax information exchange agreements, Australian Treasury. Checked 15 October 2026.
  25. [T24] Program Operations Manual: effective date and scope of the agreement with Uruguay, US Social Security Administration (POMS GN 01760.105 and GN 01760.110). Checked 15 October 2026.
  26. [T25] Uruguay: pensions and benefits (Canada–Uruguay social security agreement), Government of Canada (Service Canada). Checked 15 October 2026.
  27. [T26] International Social Security Agreement between Australia and Uruguay (Internet Archive copy), Australian Government, Department of Social Services (DSS). Checked 15 October 2026.
  28. [T27] Social security agreements, Work and Income (Ministry of Social Development, New Zealand). Checked 15 October 2026.

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