News brief · Residency
Uruguay: the tax holiday reform comes into force
Uruguay's regime for new residents exempts their foreign investment income for a long period. Its reform has changed the routes to tax residency, not the principle of the exemption.
By Editorial team · on August 10, 2026
What the regime for new arrivals provides
Uruguay applies a modified territorial system: foreign-source income is in principle outside the scope of tax, with the exception of certain investment income, which is taxable when received by a resident.
It is precisely this exception that the regime for new arrivals neutralises. A person who acquires Uruguayan tax residency can opt for the exemption of this income, at a rate of 0%1.
The total duration of the option is 11 years2, including the year in which residency is acquired.
When the regime expires, a reduced rate of 6%3 applies to the same income, instead of the standard rate. Exiting the scheme is therefore gradual rather than abrupt, which sets it apart from most incentive regimes.
Non-residents' income, for its part, is taxed at a flat rate of 12%4, and companies at a rate of 25%5.
This structure is worth comparing with that of European regimes. Portugal, Italy and Greece grant an advantage that departs from the ordinary rules, limited in time and reserved for newcomers. Uruguay, by contrast, starts from territorial taxation as the ordinary rule and merely neutralises one exception to it.
The difference matters when assessing the risk. Closing an incentive regime is a one-off political decision, which several states have taken; abolishing territorial taxation would require a complete overhaul of the tax system, which is another matter entirely.
The routes to tax residency
The ordinary route is based on presence: 183 days6 over the calendar year are enough to acquire Uruguayan tax residency.
An alternative route is based on a real estate investment, with a threshold of about $2,000,0007, combined with a reduced annual presence, set until the end of 2025 at 60 days8.
This second route is the one that built the country's reputation among Argentine and Brazilian wealthy families, for whom Uruguay serves as a regional safe haven.
Other routes exist, based on an investment in a business or on the centre of vital interests, each with its own thresholds and presence conditions.
We do not publish the details of each of these routes or the changes made by the most recent reform: we have not been able to verify them in an up-to-date official Uruguayan source. They must be established with the Dirección General Impositiva before any plan.
What to check
- Identify the intended route: presence of 183 days6, or a real estate investment with reduced presence.
- Formally elect the regime for new arrivals: it does not apply automatically.
- Distinguish foreign investment income, covered by the exemption, from other foreign income that is already outside the scope of tax.
- Plan for leaving the regime at the end of the 11 years2 and the switch to the 6%3 rate.
- Handle the departure from France according to its own criteria and under the France–Uruguay tax treaty.
The third point is the one that gives rise to misinterpretations. The regime does not exempt “foreign income” in general — that is already outside the scope of tax — but a specific category that Uruguayan territorial taxation catches by way of exception.
What remains uncertain
The scheme has been amended several times, both in its duration and in the routes to residency. This instability is the main factor to take into account in a long-term plan.
Uruguay nevertheless remains one of the most politically, monetarily and institutionally stable jurisdictions in Latin America, which explains its role as a regional haven. This general stability partly offsets the changeability of its incentive tax regimes.
The Uruguayan passport opens about 1629 visa-free destinations, but naturalisation requires long residence and is not the purpose of these schemes, which deal with taxation, not nationality.
For a French national, Uruguay should be judged on three criteria: the exemption of foreign investment income for eleven years, its genuine distance from Europe, and a cost of living higher than that of its neighbours. All three must be weighed together.
Please note
Sources and verification dates
- 1.
Uruguay, impatriate regime: taxation of foreign-source investment income : 0%
« Artículo 6º.- Aspecto espacial.- Estarán gravadas por este impuesto: 1. Las rentas de fuente uruguaya […] 2. Las rentas correspondientes a: I) Los rendimientos del capital […] en tanto provengan de entidades no residentes. […] Artículo 24º-Bis […] podrán optar por tributar el Impuesto a las Rentas de los No Residentes (IRNR) […] durante los diez ejercicios fiscales siguientes. — T.O. 2023, Título 7. Sous l'option IRNR, les dividendes de source étrangère ne sont pas imposés. »
impo.com.uyVerified on Nov 2, 2026Verified source
- 2.
Uruguay, impatriate regime: total duration of the option, year of acquisition included : 11 years
« Las personas físicas que adquieran la calidad de residente fiscal en la Republica a partir del 1º de enero de 2026 podrán optar por tributar el Impuesto a las Rentas de los No Residentes (IRNR) por el ejercicio fiscal en que se verifique el cambio de residencia y durante los diez ejercicios fiscales siguientes. »
impo.com.uyVerified on Nov 2, 2026Verified source
- 3.
Uruguay: reduced rate for impatriates after the regime expires : 6%
« Artículo 24º-Bis.- […] Transcurrido el plazo dispuesto en el inciso primero, las personas físicas residentes a que refiere dicho inciso podrán optar por: i.- tributar el Impuesto a la Renta de las Personas Físicas (IRPF) al 50 % (cincuenta por ciento) de la tasa correspondiente durante los cinco ejercicios fiscales siguientes […] siempre que se cumpla la condición establecida en el literal b) […] o cuando se efectúen inversiones en inmuebles […] superior a UI 6.250.000 — T.O. 2023, Título 7, art. 24-bis (Ley 20.446). 50 % du taux de 12 % = 6 %. »
- 4.
Uruguay: flat rate of non-resident income tax : 12%
« Restantes Rentas 12 % »
impo.com.uyVerified on Nov 2, 2026Verified source
- 5.
Uruguay: corporate income tax rate on net taxable profit : 25%
« Artículo 23º.- Tasa.- La tasa del impuesto será del 25% (veinticinco por ciento) sobre la renta neta fiscal. »
impo.com.uyVerified on Nov 2, 2026Verified source
- 6.
Uruguay: annual presence conferring tax residency : 183 days
« Que permanezca más de 183 (ciento ochenta y tres) días durante el año civil, en territorio uruguayo. Para determinar dicho período de permanencia en territorio nacional se computarán las ausencias esporádicas en las condiciones que establezca la reglamentación, salvo que el contribuyente acredite su residencia fiscal en otro país. »
impo.com.uyVerified on Nov 2, 2026Verified source
- 7.
Uruguay: approximate equivalent of the real estate investment threshold, expressed in indexed units : $2,000,000
« Artículo 24º-Bis.- Régimen de impatriados. Rentas de capital.- Las personas físicas que adquieran la calidad de residente fiscal en la República a partir del 1° de enero de 2026 podrán optar por tributar el IRNR por el ejercicio fiscal en que se verifique el cambio de residencia y durante los diez ejercicios fiscales siguientes. […] a) el efectuar inversiones en inmuebles […] por un valor superior a UI 12.500.000 (doce millones quinientas mil unidades indexadas), o b) el capitalizar fondos de inversión […] por al menos 625.000 UI anuales. — T.O. 2023, Título 7, art. 24-bis (Ley 20.446). 12,5 M UI ≈ 1,9–2,0 M USD au cours 2026 de l'unité indexée. »
- 8.
Uruguay: minimum annual presence under the investment-backed residency route : 60 days
« Artículo 24º.- […] Las personas físicas que hayan hecho uso de la opción […] podrán optar por tributar el IRNR por hasta un plazo máximo de diez ejercicios fiscales […] siempre que acrediten haber adquirido un inmueble por un valor superior a UI 3.500.000 […] a partir de la vigencia de la Ley N° 19.937 […] y registren en el país una presencia efectiva durante el año civil de al menos 60 (sesenta) días calendario. Dicha opción podrá realizarse por única vez y hasta el 31 de diciembre de 2025 (inciso primero sustituido por Ley N° 20.446, art. 649). Artículo 24º-Bis.- Régimen de impatriados […] a partir del 1° de enero de 2026 […] a) inversiones en inmuebles […] superior a UI 12.500.000, o b) capitalizar fondos de inversión […] por al menos 625.000 UI anuales. — T.O. 2023, Título 7, art. 24 et 24-bis (Ley 20.446 de 16.12.2025). »
impo.com.uyHistorical value, applicable until January 1, 2026
- 9.
Uruguayan passport: visa-free destinations : 162
« Henley Passport Index — classement des passeports par nombre de destinations accessibles sans visa préalable (données IATA), consulté à la date indiquée. Valeur reprise de l’index de l’ancien site (barème à 227 destinations). »
henleyglobal.comVerified on Nov 2, 2026Verified source