Residence in Uruguay

Law 19.904, enacted in September 2020, establishes that non-resident individuals who obtain tax residency in Uruguay as of fiscal year 2020 may choose to be taxed on income from movable capital generated abroad (bonds, shares, etc.) in the following ways: This is a significant advantage, since tax residents in Uruguay who cannot use these options are taxed at a 12 % rate on this income. Subsequently, Law 19.937, enacted in December 2020, establishes that persons who opted to pay IRNR before fiscal year 2020 may extend this option for up to 10 years from the year in which they obtained their residence, provided they can prove that they have purchased real estate for a value of more than IU 3,500,000 (approximately USD 400,000) as from […]

Our tax regulations establish that individuals are considered tax residents in the country as long as they meet at least one of the following two conditions: Regarding point 2, a person is deemed to have their center of activities in Uruguay when they generate a greater volume of income in Uruguay than in any other country. Likewise, a person is presumed to have their vital interests in the country when their spouse and minor children reside in Uruguay. As of Decree 330/2016, a person is considered to have rooted their economic interests in the national territory when they make an investment in either of the following ways: Subsequently, in 2020, Decree 163/020 introduced two additional grounds of economic interests in Uruguay: These four economic-interest grounds