Relocation intelligence

🇺🇾 Moving to Uruguay: tax, residency and cost of living

11 years at 0% on foreign income

Thinking of moving to Uruguay? Here is the tax, residency, property and quality-of-life picture in plain numbers, with sources.

Key facts

Top income tax
36%
Corporate tax
25%
Capital gains
12%
Wealth tax
Yes
Inheritance tax
No
Cost of living index
48
Safety
6/10
Internet quality
8/10
Visa-free destinations
156
Foreigners can own property
Yes
Residency in
6 months
Citizenship in
5 years

Taxes

Uruguay taxes Uruguayan-source employment income progressively from 0% to 36% (IRPF). Foreign capital income (dividends, interest and, since 2026, also rent and capital gains) normally falls under 12%, but new tax residents can make a one-time election for an 11-year exemption; since 2026 this comes with conditions: 183+ days of presence per year, or a sizeable investment. There is an annual wealth tax from 0.1% above ± UYU 6.7 million, calculated on fiscal values far below market value. No inheritance tax; dividends from Uruguayan companies: 7%.

Residency and visas

Permanent residency is surprisingly accessible: proving a stable income (guideline ± USD 1,500 per month) suffices, with no investment requirement. Tax residency runs via 183+ days per year, or via a home above UI 3.5 million (± USD 500,000) plus 60 days of presence per year. Note: since 2026, the 11-year tax exemption carries stricter requirements: without a large investment, only via 183+ days per year. There is also a 6-month digital nomad permit, renewable.

Property ownership

Foreigners have exactly the same property rights as Uruguayans: full freehold in their own name, no permits, no minimum prices and no coastal restrictions. Transfers run through a notary, with 2% transfer tax (ITP) for the buyer. Only farmland carries a formal requirement: it must be held by natural persons or companies with nominative shares.

Cost of living and quality of life

Uruguay is South America's most stable democracy, with the strongest rule of law in the region. Montevideo and Punta del Este offer a European feel, fibre internet from regional champion Antel and solid private healthcare via mutualistas. Costs (Numbeo index ±48) are South America's highest, but well below Western Europe. Spanish is close to indispensable; English is spoken to a limited extent.

Passport and mobility

The Uruguayan passport is among Latin America's strongest: visa-free to 156 destinations (Henley 2026, rank 22), including all of Schengen, the UK and Japan. Unique: citizenship is genuinely attainable, after 3 years of legal residence with family or 5 years single, and Uruguay allows dual citizenship. Anyone who stays away for more than 6 consecutive months sees the residence clock restart.

Residency and visas

  • Residencia legal permanente (rentista: stabiel inkomen aantonen, richtlijn ± USD 1.500/mnd; geen investeringseis; staatsburgerschap na 3 jaar met gezin / 5 jaar alleenstaand) · €16,000/j
  • Fiscale residentie via vastgoed > UI 3,5 mln (± USD 500.000) + 60 dagen aanwezigheid per jaar · €470,000
  • Impatriado-investeringsroute per 2026 (11 jaar 0% buitenlands inkomen zonder 183-dageneis): vastgoed > UI 12,5 mln (± USD 2 mln) of productiefondsen ≥ UI 625.000/jaar · €1,800,000
  • Digital nomad-vergunning (6 maanden, verlengbaar; verklaring van voldoende middelen)

Why people move to Uruguay

  • 11 years without tax on foreign income

    Those who become tax resident can make a one-time election for the impatriado regime: the year of arrival plus ten following years without Uruguayan tax on foreign dividends, interest and capital gains. Since 2026, that election requires 183+ days of presence per year, or an investment (property from ± USD 2 million, or ± USD 100,000 per year in productive funds). Afterwards, continuation options exist, such as five years at half the rate.

  • A genuine second passport, within 3 to 5 years

    Uruguay is one of the few countries where a fully-fledged second passport is practically attainable: after 3 years of legal residence with family or 5 years single you can apply for citizenship, keeping your own nationality. The passport grants visa-free access to 156 destinations (Henley 2026, rank 22), including all of Schengen, the UK and Japan.

  • South America's most stable home base

    Decades of political stability, a dependable rule of law and full property rights for foreigners make Uruguay the region's safe haven. The climate is temperate, the fibre network Latin America's best, and Montevideo and Punta del Este feel European. Life costs more than elsewhere in South America, but still considerably less than in Western Europe.

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Sources

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