--- title: "Uruguay tax for new residents 2026: rates and regimes" url: https://settleanywhere.com/countries/uruguay/tax/ lang: en updated: 2026-10-12 --- # Uruguay tax Tax residence: More than 183 days in calendar year. 3 special regimes for new residents: Pre-2026 new-resident options on foreign capital income: IRNR tax holiday or 7% IRPF, Uruguay impatriate regime and Uruguay talent attraction programme. Checked against official sources on 12 Oct 2026 [Change log](https://settleanywhere.com/changes/) ## Tax residence - More than 183 days in calendar year · Individuals are tax resident if present more than 183 days in the calendar year, or if the main base of activities or economic or vital interests is in Uruguay. - Absences of a sporadic kind count toward the 183 days under regulation; a resident of another country can prove foreign tax residence. - Alternative residence criterion: core of activities or economic or vital interests in Uruguay. ## Special regimes for new residents Special regime ### Pre-2026 new-resident options on foreign capital income: IRNR tax holiday or 7% IRPF (closed to new choices since 31 December 2025) 7% tax **Details** People who became Uruguayan tax residents from 2020 to 2025 could choose, once and only until 31 December 2025, to pay the non-resident tax (IRNR) for the year of the change and the next ten fiscal years, so foreign-source capital income pays no Uruguayan tax in that time, or the personal income tax (IRPF) at 7% with no time limit instead of 12%. Those who chose keep the option; people who become resident from 1 January 2026 fall under the impatriate regime (art. 24-BIS) instead, which has no 7% option. (sources 1, 2, 3, 4) #### Taxed on Foreign-source movable capital income (interest, dividends and similar) from non-resident entities; other income such as employment income remains under IRPF category II. #### Who it applies to - Became a tax resident in fiscal years 2020 to 2025 and made the choice by 31 December 2025 (art. 24 as amended by Ley 20.446 art. 649: the option could be made once and until 31 December 2025). - Declared no prior use of the option and that no residence ground applied in the immediately preceding fiscal year. - Option exercised once, by form 0306 filed with the DGI. - Extending the pre-2020 option to 10 years needs real estate in Uruguay worth more than 3,500,000 indexed units (UI), bought on or after 22 Jan 2021. #### Exclusions - Not open to people who become tax resident on or after 1 January 2026. - Applies only to foreign-source movable capital income. - Employment and other income remain taxable under IRPF. - For residents from before 2020 the earlier option (5 years +1) can be extended to 10 years if the person holds Uruguayan real estate above 3,500,000 indexed units bought on or after 22 Jan 2021 and spends at least 60 days a year in Uruguay. #### Days in the country - More than 183 days in calendar year · Individuals are tax resident if present more than 183 days in the calendar year, or if the main base of activities or economic or vital interests is in Uruguay. #### Tax residence Tax residence rests on the 183-day or centre-of-interests tests; the option was made once on becoming a resident, no later than 31 December 2025. #### Visas Tax regime is independent of the residence category; it is closed to new entrants from 2026. #### Other taxes Option form 0306; VAT, social security and employment income taxes not covered. Checked against official sources on 12 Oct 2026 [Change log](https://settleanywhere.com/changes/) Special regime ### Uruguay impatriate regime for foreign capital income (new fiscal residents from 1 Jan 2026) Tax relief Foreign-source income: New residents, 11 years **Details** - Limit: UYI 12.5M A person who becomes Uruguayan tax resident on or after 1 January 2026 may elect to be taxed as a non-resident (IRNR) on foreign-source capital income and gains for the year of the change of residence plus the next 10 fiscal years, once only; afterwards two IRPF options run for up to 20 further fiscal years. (sources 5, 1, 6, 7, 8) #### Taxed on Foreign-source income under art. 6 no. 2 of Título 7: returns on capital from non-resident entities and capital gains on those assets (the IRNR election covers only these items, not Uruguayan-source income or employment income). #### Who it applies to - Became Uruguayan tax resident on or after 1 January 2026 and was not tax resident in the two immediately preceding fiscal years. - Has not applied the earlier art. 24 option. - Phase 1 (IRNR election, year of change plus 10 fiscal years): meet one of (a) real-estate investment above UI 12,500,000 as set by regulation, or (b) capitalise investment funds financing productive projects or applied research/innovation of at least UI 625,000 per year; or, for years in which the person is resident under the more-than-183-days test, elect without either investment. - Phase 2 option i (IRPF at 50% of the normal rate for 5 fiscal years, available once, after phase 1): requires condition (b) in each year, or real-estate investment above UI 6,250,000. - Phase 2 option ii (fixed annual IRPF of UI 1,875,000 on all art. 6 no. 2 income; UI 1,250,000 in years the 183-day test is met or with a direct productive investment in a company above UI 45,000,000): spouses of electing persons may elect at 15% of those fixed amounts. - Phase 2 options are annual and may be exercised until 20 fiscal years after the first election. #### Exclusions - Election is available once only. - Persons whose earlier 5-year or 10-year art. 24 non-resident option expired before 1 January 2026 can use only the phase 2 IRPF options; those still inside the earlier period on 31 December 2025 can use phase 2 after it ends. - Regulation sets final terms (art. 24 bis last paragraph). #### Limits - UYI 12,500,000 · Real-estate investment above this value in UI qualifies for the 11-year IRNR election - UYI 625,000 a year · Minimum annual capitalisation of qualifying investment funds (alternative to the real-estate route) - UYI 6,250,000 · Real-estate investment above this value qualifies for the 50%-rate IRPF option for 5 fiscal years - UYI 1,875,000 a year · Fixed annual IRPF on art. 6 no. 2 income under option ii (UI 1,250,000 in 183-day years) - UYI 45,000,000 · Direct productive investment in a company above this value gives access to the UI 1,250,000 fixed amount #### Days in the country - More than 183 days in calendar year · Presence in Uruguay of more than 183 days makes the person tax resident (art. 2 lit. A); in each year this test is met the person can elect the regime without the investment condition #### Tax residence Tax residence also arises when the main base of activities or economic or vital interests is in Uruguay (art. 2 lit. B), presumed where spouse and minor dependent children habitually live in Uruguay. #### Visas Tax regime is separate from Uruguayan legal residence; it attaches to becoming tax resident from 2026 and to the investments or presence stated in art. 24 bis. #### Other taxes Uruguayan-source income and employment income stay under ordinary IRPF/IRAE rules. The earlier art. 24 option (non-resident treatment for 5 fiscal years, or 10 under the 2020 laws) could be elected only until 31 December 2025. Checked against official sources on 10 Oct 2026 [Change log](https://settleanywhere.com/changes/) Special regime ### Uruguay talent attraction programme (IRNR option on employment income) Tax relief Foreign-source income: Talent: non-resident tax 5 years **Details** - On: Employment income under the qualifying contract Foreign-based talent who relocate to work as employees for innovation, technology or global-services companies may elect to pay non-resident tax (IRNR) on that employment income and may opt out of Uruguayan social security, for the calendar year of election plus the following four. (source 8) #### Taxed on Employment income under the qualifying contract (IRNR election replaces IRPF on it). #### Who it applies to - Programme created by Ley 20.446 art. 190 for nationals or foreigners residing abroad who relocate to perform an employment contract with companies or science-technology institutions linked to innovation or technology development, or providing global services, with regular and permanent activity in Uruguay; regulation may add priority-area companies. - No Uruguayan tax residence in the five fiscal years before moving. - Physical presence in Uruguay for at least two thirds of the days of the calendar year (pro-rated to the contract period if employment lasts part of the year). - All employment income earned in Uruguay, exclusively as an employee. #### Exclusions - Options exercised once, at the start of the first employment under the regime; loss of the presence or sole-employee conditions in any year ends the options and general rules apply. - Early renunciation is irrevocable and covers both taxes. #### Tax residence Presence test is a share of days (two thirds), not a fixed day count. Applies from the effective date of Ley 20.446 for employment started between 1 March 2025 and 31 December 2025 and after; terms and conditions are to be set by the Executive Power (art. 191). #### Visas Not a visa; relocation to Uruguay is a condition of the programme. #### Other taxes Worker may declare in writing that he or she does not wish to be covered by Uruguayan social security, in which case no contributions are due. Art. 190 of Ley 20.446 does not state the IRNR rate that applies to this income; the terms are left to the Executive (art. 191). Checked against official sources on 12 Oct 2026, some details partly verified [Change log](https://settleanywhere.com/changes/) ## Standard rules and foreign-source income Standard rules ### Uruguayan personal income tax: territorial basis and residence tests 12% tax **Details** - Who: Tax resident under art. 5 IRPF (more than 183 days in the calendar year IRPF residence arises from presence for more than 183 days in the calendar year or from having the main base of activities or economic interests in Uruguay; capital income from foreign entities is taxed at 12% unless the person holds one of the new-resident options. (sources 3, 4, 1, 5) #### Taxed on Movable capital income (interest, dividends and similar) from non-resident entities, for residents who hold no new-resident option. #### Who it applies to - Tax resident under art. 5 IRPF (more than 183 days in the calendar year, or main base of economic or vital interests). #### Exclusions - The earlier choice of non-resident tax (IRNR) or a 7% rate for new residents closed on 31 December 2025; only people who made it by then keep it. - People who become tax resident from 1 January 2026 fall under the impatriate regime (art. 24 bis) instead, which has investment or presence conditions and no 7% rate. #### Days in the country - More than 183 days in calendar year · Individuals are tax resident if present more than 183 days in the calendar year, or if the main base of activities or economic or vital interests is in Uruguay. #### Tax residence Absences of a sporadic kind count toward the 183 days under regulation; a resident of another country can prove foreign tax residence. #### Visas No visa category sets the tax residence. #### Other taxes Employment income falls under IRPF category II. Checked against official sources on 12 Oct 2026 [Change log](https://settleanywhere.com/changes/) Standard rules ### Uruguay personal income tax (ordinary context) 12% tax **Details** - On: Capital income other than listed items - Who: Tax resident under art. 2 of Título 7 Residents (more than 183 days in the calendar year, or main economic or vital interests in Uruguay) pay IRPF on Uruguayan-source income and, since 1 January 2026, on foreign-source capital income and capital gains on foreign assets; foreign-source employment income is not in the base unless paid for services to Uruguayan IRAE/IRPF taxpayers. (sources 7, 6, 2, 8) #### Taxed on Capital income other than listed items (including foreign-source returns on capital under art. 6 no. 2): 12%; dividends from IRAE taxpayers and copyright income: 7%. #### Who it applies to - Tax resident under art. 2 of Título 7. #### Exclusions - Employment services performed abroad are Uruguayan-source only if rendered in dependency to IRAE or IRPF taxpayers or entities in art. 10 (art. 6). #### Days in the country - More than 183 days in calendar year · Presence in Uruguay makes the person tax resident, counting sporadic absences as presence unless residence in another country is proven #### Tax residence Alternative residence criterion: core of activities or economic or vital interests in Uruguay. #### Visas Tax residence is determined by Título 7 art. 2, not by the type of residence permit. #### Other taxes Deposit interest and bond interest have lower tabulated rates in art. 37 lit. A. Checked against official sources on 10 Oct 2026 [Change log](https://settleanywhere.com/changes/) ## VAT, social security and other taxes - Option form 0306; VAT, social security and employment income taxes not covered. - Employment income falls under IRPF category II. - Uruguayan-source income and employment income stay under ordinary IRPF/IRAE rules. The earlier art. 24 option (non-resident treatment for 5 fiscal years, or 10 under the 2020 laws) could be elected only until 31 December 2025. - Worker may declare in writing that he or she does not wish to be covered by Uruguayan social security, in which case no contributions are due. Art. 190 of Ley 20.446 does not state the IRNR rate that applies to this income; the terms are left to the Executive (art. 191). ## Questions people ask ### When do you become a tax resident in Uruguay? More than 183 days in calendar year (Individuals are tax resident if present more than 183 days in the calendar year, or if the main base of activities or economic or vital interests is in Uruguay). Absences of a sporadic kind count toward the 183 days under regulation; a resident of another country can prove foreign tax residence. ### Who qualifies for Pre-2026 new-resident options on foreign capital income: IRNR tax holiday or 7% IRPF? Became a tax resident in fiscal years 2020 to 2025 and made the choice by 31 December 2025 (art. Tax regime is independent of the residence category; it is closed to new entrants from 2026. ### Who qualifies for Uruguay impatriate regime? Became Uruguayan tax resident on or after 1 January 2026 and was not tax resident in the two immediately preceding fiscal years. Tax regime is separate from Uruguayan legal residence; it attaches to becoming tax resident from 2026 and to the investments or presence stated in art. ### Who qualifies for Uruguay talent attraction programme? Programme created by Ley 20.446 art. Not a visa; relocation to Uruguay is a condition of the programme. ### How are Remote employee residence holders taxed in Uruguay? No special regime in our records is tied to the Remote employee residence. The standard rules apply: IRPF residence arises from presence for more than 183 days in the calendar year or from having the main base of activities or economic interests in Uruguay; capital income from foreign entities is taxed at 12% unless the person holds one of the new-resident options. ≈ USD figures are approximate: daily reference rates from ExchangeRate-API, dated 12 Oct 2026, refreshed when the site is updated. **Sources (8)** ## Official sources 1. [Texto Ordenado 2023, Título 7 (IRPF), artículo 24 - option of new residents to be taxed as non-residents (as amended by Ley 20.446 art. 649)](https://www.impo.com.uy/bases/todgi2023/101-2024/24_T7) · IMPO - Dirección Nacional de Impresiones y Publicaciones Oficiales (Uruguay) · checked 2026-10-12 · published 2026-01-08 2. [Texto Ordenado 2023, Título 7 (IRPF), artículo 37 - Tasas (capital income, literal B as amended by Ley 20.446 art. 653)](https://www.impo.com.uy/bases/todgi2023/101-2024/37_T7) · IMPO - Dirección Nacional de Impresiones y Publicaciones Oficiales (Uruguay) · checked 2026-10-10 · published 2026-01-08 3. [Tax holidays: opción para nuevos residentes fiscales en Uruguay](https://www.gub.uy/direccion-general-impositiva/comunicacion/publicaciones/tax-holidays-opcion-para-nuevos-residentes-fiscales-uruguay) · Dirección General Impositiva · checked 2026-10-10 · published 2025-10-15 4. [Texto Ordenado DGI, Título 7 — IRPF (residencia fiscal)](https://www.impo.com.uy/bases/todgi-2023/7-2024?verOriginal=1) · Dirección General Impositiva / IMPO · checked 2026-10-10 5. [Texto Ordenado 2023, Título 7 (IRPF), artículo 24 bis - Régimen de impatriados (added by Ley 20.446 art. 648)](https://www.impo.com.uy/bases/todgi2023/101-2024/24_BIST7) · IMPO - Dirección Nacional de Impresiones y Publicaciones Oficiales (Uruguay) · checked 2026-10-12 · published 2026-01-08 6. [Texto Ordenado 2023, Título 7 (IRPF), artículo 6 - Aspecto espacial (as amended by Ley 20.446 art. 653)](https://www.impo.com.uy/bases/todgi2023/101-2024/6_T7) · IMPO - Dirección Nacional de Impresiones y Publicaciones Oficiales (Uruguay) · checked 2026-10-10 · published 2026-01-08 7. [Texto Ordenado 2023, Título 7 (IRPF), artículo 2 - Residentes, personas físicas](https://www.impo.com.uy/bases/todgi2023/101-2024/2_T7) · IMPO - Dirección Nacional de Impresiones y Publicaciones Oficiales (Uruguay) · checked 2026-10-10 8. [Ley 20.446 - Presupuesto Nacional 2025-2029 (promulgated 16/12/2025, published 08/01/2026; in force 1 January 2026 per art. 3), arts. 190-192, 648-649, 653](https://www.impo.com.uy/bases/leyes/20446-2025) · IMPO - Dirección Nacional de Impresiones y Publicaciones Oficiales (Uruguay) · checked 2026-10-12 · published 2026-01-08