Thinking about moving to Uruguay as an expat? Known for its political stability, high quality of life, and laid-back lifestyle, Uruguay has quietly become one of South America’s top destinations for expats seeking safety, freedom, and comfort.
In this guide, we’ll walk you through everything you need to know about relocating to Uruguay from a personal tax perspective, including tax residency, income tax, special tax regimes and tax return obligations.
TaxPilot recommend that you organize your affairs in good time to get ahead and make the most of favorable tax treatment while making sure you’re meeting your tax return obligations.
Uruguay follows a territorial taxation model. You will pay tax on local sourced incomes only, irrespective of your resident status.
if you are present in Uruguay on more than 183 days during any 12 month period.
If your personal, social and economic interests are located in Uruguay during the tax year.
Tax on property and share sales
Tax on value of owned assets
Tax on assets passed to heirs
Tax to contribute to state welfare
If you receive incomes overseas while you are living in the Uruguay, you may find that the source country, as a starting point, continues to tax the income.
Double taxation agreements may remove the source country’s taxing right and thus, enable you to receive incomes tax free globally.
At present, Uruguay has 24 double taxation agreements signed.
