Uruguay Visa Fee & Cost Updates
Uruguay is implementing significant reforms to its tax residency requirements effective January 2026. Under Ley 20.446, the real estate investment floor rises from $590,000 to $2 million, while the 60-day low-presence residency route is eliminated. New rules also introduce a 12% tax on foreign income for those missing the 11-year tax holiday, though the DGI has suspended withholdings on foreign capital gains to simplify obligations for residents.
The catch for Uruguay tax residents in Ley 20.446 includes a $2 million floor
New reforms eliminate the 60-day low-presence residency route and introduce a 12% tax on foreign income for those who do not qualify for the 11-year tax holiday. To maintain tax benefits, expats must now prove 183 days of annual presence or contribute $100,000 to a national innovation fund.
Inside Uruguay's Updated Tax Residency Rules
Effective January 2026, Uruguay is raising the real estate investment requirement for its 11-year tax holiday from $590,000 to $2 million. The 60-day physical presence residency option will be eliminated, and non-qualifying residents will face a 12% tax on foreign-sourced income.
Uruguay Updates Tax Withholding Rules for Foreign Capital Gains
Uruguay's tax agency (DGI) has suspended IRPF withholdings and advance payments on capital gains earned from foreign sources. This change simplifies tax obligations for tax residents, including expats and digital nomads, who hold international investments or assets.
Understanding Uruguay's Updated Tax Residency Rules
Starting January 2026, Uruguay is raising the bar for tax residency, requiring a $2 million real estate investment or a $100,000 innovation fund contribution. While the 11-year tax holiday on foreign income remains, the previous 7% permanent tax option is being phased out.
Uruguay Updates Tax Incentives for Investment Projects
The Uruguayan government has issued Decree No. 329/025, modifying the criteria for tax benefits under the national investment promotion regime. Expat entrepreneurs and foreign investors have until April 30, 2026, to submit projects under the existing rules before the new criteria take full effect.