What is the Uruguayan tax holiday?

New tax residents can elect an eleven-year exemption on foreign-source passive income such as dividends and interest, or opt instead for a permanent 7% flat rate.

How do I become a tax resident?

183 days of presence, or investment of roughly USD 2.2m in a business with 15 jobs, or around USD 525,000 in real estate combined with 60 days of presence.

Are Uruguay free zones worthwhile?

Yes for export services and logistics — full corporate tax exemption in exchange for operating from the zone and meeting local employment requirements.

Jurisdiction · Americas

Uruguay

South America's most stable jurisdiction, with an 11-year tax holiday for new residents.

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Overview

Uruguay combines the region's strongest institutions with a territorial system and a tax holiday: new tax residents can elect an eleven-year exemption on foreign passive income, or pay a flat 7% instead. Residency is achievable through investment or documented income with genuine presence.

Its free zones — Zonamerica and Aguada Park among them — give full corporate tax exemption for qualifying export services, which makes Uruguay a legitimate regional services hub as well as a residency destination.

Typical use-cases

Where Uruguay fits

Personal relocation
Regional holding
Free zone operations

Banking

Banking landscape

Banco República, Itaú Uruguay, Santander and BBVA serve corporate and personal clients. Uruguay has a long private banking tradition serving Argentine and Brazilian clients, and account opening for residents is straightforward with proper source-of-funds evidence.

Tax

Tax & reporting

25% corporate income tax on Uruguayan-source income; foreign-source income is generally outside the charge. New tax residents may elect an eleven-year holiday on foreign passive income or a permanent flat 7% rate. Free zone entities are exempt from corporate income tax on qualifying activities. VAT is 22%.

Substance

Substance & register visibility

Tax residency requires 183 days of presence, or investment thresholds combined with a minimum presence of 60 days. Free zone benefits require operating from the zone with local employment quotas. Beneficial ownership is registered with the central bank on a confidential basis.

Decision

When to pick this jurisdiction

Pick Uruguay for a family relocating to South America with foreign investment income, for a free zone services operation serving the region, or as a stable holding base for Mercosur activity.

The director's view

Written up as a comparative shortlist.

Every Uruguay recommendation is delivered as a comparative memorandum — substance defensibility, banking access, treaty coverage, register visibility, cost to maintain and reputational risk — so the client can see the trade-offs before committing.

Next step

Considering Uruguay? Get a written comparison first.

Answer six questions and a director will come back with a shortlist, indicative costs and banking route.

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Frequently asked

Questions we hear on every Uruguay intake.

What is the Uruguayan tax holiday?: New tax residents can elect an eleven-year exemption on foreign-source passive income such as dividends and interest, or opt instead for a permanent 7% flat rate.
How do I become a tax resident?: 183 days of presence, or investment of roughly USD 2.2m in a business with 15 jobs, or around USD 525,000 in real estate combined with 60 days of presence.
Are Uruguay free zones worthwhile?: Yes for export services and logistics — full corporate tax exemption in exchange for operating from the zone and meeting local employment requirements.

Relevant services