Uruguay For Solopreneurs - Tax, Immigration, Lifestyle

Uruguay taxes individuals largely on a territorial basis, so locally sourced income faces progressive rates from 10% up to 36% while most foreign income historically stays outside the net. New tax residents can elect a long tax holiday that shields foreign passive income for the arrival year plus ten more years, and a 2026 reform now applies a 12% rate to foreign passive income for those who do not hold the holiday. The country pairs strong fiber internet and the highest English proficiency in Latin America with a mandatory social security system, a net wealth tax, and a 22% VAT.