Americas · UYU
Uruguay
Reviewed 2026-06-21
Top income tax
36%
Self-employed SS
Yes
VAT
22%
Capital gains
12%
Exit tax
No
Nomad visa
Yes
66
/ 100
Tax efficiency44
Ease to enter79
Ease to exit93
Cost of living72
Internet44
English100
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.
Personal income tax
Income tax structureProgressive
Top income tax rate36%
Entry income tax rate10%
Top rate threshold$223,000
Taxation basisTerritorial
Local/state income taxNo
Social security
Self-employed social securityYes
Employee SS rate18.1%
Employer SS rate12.63%
Indirect & other taxes
VAT standard rate22%
Capital gains rate12%
Long-hold CGT exemptionNo
Wealth taxYes
Inheritance/gift taxNo
Property taxNo
Exit & residency
Exit taxNo
EU/EEA deferralNo
Days to trigger residency183 days
Corporate
Corporate income tax rate25%
WHT on dividends7%
CFC rulesNo
Incentives & special regimes
Special expat regimeYes
Expat regime nameTax holiday for new tax residents (IRNR option on foreign passive income for 11 years)
Immigration & setup
Digital nomad visaYes
Entrepreneur visaYes
Ease of setup3 / 5
Lifestyle
Cost of living index55.6
Internet speed194 Mbps
English proficiencyHigh
Civil liberties93
Sources
- PwC Worldwide Tax Summaries — Uruguay Individual Taxes on personal income
- PwC Worldwide Tax Summaries — Uruguay Individual Other taxes (social security, VAT, net wealth tax)
- PwC Worldwide Tax Summaries — Uruguay Individual Significant developments (2026 reform, tax holiday)
- PwC Worldwide Tax Summaries — Uruguay Corporate Taxes on corporate income (CIT 25%)
- EF English Proficiency Index — Uruguay (High band, score 542)
Informational only. Nothing here is tax, legal, or financial advice. Tax rules change often and vary by personal circumstance. Verify every figure against an official source and a qualified adviser before acting. Figures are re-expressed from public sources and cited per country.