Moving to Uruguay: tax, residence and real costs (2026)
Uruguay: 0% on foreign dividends and interest for 11 years (tax holiday) · up to 36% on local work income. The cheapest route to residence is legal residence with ~USD 1.5k/month income; tax residence 183 days (or a ~USD 380k property + 60 days): about USD 1,000 in fees doing it yourself, with no investment, with about USD 1,500 a month of income shown, in about 9 months. Living costs about USD 1,550 a month for one person in Montevideo, USD 750 in Melo, and around USD 710 on a bare-minimum budget.
Key facts
| Tax in one line | 0% on foreign dividends and interest for 11 years (tax holiday) · up to 36% on local work income |
| Foreign income | tax holiday: foreign dividends and interest untaxed for 11 years (or 7% after); foreign capital gains untaxed |
| Gains · dividends | foreign: 0 · local 7% |
| Wealth · inheritance tax | on local assets only (declining) · none |
| Cheapest residence | legal residence with ~USD 1.5k/month income; tax residence 183 days (or a ~USD 380k property + 60 days) |
| Money needed | About USD 1,000 in fees doing it yourself, with no investment |
| Time | about 9 months |
| Doable yourself? | Mostly; a local fixer for one step helps |
| Days you must spend there | 183 days, or 60 with the investment route |
| Citizenship | 3-5 years |
| Online business | 25% effective, about USD 2,000 a year to run: services done from Uruguay are Uruguayan income (IRPF up to 36%); the 11-year holiday covers foreign passive income only |
| Living (one person a month) | Montevideo ~USD 1,550; bare minimum ~USD 710; family of four ~USD 3,250 |
| Good for | the 11-year holiday on foreign passive income; stable institutions; free zones for services companies (0% tax) |
| Common set-up | residence + holiday election; services sold abroad from a free-zone company |
Pros and cons
| Pros | Cons |
|---|---|
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Programmes
| Programme | All-in, one person | Months | Notes |
|---|---|---|---|
| Legal residence | USD 2,500 | 6 | Income proof, no fixed sum; tax residence via 183 days or a USD 500k property (60 days) or business investment. |
Questions
- How much does residence in Uruguay cost?
- Legal residence with ~USD 1.5k/month income; tax residence 183 days (or a ~USD 380k property + 60 days): about USD 1,000 in fees doing it yourself, with no investment, about 9 months.
- Does Uruguay tax foreign income?
- Tax holiday: foreign dividends and interest untaxed for 11 years (or 7% after); foreign capital gains untaxed. In one line: 0% on foreign dividends and interest for 11 years (tax holiday) · up to 36% on local work income.
- What does it cost to live in Uruguay?
- Living costs about USD 1,550 a month for one person in Montevideo, USD 750 in Melo, and around USD 710 on a bare-minimum budget (based on livingcost.org, 2026).
- Can I run an online business from Uruguay?
- Effective tax about 25% with the cheapest legal set-up, which costs about USD 2,000 a year: services done from Uruguay are Uruguayan income (IRPF up to 36%); the 11-year holiday covers foreign passive income only.
- What is the catch in Uruguay?
- Expensive for the region; Far from Europe and the US
- What residence or citizenship programmes does Uruguay have?
- Legal residence: about USD 2,500 all-in for one person, ~6 months
Compare
- Paraguay: 0% on foreign income · 10% on local income · 8% on local dividends
- Panama: 0% on foreign income · up to 25% on Panamanian income · 10% on local dividends
- Belize: 0% on foreign income · up to 25% on local income
- Costa Rica: 0% on foreign income · up to 25% on local income · 15% on local dividends
- El Salvador: 0% on foreign income · up to 30% on local income
- Honduras (Próspera ZEDE): ~5% on income in the zone · 0% on foreign income
Compare all 53 places with your own income and budget →
Sources
- https://www.dgi.gub.uy
- Living costs: based on livingcost.org (livingcost.org, June 2026), rounded