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Uruguay

Name: Uruguay Startup Jurisdiction Scores
Creator: NomadSignal

#4 of 26Impatriados - 11-year tax holiday on foreign capital income36%

South America · Montevideo · UYU

South America's most stable and least corrupt jurisdiction - 25% corporate tax (territorial on foreign income), an 11-year tax holiday on foreign capital income for new residents, a 0% IP-box regime on R&D-derived patents and registered software, and an unusually open Digital Nomad Permit (Decree 238/022) with no income threshold. Watch-out: 2026 Law 20.446 eroded the territorial principle - foreign capital income is now taxed 12% for residents and the 60-day residency-by-investment route is gone.

Overall Score

Tax100

Funding70

Visa70

Residency80

Tax Res.70

Practical78

Remote94

Family95

Ecosystem55

Dimension Profile

Tax Note

Impatriados - 11-year tax holiday on foreign capital income36%

Tax residency is triggered at 183 days of presence per year.
Impatriados - 11-year tax holiday on foreign capital income is available for up to 11 years. Qualifying residents may exempt foreign-source income from local tax at a flat 0% rate.
Controlled Foreign Corporation (CFC) rules are in effect. Foreign company ownership may trigger local tax obligations even on undistributed profits.
Self-employed social security contributions: 10.5%.
Uruguay participates in the Common Reporting Standard (CRS). Financial accounts are automatically reported to your home country tax authority.
Foreign asset reporting is required. Residents must declare foreign bank accounts and assets to local tax authorities.

Not tax advice. Consult a qualified tax professional before establishing residency.

Dimension Breakdown

Corporate Tax Rate: 25%
Capital Gains Rate: 12%
Territorial System: Yes
IP Box Regime: Yes
IP Box Rate: 0%
Tax Treaties: 25
VAT Rate: 22%
Dividend Withholding: 7%
Holding Company Viable: Yes
Notes: 25% IRAE flat corporate rate (Ley 18.083), source-based/territorial: foreign-source income generally exempt. Since 2023 (Law 20,095) foreign passive income from MNE groups lacking economic substance is taxed as Uruguayan-source at 25%. Holding/real estate companies (>=75% of assets in participations or real estate) get simplified substance. IP-box: R&D-derived patents and registered software are exempt from IRAE under the BEPS Action 5 nexus formula (Direct R&D costs in UY + 30% uplift / Total R&D costs). Software must be DNPI-registered with an annual sworn declaration. Free Zones (e.g. Zonamerica) offer full tax exemption for export-oriented operations.

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