Residence and tax residency in UruguayOverview
Uruguay's Migration Law (Law 18.250) allows foreign nationals to apply for legal permanent residence on the basis of sufficient and stable means of living, such as a pension, rental income, dividends or remote employment income. The law sets no fixed amount; the Dirección Nacional de Migración assesses each case, and an accountant's certification of income is commonly used. Nationals of Mercosur states benefit from a simplified procedure. Applications are filed after arrival in Uruguay, and applicants receive a Uruguayan identity card (cédula) early in the process, which allows them to open bank accounts, sign leases and access education and healthcare while the residence file is decided.
Immigration residence does not by itself confer tax residence. Under Title 7 of the tax code, an individual is tax resident if present in Uruguay for more than 183 days in a calendar year, if the centre of vital or economic interests is in Uruguay, or if specified investment thresholds are met. Investment grounds include real estate above UI 15,000,000 with no presence requirement, real estate above UI 3,500,000 acquired after 1 July 2020 combined with 60 days of presence, and qualifying business investments. These grounds still establish tax residence in 2026, but on their own they no longer open the tax holiday for new residents.
Law 20.446, the 2025–2029 national budget law published on 8 January 2026, reshaped the regime for those becoming tax resident from 1 January 2026. Foreign capital income is now taxed at 12% under personal income tax, and the scope was widened to capital gains on assets whose income derives from non-resident entities. New residents can obtain an exemption on foreign capital income for the year of arrival plus ten years if they invest more than UI 12,500,000 (about US$2 million) in qualifying urban real estate, contribute at least UI 625,000 (about US$100,000) a year to qualifying investment funds, or spend more than 183 days in Uruguay each year. The former option of a permanent 7% rate on foreign dividends and interest closed to new elections at the end of 2025. Residents who entered the previous regime before 31 December 2025 keep their existing terms.
Residents can live, work and run businesses without restriction, and public education, including university, is free. Families may apply for legal citizenship after three years of residence and single applicants after five, provided residence is genuine and ties to the country can be demonstrated. Uruguay distinguishes between natural and legal citizens, and holders of legal citizenship should take advice on how their passport and nationality are recorded before relying on it for travel.
Key benefits
- Permanent residence without a minimum investment, based on stable means of living
- Identity card issued early, allowing banking and daily life to begin while the file is processed
- Full rights to live, work and do business
- Tax holiday on foreign capital income for up to eleven years for qualifying new tax residents
- Stable democracy with strong institutions and a predictable legal system
- Spouse or partner and children included in the residence application
- Route to legal citizenship after three or five years of genuine residence
Requirements
- Evidence of stable means of living, typically certified by an accountant
- Birth and marriage certificates, apostilled and translated into Spanish
- Police clearance certificates from countries of residence over the past five years
- Medical certificate (carné de salud) issued in Uruguay
- Filing in person in Uruguay with the Dirección Nacional de Migración
- For tax residency, a certificate issued by the tax authority (DGI) based on presence, interests or investment
- For the tax holiday under the 2026 rules, a qualifying real estate or fund investment or more than 183 days of presence, and no previous use of the holiday
- Source-of-funds documentation for investments, in line with Uruguayan AML rules
Investment options
Permanent residence on means of living
No fixed minimum
Income from pensions, rents, dividends or remote work, assessed case by case by the Dirección Nacional de Migración.
Tax holiday via real estate
Above UI 12,500,000 (about US$2 million)
Urban property acquired from 1 January 2026 that is not the person's own residence, opening the eleven-year exemption on foreign capital income.
Tax holiday via fund contributions
UI 625,000 a year (about US$100,000)
Annual capitalisation of qualifying investment funds throughout the holiday period.
Tax residency via real estate (no holiday)
Above UI 3,500,000 or UI 15,000,000
Investment grounds that still establish tax residence, with or without a 60-day presence requirement, but no longer open the holiday for new residents on their own.
Tax holiday via presence
More than 183 days a year
Tax residence based on physical presence each year, with no investment required.
Step-by-step process
- 1
Residence and tax strategy
We map immigration status and tax residency separately and decide which grounds, if any, should be used for the tax holiday.
- 2
Prepare civil documents
Birth and marriage certificates and police clearances are obtained, apostilled and translated.
- 3
Arrive and file
The application is filed in Uruguay, a local medical certificate is obtained, and the cédula is issued.
- 4
Make any qualifying investment
Where the holiday is sought through investment, the real estate purchase or fund contribution is completed with full due diligence.
- 5
Obtain the DGI tax residency certificate
The tax authority confirms tax residence and the applicable regime.
- 6
Residence approval and maintenance
On approval, the cédula reflects permanent status and is renewed periodically; annual conditions for the tax holiday are monitored.
Typical documents
- Valid passports for all applicants
- Birth certificates, apostilled and translated into Spanish
- Marriage or partnership certificate, where applicable
- Police clearance certificates covering the past five years
- Uruguayan medical certificate
- Accountant's certification of income or other proof of means of living
- Title deeds or fund statements for any qualifying investment
- Evidence of the source of funds used for investments
How Legal Wealth helps
Legal Wealth helps families plan Uruguayan residence and tax residency as two coordinated but separate decisions. We assess whether the 2026 holiday conditions are worth meeting, work with independent Uruguayan lawyers, accountants and notaries on the residence file and any investment, and prepare source-of-funds evidence to banking standards. Where relocation forms part of a succession or holding-structure review, we align the two, keeping the engagement private and tailored to the family.
Enquire with Legal WealthFrequently asked questions
Is there a minimum income for Uruguayan residence?
The law sets no fixed amount. The Dirección Nacional de Migración assesses whether income is sufficient and stable, usually on the basis of an accountant's certification.
What changed for tax residents in 2026?
Law 20.446 applies to those becoming tax resident from 1 January 2026. The holiday now requires real estate above about US$2 million, annual fund contributions of about US$100,000, or more than 183 days of presence, and the permanent 7% option is closed to new residents.
I already have the holiday. Am I affected?
Residents who entered the previous regime before 31 December 2025 keep their existing terms for the remainder of their holiday.
Does residence make me tax resident?
No. Tax residence depends on presence, centre of interests or investment, and is confirmed by a DGI certificate.
How soon can I apply for citizenship?
Families may apply for legal citizenship after three years of residence and single applicants after five, provided they genuinely live in Uruguay.
Do I need to stay in Uruguay to keep residence?
No fixed number of days applies to keep residence, but citizenship requires genuine residence and the tax holiday's presence route requires more than 183 days a year.
Last reviewed: 2026-10. Requirements, fees and timelines change. Information is general, reviewed on the date shown, and is not legal or tax advice.
