Uruguay Tax Rates
Uruguay operates a territorial tax system administered by the Dirección General Impositiva (DGI). The country taxes only Uruguayan-source income for most individuals, with a progressive personal income tax (IRPF) reaching 36%, a 25% corporate income tax (IRAE), and a 22% value-added tax (IVA). Uruguay is known for its political stability, transparent institutions, and favorable tax regime for foreign investors and new residents, who benefit from a tax holiday on foreign-source income.
Top Income Tax Rate
36%
Corporate Tax Rate
25%
VAT / Sales Tax
22%
Capital Gains Tax
12%
Detailed Tax Information
Income Tax Brackets
Uruguay imposes a progressive personal income tax (IRPF - Impuesto a la Renta de las Personas Físicas) with eight brackets on employment and self-employment income, ranging from 0% to 36%. Capital income (investment income) is taxed separately at a flat 12%. Under the territorial system, only Uruguayan-source income is generally taxable. New tax residents can elect to be taxed on a territorial basis for 11 years (including the year of arrival plus 10 additional years), after which worldwide income becomes taxable. Alternatively, new residents can opt to pay a flat 7% on foreign-source investment income from the start.
| Income Range | Tax Rate |
|---|---|
| UY$0 – UY$472K | 0% |
| UY$472K – UY$674K | 10% |
| UY$674K – UY$1.0M | 15% |
| UY$1.0M – UY$2.0M | 24% |
| UY$2.0M – UY$3.0M | 25% |
| UY$3.0M – UY$4.6M | 27% |
| UY$4.6M – UY$6.9M | 31% |
| UY$6.9M+ | 36% |
Corporate Tax
Uruguay imposes a 25% corporate income tax (IRAE - Impuesto a las Rentas de las Actividades Económicas) on Uruguayan-source income from business activities. Foreign-source income is generally exempt. Companies in free trade zones (zonas francas) are exempt from all national taxes, including IRAE, making Uruguay's free zones very attractive for international businesses. Small businesses with annual income below certain thresholds may opt for a simplified small business tax (Monotributo or IMEBA) instead of IRAE. Monthly advance payments are required.
Standard Rate
25%
Capital Gains Tax
Capital gains in Uruguay are taxed at a flat 12% as part of the capital income category under IRPF. This includes gains from the sale of real estate (other than primary residence), shares, and other investments. For real estate sales, the gain is calculated as the difference between the sale price and the inflation-adjusted acquisition cost. Gains from the sale of shares in companies operating within Uruguayan free trade zones may be exempt. Non-residents are subject to a 12% withholding tax on Uruguayan-source capital gains.
Short-Term Rate
12%
Long-Term Rate
12%
Rate
12%
VAT / Sales Tax
Uruguay levies a 22% value-added tax (IVA) on most goods and services, one of the highest standard rates in the Americas. A reduced rate of 10% applies to essential goods including basic food products, medicines, hotel services, and public transportation. Exports are zero-rated. Exempt activities include financial services (most), healthcare, education, and cultural activities. Uruguay offers IVA reductions for purchases made with debit or credit cards and for electronic payment methods as incentives for financial inclusion.
Standard Rate
22%
Cryptocurrency Tax
Uruguay treats cryptocurrency gains as capital income, subject to the 12% IRPF rate on capital income for individuals or 25% IRAE for businesses. The DGI has not issued specific cryptocurrency regulations, but existing tax rules apply. Under the territorial system, crypto gains from foreign-source activities would be exempt during the 11-year tax holiday for new residents. Taxpayers should report crypto holdings and income in their annual returns.
Tax Treaties
Uruguay has approximately 15 double taxation agreements in force. The treaty network has been growing as Uruguay has increased its integration into the international tax framework. Uruguay does not have a comprehensive tax treaty with the United States. Uruguay participates in the Global Forum on Transparency and Exchange of Information for Tax Purposes and exchanges information under the Common Reporting Standard (CRS). Uruguay is not an OECD member but is considered an OECD Key Partner.
Treaty Network
15
Double taxation agreements
Major treaty partners:
Key Details
Relocate to Uruguay
See how much you could save by moving here from your current country.
+$6K
Tax in United States
$24K
24.4% effective
Tax in Uruguay
$18K
18.1% effective
You Save
25.7%
less tax annually
US Citizens: Important Note
US citizens are taxed on worldwide income regardless of residence. You'll still need to file US taxes, though the Foreign Earned Income Exclusion and Foreign Tax Credit may reduce your liability.
