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Uruguay tax guide 2026
Uruguay taxes what happens in Uruguay: work income climbs a 0-36% scale, capital income settles at a flat 12% (dividends 7%), and foreign work income stays out of reach — though from 2026 foreign capital income and gains pay 12% — new residents can even lock in an 11-year holiday on foreign investment income. There is no inheritance or gift tax, and the wealth tax starts at just 0.1% above a threshold.
- Rate range
- 0% – 36% (work); flat 12% (capital)
- Key allowance
- First 84 benefit-base units a year at 0% — about UYU 577,000
- Tax year
- Calendar year
- Filing deadline
- June to August of the following year; pay in 5 instalments to December
Taxes covered
- Income tax36%
Work income climbs eight bands from 0% to 36%; capital income never enters the scale — it pays flat 12%.
- Dividend tax7%
Dividends from locally taxed company profits carry 7%, withheld by the payer; foreign-investment-income distributions pay 12%, and listed-company dividends are exempt.
- Capital gains tax12%
A flat 12% on gains from Uruguayan property and securities — and from 2026 on most foreign gains too (Law 20.446) — with the home sale, government bonds and small transactions exempt.
- Crypto tax12%
No dedicated crypto rules exist — practitioners treat gains as capital income at the flat 12%, and the 2026 broadening of foreign-income rules means even foreign-held coins now point to 12%.
- Social security≈18% – 23%
Employees pay 15% pension (capped), health insurance of 3-6% (+2% to cover a spouse) and a 0.10% retraining levy — all deductible against income tax.
- Inheritance tax0%
No inheritance or gift tax exists — only the property-transfer tax touches estates: 3% for direct-line heirs, 4% for gratuitous transfers of real estate.
- Withholding tax12%
The non-resident income tax runs at a flat 12% on Uruguayan-source income, withheld at source; dividends take 7% and interest follows term-based tiers.
Special regimes
- Territorial base
Work income is taxed only when Uruguayan-source — but from 2026 foreign capital income and gains pay 12% (Law 20.446), with exceptions and the new-resident holiday.
- 11-year tax holiday
New residents from 2026 can pay nothing on foreign investment income for 11 years — automatic for 183-day residents, or via investments of 12.5 million indexed units in property.
- Flat capital rates
Capital gains, rents and royalties pay a flat 12%; dividends from locally taxed profits just 7%, and listed-company dividends 0%.
- No inheritance or gift tax
Estates pass free of death duties — only a 3% property-transfer tax touches real estate going to children or parents.
- Mild wealth tax
Residents pay 0.1% on Uruguayan assets above a threshold of about UYU 6.65 million — government bonds excluded.
Recent changes
- 2026-01The five-year budget law rebuilt the expat regime: an 11-year foreign-income holiday for new residents (investment thresholds of 12.5 million indexed units in property or 625,000 in approved funds, waived for 183-day residents), follow-on options after it ends, and a wider transparency net for capital income held through foreign entities.
- 2023-01Interest moved to term-and-currency tiers (0.5% to 12%), the per-child deduction doubled to 20 benefit-base units (40 for disabled dependants), and the tenant rent credit rose to 8%.