How to get tax residency in Uruguay in 2026, and claim the new tax holiday

Last reviewed: November 2026 · Reviewed by Stéphane Gombauld, tax expert, technologist and digital nomad

You work remotely and Uruguay is on your shortlist. The rules changed on 1 January 2026, and most advice online still describes the old newcomer regime. After this guide you will know which residence test you will meet, which permit to get, and how to claim the new tax holiday correctly.

Uruguay tax residency in 2026: the key figures

The UI (Unidad Indexada) is an inflation-linked unit. Its peso value changes daily, so convert thresholds on the date you invest.

What changed for 2026

• New newcomer regime. Law 20,446 (national budget law) applies from 1 January 2026. It added art. 24 BIS, a conditional 10+1-year holiday for people who become resident from that date.
• Wider tax on foreign income. Art. 6 of Title 7 now also reaches capital gains on assets of non-resident entities. The DGI says the holiday covers foreign rents and gains too.
• The 7% route is closed to new arrivals. The permanent 7% IRPF option remains for people who became resident between 2020 and 2025. It is not offered under art. 24 BIS.
• Rules regulated in 2026. Decree 95/026 (May 2026) regulates the new foreign-income rules. Decree 188/026 (August 2026) and Decree 225/026 (September 2026) regulate the newcomer option.

Is this guide for you?

Read on if you…

• plan to move to Uruguay in 2026 or 2027 and earn income from abroad;
• hold dividends, interest, rental property or gains outside Uruguay;
• need a Uruguayan residence certificate for a bank or your former tax office.

Probably not your case if you…

• became a Uruguayan tax resident before 2026: older rules apply, see our guide to tax incentives for expats in Uruguay;
• only visit for a few months a year with no property or business there.

Which test will make you a Uruguayan tax resident?

Article 2 of Title 7 gives two tests. Meet either one and you are resident for the whole calendar year.

Test 1: more than 183 days

Every day you are physically in Uruguay counts, whatever time you land. Here's the catch: absences of 30 consecutive days or less are "sporadic". They count as days in Uruguay.

You can only exclude them with a tax residence certificate from another country's tax authority. A two-week trip to Europe therefore still counts.

Test 2: your centre of interests

You are also resident if the main core of your activities or interests is in Uruguay. Decree 148/007, art. 5-BIS makes this concrete:

• Main base of activities: you earn more income in Uruguay than in any other single country. Purely passive capital income does not count.
• Vital interests: presumed if your spouse and dependent minor children live habitually in Uruguay.
• Economic interests: one of four investments, unless you prove tax residence elsewhere:
  • property above UI 15,000,000;
  • more than UI 45,000,000 in a company with a project declared of national interest;
  • property above UI 3,500,000 bought from 1 July 2020, plus at least 60 days of presence;
  • more than UI 15,000,000 in a company, from 1 July 2020, that creates 15 new full-time jobs in the year.

In practice, most remote workers rely on the 183-day test. The investment routes suit people who keep strong ties elsewhere.

Which permit do you need to live there?

Tax residence and immigration status are separate. Still, you need legal status to stay long term, open accounts and rent.

1. Pick your category. The Ministry of the Interior lists temporary residence for stays over 180 days and under 2 years.
2. Consider applying for permanent residence directly. If you plan to settle, you can request it without a temporary permit first.
3. Mercosur nationals can get a 2-year temporary residence, renewable once. Apply for the renewal within 90 days before expiry.
4. Digital nomads can request a hoja de identidad provisoria (provisional ID sheet). It allows activity for 180 days, renewable for another 180 (Decree 238/022).
5. File online. The residence portal lists the steps and documents for the residencia legal procedure.

Good news: the nomad ID sheet is enough to live there for a while. It does not prove tax residence. Only the DGI certificate does.

How does the new 2026 tax holiday work?

Uruguay taxes residents mainly on Uruguayan-source income. The exception is capital income from non-resident entities, such as foreign dividends and interest. Since 2026, IRPF also reaches gains on those foreign investments. The general rate is 12% under art. 37.

The holiday lets you pay IRNR instead. IRNR (Impuesto a la Renta de los No Residentes) only taxes Uruguayan-source income. So, in practice, your foreign capital income stays out of Uruguayan tax.

Who qualifies

According to the DGI guide for 2026 arrivals, you must:

• become tax resident from 1 January 2026;
• not have been resident in the two previous fiscal years;
• not have used an earlier tax holiday;
• meet one condition each year: more than 183 days (proven with a residence certificate), property above UI 12,500,000 bought from 1 September 2025, or at least UI 625,000 a year invested in qualifying funds.

For urban property in inland departments, with no Atlantic or Río de la Plata coast, the purchase cost counts double towards the UI 12,500,000 (art. 5-SEXIES, Decree 148/007).

How long it lasts and how to claim it

• Duration: the year you become resident plus the next 10 years.
• Claim: file Form 0307 with the DGI, once. You cannot change the option afterwards.
• Annual proof: show you met a condition for each year before 31 March of the following year.
• Missed year: you lose the benefit for that year only, then regain it when you comply again.

After the 11 years, art. 24 BIS offers two follow-ups. One is IRPF at half the normal rate for 5 years. It needs property above UI 6,250,000 bought from 1 September 2025, or UI 625,000 a year in qualifying funds. The other is a fixed annual tax of UI 1,875,000, reduced to UI 1,250,000 in years with more than 183 days. You can use it for up to 20 years (DGI).

Your move timeline: before, during, after

Before the move (3–6 months out)

• Gather and apostille civil documents for the residence file.
• Check that you were not a Uruguayan tax resident in the two prior years.
• Map your income: Uruguayan work income, foreign capital income, foreign gains.

During the first year

• File for legal residence and keep your migration records.
• Keep a day log. Remember the 30-day rule for trips abroad.
• File Form 0307 to opt into the holiday.

After the first year

• Request a residence certificate with Form 5202, using the Migración arrival certificate as proof of days.
• Send your holiday proof to the DGI before 31 March.
• File any IRPF return due. For 2025 income, the window was 29 June to 31 August 2026.

Comparing countries? Paraguay and Brazil work very differently. See our practical guide to obtaining tax residency in Paraguay and the Brazil equivalent.

Common mistakes (and what they cost)

• Treating every trip as time abroad → absences of 30 days or less count as presence, so you become resident and owe IRPF.
• Assuming the old 7% option is still open → 2026 arrivals cannot use it; without art. 24 BIS, foreign capital income is taxed at 12%.
• Skipping the yearly proof → the holiday is lost for that year, and that year's foreign income falls into IRPF.
• Buying a UI 4 million flat to get the holiday → it meets the residence shortcut but not the UI 12,500,000 holiday condition.
• Confusing the nomad ID with tax residence → your former country keeps taxing you because you cannot show a DGI certificate.

Frequently asked questions

How many days do I need to be a tax resident in Uruguay?

More than 183 days in the calendar year. Every day of physical presence counts. Trips abroad of 30 consecutive days or less also count, unless you hold a foreign tax residence certificate. You can also become resident with fewer days through the interests test, for example a qualifying property plus 60 days.

Is the Uruguay tax holiday still available in 2026?

Yes, but with new conditions. People who become resident from 1 January 2026 can opt for IRNR on foreign capital income for 11 years. Each year you need more than 183 days, property above UI 12,500,000 or UI 625,000 in qualifying funds. You must not have been resident in the two prior years.

Can I become a tax resident by buying property in Uruguay?

Yes. Property above UI 3,500,000 bought from 1 July 2020, plus at least 60 days of presence, makes you resident. Property above UI 15,000,000 does so without a day count. Both apply only if you cannot prove tax residence elsewhere. The holiday needs a separate, higher threshold.

Does Uruguay tax my foreign income?

Partly. Uruguay taxes Uruguayan-source income plus, for residents, capital income from non-resident entities, such as foreign dividends and interest. From 2026 that scope includes gains on those foreign investments. Foreign salary for work done outside Uruguay is not taxed. The newcomer holiday can keep foreign capital income out of tax for 11 years.

How do I prove I am a Uruguayan tax resident?

Ask the DGI for a Certificado de Residencia Fiscal with Form 5202, online or in person. For the day test, attach the arrival certificate from the Dirección Nacional de Migración. For investment-based residence, the certificate is issued only for a completed calendar year.

Does Uruguay have a tax treaty with my country?

Possibly. The DGI lists treaties with countries such as Spain, Germany, Italy, Portugal, the UK, Switzerland, Mexico, Brazil and Paraguay. A treaty's tie-breaker decides which country wins if both treat you as resident. Check the DGI treaty list before you move.

Related guides

• Uruguay tax residency rules and tests explained
• How to cease your tax residency in Uruguay
• Uruguay tax incentives for expats and digital nomads
• Capital gains tax in Uruguay
• Uruguay tax landscape overview
• Obtaining tax residency in Paraguay
• All country tax guides

Sources

• Title 7 TO 2023, art. 2 (IRPF residence) – IMPO
• Decree 148/007, art. 5-BIS to 5-SEPTIES – IMPO
• Title 7 TO 2023, art. 24 BIS (impatriate regime) – IMPO
• Impatriate regime for residence from 01.01.2026 – DGI
• Certificate of tax residence for individuals – DGI
• Types of residence in Uruguay – Ministerio del Interior
• Taxation after the IRNR option ends – DGI

This guide is general information, not personalised tax advice. See how we research and review.