Uruguay
South America • UTC-3 • America/MontevideoUruguayan Personal Income Tax
Uruguay's tax system is territorial, taxing residents only on Uruguayan-source income. The system includes personal income tax, corporate tax, and VAT.
Income Tax
0%–36%
Progressive rates on Uruguayan-source income
Corporate Tax
25%
Flat corporate tax rate
VAT / GST
22%
Standard VAT rate
Nomad Visa
Available
Digital Nomad Visa
Tax System Overview
Uruguay operates a territorial tax system, taxing residents only on Uruguayan-source income. The system includes personal income tax, corporate tax, and VAT.
System Type
Territorial tax system
Resident Taxation
Residents are taxed on Uruguayan-source income only.
Non-Resident Taxation
Non-residents are taxed on Uruguayan-source income at flat rates.
Tax Year
January 1 – December 31
Income Tax Bands
Uruguay's progressive income tax bands based on annual taxable income in Uruguayan Pesos (UYU) for 2025.
Tax Treaty
Double Taxation Agreements help reduce withholding taxes and avoid double taxation on income from foreign sources.
Germany
Treaty ActiveUruguay and Germany have a double taxation treaty that prevents individuals and businesses from being taxed twice on the same income, reduces withholding taxes on dividends, interest, and royalties, and clarifies tax residency rules.
Key Benefits
Prevents double taxation on income earned in both countries.- Reduced withholding tax on dividends, interest, and royalties.
- Clarifies tax residency to determine where taxes should be paid.
Totalization Agreement
These agreements coordinate social security systems, ensuring workers pay into only one system at a time.
Spain
Agreement ActiveUruguay and Spain have a social security totalization agreement that prevents workers from paying social security in both countries simultaneously.
Coverage Areas
Facts
- Prevents double taxation of social security contributions for Uruguay–Spain workers.
- Allows workers who split careers between the two countries to combine contribution periods.
Other Countries with Agreements
Business & Freelancing
Corporate Tax Rate
25% flat rate for all corporate entities
VAT Registration
Mandatory if annual turnover exceeds UYU 1,000,000.
Freelancer Rules
Freelancers are taxed on Uruguayan-source income under the same progressive rates as individuals.
Crypto Policy
Cryptocurrency gains are treated as capital gains and taxed accordingly.
Frequently Asked Questions
Digital Nomad & Benefits
Visa Details
Tax Perks
- No tax on foreign income for the first 5 years of residency.
- Access to Uruguay's stable economic environment.
Filing Roadmap
Obtain a Tax Identification Number
Apply for a tax identification number at the local tax office.
Register as a Tax Resident
If you meet the residency criteria, register as a tax resident within 60 days.
Gather Income Documentation
Collect all necessary income statements and documentation for the tax year.
File Your Tax Return
Submit your tax return online or at the local tax office by the April 30 deadline.