Uruguay

Residence rules for income tax purposes are set out in the Law. An individual is considered resident when at least one of the following conditions is met:

• Presence in the country for more than 183 days (formal criterion). For determining such period, sporadic absences will be counted.
• The base of its activities, or economic or vital interests, is settled in Uruguayan territory (substantial criteria). The legislation presumes that this condition is met when one’s spouse and dependent under-age children habitually reside in Uruguay. Furthermore, it will be considered that the individual has one’s base of activities in the country when one derives from Uruguay more income than in any other country (this does not apply when one derives exclusively passive income from the country).
• Regulations establish that if the individual has an investment in Uruguay that complies with one of the following conditions, the individual will be considered resident for tax purposes (presence of economic interests in the country), unless one proves one's fiscal residence in another country:
  • More than 15 million 'Indexed Units' (approximately USD 2,332,000) in properties located in Uruguayan territory.
  • More than 45 million 'Indexed Units' (approximately USD 6,997,000) in a company with projects or activities promoted by the Investment Law, directly or indirectly.
  • More than 3.5 million ‘Indexed Units’ (approximately USD 544,000), in real estate property, provided that it is carried out from 1 July 2020, and the individual is present in Uruguay for at least 60 days. If no new acquisitions are made, the updated fiscal cost will be considered for each property.
  • More than 15 million ‘Indexed Units’ (approximately USD 2,332,000), in a company, provided that it is carried out from 1 July 2020 and at least 15 new full-time jobs in dependent relationship are created (during the civil year). New jobs are those generated from 1 July 2020 and are not related to a reduction of jobs in a related party.