UY
Tax holidays (new resident foreign capital income)
Active
Exemption
Uruguay · special tax regime
Rate
—
Duration
11 years
Prior non-residency
1 years
required before applying
Standard top income tax
36.0%
Uruguay, without the regime
Overview
- Regime
- Tax holidays (new resident foreign capital income)
- Country
- Uruguay
- Type
- Exemption
- Status
- Active
- Effective from
- Jan 1, 2020
- Expires on
- —
Details
- Summary
- One-time election to treat qualifying foreign capital income under IRNR for the arrival year plus ten following fiscal years (no IRPF/IRNR on those flows while the option applies).
- Eligibility
- New fiscal residents from 1 January 2020 onward; no prior exercise of the option; no tax-residency trigger in the immediately preceding fiscal year; form 0306 filed with DGI.
- Benefits
- Exemption from IRPF on covered foreign capital income (interests, dividends, etc.) for up to eleven fiscal years when IRNR treatment is elected.
- Requirements
- Sworn option via DGI form 0306; annual evidence where extensions apply under Law 19.937.
- Limitations
- Covers only foreign capital income (Título 7 art. 6(2)); employment and other domestic-source income remain in IRPF; mutually exclusive with the 7% IRPF flat option.
- Income types covered
- Foreign capital income (movable capital yields from non-resident entities)
- Duration details
- Arrival fiscal year plus ten subsequent years (10+1).
Other regimes in Uruguay
| Name | Type | Rate |
|---|---|---|
| New resident 7% IRPF on foreign capital income | Flat rate | 7.0% |
| Zonas Francas (Free Trade Zones) | Free zone | — |
View source DGI; T.O. 2023 art. 24