To strengthen and attract investment in the country with attractive tax benefits, on June 15, the General Assembly, based on a bill submitted by the Executive Power, approved the modification of Articles 6BIS and 26 of Title 7 of the Ordered Text, referring the Personal Income Tax (IRPF). They regulate the relationship to the tax regime applicable to individuals who change their tax residence for the Uruguayan territory.
Thus, as of fiscal year 2020, those who decide to change their tax residence to Uruguay can choose between:
Extend the IRNR grace window
This is the Non-Resident Income Tax, for their income derived from foreign capital income, for the year in which the residence is configured plus a period of five annual exercises (what is known as the “window period” ).
Tax personal income tax at a reduced rate of 7% not limited in time, for its income derived from foreign capital gains.
Income from foreign movable capital is understood to be income in cash or in kind from loans, deposits and any placement of capital or credit of any nature.
The process of establishing tax residence in Uruguay involves different steps in which we can accompany you in a personalized, agile and simple way. If you want to know how to access these benefits, we will gladly advise you.
