Tax system in Uruguay
Uruguay is a source-based tax system, but residents can also be taxed on specific foreign capital income and gains after the 2025-2029 Budget Law. The headline personal income tax rate runs up to 36% for employment income, with a separate 12% rate for many capital income items.
Individuals and companies can also face an annual net wealth tax. For individuals, the tax is indexed and depends on residence and asset location; for companies, the standard rate is 1.5% on net assets located or used in Uruguay, with a higher rate for low-tax jurisdictions.
Companies generally pay 25% corporate income tax, while large multinational groups can fall under a 15% domestic minimum top-up tax from fiscal years ending on or after 16 December 2025. VAT, payroll withholding, social security contributions and branch or dividend withholding taxes also matter in practice.
Tax rates at a glance
- Income tax
- 10% - 36%Progressive
- Wealth tax
- 0.1% - 1.5%
- Inheritance tax
- 0%
- Capital gains tax
- 12%
- Corporate tax
- 25%
- Dividend tax
- 7%
- VAT
- 22%
Who benefits most
These profiles tend to benefit most when the rules match their real residence, payroll and business setup.
ExpatsFoundersInvestorsRemote workersFamily offices
Watch out for
- The 2025-2029 Budget Law changed the planning picture for individuals from 1 January 2026, including a tax holiday for eligible new residents and broader taxation of certain foreign-source capital income and gains.
- Uruguay has no inheritance tax, but it does have a recurring wealth tax and succession estates can be within that regime until heirs are formally declared.
- Payroll costs are material in Uruguay, with employer social security contributions generally around 12.625% and employee contributions typically ranging from 18.1% to 23.1%.
- VAT is 22% in the standard case, with a 10% reduced rate for several categories.
Frequently asked questions
Is Uruguay a low-tax country?
Uruguay is not tax-free. It has progressive personal income tax, annual net wealth tax, 25% corporate income tax, 22% VAT and dividend withholding taxes, although some resident and foreign-source income rules are still relatively favorable.
Does Uruguay have wealth or inheritance tax?
Uruguay has a net wealth tax, but no inheritance tax or gift tax. The wealth tax is indexed and can apply to individuals, succession estates and companies.
What should expats and founders check first?
Check tax residence, the 183-day rule, investment-based residence tests, payroll social security, VAT registration, dividend withholding, wealth tax thresholds and the 2026 tax holiday and foreign-income changes.