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🇺🇾 Retire in Uruguay

Tax rates, cost of living, special programs, and top cities for international investors and retirees.

Tax System Overview

Uruguay offers new residents a 10-year tax holiday on foreign income, or the option to pay just 7% from day 1 on foreign dividends and interest. Foreign capital gains remain exempt even after the holiday. There's a small wealth tax (~0.4%). Stable, well-regulated, and often called the 'Switzerland of South America'.

  • ✓Foreign investment income is tax-free (territorial system)
  • ✓Wealth tax: 0.4% on assets above $0K
  • ✓10-year exemption on foreign income (10 years)

What Would You Pay?

Estimated annual tax on different levels of investment income (capital gains + dividends + interest):

Annual Investment IncomeEstimated TaxEffective Rate
$50,000$00.0%
$100,000$00.0%
$200,000$00.0%

Assumes 60% capital gains, 25% dividends, 15% interest. Actual tax depends on your specific income mix.

Tax Programs for New Residents

10-year exemption on foreign income

10 years at 0%

New tax residents get a 10-year exemption on foreign-source income. Alternatively, elect to pay 7% from day 1 on foreign dividends and interest (capital gains stay exempt). After 10 years, the 7% rate applies.

Top Cities in Uruguay

Montevideo

$1,452/month

Tax Calculator

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Move & Save Simulator

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Tax rates and programs are subject to change. Information is current as of 2026. Always consult a qualified tax professional before making relocation decisions.