Uruguay announces the loosening of tax residency requirements

Patrick Chambers
2 min read

In July 2020 the Uruguayan government announced that it was relaxing the requirements for foreigners who want to gain tax residency in the country. Decree 163/20 obtains the two updated main conditions for obtaining tax residency in Uruguay.

The first route is via the acquisition of a real estate investment worth more than UI3,500,00 (Uruguay’s inflation adjusted currency, worth roughly $390,000 as calculated in February 2021.) This acquisition must have taken place after 1st June 2020. In addition, the individual must be present in Uruguay for at least 60 days in each calendar year. 

 

The second route is via a direct or indirect acquisition of a company which has a value of UI 15,000,000 (roughly $1,670,000) or more. This acquisition must have been made after 1st June 2020 and must generate at least fifteen new, full-time jobs. These new jobs must also not have led to a decrease in jobs in related companies. 

 

UruguayExclusive beach at new luxury property development Las Cárcavas. Image: Business Wire



The previous regulations involved more time and more capital. In the past, an individual could be considered a tax resident in Uruguay if they remained in the country for more than 183 days in each calendar year or if the base of their economic or ‘vital’ interests (meaning their activities generated more income in Uruguay than in any other country) were in Uruguay.

 

The investment criteria were also higher: the minimum real estate acquisition value was UI15,000,000 (roughly $1,670,000) and the company acquisition value was UI45,000,000 (roughly $5,010,000.) The company’s activities had to have been declared of national interest for investment purposes. 

 

Uruguay has long been considered one of South America’s shining stars from an investment point of view. The government is not only loosening its tax residency requirements, but also working on being able to offer tax-free zones and zone ports. Expected tens of thousands of new foreign investors, new luxury property developments and continued Chinese investment mean the Uruguayan real estate market is likely to have a bright future.

LEAVE A COMMENT
Recent Articles
Subscribe


Sign up to receive the Propeterra's newsletter and exclusive property news and updates. You can unsubscribe at any time by clicking on the unsubscribe links in our emails.

 

 

posts by tag

See all

Market Cover_Emerging Markets-1

 

Market Cover_Frontier Markets-1

 

Market Cover_Special Situations-1-1

 

Market Cover_Developed Markets-1

 

Recent Articles

2 minutes read

The Rise of Institutional Investors in the UK Property Market

Property has long been a popular investment for many individuals, and it’s easy to see why; careful investment in the right place can create solid financial returns, generating high levels of income through rental yields and capital growth.  This is especially the case in the UK, where an undersupply of housing in many areas has led to rapidly rising house prices and increasing rental revenues. 

United Kingdom

4 minutes read

The Oxford-Cambridge Arc – a rainbow with pots of gold at both ends

 

Oxford

3 minutes read

Uganda: Economic and Real Estate Assessment

Uganda has had a tumultuous eighteen months. Like elsewhere, there has been a deterioration in the overall position of the public finances, prompted by lockdowns and travel restrictions.

Africa