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

It’s Ski Season! Four Resorts to Invest In Now

The swish of skis, the powder on the slopes and the crisp mountain air… With Covid restrictions easing, many holidaymakers’ thoughts are turning to travel - and with the winter sports season in full flow, what better time to look at the resorts that offer the most bang for your investment bucks? Read on for Propeterra’s rundown of our favourite ski destinations - including some you’d never have expected!

Niseko, Japan

Japan might not seem like an obvious skiing destination, but the snow at Niseko is hard to beat. Located in the northern Japanese island of Hokkaido, the annual snowfall is a staggering 15 metres - so unlike some less fortunate resorts in warming parts of Europe, your good skiing is practically guaranteed. Niseko is also renowned for its beautiful scenery and luxury accommodations - and with New Chitose International Airport a short two hour drive away, as well as the Hokkaido Shinkansen connection coming in 2030, it’s never been easier to travel there.

Prime investment opportunities available now include the Pavilions Resort Villas and the Ginto Residences - and for more information on the area, Propeterra’s Niseko Report is available for download now.

3 minutes read

Affordable Housing - the ADB and Lessons from the UK

The Asian Development Bank (ADB) recently released a briefing paper attempting to
learn lessons from the UK as to successes and failures of affordable housing policy. It is
justifiable to critique the UK’s faltering policy of delivery over a number of decades, but
this is precisely why it is a fruitful area of enquiry from analysts considering other parts
of the world. The UK has benefitted from significant resources, and policymakers have
been under considerable pressure from the electorate to ensure adequate housing across tenures. This is why the Chief of the Urban Sector Group at the ADB, Manoj Sharma, saw fit to commission this work, and report on its conclusions.

3 minutes read

Back to desks and back to the city!