Tax Residency and Companies in Uruguay 🇺🇾
One of three South American countries that offers: "Territorial Taxation"
One of the most developed, stable, safe and economically countries in all of Latin America, with a European vibe typical of the “Southern Cone”
One of the three South American countries - together with Bolivia and Paraguay - that have a territorial system of taxation.
This means that income considered foreign-sourced is not taxed, whereas Uruguayan-sourced income is taxed. This is applicable both at the personal and corporate level.
Uruguay is a country you could live in the whole year and legally pay 0 tax.
Making the country a good base for entrepreneurs and investors active in southern South America.
Today, we’ll cover all you need to know about taxes, tax residency and companies in the country. This includes:
The Source Principle in Uruguay
Main taxes and rates
Tax advantages and exemptions
Companies and special regimes (SA, SAS and Zonas Francas)
Immigration and citizenship will be left to the next post. Let’s get to it!