Tax Residency and Companies in Uruguay 🇺🇾

One of three South American countries that offers: "Territorial Taxation"

Uruguay 🇺🇾

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.

Meaning:

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!