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Countries › Uruguay › Guide › 6. Taxes › Personal income tax in Uruguay (IRPF): residence, the 10 to 36 percent scale on work income, capital income at 7 and 12 percent, foreign capital income and the new impatriate regime

Personal income tax in Uruguay (IRPF): residence, the 10 to 36 percent scale on work income, capital income at 7 and 12 percent, foreign capital income and the new impatriate regime

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Last verified: 2026-10-27 · Status: Changing

Individuals who are tax resident in Uruguay, mainly those present more than 183 days in the calendar year or with their main base of activities or interests in the country, pay IRPF; non residents pay IRNR only on Uruguayan source income. Work income is taxed on a progressive annual scale from 10 to 36 percent above 84 BPC (UYU 576,576 in 2026); capital income bears 7 percent on dividends from IRAE taxpayers and 12 percent on most other income, with lower rates for local deposits and listed debt. Residents are taxed on foreign dividends and interest and, since Ley Nº 20.446 replaced the rule from 2026, on gains from foreign assets too; individuals becoming resident from 2026 can opt for the impatriate regime, which keeps foreign capital income under IRNR for the year of arrival and ten more years.

USD figures use UYU 40.214 per US dollar, the BCU quotation for DLS. USA BILLETE on 26 October 2026; UI amounts use UYU 6.6780 per Unidad Indexada, the BCU quotation for 26 October 2026. Both were retrieved from the BCU quotations service on the verification date; conversions are for orientation only.

Key facts

Days of presence for individual tax residence (more than)183 daysT.O. 2023 Title 7 art. 2, as of 2026-10-27 · in force
Top IRPF rate on work income36 %T.O. 2023 Title 7 art. 48, as of 2026-10-27 · in force
Annual work income exempt amount for individuals84 BPCT.O. 2023 Title 7 art. 48, as of 2026-10-27 · in force
IRPF on dividends from IRAE taxpayers7 %T.O. 2023 Title 7 art. 37, as of 2026-10-27 · in force
IRPF on other capital income and gains12 %T.O. 2023 Title 7 art. 37, as of 2026-10-27 · in force
Impatriate IRNR option on foreign capital income (year of arrival plus)10 yearsT.O. 2023 Title 7 art. 24 BIS (Ley Nº 20.446 art. 648), as of 2026-10-27 · in force
Base de Prestaciones y Contribuciones (BPC) for 20266864 UYUDecreto Nº 11/026, as of 2026-01-01 · in force
UYU per US dollar used for conversions (BCU, DLS. USA BILLETE, 26 October 2026)40.214 UYUBCU quotations service, as of 2026-10-27 · in force

The rule

1. An individual is tax resident when present in Uruguay for more than 183 days in the calendar year (sporadic absences count as the regulation sets, unless residence elsewhere is proved), or when the main core or base of activities or of economic or vital interests is in Uruguay; vital interests are presumed in Uruguay when the spouse and dependent minor children habitually live there.
Cost to do it: No fee; residence certificates are requested from the DGI.
Example: A manager who arrives on 1 March 2026 and stays is resident for 2026. / Residence follows days or interests, not visa type.Texto Ordenado 2023 (DGI), Title 7 IRPF, Title 7 art. 2, 2006-12-27 official text · verified 2026-10-27
2. Work income (Category II) scale for individuals: exempt up to 84 BPC a year, then 10 percent to 120 BPC, 15 percent to 180 BPC, 24 percent to 360 BPC, 25 percent to 600 BPC, 27 percent to 900 BPC, 31 percent to 1,380 BPC and 36 percent above. Families can opt for joint filing scales with higher exempt amounts. The tax is reduced by 14 or 8 percent of deductible items (pension and FONASA contributions, a child allowance of 20 BPC a year per child, and mortgage payments on a single home within UI limits).
Cost to do it: With the 2026 BPC of UYU 6,864: 84 BPC is UYU 576,576, 180 BPC UYU 1,235,520, 1,380 BPC UYU 9,472,320.
Example: Annual pay of UYU 1,440,000 gives about UYU 113,098 of IRPF after the 8 percent credit on contributions. / About US$2,812 on US$35,808 of annual pay; the 36 percent rate starts above about US$235,548 a year.Texto Ordenado 2023 (DGI), Title 7 IRPF, as amended by Ley Nº 20.446, Title 7 art. 48 and art. 49, 2015-05-29 official text · verified 2026-10-27 · changed: Ley Nº 20.446 art. 650 added to art. 49 literal D) the minors placed with the taxpayer for adoption.
3. Capital income (Category I) rates: 7 percent on dividends or profits paid by IRAE taxpayers out of IRAE taxed income and on deemed dividends; 7 percent on copyright income; 12 percent on remaining capital income and gains. Interest on local deposits and on listed debt bears 0.5 to 12 percent depending on currency and term (pesos at fixed rate 5.5, 2.5 and 0.5 percent; adjustable pesos 10, 7 and 5 percent; foreign currency 12 percent up to one year and 7 percent over three years).
Cost to do it: Withheld by the payer where a withholding agent exists; otherwise declared.
Example: A resident receiving UYU 402,140 of dividends from a Uruguayan S.A. bears UYU 28,150 of IRPF. / US$10,000 of local dividends bears US$700; US$10,000 of other capital income bears US$1,200.Texto Ordenado 2023 (DGI), Title 7 IRPF, as amended by Ley Nº 20.446, Title 7 art. 37 (literal B as replaced by Ley Nº 20.446 art. 653 numeral 6), 2025-12-16 official text · verified 2026-10-27 · changed: Ley Nº 20.446 art. 653 numeral 6 replaced literal B) of art. 37 from 1 January 2026.
4. Residents are also taxed on capital income from non resident entities and, under the text replaced by Ley Nº 20.446, on capital gains on those foreign assets. For foreign assets the cost is taken in the currency of the investment, listed financial assets can use their 31 December 2025 quotation as cost, and the taxpayer may opt each year to treat 20 percent of the sale price as the gain.
Cost to do it: 12 percent on foreign interest, dividends and gains (with any credit rules that apply).
Example: A resident who sells foreign listed shares for UYU 4,021,400 and opts for the 20 percent rule pays UYU 96,514. / A US$100,000 sale under the 20 percent option bears US$2,400; with a proven gain of US$10,000 the tax is US$1,200.Texto Ordenado 2023 (DGI), Title 7 IRPF, as amended by Ley Nº 20.446, Title 7 art. 6 numeral 2) and art. 32, 2025-12-16 official text · verified 2026-10-27 · changed: Ley Nº 20.446 art. 653 replaced numeral 2) of art. 6, adding gains on foreign assets, and art. 651 added the foreign asset cost rules to art. 32, from 1 January 2026; see DGI Resolución Nº 665/026 noted by IMPO.
5. Impatriate regime for capital income: individuals who become tax resident from 1 January 2026 can elect, once, to pay IRNR instead of IRPF on foreign source capital income for the year residence starts and the ten following years. They must invest more than UI 12,500,000 in real estate, or capitalise qualifying investment funds with at least UI 625,000 a year, unless they become resident through the 183 day test each year; they must not have been resident in the two prior years. Afterwards they may opt for IRPF at half the rate for five years (with the fund condition or real estate above UI 6,250,000) or a fixed annual IRPF of UI 1,875,000 (UI 1,250,000 when resident by days or with a direct investment above UI 45,000,000), for up to twenty years.
Cost to do it: Real estate route: more than UI 12,500,000, about UYU 83,475,000 (US$2,075,770); fund route: UI 625,000 a year, about UYU 4,173,750 (US$103,788).
Example: The later fixed tax of UI 1,875,000 is about UYU 12,521,250 a year at the 26 October 2026 UI. / About US$311,365 a year under the fixed option, or US$207,577 at the lower amount.Texto Ordenado 2023 (DGI), Title 7 IRPF, art. 24 BIS added by Ley Nº 20.446, Title 7 art. 24 BIS (Ley Nº 20.446 art. 648), 2025-12-16 official text · verified 2026-10-27 · changed: New regime added by Ley Nº 20.446 art. 648 for individuals becoming resident from 1 January 2026.
6. IT professionals, foreign or Uruguayan, who move to Uruguay under employment contracts with companies in Uruguay doing software and similar activities could opt to pay IRNR on work income for five years if not resident in the prior five years, present at least two thirds of the year and paid only for qualifying work; the option applies to employment contracts started up to 28 February 2025.
Cost to do it: No new elections for contracts started after 28 February 2025.
Example: An IT engineer hired on 1 June 2024 who elected the regime keeps it within the five year term. / Not available for contracts started in 2026.Texto Ordenado 2023 (DGI), Title 8 IRNR, Title 8 art. 3 (paragraphs seven to fourteen), 2006-12-27 official text · verified 2026-10-27
Annual income from (BPC)To (BPC)From (UYU)To (UYU)Rate
0840576,576Exempt
84120576,576823,68010 percent
120180823,6801,235,52015 percent
1803601,235,5202,471,04024 percent
3606002,471,0404,118,40025 percent
6009004,118,4006,177,60027 percent
9001,3806,177,6009,472,32031 percent
1,3809,472,32036 percent

IRPF scale on work income for individuals, in BPC and in 2026 pesos (BPC UYU 6,864, Decreto Nº 11/026; T.O. 2023 Title 7 art. 48).

Worked example

  • A foreign executive moves to Montevideo in February 2026 with a salary of UYU 5,760,000 a year (US$143,234). The executive is resident for 2026 and pays IRPF on the salary under the scale, reaching the 31 percent band.
  • The executive keeps a US$2,000,000 foreign portfolio yielding US$60,000 a year. Under the general rules that income would bear 12 percent IRPF, US$7,200. If the executive buys a home for more than UI 12,500,000 (about US$2,075,770) and elects the impatriate regime, the foreign income falls under IRNR, which only reaches Uruguayan source income, for 2026 and the next ten years (Title 7 art. 24 BIS).
  • Dividends from a Uruguayan company still bear 7 percent (Title 7 art. 37).

Step by step

  1. Count days of presence and assess the centre of interests to know when residence starts.
  2. If moving from 2026, decide on the impatriate election before or at arrival and plan the qualifying investment.
  3. Register with the DGI for IRPF where income is not fully withheld, for example foreign capital income.
  4. Keep cost evidence for foreign assets, or plan the annual election of the 20 percent of price rule.
  5. Obtain a residence certificate if a treaty country needs it.

Common traps

  • Foreign capital gains became taxable for residents from 2026; the 31 December 2025 quotation can be used as cost for listed assets (Title 7 art. 32 as amended).
  • The impatriate election can be made only once and requires no residence in the two prior years (art. 24 BIS).
  • The IT professional IRNR option is closed for employment contracts started after 28 February 2025 (Title 8 art. 3).
  • Spouse and minor children living in Uruguay create a presumption of residence even below 183 days (Title 7 art. 2).

Sources

Related pages

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