LIVING AND INVESTING IN URUGUAY - EVERYTHING YOU NEED TO KNOW IS HERE - PWC URUGUAY
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Living and investing
in Uruguay
Everything you need to know is here
During the first months of 2020, several provisions were approved
to promote the residence of foreigners in Uruguay and to attract
qualified investments. We summarize what you need to know.
2
Living in Uruguay
Tax and legal residence are different concepts.
What do each of them mean? Which steps should
be followed?
3
The procedure to obtain the legal residence
Legal residence depends on the nationality of the foreigner
and on the term the person intends to stay
in Uruguay:
Legal residence is a requisite to live in Uruguay
• Temporary identity sheet: requested
permanently (or longer than allowed to tourists),
to foreigners who wish to work in Uruguay
to obtain a national identity card and to work. for less than 180 days.
It is worth pointing out that legal residence is
• Temporary residence: requested to
not required to invest in the country. foreigners who wish to stay in Uruguay
for less than 2 years. This term may
be extended for 2 additional years.
• Permanent residence: requested to
foreigners who wish to live permanently
in Uruguay or to those whose temporary
residence has expired.
• Foreign nationals of Mercosur members
or associated States: all nationals of
Mercosur members or associated States,
as well as relatives of Uruguayan citizens
(spouse, parents, children, siblings or
grandchildren) may request a simplified
permanent residence before the Ministry of
Foreign Affairs in Uruguay. This procedure
has the following advantages: it has less
requirements and it is granted faster.
To file an application for residence, the individual
will be required to attend in person to the
audience with the National Migration Office
or the Ministry of Foreign Affairs.
4
In June 2020, the Executive Power issued new
Tax residence rules introducing adjustments to the conditions
required to individuals to become residents in
Uruguay for tax purposes.
Rules in force originally stated that individuals would
be considered resident for tax purposes in Uruguay Unless the individual proves it has tax residency
in other country, it will be considered that it has
if any of the following conditions were met: the center of economic interests in Uruguay, if it
• Presence in Uruguay for more than 183 days owns in Uruguayan territory:
during the calendar year.
• Real estate for an amount in excess of
• Location in the national territory of the center
3,500,000 Indexed Units (approximately
of economic activities or vital interests. USD 375,000), provided it has been acquired
as from July 1st, 2020. In addition, a physical
presence in Uruguay of at least 60 days
(in calendar year) is required.
• A direct or indirect investment in a company
whose value is higher than 15,000,000
Indexed Units (approximately USD 1,600,000),
provided it was effected after July 1st 2020,
and generated from that date on and during
the calendar year at least 15 new full-time
jobs in a dependency relationship.
Along with said updates to the rules, a Law
enhancing the Investment Promotion regime
was recently approved. It includes the extension
from 5 to 10 years of the so-called “window
period” – term in which passive income derived
from investments in assets outside Uruguay is
not subject to Income Tax. The project also
grants individuals the possibility to tax this
income at the rate of 7%, with no time limitation.
5
Migrating to Uruguay
in COVID-19 context
To obtain the residence (for legal or tax purposes),
the foreigner is required to already be in the country.
In the health emergency context, some decrees have
been issued to regulate the opening of country borders
exemptions causes to foreigners and to impose
requirements to enter the country.
6
In this regard, foreigners who meet the following criteria
may enter Uruguay:
1. When they reside in the country (holding the
Uruguayan legal residence, either granted or in
process).
2. Aircraft crews and agency pilots.
3. International transport drivers of goods, merchandise,
correspondence, supplies and humanitarian and
health aid.
4. Diplomats accredited to the Uruguayan Government
or to international organizations based in the country.
5. Beneficiaries from humanitarian or sanitary corridor
established for the embarkation or disembarkation
of cruises or aircrafts based on where the sanitary
authority determines.
6. Brazilians who, demonstrating their border citizen
status, entered the country through the Uruguay-
Brazil border and remained in the border city.
7. Clearly founded cases of international protection
in accordance with the provisions of Law 18,076
(Refugee Law), which must be analyzed considering
the situation of people who arrive due to family
reunification with foreigners who already have
permanent residence in the country.
8. Justified family reunification cases (with parents,
spouses, concubines, unmarried minor or older
children with disabilities, in accordance with Law
18,250) or humanitarian situations not provided
for in the other literals, managed by the Ministry
of Foreign Affairs before the National Migration Office.
9. Transitory arrival with labor, economic, business
or judicial purposes managed before the National
Migration Office and authorized by the Ministry
corresponding to the area of activity involved
and based on reasons of urgent need.
7
To enter to Uruguay, after proving any of the
exceptions stated before, the foreigner must:
• Complete an Affidavit including personal
data, absence of symptoms and/or contact
with people confirmed or suspected of
COVID-19 in the last 14 days prior to
entering the country, under eventual
administrative and criminal responsibilities.
• Submit to temperature control at entry point.
• Use a face mask in every opportunity of
social contact at a distance of less than
2 meters from others.
• Show a negative result of the SARS CoV-2
virus detection test carried out no more than
72 hours before the start of the trip in an
authorized laboratory. If the entry is made
by commercial transport, the test must be
accredited before boarding.
• Have medical coverage in Uruguay.
• Comply with mandatory preventive social
isolation for 7 days. On the seventh day,
the person should have a new test with
negative result or extend the isolation for
7 additional days.
• Comply with the preventive measures that
the authorities determine.
As additional measures, the installation
of mobile testing devices may be requested
and carried out randomly to those who enter
the country. In addition, it is recommended
to avoid public transportation from the point
of entry to the destination and to download
the Coronavirus UY app.
8Contacts
Diego Tognazzolo montevideo
diego.tognazzolo@pwc.com Cerrito 461, 1st floor
11.000 Montevideo, Uruguay
Antonieta Rodríguez T: (+598) 2916 04 63
antonieta.rodriguez@pwc.com
w tc free zone
Agustín Muzio Dr. Luis Bonavita 1294, 1st floor, office 106
agustin.muzio@pwc.com 11.600 Montevideo, Uruguay
T: (+598) 2626 23 06
Juan Seco
j.seco@pwc.com zonamerica business
& t e c h n o l o g y pa r k
Belén Regueira Ruta 8, km 17.500, Building M1, office D
belen.regueira@pwc.com 91.600 Montevideo, Uruguay
T: (+598) 2518 28 28
Andrea Chanquet
andrea.chanquet@pwc.com p u n ta d e l e st e
Avda. Córdoba y Tailandia
Marcos Burone 20.000 Maldonado, Uruguay
marcos.burone@pwc.com T: (+598) 4224 88 04
This content is for general information purposes only and should not be used as a substitute for consultation with professional advisors. www.pwc.com.uy
© 2020 PricewaterhouseCoopers Ltda., PricewaterhouseCoopers, PricewaterhouseCoopers Professional Services Ltda.
and PricewaterhouseCoopers Software Ltda. All rights reserved. PwC refers to the Uruguayan member firm, and may
sometimes refer to the PwC network. Each member firm is a separate legal entity. Please see www.pwc.com/structure
for further details.
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