Uruguay

Tax residency in Uruguay is generally triggered by physical presence exceeding 183 days in a calendar year. The country operates on a territorial basis: income sourced abroad is not subject to local income tax for residents, making it particularly attractive for individuals with cross-border income streams. No statutory CFC rules apply, which can facilitate the use of foreign holding structures without automatic income attribution.

Territorial tax system — foreign-source income exempt for first 11 years of residency (special rule for new residents). Then territorial system applies. Most stable and transparent in LATAM. Easy residency.

The standard corporate income tax rate is 25%. The administrative process is considered straightforward, with minimal bureaucratic friction.

Account opening in Uruguay can be challenging for foreign nationals or non-resident businesses, and enhanced due diligence is common practice. Internet connectivity is generally good, with consistent broadband availability in business districts and main population centres.

Uruguay is a member of the Financial Action Task Force (FATF) and meets its anti-money-laundering standards. EU tax blacklist status: not_listed. Structures involving this jurisdiction may attract additional scrutiny or reporting obligations under EU member state rules.

Based on our scoring model, Uruguay ranks highest for Founder / Entrepreneur and Freelancer. It offers a strong proposition for founder / entrepreneur (score: 67/100). It offers a reasonable proposition for freelancer (score: 64/100).