Uruguay · Tax on foreign income
Does Uruguay tax foreign income? A guide for Americans
Short answer
Uruguay taxes work done on its soil from your first day, at 12% for non-residents. US pensions appear to stay outside Uruguayan tax, even for residents.
What you'd pay, by situation
| Retiree on US income $0 on short stays; about $2,400 a year on $20,000 of US interest if you live here, or $0 with the break | US Social Security and a US private pension appear to be outside Uruguayan tax Not yet verified. Residents pay 12% on US interest unless they choose the new-resident break. |
|---|---|
| Remote worker paid from the US About $1,800 for 90 days, $3,600 for 182 days or $9,200 for a full year, on $60,000 | Pay for work done in Uruguay is taxed from day one, whoever pays it: 12% as a non-resident, then the resident scale. |
| Working for a local employer Non-residents 12%; residents 0–36% | The same rules apply: pay for work done here is taxed here. |
Checked against the law The 183-day test, the source rule and the 12% and resident rates.
Not yet verified That US pensions are untaxed for residents, pending the tax office's confirmation.
How it works
- Tax residence: more than 183 days in the calendar year, or your main base of work or interests in Uruguay. A spouse and children living there count toward it.
- What's taxed: work done in Uruguay, whoever pays you. Residents also pay 12% on foreign interest and similar income.
- New residents from 2026: you can shield foreign investment income for your arrival year plus 10 more. You need 183+ days a year there, or a large property investment; salaries aren't covered.
- No US tax treaty: you still file a US return every year, and any credit follows US rules alone; see a tax adviser.
- Social Security agreement: in force since 2018, but how it applies to remote employees is still being checked.
Sources (14)
Links
- Título 7 (IRPF) T.O. 2023 art 2: residencia fiscal personas físicas
- Título 7 (IRPF) T.O. 2023 art 5: rentas comprendidas
- Título 7 (IRPF) T.O. 2023 art 6: aspecto espacial (fuente)
- Título 7 (IRPF) T.O. 2023 art 24: former new-resident IRNR option
- Título 7 (IRPF) T.O. 2023 art 24 bis: régimen de impatriados, rentas de capital
- Título 7 (IRPF) T.O. 2023 art 37: tasas rentas de capital
- Título 7 (IRPF) T.O. 2023 art 40: rentas del trabajo
- Título 7 (IRPF) T.O. 2023 arts 47-48: escala progresional rentas del trabajo
- Título 7 (IRPF) T.O. 2023 art 49: deducciones
- Título 8 (IRNR) T.O. 2023 art 6: hecho generador
- Título 8 (IRNR) T.O. 2023 art 13: monto imponible
- Título 8 (IRNR) T.O. 2023 art 18: tasa
- Ley 18.314, Impuesto de Asistencia a la Seguridad Social (IMPO)
- Banco Central del Uruguay: cotizaciones (USD billete, Unidad Indexada)
Taxes in Uruguay, with worked examples → The full Uruguay guide →
Questions people ask
Does Uruguay tax US Social Security and pensions?
US Social Security and a US private pension appear to be outside Uruguayan tax (Not yet verified). Residents pay 12% on US interest unless they choose the new-resident break.
Remote worker paid from the US in Uruguay: what would I pay?
Pay for work done in Uruguay is taxed from day one, whoever pays it: 12% as a non-resident, then the resident scale. Ballpark: About $1,800 for 90 days, $3,600 for 182 days or $9,200 for a full year, on $60,000.
Working for a local employer in Uruguay: what would I pay?
The same rules apply: pay for work done here is taxed here. Ballpark: Non-residents 12%; residents 0–36%.