Tax benefits for foreigners in Uruguay

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Inheritance and gift tax: Uruguay does not apply taxes on inheritances or gifts.

As we said, Uruguay offers incentives to israel phone number library attract foreigners, especially those who want to reside, work or invest in the country. These benefits can help you reduce your tax burden and optimize your finances.

1. Exemption from foreign income

One of the main advantages of Uruguay is that it does not tax income earned outside the country. This means that foreign tax residents only pay taxes on income generated within the country . This benefit is particularly attractive for digital nomads in Uruguay and retirees who earn income from abroad.

2. Double taxation treaties

Uruguay has agreements with several countries to avoid double taxation . These treaties ensure that you will not pay double taxes on the same income in your home country and in Uruguay. Treaties typically apply to income such as dividends, interest, royalties, and wages.

3. Exemptions for new tax residents

Uruguay offers a special regime for new tax residents. They are allowed to opt for a total exemption from personal income tax on their foreign income during the first ten years of residence. They can opt to pay a fixed annual rate of 12,000 dollars on their global income.