Country profile
Uruguay (Normal)
Best : For families who want South America's most solid democratic stability.
About 3.4 million people between Argentina and Brazil, capital Montevideo, Uruguayan peso. Known for solid institutions and a prudent banking system; new tax residents can get a temporary exemption on some foreign income. Living costs are high for the region.
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International rankings
The main public indices scoring business climate, economic freedom, corruption, peace and domestic safety. Figures copied from the official editions; a weak rank shows where to look closer.
| Index | Score | Rank |
|---|---|---|
| Doing Business 2020Banque mondiale / World BankScore 0–100, rank out of 190 economies (1 = best). | 61.5 | #101 / 190 |
| B-READY 2025Banque mondiale / World BankThree pillars scored 0–100 (regulatory framework, public services, operational efficiency). No overall rank: the World Bank publishes a quintile per pillar across 101 economies. |
| |
| Index of Economic Freedom 2026Heritage FoundationScore 0–100, rank out of 184 countries (1 = freest). | 69.8 | #32 / 184 |
| Corruption Perceptions Index 2025Transparency InternationalScore 0–100 (100 = very clean), rank out of 182 countries. | 73 | #17 / 182 |
| Global Peace Index 2026Institute for Economics & PeaceScore 1–5 (lower = more peaceful), rank out of 163 countries. | 1.754 | #43 / 163 |
| GPI 2026 — Societal Safety and SecurityInstitute for Economics & PeaceScore 1–5 (lower = safer), rank out of 163 countries (1 = safest). | 2.411 | #95 / 163 |
- Doing Business 2020 : Last published edition (data as of May 2019). The World Bank discontinued the series in 2021 after data irregularities: read it as a historical benchmark.
- B-READY 2025 : Successor to Doing Business. Sample averages: 66.3 / 54.0 / 60.0. The 2026 edition (over 160 economies) is due by end-2026.
- Index of Economic Freedom 2026 : Hong Kong has not been graded separately since 2021 (folded into China).
- Corruption Perceptions Index 2025 : Published February 2026.
- Global Peace Index 2026 : Overall rank: conflict, domestic safety and militarisation. Day-to-day safety is the next row. Malta and Hong Kong are not covered.
- GPI 2026 — Societal Safety and Security : Appendix C of the 2026 GPI: homicide, violent crime, terrorism and instability. Excludes armed conflict and militarisation. Malta and Hong Kong are not covered.
Geopolitical risk
Tax by profile
Tax and contributions actually paid on a reference case, for a newcomer who is tax resident in 2026. Where a special regime is open to them, it is applied and flagged. The score out of 10 follows from the effective rate.
Rentier
10/10
Effective rate ≈ 0%
Special regime applied : new-resident tax holiday
Without it : 5%, score 9/10
- New resident: foreign dividends and interest exempt in the arrival year and the next 10
- Foreign capital gains not taxed
After that period, or without the option: 7% on foreign dividends and 12% on foreign interest.
Employee
3/10
Effective rate ≈ 34%
- BPS 15%, FONASA 4.5% and FRL 0.1%
- 2026 progressive IRPF up to 36%: about 14%
No regime available: the 12% IRNR option for IT staff is closed to contracts signed after February 2025; the free-zone one requires opting out of BPS.
Entrepreneur
4/10
Effective rate ≈ 31%
- IRAE 25% on profit
- IRPF 7% on dividends
Reference cases and scoring
- Rentier: €100,000 a year from a foreign portfolio (€40,000 dividends, €20,000 interest, €40,000 gains on listed shares), no other activity.
- Employee: €60,000 gross a year paid by a local employer, single with no children. Employee contributions included, employer share excluded.
- Entrepreneur: €100,000 profit from a small local business, fully paid to the owner through the most common route (company and dividends, or sole trader).
Score = 10 minus 0.2 per point of effective rate (0% gives 10, 25% gives 5, 50% or more gives 0), rounded to the half point. Foreign withholding taxes and employer contributions are not counted.
Indicative figures as of October 2026 · Main source : bps.gub.uy. Not tax advice.
Business: incorporating
Uruguay pairs Latin stability and 25% CIT. The normal regime is readable, and banking stays cautious.
25%
Corporate tax
$1,500–$7,500
Setup
USD, indicative
$1,400–$7,500
Per year
USD, indicative
6/10
Ease
Ranking
5.5/10
Banking
Ranking
8.5/10
CFC
Faible (territorial)
SRL/SAS often ~$1.5–1.8k via a firm; standard SA ~$2.2–4.5k (notary can be heavy with capital). Full-service packages cost much more. Annual accounting/compliance often ~$1.4–7.5k plus ICOSA for SAs (~$400). Pricier than a lean Paraguay EAS; a formal country: you mainly pay notary and professionals.
Who it fits
- Founders considering Uruguayan residence with export or offshore services activity
- Latin American investor seeking stable dollarized hub outside Panama
- Structure with documented foreign income under assumed territoriality
The real drawbacks
- Fully remote shell without travel: banks and DGI want local anchor
- Expecting European premium banking from a Uruguayan SRL
- Uruguayan income dressed as foreign without documentation
Real estate: investing
5.5 %
Net yield
indicative
≈ 95 k€
30 m² studio
Montevideo
~7%
Purchase costs
+35%
10-year prices
+15%
5-year prices
- Rental income tax : 10.5–12%
- Capital gains (personal holding) : 12% (indicatif)
- Capital gains (via company) : 12% (indicatif)
- Public debt / GDP : 65%
- Currency : UYU/USD
Reference listings portal : Infocasas
Moving there: living and residence
5.2/10
Liberty score
equal weights
0–36% (worldwide)
Income tax
0%
Inheritance
Regulated
Homeschool
Residence routes
- Legal residence (proof of income): Renewable temporary residence card
- Permanent residence: Uruguayan permanent residence
Reference cities
- Montevideo (cost mid)
A calm, stable city with a long seafront promenade. Expensive for South America, damp, chilly winters and frequent burglaries in some districts; Pocitos and Punta Carretas are the most sought-after. - Punta del Este (cost high)
An upmarket beach resort, full in January and February and nearly empty the rest of the year. Expensive, very safe, few services off season.
Tax residence (183+ days) is a separate calendar from the migratory title.
Go deeper on Uruguay (Normal)
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Indicative Liberty Stack data · Methodology · Rankings : Doing Business 2020, B-READY 2025, Index of Economic Freedom 2026, Corruption Perceptions Index 2025, Global Peace Index 2026, GPI 2026 — Societal Safety and Security.