Uruguay: residency, citizenship, tax and living

You can obtain residency in Uruguay by applying for either temporary or permanent residence through the National Migration Directorate. Permanent residency is available directly if you intend to settle in the country, while temporary residence is better suited if you plan to stay between three months and two years. In both cases, you will have to provide evidence of your purpose of stay, such as work or investment, or show you have sufficient means.

It takes three to five years to get Uruguayan citizenship. Uruguay requires you to live in the country and establish a centre of your economic and life activities in it. If you start a family in Uruguay, you can become a citizen after three years of effective residence. Otherwise, you will need to wait for five years.

Uruguay’s tax holiday gives new tax residents favourable tax treatment, effectively eliminating tax liability for foreign passive income for 11 years. After the period passes, tax residents can choose between a flat tax rate for the next 20 years or a five-year 50% tax rate reduction. To be eligible, tax residents have to invest at least USD 2 million in real estate, or finance innovative projects with USD 100,000 per year.

Uruguay doesn’t have a minimum investment threshold for either temporary or permanent residency, and it doesn’t have a residency by investment program. When applying for residency, you have to demonstrate why you’re seeking to reside in the country. Investment is a valid reason, but there’s no prescribed minimum for your investment.