Uruguay - Tax Residence Requirements are Loosened

With the explicit aim of encouraging foreign investment and opening the country to immigration, the Uruguayan Government has just approved a long expected decree to update (and extend) the mechanisms under which non-resident individuals can acquire tax residence in Uruguay (the “Decree”).

In accordance with such Decree, non-resident individuals may become tax residents in Uruguay when, starting as from 1 July 2020, they make any one of the following investments in Uruguay:

(i) Investment(s) in real estate properties in an amount exceeding USD 375,000. Individuals making such investment will be deemed to be Uruguayan tax residents provided that they stay in Uruguay (which means effective physical presence) for a minimum period of 60 days during the calendar year, whether consecutive or not.

(ii) Investment in an enterprise in Uruguay in an amount exceeding USD 1,610,000. Individuals making such an investment will be deemed to be tax residents in Uruguay provided that the target company (where the individual invests) creates not less than 15 full-time jobs during the calendar year.

The above figures are approximate, as they vary depending upon the prevailing exchange rate.

All other pre-existing criteria (in effect as of today) which trigger Uruguayan tax residence remain in force (and unchanged).

The above communication has been prepared just for information purposes. It cannot be construed as legal advice provided by Bergstein Abogados.

Should you have any further questions, please feel free to contact Domingo Pereira (dpereira@bergsteinlaw.com) and/or Guzmán Ramírez (gramirez@bergsteinlaw.com) and/or Sebastian Guido (sguido@bergsteinlaw.com).

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