💰 IRPF - Impuesto a la Renta de las Personas Físicas
Uruguay uses a territorial tax system — residents are only taxed on Uruguayan-source income. Labor income: progressive 0%-36% (Category II). Capital income: 3%-12% (Category I). BPS social security contributions (~23%) are deductible. Based on BPC (Base de Prestaciones y Contribuciones).
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📌 IRPF 2026 — Sistema Territorial:Territorial principle: Only Uruguayan-source income is taxed. Foreign income is generally NOT taxed for residents (unique in Latin America). Labor income (Cat. II): 0%-36% progressive. Basic exemption: ~84× BPC/month. Capital income (Cat. I): 3%-12% (bank interest 3%, dividends 7%, other capital 12%). Tax Holiday (2026): New tax residents get 1+10 years of reduced rates on foreign passive income. After period: ~6% rate for 5 more years. Deductions: BPS contributions, health expenses (FONASA credits), education, mortgage interest, dependents. Non-residents: Flat 12% withholding on Uruguayan-source income. BPC 2026: ~$U7,365/month (adjusted semi-annually by INE).
📊 Uruguay Tax Rates Overview 2026
Tax Type
Rate
Details
IRPF Cat. II (Exempt)
0%
Up to ~84× BPC/yr
IRPF Cat. II (Low)
10%
Lower bracket
IRPF Cat. II (Mid-low)
15%
Lower-middle
IRPF Cat. II (Middle)
20%
Middle income
IRPF Cat. II (Mid-high)
24%
Upper-middle
IRPF Cat. II (High)
27%
High income
IRPF Cat. II (Higher)
30%
Upper income
IRPF Cat. II (Top-mid)
33%
Top-middle
IRPF Cat. II (Maximum)
36%
Highest bracket
IRPF Cat. I (Capital)
3%-12%
Capital income
BPS Employee
~23%
Social security
BPS Employer
~12.6%
Social security
IVA (Standard)
22%
Most goods & services
IVA (Reduced)
10%
Medicine, some services
IRAE (Corporate)
25%
General rate
IRPF Dividends
7%
Dividend withholding
IRPF Bank Interest
3%
Bank deposit interest
Non-Resident WHT
12%
Flat withholding
Impuesto de Primaria
0.15%
Payroll tax for education
📌 Territorial Tax System:
Uruguay is one of the few Latin American countries with a true territorial tax system. Residents are ONLY taxed on income generated within Uruguay. Foreign-sourced income (rents, dividends, salaries from abroad) is generally NOT subject to IRPF. This makes Uruguay uniquely attractive for international investors and digital nomads. The "Tax Holiday" (período ventana) provides additional benefits: 1+10 years of near-zero taxation on foreign passive income for new residents. After the holiday, a reduced rate (~6%) applies for 5 more years. Capital gains on foreign assets: 12% flat rate (reduced from standard rates).
👥 BPS Calculator (Seguridad Social)
Uruguayan social security via BPS (Banco de Previsión Social). Employee total: ~23.1%. Employer total: ~12.6%. Includes pension, health (FONASA), and occupational risk coverage. One of the highest employee contribution rates in the region.
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📌 BPS 2026:Employee (~23.1%): Pension 15% + FONASA health 4.5% + Occupational risk 3.6%. Some categories may have reduced rates (7% for lowest tier). Employer (~12.6%): Pension 7.5% + FONASA 3% + Occupational risk 1.5% + Impuesto de Primaria (education levy) 0.6%. FONASA: Fondo Nacional de Salud — universal public health coverage. Employees can choose a "mutualista" (private mutual health fund) instead. Impuesto de Primaria: 0.15% payroll tax earmarked for public education. Aguinaldo (13th salary): Mandatory Christmas bonus — one full monthly salary, paid in December. Salario Vacacional (vacation salary): Additional payment equivalent to one monthly salary for vacation period. Licencia por maternidad: 14 weeks paid leave. Licencia por paternidad: 13 days paid leave.
🧾 IVA Calculator (Impuesto al Valor Agregado)
Uruguayan VAT has one of the highest standard rates in Latin America: 22%. Reduced rate: 10% (medicine, some services). Zero rate: 0% (exports, basic food). Plus IMESI excise tax on luxury goods.
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📌 IVA 2026:22% (Tasa básica): Most goods & services, electronics, clothing, restaurants, alcohol, vehicles, professional services. 10% (Tasa mínima): Medicine, medical services, some professional services, domestic transport, insurance. 0% (Exempt): Exports, basic unprocessed food (bread, milk, eggs, fruits, vegetables), books/newspapers, financial services, residential rent. IMESI (Impuesto Específico Interno): Excise tax on specific goods — alcohol (20-60%), tobacco (100-200%), luxury vehicles (20-32%), fuel, jewelry, air conditioning. Digital services: 22% IVA on streaming, SaaS, digital platforms (since 2019, non-resident platforms collect directly).
🏢 IRAE (Impuesto a las Rentas de las Actividades Económicas)
Corporate income tax: 25% (general). Territorial system — only Uruguayan-source profits taxed. Free Trade Zone companies enjoy full tax exemption. Plus dividend withholding and net wealth tax.
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🏠 Impuesto al Patrimonio + Dividendos
Net wealth tax: 1.5% (companies) / 0.75% (individuals). Dividend withholding: 7%. Capital gains: 12%. Property tax varies by municipality.
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📌 Corporate & Other Tax Notes:IRAE (25%): Corporate income tax on Uruguayan-source profits only (territorial). Zonas Francas (FTZ): Companies in Free Trade Zones enjoy full IRAE exemption, no net wealth tax, no customs duties. Major ZFs: Zonamerica, Aguada Park, Parque de las Ciencias. Dividend withholding (7%): Applied to distributions of profits. Capital gains (12%): Sale of shares, real estate, other assets. Net wealth tax (Impuesto al Patrimonio): 1.5% for companies, 0.75% for individuals on net assets exceeding thresholds. Import tariffs: 0-20% depending on product type (Mercosur Common External Tariff). Double taxation treaties: Uruguay has treaties with 15+ countries.