International tax residences: Uruguay, Paraguay, Spain (Beckham Law) and UAE
Uruguay - Tax Holiday
Benefits
Access the territorial tax system, which taxes only Uruguayan-source income (foreign income is generally not taxed).
Take advantage of the “tax holiday” regime: the possibility to opt not to tax foreign passive income derived from financial assets for 10 years, or to tax it indefinitely at a reduced rate of 7%.
Protect assets under a stable, secure legal framework with high international reputation, where business liabilities are separated from personal ones.
Efficiently plan succession and asset organization without paying taxes.
Obtain facilitated access to the international banking system from Uruguay, with multi-currency accounts.
Generate tax certainty vis-à-vis the country of origin and avoid double tax residence, provided international and local criteria are met.
Unlike other jurisdictions with tax benefits, in Uruguay an official sworn asset declaration is obtained, allowing the formalization of the origin of funds before banks and other entities, contributing to a strong international reputation.
Uruguay - Tax Holiday
Beneficios
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Acceder al sistema tributario territorial, que grava únicamente la renta de fuente uruguaya (las rentas extranjeras, en general, no están gravadas).
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Aprovechar el régimen de “tax holiday”: posibilidad de optar por no tributar la renta pasiva extranjera proveniente de activos financieros durante 10 años, o tributarla indefinidamente a una tasa reducida del 7%.
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Proteger el patrimonio bajo un marco jurídico estable, seguro y con alta reputación internacional, donde las responsabilidades empresariales se separan de las personales.
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Planificar de forma eficiente la sucesión y el ordenamiento patrimonial, sin pagar impuestos.
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Obtener acceso facilitado al sistema bancario internacional desde Uruguay, con cuentas multimoneda.
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Generar seguridad fiscal frente al país de origen y evitar la doble residencia fiscal, siempre que se cumplan los criterios internacionales y locales.
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A diferencia de otras jurisdicciones con beneficios fiscales, en Uruguay se obtiene una declaración jurada oficial de bienes, lo que permite formalizar el origen de los fondos ante bancos y otras entidades, contribuyendo a una alta reputación internacional.
Uruguay - Tax Holiday
Beneficios
-
Acceder al sistema tributario territorial, que grava únicamente la renta de fuente uruguaya (las rentas extranjeras, en general, no están gravadas).
-
Aprovechar el régimen de “tax holiday”: posibilidad de optar por no tributar la renta pasiva extranjera proveniente de activos financieros durante 10 años, o tributarla indefinidamente a una tasa reducida del 7%.
-
Proteger el patrimonio bajo un marco jurídico estable, seguro y con alta reputación internacional, donde las responsabilidades empresariales se separan de las personales.
-
Planificar de forma eficiente la sucesión y el ordenamiento patrimonial, sin pagar impuestos.
-
Obtener acceso facilitado al sistema bancario internacional desde Uruguay, con cuentas multimoneda.
-
Generar seguridad fiscal frente al país de origen y evitar la doble residencia fiscal, siempre que se cumplan los criterios internacionales y locales.
-
A diferencia de otras jurisdicciones con beneficios fiscales, en Uruguay se obtiene una declaración jurada oficial de bienes, lo que permite formalizar el origen de los fondos ante bancos y otras entidades, contribuyendo a una alta reputación internacional.
FAQ - Frequently Asked Questions
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How many days do you need to live in Uruguay to obtain tax residence?
To obtain tax residence in Uruguay, it is required to spend more than 183 days per year in the country, or to have vital economic interests in Uruguay such as investments exceeding USD 500,000 in real estate plus 60 days of presence, or USD 2.1 million invested in real estate. Iruleguy Asociados advises on the entire application process.
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What taxes are paid with tax residence in Uruguay?
New tax residents in Uruguay may opt for the exemption regime on foreign-source income during the first 10 years, plus the year in which residence is acquired. Starting from the following year after the end of this period, foreign income is taxed at 12%, although there is a way to extend the benefit period for an additional 5 years through annual investments of USD 100,000 in instruments defined by the Executive Power. Uruguayan-source income is subject to personal income tax (IRPF) with progressive rates.
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What is the difference between tax residence in Uruguay vs Paraguay?
Uruguay offers greater institutional stability, banking infrastructure, and quality of life, with a 10-year tax exemption for new residents. Paraguay also offers exemption from taxes on income generated outside Paraguayan territory, without time limits, with more flexible presence requirements (at least 2 entries per year into the country, with no minimum stay requirement), but with lower international banking reputation. The choice depends on the client’s asset and operational profile.
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What is the Beckham Law and who is it suitable for?
The Beckham Law is a special tax regime in Spain that allows foreign workers to be taxed as non-residents for 6 years, paying 24% on income up to EUR 600,000 instead of the ordinary progressive rates (up to 47%). It is especially suitable for high-income professionals who relocate to Spain for work reasons.
