Uruguay
0–36% progressive IRPF · 15% BPS pension + 3–4.5% FONASA employee contributions · 25% corporate tax (IRAE) · VAT 22% · foreign income option: 7% for 10 years · territorial tax option for new residents
Uruguay Tax Facts
— 2026Quick Country Comparison
— at UYU 1,500,000| Country | Take-home | Eff. Rate | vs Uruguay |
|---|---|---|---|
 Uruguay | ~UYU 1,080,000 | ~28% | — |
 Argentina | ~UYU 1,240,000 | ~17% | +~UYU 160,000 |
 Paraguay | ~UYU 1,245,000 | ~17% | +~UYU 165,000 |
 Chile | ~UYU 1,125,000 | ~25% | +~UYU 45,000 |
Illustrative comparison on UYU 1,500,000/year gross (~€35,000). Uruguay: progressive IRPF 0–36% + 15% pension and 3–4.5% FONASA employee contributions (computed with our verified Uruguay calculator; single employee, aguinaldo excluded). Argentina: recomputed with our verified Argentina calculator (single resident employee, 13 payments including the aguinaldo; UYU 1,500,000 converted at about 40.2 UYU and 1,523 ARS per USD, ≈ ARS 56.8 million), rounded to the nearest UYU 5,000. Paraguay: 8–10% flat income tax + ~9% employee IPS contributions. Chile: progressive income tax + AFPension. The Paraguay and Chile figures are older estimates not recomputed with a verified calculator. Figures are approximate — not tax advice.
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Compare Uruguay with Argentina, Paraguay, and Chile on income tax, political stability, and expat-friendliness — and understand why Uruguay is often considered South America's most trusted destination for wealth protection and residency.
Salary Guides
Uruguay uses the Uruguayan Peso (UYU). The Dirección General Impositiva (DGI) administers the IRPF (Impuesto a la Renta de las Personas Físicas) — an eight-band progressive income tax (0% up to 84 BPC a year, rising to 36% above 1,380 BPC). Employee social contributions (15% BPS pension, 3–4.5% FONASA health, 0.1% FRL) come to roughly 18–20% of salary. Uruguay is unique in Latin America for its new-resident foreign income election: for the first 10 years of tax residency, foreign-source income can be taxed at a flat 7% — or fully exempt under the territorial option — making it one of the region's most attractive destinations for internationally mobile professionals and retirees.
Moving from Uruguay
Uruguay is consistently rated South America's most stable and democratic country (EIU Democracy Index #1 in region). Montevideo offers a high quality of life, strong healthcare and education systems, and full property rights for foreigners. The 7% foreign income election (10-year window) is particularly attractive for retirees and remote workers with overseas income streams. Residency can be obtained with proof of income (~$1,500/month) or through property purchase, and the process is well-established and foreigner-friendly. No wealth tax has applied since 2011.
Last Updated: October 2026 · Daniel · CountryTaxCalc