Taxes in Uruguay

Uruguay has a territorial tax system, meaning it generally only taxes income derived from Uruguayan sources. This makes it attractive for digital nomads and those with foreign income. New residents can benefit from a tax holiday on foreign-source income for up to 11 years (10 years + the year of arrival). After this period, a flat 12% rate applies to foreign income. The main taxes include: - IRPF (personal income tax) on Uruguayan-source income - IVA (VAT) at 22% on most goods and services - Property taxes (Contribución Inmobiliaria) - Social security contributions for employees Tax planning is important, and working with a local contador (accountant) is recommended for understanding your specific situation.