Residency in Uruguay

Moving to live and work in Uruguay is a decision to take advantage of in the coming years if you want to live in an essentially European country, with strong ties to Italy and few Latino traditions or lifestyles. The Eastern Republic of Uruguay is a country in South America, a member of Unasur and Mercosur. It is located in the eastern part of the South American Cone, and is bordered by Brazil to the northeast, Argentina to the west, has a coast on the Atlantic Ocean to the southeast and south by the La Plata River (River Plate). It has an area of ​​176,215 sq km, making it the second smallest country in South America by land area, after Suriname. Uruguay is a Spanish-speaking country, inhabited by approximately 3.2 million people, half of whom live in its capital, Montevideo. Its official legal tender is the Uruguayan Peso (UYU).

Uruguay is considered one of the most developed countries in Latin America. It has the fourth highest per capita income in the region and is eighth in terms of purchasing power parity. It also has one of the highest Human Development Index scores, the most equitable income distribution, the highest life expectancy, and the most peaceful and democratic political systems and societies. It is also considered one of the safest and greenest countries in the world.

Transferring residency to Uruguay

Transferring your residence to Uruguay is convenient when you decide you want to have economic and commercial relations with the country. Despite being a minor offshore destination, the strict rules of the country do not allow the management of offshore business with the lightness of other similar destinations. Relocating to Uruguay is especially worth it due to its excellent economy and economic prospects for the future. Its economy is relatively dependent on neighboring Argentina and Brazil, due to the volume of mainly Argentine capital it receives and the trade between the two. Uruguay is an agro-exporting country, with rice, wheat, corn, sunflower, sorghum, barley, soybeans, sugar cane and livestock (cattle, sheep) constituting its main export products. Its main industries are refrigerators, dairy products, textiles, paper and cardboard, fertilizers, alcohol, cement and hydrocarbon refining. Although mineral and energy resources are scarce, there are deposits of agates, amethysts, granite, marble and gold deposits.

The service sector is also a key driver of Uruguay's economy. Tourism, financial services, logistics, transportation and communications, as well as the computer industry, particularly with regards to software development and related services, are all relatively active and dynamic in the country. Tourism is one of its main sources of income, in 2017 more than four million people visited the country in a record year for the number of tourist arrivals. Punta del Este is its main tourist hub, full of beaches and entertainment avenues and renowned as one of the most attractive destinations in South America.

Uruguay: offshore financial centre

Uruguay has traditionally been an offshore financial center, especially for wealthy Argentines and tax-dodging Brazilians. After the 2002 banking crisis, the sector took a downward turn, but is recovering, and the country currently has one of the most stable financial sectors in the region. Uruguay is also an attractive jurisdiction for setting up companies conducting international business, as the country operates under a territorial tax system, where foreign-source income is exempt from tax. On a personal level, foreign-source income is usually not taxed, with some exceptions such as foreign income from dividends or interest, although a 5-year tax holiday applies for new tax residents. Attention to the Uruguayan taxman, who remains extremely diligent and meticulous in the investigations, certainly like and even more than the Italian or Brazilian taxman. Uruguay certainly offers an excellent basis for starting a new financial life, but it is necessary to pay close attention to the national tax code to avoid serious errors even during the same procedure of residence as a private individual.

How to take up residency in Uruguay

The country, like all of Latin America, has a remarkably open immigration policy, where residency can be obtained by demonstrating a fixed monthly income and a history of at least 3 years, and after five years (three for couples), a resident is qualified to apply for citizenship if and always only if he speaks fluent Spanish and passes a series of linguistic, historical and cultural exams on Uruguay.

1. Investor: Requires certified economic independence also foreign source of monthly income of at least 1850 USD (as of 2022)
2. For Work: You need a contract made by a local company, notarized documents from your employer, salary and terms of contract.
3. Self-Employed: Very difficult and requires high economic standards.

Uruguay is a good residential option to add to the basket of residences that contemplate Geo Arbitrage

Uruguay is close to countries such as Argentina, Brazil and Paraguay.

At Studio Panama Italia , we provide an on-site legal office and also an accounting office in case of corporate requests to obtain your residence permits in Uruguay. To apply for residency, you can enter Uruguay as a tourist and apply in person at Uruguay's national immigration office, Dirección Nacional de Migración (DNM). It is very important to know how to speak the local Spanish, know the legal terms and understand the chronology of migration requests in order not to superimpose requirements before their official request, invalidating and therefore canceling the procedure, this leads to the impossibility of continuing and having to leave the country to avoid an expulsion.

Documents you will need to bring from your home country include

• a birth certificate
• a marriage certificate.
• a police certificate for each country in which you have lived in the last five years. If you are a US citizen you need an FBI report instead of a police report.
• Documented proof of income.

Your birth certificate, marriage certificate and documents on your legal conduct must be authenticated by the apostille (an official pre-printed form) affixed to the document by the competent authority in the appropriate jurisdiction and translated in Uruguay by a sworn translator of the law firm deciding use.

For example, you would get your birth certificate legalized with an apostille where you were born and in Italy at a prefecture. A marriage certificate would need an apostille where you got married at the relevant prefecture.

In addition to obtaining your residence in Uruguay, you will probably be interested in creating a life insurance policy on your taxation, taking up a second tax residence, in a country with territorial taxation, such as a residence in Panama or a residence in Paraguay

You'd also be tempted to find out what advantages moving to the Mexican economic giant would have, taking up residency in Mexico

To start your residence transfer procedure, contact us at info@studiopanamaitalia.com, sending us a copy of your passport, and the precise dates to start and take up residence in the country of your preference, or contact us via the contact form on this website or via whatsapp-telegram at +1 786-623-8177

What is the taxation on the Italian pension in Uruguay?

How is pension taxed in Uruguay? Italians retired in Uruguay can fully submit to the Uruguayan and non-Italian taxation system upon receiving their pension in Uruguay. The indications are provided by INPS with 4463/2020 (Uruguay) in which it implements the ratification laws 89/2020 (Uruguay). In compliance with the usual scheme of OECD conventions, the tax regime is diversified according to the type of pension received : a) in the case of pensioners dependent on private INPS managements, for the Italian pension to be detaxed, proof of residence is sufficient in Uruguay, b) in the case of pensioners dependent on the social security management of public workers (ex-inpdap) for the tax relief of the benefit, citizenship in the aforementioned foreign countries is also required. In consideration of what has just been said, INPS explains that requests for exemption relating to social security management services for private workers must also be accompanied by suitable documentation certifying the taxation of pension income received in Uruguay.

Corporate income tax in Uruguay is a flat rate of 25%. All businesses must register with the Dirección General Impositiva (DGI) and must submit annual returns within four months of the end of the year, otherwise they will face financial sanctions.

For both residents and non-residents with permanent establishments in Uruguay, the corporate income tax is 25%. This figure applies only to income generated through operations in the country and requires businesses to properly label, track and document their expenses in the country.

Investing in Uruguay for a non -resident foreigner is like doing it as a resident. Buying for example properties in Uruguay both for personal residential or holiday purposes and to rent is feasible with the passport only. The rock remains that as foreigners not residing in the country you will not have access to bank credit, mortgages and mortgages of the Uruguay banks and you will not have the opportunity to open an account in Uruguay to deposit money from abroad and with it to make the transaction of payment to the seller of the property. Investing in Uruguay for economic purposes makes much sense given the country's political and economic stability. There are many Italians (others to a large number of exponents of the Italian and international jetset, including actors, stylists and singers) to have even various millions of millions of dollars in Uruguay. Investing in Uruguay is therefore a simple option and not very bureaucratic if you have a consistent heritage that can take advantage of the options in the area. The non -resident investments in Uruguay are purely related to the real estate sector both for the purchase of real estate projects and land.