Before you start

A determination of whether you meet any of the DGI's grounds for tax residence
Cédula de identidad and a DGI registration where you have obligations
Records of days present in Uruguay
Documentation of foreign income and investments

Step-by-step

1
Check which tax-residence ground you actually meet
The DGI lists several: more than 183 days in the calendar year; your spouse and dependent minor children habitually resident here; greater gross income in Uruguay than in any single other country; or economic-interest tests measured by investment. They are alternatives, not cumulative requirements, and which one you meet affects what you must evidence.
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2
Know the investment routes to tax residence in their own right
Property above UI 3,500,000 acquired since 1 July 2020 combined with at least 60 days' presence; property above UI 15,000,000 with no presence requirement; a promoted investment project above UI 45,000,000; or a business investment above UI 15,000,000 since July 2020 creating fifteen direct full-time jobs. These are DGI grounds and have nothing to do with your migration file.
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3
Decide about the tax holiday in the year you acquire residency
New tax residents may elect to be taxed as non-residents on foreign capital income for the year of acquisition plus ten further years, subject to meeting a qualifying condition each year. The election is made once and the conditions are checked annually. Take advice before the first year closes.
OnlineWho: YouYear of acquiring tax residence
4
Understand the qualifying conditions attached to the holiday
Under the post-2026 regime the holiday requires either more than 183 days in Uruguay in each fiscal year, or property above UI 12,500,000 (roughly USD 2 million), or at least UI 625,000 a year (roughly USD 100,000) into approved venture-capital funds for productive projects or research.
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5
Plan for what happens when the holiday ends
After the exempt period there are two paths: five further years at half the ordinary rate with a continuing investment, or a fixed annual IRPF payment of UI 1,875,000 for twenty years — reduced to UI 1,250,000 in years where you are present more than 183 days or hold a business investment above UI 45,000,000. These are large numbers and only make sense for large foreign incomes.
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6
Deal with the municipal side separately
The contribución inmobiliaria on property is levied by the Intendencia de Montevideo, not by the DGI, and there are separate municipal charges for services. Owning property here means two authorities, not one.
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Documents you’ll need

Cédula de identidad
Evidence of days present in Uruguay
Title deeds or investment documentation, where relying on an economic-interest ground
Foreign income statements
Certificado de residencia fiscal from the DGI, where a treaty partner needs it

Things most newcomers don’t know

The 7%-forever flat rate is closed to anyone acquiring residency from 2026, and it is still the headline everywhere.

Under the previous regime a new tax resident chose between roughly a decade of exemption on foreign income and a permanent 7% rate. Ley 20.446 replaced that from 1 January 2026 with an exemption of the year of acquisition plus ten years, subject to real qualifying conditions, and post-holiday options that are either investment-linked or a large fixed annual payment. People who elected under the old rules keep them. Everything you read that still promises 7% forever is describing a regime that closed.

Source: Ley 20.446; DGI

Uruguay's tax residence has an investment route with no day count at all.

Property above UI 15,000,000, or a promoted investment project above UI 45,000,000, establishes tax residence without any physical presence requirement. The smaller property route — above UI 3,500,000 since July 2020 — needs only 60 days a year. This is why Uruguay attracts people who want a treaty-recognised tax residence without moving their whole life, and it is also why the DGI is careful about the evidence.

Source: DGI — causales de residencia fiscal

The day count is not the simple 183 you think, because short absences do not break it.

The DGI counts days of effective physical presence but disregards sporadic absences of up to 30 consecutive days unless you produce a tax-residence certificate from another country. That means someone dividing their year between two places can accumulate Uruguayan days faster than a naive count suggests — and can become tax resident without intending to. Keep boarding passes and entry stamps.

Source: DGI

The scope of what Uruguay taxes from abroad widened in 2026, quite apart from the holiday.

Foreign-source income used to be taxed only on movable capital returns — deposits, loans and similar placements — at 12%. From 2026 the base extends to foreign capital income generally, movable and immovable, and to capital gains, with defined exceptions. A person who structured around the old narrow base and did not revisit it may now have income inside the Uruguayan net that previously sat outside it.

Source: Ley 20.446; DGI

Common mistakes to avoid

Planning around the 7% flat rate, which is closed to new residents from 2026.
Assuming legal residence makes you a tax resident, or that tax residence requires legal residence.
Counting 183 days naively and ignoring the treatment of short absences.
Structuring around the pre-2026 narrow definition of taxable foreign income.
Taking advice from a guide, a forum or an agency that has not been updated since Ley 20.446.

Some of this may be out of date. Spotted something inaccurate? Help us keep it right for the next newcomer.