Tax News Update    Email this document    Print this document  

June 22, 2020
2020-1627

Uruguay's Executive Power adds new conditions under which individuals may obtain tax residence

The decree adds two new conditions that allow individuals to claim tax residence in Uruguay if they make certain investments.

Uruguay's Executive Power has issued Decree No. 163/020, establishing additional conditions under which individuals may claim tax residence based on their economic interests in Uruguay.

Background

Individuals generally may claim tax residence in Uruguay based on their economic interests in Uruguay if they satisfy one of the following conditions:

  1. Have an investment in real estate with a value greater than 15,000,000 Indexed Units (IU) (currently, 1 IU is equal to approximately USD 0.11)
  2. Have an investment in a company, directly or indirectly, with a value greater than 45,000,000 IU, and the investment has been declared a national interest activity or project

Decree No. 163/020

The decree establishes additional conditions under which individuals may claim tax residence in Uruguay based on their economic interests. Individuals may claim tax residence if they meet one of the following conditions:

  1. Have an investment in real estate in Uruguay with a value greater than 3,500,000 IU, if it is made as of July 1, 2020 and they have remained in Uruguay for at least 60 days during the calendar year
  2. Have a direct or indirect investment in a company in Uruguay with a value greater than 15,000,000 IU, if the investment is carried out as of July 1, 2020 and it generates at least 15 new jobs (in a dependent employment relationship)

New Jobs are those created as of July 1, 2020, without decreasing the jobs of a related company.

———————————————

Contact Information
For additional information concerning this Alert, please contact:
 
EY Uruguay
   • Martha Roca (martha.roca@uy.ey.com)
   • María Inés Eibe (ines.eibe@uy.ey.com)
Latin American Business Center, New York
   • Ana Mingramm (ana.mingramm@ey.com)
   • Pablo Wejcman (pablo.wejcman@ey.com)
   • Enrique Perez Grovas (enrique.perezgrovas@ey.com)
 

The information contained herein is general in nature and is not intended, and should not be construed, as legal, accounting or tax advice or opinion provided by Ernst & Young LLP to the reader. The reader also is cautioned that this material may not be applicable to, or suitable for, the reader's specific circumstances or needs, and may require consideration of non-tax and other tax factors if any action is to be contemplated. The reader should contact his or her Ernst & Young LLP or other tax professional prior to taking any action based upon this information. Ernst & Young LLP assumes no obligation to inform the reader of any changes in tax laws or other factors that could affect the information contained herein.

 

Copyright © 1996 – 2024, Ernst & Young LLP

 

All rights reserved. No part of this document may be reproduced, retransmitted or otherwise redistributed in any form or by any means, electronic or mechanical, including by photocopying, facsimile transmission, recording, rekeying, or using any information storage and retrieval system, without written permission from Ernst & Young LLP.

 

EY US Tax News Update Master Agreement | EY Privacy Statement