Tax residency in Uruguay: legal, tax and wealth keys that attract families and companies
Uruguay is consolidating as a destination for international families and companies. From Punta del Este, lawyer and notary José Pedro Damiani analyzes the main aspects of tax residency, the benefits currently in force and the reasons why the country is gaining prominence in a global context of uncertainty.
The interview takes place at José Pedro Damiani’s offices, located in Surfside Village, the iconic high-end tower that marks the entrance to La Barra. The contemporary-architecture complex, with privileged views, has established itself as the most prominent corporate and business hub in the east, reflecting Punta del Este’s new international profile. A lawyer and notary, Damiani leads a firm with more than seven decades of history, specialized in supporting foreign families and companies that decide to settle in Uruguay. His approach combines legal, tax and wealth advice, with a comprehensive, long-term outlook.
A professional practice oriented to comprehensive solutions
—To begin, how do you introduce yourself and how would you define your professional role today?
—My name is José Pedro Damiani. I am a lawyer and notary by profession. Beyond the title, what I do is try to give concrete solutions to families who come to settle in Uruguay. Comprehensive solutions, ranging from very everyday matters to more complex situations that arise over time. From his experience, relocation is not an isolated procedure but a process built in stages that requires understanding each client’s personal, family and wealth context.
—When a person arrives in Uruguay, what are the first needs?
—First comes the issue of housing, buying or renting a property. There I intervene as a notary. Then tax advisory needs arise and, from there, everything adapts to whatever needs the client has.
A firm with history and evolution
The Damiani firm was founded in 1949 as an accounting firm. Over time, it expanded its practice areas and accompanied the changes in the market and its clients. —It started as a purely accounting firm. Then it expanded into private banking, investment advisory and, starting in 2007, we also began to focus on real estate development. First with our own developments and later providing that service to different clients.
Legal residency and tax residency: key differences
One of the points that raises the most doubts among foreigners is the difference between legal residency and tax residency, two concepts that are often confused.
—What does legal residency allow?
—Legal residency allows you to obtain a Uruguayan document, such as the identity card (cédula). For many foreigners, for example Argentines, it is the first step toward tax residency. Often you are required to prove permanent residency in another country in order to de-register for tax purposes in your country of origin. —A person can obtain legal residency and never move on to tax residency. It is a neutral situation; it creates no tax obligations in Uruguay and no inconvenience if the person lives in another country.
—And tax residency?
—Tax residency means being subject to tax obligations in Uruguay. There are different ways to acquire it, and each has its particularities.
The routes to tax residency
—What are the ways to obtain it?
—The first is physical presence, which is quite common internationally: being in Uruguay at least 183 days within the calendar year. That is, between January 1 and December 31. —Another ground is real estate investment, which must be made personally, not through companies. The amounts and conditions have been changing and, from 2026, they are updated again, so it is key to analyze each case individually. —There is also a third route linked to investments in certain funds, but it is new regulation that is still pending full implementing rules.
The appeal of the Tax Holiday
One of the main incentives that those analyzing tax residency in Uruguay evaluate is the regime known as tax holiday.
—How does this benefit work?
—To understand it, you have to compare a traditional Uruguayan tax resident with a person who obtains tax residency with the tax holiday. In my case, as a Uruguayan who has always lived here, I pay 12% on income generated abroad, whether financial returns or capital gains. —By contrast, whoever accesses the tax holiday is exempt from paying taxes in Uruguay on income generated abroad for eleven years: the year in which they obtain tax residency and the following ten fiscal years. They only pay tax on activities carried out within the country.
—Does this regime also apply to companies?
—No, it is a benefit reserved for individuals. With the new Budget Law, moreover, the possibility of extending the regime for six additional years was incorporated, paying a reduced rate of 6%, provided a significant additional real estate investment is made. —It is a substantial outlay, but in certain cases the tax savings justify it and it can be a sound decision.
Why Uruguay and why Punta del Este
Beyond the tax benefits, Damiani highlights structural factors that explain Uruguay’s appeal. —Quality of life is key. Uruguay offers legal certainty, clear rules and stability. To that is added personal safety: people live at ease and move around freely. Punta del Este, in particular, is going through a process of sustained internationalization, with improvements in infrastructure, health, education and air connectivity.
—What recommendation would you give a family or company evaluating settling in Punta del Este?
—It is a life decision… Uruguay has improved a great deal in services and connectivity. For many Argentines, for example, the distance from Buenos Aires today is almost the same as moving within the metropolitan area.
—What feedback do you get from those who have already settled?
—In recent times many European families have settled here, especially German ones. They all agree in highlighting Uruguay as a store of value, a place of stability and predictability in an increasingly convulsed world.
Contact and professional advice
For families and companies evaluating relocating to Uruguay, obtaining tax residency or long-term wealth planning, specialized legal and tax advice is key. The Damiani Firm provides comprehensive, personalized support, combining experience, regulatory knowledge and a strategic outlook adapted to each case. More information and direct contact at www.jpdamiani.com
