Uruguay’s personal taxation system is fairly straightforward and includes several main taxes:
Income Tax (IRPF — Impuesto a las Rentas de las Personas Físicas)
Progressive tax divided into categories based on income source (e.g., salary, investments, rental income).
Rates range from 0% to 36%, depending on income level.
Only income earned within Uruguay is taxed; foreign-sourced income is not.
Social Contributions (BPS — Banco de Previsión Social)
Employees and employers contribute to the social system (pensions, healthcare, etc.).
Property Tax (Contribución Inmobiliaria)
Local taxes on real estate, depending on the region and assessed property value.
Inheritance and Gift Tax
Uruguay does not impose inheritance or gift taxes.
Value-Added Tax (IVA — Impuesto al Valor Agregado)
Indirect consumption tax, with a standard rate of 22%. Some goods and services may have a reduced rate of 10%.
These taxes make up the main part of the tax burden for individuals in Uruguay. The system is favorable for foreigners, as foreign income is not subject to taxation.