Uruguay - DN Visa

[enbits]

For people struggling with Argentinean's visas I wonder if any of you considered getting a DN visa in Uruguay. You'd have huge benefits like being able to get a local US$ bank account and don't dealing with exchange issues and a marvelous 11 years tax exemption.

By becoming a tax resident in Uruguay, you can take advantage of special tax benefits, the most significant being a ten-year tax exemption on your foreign income.

Individuals who have recently obtained tax residency are subject to non-resident taxation rules. This means that the tax exemption period begins in the fiscal year following residency, effectively making it eleven years.

During this time, you are not required to pay taxes on any income earned outside of Uruguay, including interest and dividends from non-resident entities (companies located outside of Uruguay).

Once the tax exemption period ends, foreign-source interest and dividends are taxed at a rate of 12%. However, income from owning or renting property abroad is not subject to taxation.

If you already pay income tax on interest or dividends generated overseas, Uruguay will not impose additional taxes. Additionally, if you are already paying a rate of 12% or higher in another country, you will not have to pay taxes in Uruguay. This is known as the non-double taxation rule, allowing individuals to settle in other locations without facing double taxation. This is particularly beneficial for nomads who desire the freedom to travel and live in different places.

However, income received from investments abroad, known as movable assets, may still be subject to taxation. This includes dividends and interest from securities, loans, and bank deposits paid to you by foreign individuals or firms.

Fortunately, taxpayers have the option to elect a 7% tax rate on income from movable assets abroad, instead of the standard 12%. This reduced rate does not have a time limit and can be maintained as long as you remain a fiscal resident.

Therefore, when becoming a new tax resident in Uruguay, you have two choices: either enjoy a ten-year tax exemption on foreign dividends and interest or pay a reduced tax rate of 7% on these types of income for as long as you maintain your tax residency, which could extend beyond the initial ten-year period.

 

[Uncle Wong]

For people struggling with Argentinean's visas I wonder if any of you considered getting a DN visa in Uruguay. You'd have huge benefits like being able to get a local US$ bank account and don't dealing with exchange issues and a marvelous 11 years tax exemption.

I think people like Argentina for Argentina. Even though it was just a ferry ride across the river Uruguay felt very different to me. I didn't think it was anything special and it was very expensive!! I went to eat and to the grocery store and was surprised how expensive things were there. Really the banking situation isn't difficult at all. I just used cuevas and my Airbnb owner hooked me up with their contact so I could just Zelle money in and paying about 3.5% to get US dollars. It was very quick and easy. And our American credit cards work in Argentina at the MEP rate so wasn't bad at all.

If they would just increase the ATM withdrawal limits and it was at the MEP rate that would be great. Overall I thought Uruguay was boring. It was ok for a weekend trip but I would run out of things to do after a week. I went to Colonia, Punta del Este and Montevideo. All were clean and safe and beautiful but I have a feeling I'd just be always in Buenos Aires.

 

[earlyretirement]

I think people like Argentina for Argentina. Even though it was just a ferry ride across the river Uruguay felt very different to me. I didn't think it was anything special and it was very expensive!! I went to eat and to the grocery store and was surprised how expensive things were there. Really the banking situation isn't difficult at all. I just used cuevas and my Airbnb owner hooked me up with their contact so I could just Zelle money in and paying about 3.5% to get US dollars. It was very quick and easy. And our American credit cards work in Argentina at the MEP rate so wasn't bad at all.

If they would just increase the ATM withdrawal limits and it was at the MEP rate that would be great. Overall I thought Uruguay was boring. It was ok for a weekend trip but I would run out of things to do after a week. I went to Colonia, Punta del Este and Montevideo. All were clean and safe and beautiful but I have a feeling I'd just be always in Buenos Aires.

Uruguay is a wonderful country. Very friendly people and very safe. Excellent healthcare and functional banking system. But I agree with @Uncle Wong that it can get boring if you are accustomed to big-city living. I owned a house in Punta del Este which was nice to escape once a month for quiet weekends. But as mentioned by @Uncle Wong, it is much more expensive vs. Argentina.

But for people that prefer a slower pace of life it could be a good option. It is easy to get back and forth with the Buquebus ferry.

Once they get rid of the CEPO, banking should be much better and I would think they will increase the withdrawal limits. When I first moved to Buenos Aires you could withdraw the equivalent of $400 US dollars at one time which was great. Things should stabilize over time. And it is very easy to deal with banking if you have good contacts. It's not difficult at all. You do have to pay % to get cash but very quick and easy with cuevas. Things are 100 X easier now vs. even just a few years ago. Before, there was no MEP rate nor using your credit cards. This is so much easier now being able to pay with foreign credit card. WU is also very easy. Just adds on some costs but things will be much better by this time next year.

 

[Digital Nomad]

For people struggling with Argentinean's visas I wonder if any of you considered getting a DN visa in Uruguay. You'd have huge benefits like being able to get a local US$ bank account and don't dealing with exchange issues and a marvelous 11 years tax exemption.

I visited Uruguay and it's beautiful. What I liked the most is how quiet it is. My biggest complaint about BA is it's a loud noisy city. I've been to many bigger cities but BA seems especially loud and has a lot of noise pollution. I went to my novia's house in Punta and it was so quiet there. Felt nice.

@enbits it seems like so many people are shilling for 2nd citizenships in other countries like Paraguay, Uruguay etc to pay 0% taxes. It sounds too good to be true.

 

[enbits]

I visited Uruguay and it's beautiful. What I liked the most is how quiet it is. My biggest complaint about BA is it's a loud noisy city. I've been to many bigger cities but BA seems especially loud and has a lot of noise pollution. I went to my novia's house in Punta and it was so quiet there. Felt nice.

@enbits it seems like so many people are shilling for 2nd citizenships in other countries like Paraguay, Uruguay etc to pay 0% taxes. It sounds too good to be true.

Uruguay is definitely tax and US$ friendly, a proof of that is all the middle / high class Argentineans that move to Uruguay in order to escape from Argentina's tax hell.

 

[Betsy Ross]

Uruguay is definitely tax and US$ friendly, a proof of that is all the middle / high class Argentineans that move to Uruguay in order to escape from Argentina's tax hell.

Uruguay is nice but I agree with the others it would get boring for me. I love Buenos Aires for all the activities and cultural events. Always something to do no matter the day or the week. Most expats in Buenos Aires are in a different situation. I'm sure exceptions to the rule but most that decide to move to Argentina are on fixed incomes or retired. They don't have any formal ties to the Argentina banking system or not dependent on it. They keep their cash in American banks and just transfer as needed.

Over the years the ones I have met or read about are mostly people that don't have many assets and came to live a more affordable life. Argentina is good in that regard. Tax avoidance or shelter is probably not high on the list for many expats deciding to make Argentina their home. Probably more cost of living and quality of life issues.

Just look at the few expats in other cities in Argentina. The vast majority are in Buenos Aires for one reason or another but I would guess quality of life, proximity to cultural events or sports or things like enjoy in daily life. Even some friends that prefer smaller cities still gravitate to Buenos Aires as it is easier for them.

I am not knocking Uruguay but would never live there. But nice for a visit.

 

[Bill]

Uruguay is definitely tax and US$ friendly, a proof of that is all the middle / high class Argentineans that move to Uruguay in order to escape from Argentina's tax hell.

Yep. My friend who owns a business told me that if people paid all the taxes that they were supposed to in Argentina it would exceed 100%.