Tax-Free Residency and Golden Visa Residency by Investment Program in Uruguay
At an average of 100 per week, residences were approved in the Uruguayan chancellery in the middle of the year. Law Nє 19.254 allows spouses, concubines, parents, brothers, and grandchildren of Uruguayans and nationals of the states parties and associates of Mercosur to obtain residence in Uruguay.
As of October 13, 2014 (date on which the law began to apply) and until May, 2,908 residency applications had been approved.
But many do not stay with the second residency and immigration in Uruguay, but go a step further and seek to obtain the “fiscal residence”.
“It reaffirms a trend that was taking place a couple of years ago, which is that the number of applications for foreigners’ residences in Uruguay, especially for Argentines and Brazilians, has increased, and in recent times, there is a supplement that is the fiscal residence. and mainly the Argentines and Brazilians are requesting this second step, “the partner of the Posadas, Posadas & Vecino study, Raъl Vairo, told El Paнs.
He noted that his study receives “many consultations” to obtain tax residence in Uruguay.
“The legal residence does not offer greater difficulty” while to obtain the fiscal residence “it is necessary to fulfill one of the three established criteria”, indicated Vairo. They are: permanence (those who stay at least 183 days a year in Uruguay are tax residents), file economic interests (for example, in Uruguay where more income is generated) or file family interests (that the person comes to live with his wife and children for example).
“Of all the consultations, not many are willing to comply with these criteria,” said Vairo.
In his opinion, “in the face of the political and economic instability that often brings with it the increase of taxes or changes in the tax base”, leads to opt for Argentines and Brazilians to establish their tax residence in Uruguay.
“In Brazil, it is notorious (due to the political crisis that the government is currently going through) and in Argentina too, together with security problems,” he added.
In that sense, for Vairo “Uruguay has a very large value for proximity” and also “has a tax regime for individuals very convenient and advantageous with respect to Argentina and Brazil.”
The Personal Income Tax (IRPF) taxes 12% of those generated abroad, “but they are also exempt for foreigners (who live in the country) for five years,” he said.
The profile of these new fiscal residents is of “people over 50 years old, or marriages with children (mainly Argentines) and of medium-high and high purchasing power”, explained Vairo.