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Uruguay Investment Income Guide 2026

Uruguay offers highly favorable tax treatment for investment income. Dividends received by resident individuals are taxed at 0%. Interest income for individuals is also 0%. Royalties for individuals are 0%. Capital gains on shares and securities are 0%. These exemptions make Uruguay one of the most attractive jurisdictions in Latin America for investment holding.

Uruguay taxes investment income very favorably compared to most countries. For related guidance, see our Personal Tax Guide →, Capital Gains Guide →, and Cross-Border Guide →.

Dividend Taxation

  • Individuals (residents): 0% withholding tax on dividends received from Uruguayan companies
  • Non-residents: 7% withholding tax on dividends paid by Uruguayan companies
  • Corporate shareholders: Dividends between Uruguayan corporations are generally exempt
  • Foreign dividends: Dividends received from foreign sources by Uruguayan residents are included in worldwide income for IRPF purposes, with foreign tax credits available for taxes paid abroad

Interest Income

  • Individuals (residents): 0% tax on interest income from Uruguayan sources (bank deposits, bonds, other fixed-income instruments)
  • Non-residents: 12% withholding tax on interest from Uruguayan sources
  • Bank interest: Interest on bank deposits and savings accounts is tax-free for individuals
  • Corporate and government bonds: Interest on bonds and debentures is 0% for resident individuals

Royalty Income

  • Individuals (residents): 0% tax on royalty income from Uruguayan sources
  • Non-residents: 25% withholding tax on royalties paid from Uruguayan sources
  • Royalty income includes payments for the use of intellectual property, patents, trademarks, copyrights, and know-how

Capital Gains on Investments

  • Shares and equities: 0% CGT on gains from the sale of shares, equities, and other securities
  • Bonds and debentures: 0% CGT on gains from the sale of bonds and debt securities
  • Real estate: 12% CGT applies to gains from the sale of real property (see Capital Gains Guide)
  • Uruguay has no CGT on equities, making it highly attractive for portfolio investors and holding companies

Investment Income for Non-Residents

  • Dividends: 7% WHT (may be reduced under applicable double tax treaties)
  • Interest: 12% WHT (may be reduced under DTTs)
  • Royalties: 25% WHT (may be reduced under DTTs)
  • Capital gains on shares: 0% — no CGT for non-residents on equity investments

FAQs

Are dividends really tax-free for individuals in Uruguay?

Yes, dividends received by Uruguayan resident individuals are not subject to any withholding tax or income tax. This makes Uruguay an excellent jurisdiction for investment holding.

Do I pay tax on bank interest in Uruguay?

No, interest income from bank deposits, savings accounts, and other fixed-income instruments is tax-free for resident individuals.

How are foreign investment returns taxed?

Foreign-source investment income (dividends, interest) is generally included in worldwide income for Uruguayan residents and taxed under IRPF at progressive rates (10-36%), with foreign tax credits available. However, the 0% rates for domestic dividends and interest do not apply to foreign-source income.

Disclaimer

This guide provides general information about investment income taxation in Uruguay for 2026. Rates and rules may change. Always consult a qualified Uruguayan contador or the DGI for specific guidance. InvestmentKit does not provide tax advice.