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Uruguay IRPF Guide 2026

Uruguay's Impuesto a la Renta de las Personas Físicas (IRPF) is a progressive personal income tax with rates from 10% to 36%. The tax applies to worldwide income for residents and Uruguayan-source income for non-residents (flat 12% or 25%). It is administered by the Dirección General Impositiva (DGI). The tax year follows the calendar year (January to December). Currency: UYU (Uruguayan Peso).

Uruguay's IRPF is administered by the DGI. The system taxes income on a progressive scale. For related guidance, see our Corporate Tax Guide →, IVA Guide →, and Tax Residency Guide →.

IRPF Tax Brackets 2026

Uruguay uses a progressive bracket system on net taxable income. For 2026, the rates are:

  • 0% — on income up to approximately UYU 500,000/year (salaried employees with standard deductions)
  • 10% — lowest taxable bracket
  • 15% — intermediate bracket
  • 20% — intermediate bracket
  • 25% — intermediate bracket
  • 30% — intermediate bracket
  • 36% — top marginal rate on highest income bracket

The exact UYU thresholds for each bracket are updated annually by the DGI. The 0% band ensures low-income workers pay no income tax up to approximately UYU 500,000/year when personal deductions are applied.

Deductions and Allowances

  • Personal deduction: Taxpayers may deduct a fixed personal allowance from gross income
  • Dependents: Deductions available for children and other dependents (spouse, ascendants) under specified conditions
  • Social security contributions: BPS contributions (pension and health) are deductible from gross income for IRPF purposes
  • Health insurance: Private health insurance premiums (mutualista) above the basic FONASA contribution may be deductible within limits
  • Retirement savings: Contributions to AFAP (private pension funds) up to certain limits are deductible

Non-Resident Tax Rates

Non-residents are taxed only on Uruguayan-source income at flat rates:

  • 12% — on Uruguayan-source employment income and certain other income types
  • 25% — on Uruguayan-source income not covered by the 12% rate (including professional fees, technical services)
  • Non-residents are not subject to progressive rates and do not benefit from personal deductions

Filing Requirements

  • Filing period: Annual declaration due by June 30 of the following year
  • Residents: File on worldwide income. Foreign tax credits are available for taxes paid abroad
  • Non-residents: Taxed only on Uruguayan-source income, generally via withholding at source
  • Filing method: Online through the DGI portal (e-tax system)
  • Employer withholding (retenciones) serves as advance payment against the final annual liability

FAQs

Who must file an IRPF return in Uruguay?

Individuals whose gross income exceeds the minimum non-taxable threshold (approximately UYU 500,000/year for salaried employees with deductions) must file an annual return. Those with multiple income sources or investment income may also need to file regardless of total income.

Is foreign income taxable in Uruguay?

Yes, tax residents of Uruguay are taxed on their worldwide income. Foreign tax credits are available for income taxes paid abroad, limited to the Uruguayan tax due on that income.

Are BPS contributions deductible?

Yes, mandatory contributions to BPS (pension 12.5% and health 2.5%) are fully deductible from gross income for IRPF purposes.

Disclaimer

This guide provides general information about Uruguay's IRPF for the 2026 tax year. Rates, brackets, and deductions are subject to change. Always consult a qualified Uruguayan tax advisor (contador) or the DGI for specific guidance. InvestmentKit does not provide tax advice.

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