Uruguay Residency

Uruguay residency is the perfect solution for those seeking a secure life near Brazil or looking to secure a Plan B.

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Uruguay Residency

Why Uruguay?

  • A solid and predictable legal system
  • Political, economic, and social stability, thanks to a strong middle class, relatively low poverty levels, and the lowest income disparity index in Latin America
  • Low corruption rates
  • Open free-market economy, with free capital flow (in and out) and free currency convertibility.
  • Solid banking system with a low-debt economy.
  • Generous tax incentives for residents, companies, and investment projects.
  • Open policy for new permanent residents.

The Advantages of Residency in Uruguay

Bandeira do Uruguai

Residency in Uruguay offers you several advantages:

  • Minimum stay requirements: You only need to be in the country once every 3 years to keep your legal residency active. It is not necessary to own property in Uruguay.
  • Ideal tax residency: 11-year tax exemption on dividends and interest from outside Uruguay. Other income such as capital gains, pensions, and rental income are exempt indefinitely.
  • Banking Access: The Uruguayan ID card allows you to open accounts in dollars and pesos in the safest country in South America.
  • Labor Market: Residents can work and conduct business in the country without restrictions.
  • Citizenship: You can apply for citizenship after 3 years if married or 5 years if single.

Documents for Residency

Furthermore, obtaining residency is very straightforward, as there is no need for sworn translations of documents, nor is it necessary to make an investment, prove a job offer, or demonstrate professional qualifications.

We will only need the following:

  • Identity Document (Passport or National ID)
  • Apostilled Birth or Marriage Certificate
  • Criminal Background Check from the last 5 years (issued within the last 90 days)
  • Brazilian Vaccination Card (for equivalence with the Uruguayan one)
  • Passport Photo

Legal Residency Steps

  1. First, you will place your order with us. Our team of partner lawyers in Uruguay will conduct due diligence on you before accepting your residency application. If the application is declined, we will refund your payment. If accepted, you will need to confirm when you plan to travel to Uruguay.
  2. Next, you will need to gather the necessary documents and, before your trip to Uruguay, send us a scanned copy so we can verify them and ensure they meet all requirements.
  3. Once in Uruguay, vaccines must be validated or, if necessary, the corresponding doses must be administered at a vaccination center authorized by the Ministry of Health. An appointment will be scheduled to begin the process at the National Migration Directorate in Montevideo.
  4. On the day of the appointment, the applicant begins the process at the National Migration Directorate. A re-entry permit and, if necessary, a minor's authorization can be obtained. At the same time, it will be possible to request a temporary Uruguayan ID, valid during the residency processing period.
  5. The file is reviewed by the National Migration Directorate, which grants permanent legal residency within 30 to 90 days.
  6. Finally, the Uruguayan legal resident ID card will be issued.

More information about Uruguay

You can find more information and documents here:

Available options

Residency pricing and options

Residency + Account

US$1799

  • Includes permanent residency and Uruguayan ID (cédula).
  • Assistance with opening a bank account in Uruguay.
  • Document analysis and support with banking compliance.
  • Allows you to live and work in Uruguay indefinitely
  • Includes our 54-page Escape Route: Uruguay guide.
  • Discounts available for members of the Settee community and families (see FAQ below)

Residency + Account + Tax Holiday + SAS Incorporation

US$3099

  • All Residency + Account services.
  • Company incorporation in Uruguay (SAS model).
  • Application for tax residency in Uruguay
  • Guidance on the country's tax benefits
  • Allows you to live and work in Uruguay indefinitely
  • Includes our 54-page Escape Route: Uruguay guide.
  • Discounts available for members of the Settee community and families (see FAQ below)
We also accept payments via bank transfer in USD, EUR, crypto (BTC, ETH, XMR, USDT/USDC), or PIX. If you would like to do this, please send an email to info@settee.io

Is Uruguayan Residency right for me?

We recommend Uruguayan Residency for:

  • For those seeking security, quality of life, and proximity to Brazil: Uruguay is known for its safety, political and social stability, making it one of the most peaceful and convenient countries in Latin America for those who want to stay close to Brazil.
  • Those with foreign income who want to eliminate taxes: Uruguay's territorial tax system offers an exemption on dividends and interest generated outside the country for 10 years.
  • Freelancers and entrepreneurs seeking tax reduction: Whether through Free Trade Zones or special regimes, the country has favorable tax structures for various types of businesses and entrepreneurs.
  • Clients who wish to maintain residency with minimal stay requirements: Legal residency status can be maintained with just one visit to the country every 3 years.

We Do Not Recommend Uruguayan Residency For:

  • Those looking for a country with a very low cost of living: Uruguay has a higher cost of living compared to other options in Latin America, such as Paraguay or Colombia.
  • Those seeking tax residency without the need to live or invest: Uruguay requires some level of involvement with the country, such as minimum stay requirements and economic ties. For greater flexibility, Paraguay is a more practical option.
  • Those seeking a second citizenship without strong ties to the country: The Uruguayan naturalization process requires years of residency, which may be disadvantageous for those wishing to obtain a passport without a long-term commitment.

Frequently Asked Questions (FAQ)

What is included in the legal and tax residency service?
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The legal residency service includes:

  • Consulting and processing of permanent legal residency.
  • Opening a bank account in Uruguay.
  • Processing of provisional and permanent identity cards (cédulas).
  • Remote support with information on the required documentation.
  • A professional to accompany you through the residency process at the immigration office.

The legal + tax residency service includes:

  • Opening a bank account in Uruguay.
  • Incorporation of a Simplified Joint-Stock Company (SAS).
  • Application for Uruguayan tax residency status and certificate.
  • Application for the 11-year tax exemption on interest and dividends.
  • Legal permanent residency consulting and processing.
  • Processing of temporary and permanent identity cards (cédulas).
  • Remote support with information on the required documentation.
  • Professional to accompany you through the residency process at the immigration office.
What is not included in the residency service?
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  • Any costs related to travel to Uruguay.
  • Apostille of documents
  • Sworn translations
  • Issuance of duplicate documents
  • Notary fees in Brazil and Uruguay
  • International shipping and travel costs
  • Government and immigration fees
  • Personalized international tax consulting
  • Guaranteed bank approval
  • Guaranteed granting of tax benefits
  • Estate or asset planning
  • Operational management of the company
  • Issuance of Uruguayan passport
  • Any costs related to accommodation in Uruguay.
  • Apostilled Brazilian certificates for the process.
  • Residency and ID card for dependents. There are discounts for each additional dependent - see the section on discounts.
  • Tax and accounting support in Uruguay: The same team that handles your immigration process can assist you with all your needs.
What is the difference between legal and tax residency?
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Legal residency is a residence permit. It gives you the right to live in the country, stay as long as you like, come and go, apply for a driver's license, work, and seek employment. With a residence permit, you begin counting time toward naturalization and obtaining Uruguayan citizenship.

To keep your legal residency active, you cannot be absent from the country for more than 3 consecutive years, nor can you let your identity card (usually valid for 2 years) expire.

Tax residency, on the other hand, is the obligation to pay taxes in the country (or not, by using the 11-year tax benefit). You obtain it if you have:

  • Presence in the country for more than 183 days (formal criterion). Sporadic absences will be counted when determining this period.
  • The base of your activities, or economic or vital interests, is established in Uruguayan territory (substantial criterion). Legislation presumes this condition is met when a spouse and dependent minor children habitually reside in Uruguay. Furthermore, an individual is considered to have their base of activities in the country when they derive more income from Uruguay than from any other country (this does not apply when the person derives income exclusively from passive sources within the country).
  • Investing more than 15 million "Indexed Units" (approximately US$ 2,265,000) in properties located within Uruguayan territory.
  • Investing more than 45 million "Indexed Units" (approximately US$ 6,795,000) in a company with projects or activities promoted by the Investment Law, either directly or indirectly.
  • Investing more than 3.5 million "Indexed Units" (approximately USD 528,500) in real estate, provided the individual is present in Uruguay for at least 60 days. If no new acquisitions are made, the updated fiscal cost will be considered for each property.
  • Investing more than 15 million "Indexed Units" (approximately US$ 2,265,000) in a company, provided that at least 15 new full-time jobs are created (during the calendar year). New jobs are those not related to a reduction in jobs in a related party.

For tax residency options based on investment, regulations state that an individual will be considered a resident for tax purposes (presence of economic interests in the country) if they have a qualifying investment, unless they can prove their tax residency in another country.

In what situations should I apply for tax residency?
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If you are thinking about leaving Brazil to become a nomad while maintaining a legal base, you do not need tax residency. Brazil allows for a definitive departure without the need to present a new tax residency. Legal residency alone is sufficient for this purpose.

In general, if you plan to spend less than 183 days per year in Uruguay and will not be investing or establishing your center of life there, you would not qualify for tax residency and therefore do not need to apply for it.

If you plan to live in Uruguay long-term and meet one of the qualification criteria mentioned above (such as spending more than 183 days in the country), you MUST apply for tax residency and the tax benefit.

Do I need to go to Uruguay to complete the process?
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Yes, you are required to travel to Montevideo, Uruguay, to complete the immigration process.

How long do I need to stay in Uruguay to complete the immigration procedures?
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Once your immigration meeting is scheduled, we recommend a stay of 3 business days to complete the process.

Are there any discounts available?
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  • Settee Community: As an annual member of the Settee Community, you receive a 50 USD discount on your order as the primary applicant. Since the annual plan costs 200 USD, we recommend that everyone become a member before placing an order!
  • Additional members: There is a 50 USD discount for spouses and dependent children.
How long does the process take?
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Between 2 to 4 months in total, once the procedure in Montevideo is completed. However, it can take months to secure an appointment with immigration.

Do I need to live in Uruguay once I have residency?
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Legal residency: No, once obtained, you only need to visit the country once every 3 years and ensure your ID card does not expire to keep it active.

Tax residency: It depends on the criteria used for qualification. In principle, you need to spend at least 183 days per year in Uruguay. However, if you have a qualifying investment, you can maintain tax residency with as little as 60 days—or even just 1 day—of stay per year.

What is the point of Uruguayan residency if I still live in Brazil?
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There are some advantages to obtaining Uruguayan residency even if you continue to live in Brazil.

  1. It begins the clock for permanent residency and, eventually, citizenship by naturalization in Uruguay. Note, however, that you must demonstrate strong ties to Uruguay to obtain citizenship.
  2. It allows you to open accounts at Uruguayan banks and credit unions more easily.
  3. It makes it easier to invest, study, and do business in Uruguay.
  4. It allows you to obtain a Uruguayan tax identification number to open accounts at international banks, brokerages, and exchanges. This has two advantages:

    Brokerages exchange information with the country of tax residence, which increases your financial privacy.

    Some banks and financial platforms restrict the use of their services for residents of Brazil. By verifying your account as a Uruguayan resident, you can access these platforms.
  5. It allows you to obtain a Uruguayan driver's license for use in other countries.
  6. If you decide to move to Uruguay at some point, you will already have all the documents in hand—you can just go.
Can I live tax-free with Uruguayan residency without living in Uruguay?
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It depends. If you obtain Uruguayan residency but still live in Brazil year-round, you will obviously remain a tax resident of Brazil and must pay taxes there.

However, if you:

  1. Obtain Uruguayan residency
  2. Complete your formal tax exit from Brazil or your home country
  3. Then become a perpetual traveler or emigrate to a tax haven

Yes, it is entirely possible to live tax-free without actually living in Uruguay. However, since the costs are higher and the residency requirements are stricter, we would recommend Paraguayan residency if you are considering this plan.

If I obtain Uruguayan residency while living in Brazil, will I be double-taxed?
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No. You only become a tax resident of Uruguay if you spend more than 183 days per year there, earn the majority of your income in the country, have a spouse or children who are residents, or make a qualifying investment. In any case, Uruguay is a territorial tax country, meaning your foreign-sourced income would not be taxed.

As long as you do not have any Uruguayan-sourced income (such as rent from property in Uruguay, or salary or dividends from a Uruguayan company), you will not have to pay taxes in Uruguay for 11 years.

Do I need to file income tax returns in Uruguay if I have no local income?
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Simply having legal residency does not mean you need to file tax returns in Uruguay.

As a tax resident, it is important to remember that Uruguay has a territorial tax system. For capital gains, you do not need to report or declare your assets (real estate, stocks, shares, funds, etc.) held abroad.

The vast majority of income types, such as rent, pensions, or capital gains from abroad, are completely tax-exempt. The only types that would not be are dividends and interest; however, as an immigrant, it is possible to request a tax benefit to exempt this foreign income from taxes for 11 years.

For local income, there is an income tax exemption of 475,440 UYU per year (approx. 12,500 USD). Up to this amount, you do not pay or declare tax on local income.

Does residency help in obtaining a second citizenship in Uruguay?
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Yes. The step-by-step process is as follows:

  1. Permanent Residency. This service covers the application for permanent residency in Uruguay. Considering the entire process, it takes a total of 2-4 months to be granted.
  2. Citizenship and Passport. After 5 years of permanent residency (3 for married individuals or parents), you can apply for Uruguayan citizenship and obtain a Uruguayan passport. However, please note that you must demonstrate strong ties to Uruguay to obtain citizenship. Expect to spend at least 6 months per year in Uruguay during those years if you intend to obtain citizenship.
Can you provide an invoice for the service?
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We can issue an invoice for the service. Please send us your preferred billing address.

Questions?

Send a message to one of our consultants to plan your residency in Uruguay

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