Taxes in Uruguay for American Retirees
Taxes in Uruguay
When Uruguay starts taxing you, how it treats a U.S. pension, and what the United States still expects from you regardless.
When you become tax resident
More than 183 days in a calendar year, or having the main core of your economic interests in Uruguay. Uruguay also allows you to elect tax residence on the basis of a qualifying investment.
How your foreign pension is treated
Uruguay operates a broadly territorial system. Foreign pensions are generally not taxed. Foreign financial income such as dividends and interest would ordinarily fall into a limited extension of the tax base, but new tax residents may elect an eleven-year exemption on that foreign financial income, or alternatively a permanent flat rate of 7 percent on it. Both are elections with conditions.
Wealth tax
Uruguay levies a net wealth tax on Uruguayan-situs assets above a threshold, which primarily affects Uruguayan real estate rather than a foreign portfolio.
Other taxes and reporting
Property transfer taxes apply on purchase. Uruguay has strong bank secrecy traditions but participates in international information exchange.
Remember the U.S. side
The United States taxes its citizens on worldwide income wherever they live. Moving does not end your filing obligation, and FBAR reporting is triggered by an aggregate of 10,000 dollars across foreign accounts at any moment in the year.
Taxes in Uruguay: common questions
When do I become tax resident in Uruguay?
More than 183 days in a calendar year, or having the main core of your economic interests in Uruguay. Uruguay also allows you to elect tax residence on the basis of a qualifying investment.
Will Uruguay tax my U.S. pension?
Uruguay operates a broadly territorial system. Foreign pensions are generally not taxed. Foreign financial income such as dividends and interest would ordinarily fall into a limited extension of the tax base, but new tax residents may elect an eleven-year exemption on that foreign financial income, or alternatively a permanent flat rate of 7 percent on it. Both are elections with conditions.
Do I still file a U.S. return?
Yes. The United States taxes its citizens on worldwide income wherever they live, and moving does not end the obligation. You get an automatic extension to June 15, the Foreign Tax Credit usually prevents genuine double taxation, and FBAR is a separate filing triggered by an aggregate of 10,000 dollars across foreign accounts at any point in the year.
Verified Sep 7, 2026 Primary sources: www.gub.uy, www.gub.uy
This resource is provided free by Federal Apostille as an educational tool. It is not legal, tax, immigration or financial advice, and no attorney-client relationship is created by using it. Immigration rules, income thresholds, fees and processing times change frequently and often without notice, and consulates apply them differently. Always confirm current requirements with the official government source and the specific consulate that has jurisdiction over your U.S. state of residence before you act. Every figure on this site carries the date we last verified it and a link to the primary source.
