Uruguayan Citizenship: The Ultimate Guide

Why Uruguayan citizenship?

Living in Uruguay has a number of benefits – there are beach towns like Punta del Este that flood with tourists during the summer months, several places to soak up the stunning views along the coastline, the banking system is reliable, and the country is generally safe and calm.

When relocating to Uruguay, there are many different living options to choose from. For a more vibrant and busy lifestyle, consider cities like Atlantida, Littoral, or Montevideo. For a more laid-back atmosphere, you can look to the quiet calm of Uruguay’s countryside

In addition to this, Uruguay offers several roads to residency, a relatively easy application process, and tax exemptions.

How to get Uruguayan citizenship?

To get citizenship in Uruguay, you must first obtain residency, as you need to prove that Uruguay is where your life is based. For a detailed guide on how to obtain residency in Uruguay, visit our article: Uruguay Residence: The Ultimate Guide.

As mentioned, Uruguay is not a place for part-time residency if you intend to apply for citizenship. You’re required to spend the majority of your time in the country. If this is not suited to your lifestyle, either because you often travel internationally for work or live as a digital nomad and prefer to avoid being tied down to one place, you might prefer Uruguay’s equity option.

Uruguay’s equity option allows you to make an investment and become a tax resident. By investing in an enterprise ($1,700,000) or real estate ($390,000) in Uruguay, you will only be required to spend a minimum stay of 60 days in the country each year and can still enjoy the benefits of Uruguayan residency.

While Uruguay has taken steps to encourage foreigners to become residents, the move to citizenship remains a bit complicated. Once you meet all the requirements, you can apply for citizenship. However, some foreign nationals find their applications not being approved, despite meeting the requirements. This is something to keep in mind if you’re planning on relocating to Uruguay.

Steps to Obtaining Citizenship in Uruguay

Once you are granted permanent residency, you are generally allowed to stay in the country indefinitely. If you are married, you can apply for citizenship after three years of residency. As a single person, you can apply for citizenship after five years of residency. This time is counted from the day you arrive in Uruguay to apply for residency, not the day you make your application.

To apply for citizenship, the following documents are required:

1. Birth certificate
2. Uruguay permanent residence certificate
3. Proof of residence
4. Proof of social integration
5. Proof of identity
6. Proof of income
7. Application fee (to be paid when you make the application)

You can make your application for citizenship at an office of Uruguay’s Electoral Court. You may need to make an appointment first, depending on which office you choose. As a general rule, citizenship is granted within six months of the application date, and your passport is issued.

Check out our article: Uruguayan Passport: An Informative Guide.

Tax Advantages in Uruguay

Uruguay offers a number of tax benefits that apply to both legal residents and legal citizens. Remember to review any tax credits or tax treaties that can be used in your favor and ensure you’re not double-taxed when moving to Uruguay.

Uruguay tax incentives

Tax residence

To qualify as a tax resident in Uruguay, an individual must meet at least one of the criteria below, as assessed by the Uruguayan tax authority (Dirección General Impositiva – DGI). Tax residence is a tax concept only and is independent from immigration (legal residence). 

Days Test (Physical Presence) 

Spend more than 183 days in Uruguay within a calendar year. 

• Days do not need to be consecutive 

• Any fraction of a day counts as a full day 

• Short trips abroad (generally up to 30 days at a time) are treated as days spent in Uruguay 

• The DGI applies a substance-over-form analysis; presence must be genuine and meaningful 

• Once tax residency is established, the individual may request a Tax Residency Certificate, valid for one calendar year and renewable annually. 

Family Ties (Center of Vital Interests) 

Tax residency may be presumed if: 

• The individual’s spouse, and 

• Dependent minor children, 

• habitually reside in Uruguay. 

This presumption applies only if family members are effectively resident in Uruguay and may be rebutted by proving tax residence in another country. 

Economic Interests 

An individual may be considered a tax resident if Uruguay is the principal center of their economic activity, meaning: 

• They generate more active income in Uruguay than in any other single country 

• Passive income (dividends, interest, rents) is excluded from this test. 

Investment-Based Tax Residency 

Uruguay recognizes investment-based presumptions of tax residency, assessed annually: 

• High-value investment (no physical presence required): 

• Real estate ≥ 15 million UI (≈ USD 2.4M), or 

• Investment ≥ 45 million UI (≈ USD 7.2M) in a company of national interest 

• Investment routes introduced in 2020: 

• Real estate ≥ 3.5 million UI (≈ USD 550,000) + 60 days per year in Uruguay, or 

• Business investment ≥ 15 million UI (≈ USD 2.4M) creating at least 15 full-time jobs 

• Investment creates a strong fiscal link, not automatic residency. 

From January 1, 2026, Uruguay introduced a new Tax Holiday regime for individuals who acquire tax residence from that date. 

Under this regime, eligible new tax residents may benefit from up to 10 years of preferential taxation on all foreign-source capital income—including dividends, interest, and royalties—by opting to be taxed under the Non-Resident Income Tax (IRNR) instead of the standard personal income tax (IRPF). 

Eligibility Conditions 

The conditions to access the Tax Holiday depend on how tax residence is obtained: 

1. Tax residence based on physical presence 

• If tax residence is acquired through physical presence in Uruguay (more than 183 days during the year), no investment is required to benefit from the 10-year Tax Holiday. 

2. Tax residence based on investment 

• If tax residence is obtained through investment (typically by acquiring real estate worth approximately USD 550,000 and spending at least 60 days in Uruguay), additional investment is required to access the Tax Holiday: 
  • USD 2,000,000 in Uruguayan real estate, or 
  • USD 100,000 per year contributed to a fund to be created by the Executive Branch, focused on innovation, research, science, and technology. 

Options After the Initial 10-Year Period 

At the end of the first 10 years, beneficiaries may choose between: 

• Paying IRPF on foreign-source capital income at 50% of the applicable rate for an additional five years, provided they continue contributing USD 100,000 per year to the innovation fund or invest USD 1,000,000 in real estate; or 

• Opting for a fixed annual IRPF payment, ranging from USD 200,000 to USD 300,000, depending on the basis used to obtain tax residence. This option may be applied for up to 20 years. 

Tax incentives

Uruguay offers some excellent tax incentives according to industry. For example, the entire tourism industry can benefit from tax exemptions that come with investing in infrastructure. This means that hotels, resorts, and other qualifying establishments can benefit from:

1. Exemption from VAT when purchasing imported material or equipment used to build the establishment
2. VAt credit on locally-bought materials or equipment used to build the establishment
3. A special depreciation for IRAE (corporate income tax) purposes
4. Exemption from net worth tax for ten years

The updated Tax Holiday 2.0 is a big change from the previous regime, now tying tax benefits to real investments in Uruguay. Over the past year, many investors and expats have been waiting to see the final law before making decisions about moving or committing capital. With its clear structure, flexible long-term options, and investment-focused approach, this is an important development for anyone thinking about making Uruguay their home or using it as a hub for cross-border investments.

The Pros and Cons of Uruguayan Citizenship

Living in any country, whether it’s your country of origin or somewhere completely new, comes with pros and cons. Your needs and personal preferences will help you decide whether the advantages of living there outweigh the disadvantages.

The pros of Uruguayan citizenship

When it comes to Uruguay, many expats would argue that the pros outweigh the cons. So, let’s look at some of the benefits that come with being a Uruguayan citizen.

1. A good passport

On our Global Passport Index, Uruguay ranks 54th. A Uruguayan passport enables passport-free access to all of South America and MERCOSUR and visa-free access to 156 countries, including the Schengen Zone. In the future, having a Uruguayan passport may mean visa-free access to the United States.

2. Multiple citizenships

Fortunately, Uruguay allows multiple citizenships. When you apply for Uruguayan citizenship, you will not have to give up citizenship in your country of origin (or any other citizenship you may hold and provided your country of origin also allows dual citizenship). 

3. Economic freedom

Uruguay has an open economy and is both economically and politically stable. It also offers a reliable banking system. All of these factors allow residents to enjoy economic freedoms that are not found in all countries in the Americas. 

4. Tax advantages

Uruguayan tax residents enjoy some fantastic benefits, such as an eleven-year tax holiday followed by being required to pay a low percentage on foreign-sourced income.

5. Easy residency

Recently, Uruguay has made efforts to attract foreign residents by providing more tax incentives and a straightforward road to residency. Their openness to immigration, as well as their easy immigration process, has resulted in Uruguay welcoming more expats to enjoy the many benefits of living in the country.

6. Excellent location

Only a handful of countries sit above the Guarani Aquifer, and Uruguay is one of them. This extremely large reservoir holds a truly impressive amount of water that is used for drinking water, agriculture, tourism, and more. This is an important factor for those with interests in the country’s agriculture and farmland.

7. European lifestyle

Uruguay has close historical ties with Europe. Today, the European Union is Uruguay’s third-biggest trading partner. These ties have resulted in the country developing a European feel, so much so that it is often referred to as the “Switzerland of South America.”.

The cons of Uruguayan citizenship

If you choose to relocate to Uruguay, there are some potential cons that you should be aware of.

1. Minimum stay requirement

To maintain your residency status, you cannot be away from Uruguay for more than 3 consecutive years. Short stays in the country are sufficient, but to apply for citizenship, you must have lived in the country for 183 days. For many, this will not be an issue. However, this requirement may be limiting for some, like digital nomads or individuals who often travel for work. If you fall into the latter category, you may be interested in the country’s equity option that has no minimum stay requirement.

2. Cost of living

You might expect that with its stunning beaches, excellent location, European lifestyle, and economic freedom, life in Uruguay may come with a higher price tag. While this assumption is correct, the cost of living in Uruguay is still far more affordable than in the United States. In fact, a comparison on Numbeo shows that consumer prices in Montevideo (Uruguay’s capital city) are 28.3 percent lower than in Washington, DC. Rent prices are 75.8 percent lower, restaurant prices are 39.3 percent lower, and grocery prices are 39.4 percent lower. As with any country, the cost of living will be more expensive in some areas and more affordable in others.

3. Citizenship

While Uruguay has taken steps to make the residency process easier and attract more foreigners, the path to citizenship can still be difficult to navigate.

4. Travel to the US

Currently, Uruguayan citizens are not able to travel visa-free to the United States. However, this may change in the future.

The beauty of Uruguay is that it caters to different needs, both in lifestyle and in paths to citizenship. Whether you’re looking to settle there permanently or become a tax resident through the equity option, living in Uruguay comes with a host of benefits that can lead to a comfortable life in the “Switzerland of South America.”

Global Citizen Solutions: How We Can Help

Expats and foreign investors can encounter many difficulties when applying for second citizenship and a second passport, which is why it is worthwhile to have an expert on hand to provide personalized Uruguayan citizenship assistance throughout the application process.

Our specialists can help you with the following:

• Minimize the visits you have to make to the designated country
• Have someone who works solely on your behalf
• Reduce the hassle associated with putting your application together
• Acquire insider knowledge from someone with years of experience in the market

Let’s get you moving forward in your quest to obtain Uruguayan citizenship and a Uruguayan passport. Get in touch with us to book a free consultation.

Frequently Asked Questions about Uruguayan Citizenship