Tax residency in Uruguay 2026

The tax holiday has changed. The property strategy has not.

Veruska Da Costa · Co-founder and lawyer · Real estate and tax

Since January 2026, those who become tax residents in Uruguay and seek to qualify for the tax holiday through real estate investment must invest more than UI 12,500,000 (Unidades Indexadas), approximately USD 2 million.

When a purchase needs to reach a certain amount, there is a risk that meeting the threshold begins to matter more than the property’s actual value.

At Buyers Uruguay, we search for, compare and negotiate properties that justify the investment based on their location, quality, demand, liquidity and market value.

The tax structure is analysed in parallel, without replacing the real estate analysis.

A tax benefit is no reason to overpay.

What changes for those investing in property

The regulations published in August 2026 clarified several conditions for those using real estate investment as a way to qualify for the tax holiday.

The property must be urban and must have been acquired on or after January 1, 2026. In addition, when tax residency is established on the basis of a real estate investment, the properties used to qualify for the tax holiday must be different from those counted toward establishing that tax residency.

The regulations also introduced a differential treatment for properties located in Uruguayan departments without coastline on the Río de la Plata or the Atlantic Ocean: for purposes of the regime, their tax basis is computed with a 50% increase. This makes it possible to reach the threshold with a lower actual outlay.

For example, an investment of USD 1,350,000 in one of these departments may count, for purposes of the regime, as approximately USD 2,025,000.

The tax advantage can be significant. But it also requires looking at the other side of the decision: what property is being purchased, and in what market.

Demand, liquidity, comparable transactions, location, quality and resale prospects can vary considerably from one option to another. Reaching the threshold with less capital does not, by itself, make a property a better investment.

That is why, even under the new rules, the principle remains the same: the tax structure may determine what requirements the investment must meet; the real estate analysis should determine which property to buy and how much to pay for it.

If you are considering a purchase to qualify for the tax holiday and haven’t found the property yet, let’s talk. Our team handles the search, the negotiation and the entire transaction through to closing.