When time is money (and properties too)
Let me tell you something interesting: Uruguay, always innovative in its approach toward foreign residents and investors, has created an alternative path that is revolutionizing how many obtain their tax residency in this corner of South America.
According to data from the Uruguayan General Tax Office (DGI), applications for tax residency through the real estate investment route increased an impressive 78% in the last three years. The reason? A perfect combination of flexibility, legal security and a relatively simple procedure compared to other jurisdictions.
Let’s explore this alternative route to obtain Uruguayan tax residency through investment in detail, breaking down requirements, processes and practical considerations.
The fundamental requirement: real estate investment
The foundation of this alternative route is a specific investment in the Uruguayan real estate sector.
The legal framework and its requirements:
- Minimum investment amount: 1.8 million Indexed Units (UI)
- Approximately equivalent to 200,000 USD according to current exchange rate
- UIs are value units that adjust with inflation
- The updated amount can be verified on the Central Bank website
- Eligible property type:
- Residential or commercial real estate
- Urban or rural properties
- New or used
- Investment ownership:
- In the applicant’s personal name
- Through certain corporate structures (with restrictions)
Important fact: Unlike similar programs in other countries, there are no restrictions on the specific type of property or its location within Uruguay. This allows you to choose from an apartment in Montevideo to a farm in the interior, as long as the minimum value requirement is met.
Beyond investment: complementary requirements
Here’s what happens: acquiring a property for the minimum amount is necessary but not sufficient to obtain tax residency. There are additional conditions you must fulfill.
Key complementary requirements:
- Minimum physical presence:
- 60 days per calendar year in Uruguayan territory
- Not necessarily consecutive
- Documented through immigration records and complementary evidence
- Economic activity or interests in Uruguay:
- Additional investments in the country
- Participation in Uruguayan companies
- Business management from Uruguayan territory
- Effective occupation of the property (personal or through rental)
- Not having tax residency in low taxation jurisdictions:
- Uruguay maintains a list of jurisdictions considered low or no taxation
- Previous residency in these jurisdictions may complicate the process
Expert advice: “The 60-day presence can be strategically distributed throughout the year. Many investors opt for quarterly stays of 15-20 days, which allow them to supervise their investments and establish a regular routine in Uruguay while maintaining their international commitments.”
The step-by-step process: materializing your tax residency
Obtaining Uruguayan tax residency through investment involves a specific process that you must follow meticulously.
Recommended sequence:
- Real estate exploration and selection:
- Research of the Uruguayan market
- Visits and property evaluation
- Legal due diligence of potential properties
- Investment structure:
- Definition of investment vehicle (personal or corporate)
- Considerations about co-ownership and family structures
- Financing and international transfer planning
- Acquisition process:
- Reservation and purchase agreement
- Property documentation verification
- Notarization before Uruguayan public notary
- Investment accreditation:
- Obtaining detailed notarial certification
- Official appraisal if necessary
- Payment and transfer receipts
- Tax residency application:
- Presentation of form 5949 to the DGI
- Attach complete supporting documentation
- Complementary sworn statements
- Follow-up and resolution:
- Response to possible additional information requests
- Obtaining tax residency certificate
- Annual renewal with verification of condition maintenance
Real story: A European couple acquired an apartment in Punta del Este for approximately 250,000 USD. They established a pattern of quarterly visits of two weeks each. They complemented their application with opening local bank accounts and minority participation in a gastronomic venture. Their tax residency was approved in 45 days and they have renewed without issues for the last three years, maintaining the same pattern of physical presence.
Key documentation: preparing a solid file
The strength of your documentary file can make the difference between an agile process and one plagued with additional requirements.
Essential documents:
- Property-related:
- Complete property title
- Purchase deed
- Literal certificate from Property Registry
- Official appraisal (if applicable)
- Bank transfer receipts
- Evidence of physical presence:
- Immigration stamps in passport
- Flight tickets and boarding passes
- Accommodation receipts (if not using your property)
- Local consumption receipts (restaurants, services, etc.)
- Personal documentation:
- Valid passport
- Uruguayan identity documentation (if you have it)
- Previous residency certificates
- Income tax return from country of origin (last fiscal year)
- Proof of economic activity:
- Uruguayan banking documentation
- Corporate participations in Uruguay
- Property-related contracts (rental, maintenance)
- Evidence of investment management from Uruguay
Watch out for this! The quality and organization of your documentation can be as important as its content. Presenting a disorganized, incomplete file with inconsistencies generates doubts and can result in additional information requests or even rejections that complicate future processes.
Optimization strategies: maximizing advantages
The path toward Uruguayan tax residency can be optimized with some intelligent strategies that go beyond simple requirement compliance.
Value-adding approaches:
- Real estate investment diversification:
- Combine urban and rural properties
- Consider properties with development potential
- Evaluate properties with income generation capacity
- Genuine economic integration:
- Establish complete banking relationships (not just a basic account)
- Participate in local business communities
- Develop Uruguayan service providers (accountants, lawyers, etc.)
- Effective presence planning:
- Create predictable visit routines
- Establish recognizable local activity patterns
- Systematically document each stay
- Coordinated tax management:
- Synchronize tax exit from country of origin
- Plan the first “split” fiscal year
- Anticipate international informative declarations
Valuable perspective: “Real estate investment shouldn’t be seen only as a formal requirement, but as the beginning of a broader economic relationship with Uruguay. Those who adopt this vision not only obtain their tax residency without problems, but discover additional opportunities they hadn’t initially considered.”
Comparison with the traditional route: which suits me?
To make an informed decision, it’s useful to directly compare the investment route with the traditional 183-day route.
Comparative analysis of both routes:
| Aspect | 183-day route | Real estate investment route |
| Required initial investment | Not specific | Minimum 1.8 million UI (approx. 200,000 USD) |
| Annual physical presence | More than 183 days | Minimum 60 days |
| Movement flexibility | Limited (more than half year in Uruguay) | High (5 days per month on average) |
| Documentary complexity | Medium | Medium-High |
| Processing time | Similar | Similar |
| Legal security | High | High |
| Suitable for | People with high time availability in Uruguay | Investors, professionals with mobility, semi-retirees |
Revealing fact: According to Uruguayan tax consultants, approximately 65% of tax residency applicants with significant wealth opt for the investment route, while 35% choose the traditional 183-day route, mainly for reasons of personal preference or because they already naturally spend much of the year in Uruguay.
Risks and considerations: what you should keep in mind
No decision of this caliber is exempt from risks or important considerations that you must carefully evaluate.
Risk factors to consider:
- Real estate market volatility:
- Valuation and depreciation cycles
- Variable liquidity according to location and property type
- Remote maintenance and administration costs
- Potential regulatory changes:
- Possible modifications in minimum requirements
- Evolution of interpretation criteria by DGI
- Adaptation to changing international standards
- Continuous compliance challenges:
- Maintaining minimum annual presence
- Consistent documentation over time
- Annual renewals and possible verifications
- Family considerations:
- Impact on spouses and dependent children
- Coordination of family tax residencies
- Estate and succession planning
Practical advice: “Before starting the process, simulate a complete year of visits to evaluate if the 60-day requirement is really compatible with your lifestyle and commitments. Many underestimate the logistical and personal challenge this minimum presence can pose, especially considering distances from Europe, Asia or North America.”
The future of this route: trends and perspectives
The regulatory and practical landscape of Uruguayan tax residency through investment continues to evolve, with some clear trends on the horizon.
Foreseeable developments:
- Greater process formalization:
- More detailed and specific criteria
- More standardized procedures
- Possible digitalization of procedures and follow-up
- Focus on economic substance:
- Greater emphasis on real integration with the Uruguayan economy
- Deeper verifications of genuine residency intention
- Increased scrutiny of purely formal structures
- International tax cooperation:
- Adaptation to evolving OECD standards
- Greater information exchange between jurisdictions
- Possible adjustments to avoid aggressive tax planning
Future vision: “Uruguay has found an effective balance between attracting foreign investment and maintaining the integrity of its tax system. It’s highly likely that the investment route will remain as a viable long-term option, possibly with adjustments in minimum amounts and complementary requirements, but maintaining its essence as an alternative to extended physical presence.”
Action plan: concrete next steps
If you’re seriously considering Uruguayan tax residency through investment, these are the recommended initial steps:
- Evaluate your current tax situation – Determine the implications of a tax residency change from your specific jurisdiction
- Consult tax specialists – Seek advice both in your country of origin and in Uruguay
- Make an exploratory visit – Get to know Uruguay and its real estate market firsthand
- Analyze investment options – Evaluate different properties and locations according to your preferences
- Design a physical presence plan – Determine how you’ll comply with the 60-day annual requirement
- Prepare a financial strategy – Plan fund transfers and investment structure
- Establish local connections – Develop relationships with Uruguayan professionals who can support you
The investment route for Uruguayan tax residency represents an attractive option for those who value flexibility, seek to geographically diversify their assets, or simply appreciate the stability and legal security that Uruguay offers.
Are you prepared to convert a real estate investment into a door toward new tax and personal opportunities? The route is mapped, the requirements are clear, and Uruguay awaits you.
- October 7th, 2025
