The fiscal residence is the link of a person (natural) with Uruguay as a result of certain conditions like the time of permanence in the country; family or center of vital interests; volume of income; investments in real estate; productive investments, among others, that imply that a person must assume the quality of taxpayer of taxes in the country.
Different from the legal residence, it is not permanent, but it is verified year by year. In addition, both types of residences may or may not coincide in one person.
How is Tax Residence accredited?
The tax residence of the individual can be accredited according to one of the following criteria:
1. Stay for more than 183 days during the calendar year in Uruguayan territory.
It must be accredited through the Certificate of Arrival issued by the National Directorate of Immigration and other documentation that is deemed relevant.
2. Settling in national territory of the main nucleus or base of activities.
It may be accredited through a notarial or accounting certificate of total income, which must be attached, declaring the taxpayer (with notarial certification of signature) indicating that:
The applicant has no other income than that referred to in the certification.
In case there is income generated in other countries, indicate that these are less than those originating in our country. This comparison must be made country by country.
It should be clarified that the income generated in our country is not exclusively pure capital income.
The above information must refer to the year or years the Certificate or Certificates are requested.
3. For - Economic interests
The interested party must indicate if it has investments in real estate or in companies with a promoted investment project that meets any of the following conditions:
In real estate, for a value of more than 15,000,000 indexed units (UI - approximately USD 1,622,000), , valued according to the rules of the IRPF, and updated by the variation of the Indexed Unit.
Direct or indirect, in a company for a value of more than 45,000,000 UI (approximately USD 4,866,000) with activities or projects declared of national interest (Law 16,906). The valuation of the company must be done according to the rules of the Income Tax on Economic Activities.
In 2020, two additional grounds are added that are not applicable if the taxpayer proves fiscal residence in another country.
In the case of real estate, the value must exceed 3,500,000 UI (approx. USD 378,000), provided that it is carried out as from July 1, 1920 (ratified by Decree 174/020). In addition, the effective physical presence in Uruguayan territory during the calendar year of at least 60 days must be registered.
Directly or indirectly owning a stake in a company worth more than 15,000,000 UI (approx. USD 1,622,000), made as from 01.07.20, and generating at least 15 direct jobs in a full time basis, during the calendar year. The new jobs are those generated as from 01.07.20, as long as they are not related to a decrease in jobs in related entities.
Once the new resident has obtained tax residence in Uruguay, he is covered by the tax regime for residents in Uruguay with a temporary advantage over the others, which is called tax holiday: for the year in which he becomes a tax resident, and for the following 10 years, he does not pay personal income tax at the rate of 7% on income (basically interest and dividends) generated abroad.
4. Establishment of the center of vital interests in national territory.
It can be accredited through any documentation that is understood to be relevant, such as the registration of the child or children in an educational institution, proof of medical coverage, proof of membership in sports clubs, etc.
If you want to prove the residence through the presumption of the spouse and minor children, it will be enough to present the Certificate of residence of the members of the group and to prove the marital status and the filiation of the same ones through the testimonies of corresponding departures.
How to obtain the Certificate of Fiscal Residence?
In order to obtain the certificate of fiscal residence, the interested person must prove his/her fiscal residence in the country for the period for which he/she is requesting the certificate, according to the current regulations.
The individual who requires a certificate of Fiscal Residence in Uruguay will be presented before the General Directorate of Taxes (DGI for its acronym in Spanish) in person with the documentation that proves his fiscal residence mentioned above and the Form 5202 - Application for Certificate of Fiscal Residence completed in 2 ways. In case you require assistance, please consult the instructions here.
Montevideo: 1534 Daniel Fernández Crespo Avenue 15 Administration Division - entrance desk - 8th floor.
Rest of the country: in any D.G.I. office.