Last Thursday, June 11, 2020, decree 163/020 was published. It modifies the necessary conditions to obtain fiscal residence in Uruguay regarding economic interests in the country.

- Investment in real estate, for a value greater than 3,500,000 indexed units (approx. USD 370,000), provided that it is carried out as of July 1, 2020 and an effective physical presence is registered in Uruguayan territory during the calendar year and for at least 60 days.
- Direct or indirect investment in a company with a value of more than 15,000,000 indexed units (approx. USD 1: 500,000), provided that it is made as of July 1, 2020 and at least 15 new full time jobs are generated, during the calendar year.

Tax Holiday:
Natural persons who acquire the status of tax resident in Uruguay may choose to pay Non-Resident Income Tax for the fiscal year that verifies the change of residence and five more fiscal years. The option may be made only once and exclusively in relation to capital income from abroad. In this regard, it is worth mentioning that as of January 1, 2011, the extension to the source criteria was approved in Uruguay, which until now was purely territorial. Establishing then that the income from capital from deposits, loans and in general from all capital or credit placement of any nature, obtained abroad, will be taxed by the Personal Income Tax at a rate of 12%.
In the coming days, a bill seeking to increase the Tax Holiday to ten years will be sent to Parliament.