Quick answer — Uruguayan SAS at a glance. A Uruguayan SAS (Sociedad por Acciones Simplificada) can be formed with a single shareholder and no fixed minimum capital, often digitally. Companies pay 25% corporate tax (IRAE) on Uruguayan-source income, and dividends are taxed at 7%. New tax residents can opt for a multi-year exemption on foreign passive income such as dividends and interest, but Uruguayan-source business profits remain taxable.
Uruguay is one of the most stable countries in Latin America, with strong institutions, a reliable banking system and a territorial tax system for companies. Its best-known incentive for newcomers is a tax holiday on foreign passive income — dividends, interest and similar income from abroad — for new tax residents.
For location-independent founders, the key distinction is between passive and business income. The holiday covers foreign passive income; it does not make your consulting or software business income tax-free. A founder who moves to Uruguay and runs a business there will usually pay IRAE on its Uruguayan-source profits.
It does not suit founders seeking a low-tax home for active business income, or those who won't live in Uruguay. It is not designed for locally employed expats or retirees.
Comparing Latin American options? See our guide to open a company in Latin America.
If you are comparing destinations, see Paraguay EAS costs and Brazilian LTDA for foreigners.
You can become Uruguayan tax resident by spending more than 183 days there in a calendar year, by having your main base of activities or economic interests there, or through certain investment routes combined with a minimum stay. Plan the route that matches your life.
New tax residents can choose an exemption on foreign passive income for a set number of years, or an alternative permanently reduced rate on foreign dividends. Business income from services performed in Uruguay is not covered.
Amounts are indicative.
About 30% overall on active business profits. Uruguay's advantage lies in passive foreign income and stability, not in low taxes on business profits.
The Uruguay Business Bank Comparison Guide compares the main banks for new companies — get it when you start your Uruguayan setup with Heavnn.
Corporate income tax (IRAE) is 25% on Uruguayan-source income. Dividends are taxed at 7%.
New tax residents can opt for a multi-year exemption on foreign passive income, such as dividends and interest, or an alternative reduced rate on foreign dividends.
No. It covers foreign passive income, not income from a business or services carried out in Uruguay.
Yes. An SAS can be formed with one shareholder of any nationality.
By spending more than 183 days there in a year, having your main economic interests there, or through certain investment routes with a minimum stay.
Uruguay rewards founders with foreign investment income more than active business income. Heavnn shows which applies to you.
Start your Uruguayan setup with Heavnn →
This guide is general information, not tax or legal advice. Rates and fees are indicative as of October 2026.
