On 23 October 2026, Uruguay’s Dirección General Impositiva (DGI) published updated guidance on the Impatriate Regime (Régimen de Impatriados), introducing new taxation options effective 1 January 2026. The regime, designed to attract foreign talent and returning Uruguayan professionals, now offers expanded flexibility in how qualifying individuals report and pay Personal Income Tax (IRPF) on foreign-source income and local earnings. The announcement references upcoming regulatory resolutions that will detail the specific election mechanisms, applicable fixed tax amounts, and reporting obligations for both employers and employees.
Key Takeaways
- New Election Options: Qualifying impatriates may now choose between the existing preferential flat-rate regime and alternative taxation methods tailored to income composition, potentially reducing effective tax rates on foreign-source dividends, interest, and capital gains.
- Employer Compliance Requirements: Companies hiring under the regime must update payroll systems to accommodate the new options and ensure accurate withholding certificates are issued by the 2026 filing deadlines.
- Interaction with Global Minimum Tax: The DGI highlighted alignment with Pillar Two considerations, ensuring that the regime does not trigger Undertaxed Profits Rule (UTPR) exposure for multinational enterprise groups.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
Source: Read Official Announcement