Uruguay Citizenship and Residence: The Ultimate Guide

Uruguay has a history of being an easy country in which to get legal citizenship. And by easy, we mean easy to qualify, easy to get approved, and easy to obtain citizenship — as long as you’re willing to put in the days to physically be there, that is.

However, with the tax exemptions that Uruguay offers to residents, it’s not a bad place to invest your time — citizenship or not. If you find yourself interested in the “Switzerland of South America,” read on to find out more about Uruguay’s residence programs, tax breaks, and caveats for citizenship to determine if it’s the right place for you to plant a flag.

Why Uruguayan Citizenship?

Uruguay is a country that is not talked about enough but has a great passport, and there are several different roads to residency. Plus, it is considered to be safe, calm, and has fantastic coastlines. Uruguay is even arguably in the top five countries for expats better than New Zealand.

Located deep in South America, Uruguay is a relative bastion of economic freedom, especially when compared to regional neighbors like Argentina and Bolivia. Banks in Uruguay are reputable and while opening a bank account has gotten harder, it is not a bad place to deposit cash.

How to Get Residency in Uruguay

Getting a second residency in Uruguay is relatively straightforward; anyone with a monthly income of $1,500 can qualify, although the minimum amounts are higher than in Central American countries due to the higher cost of living.

If you are a family of four, the main applicant having an income of $2,000 is permissible. It’s advisable that the minimum income for a family of four be a total of $3,000 and/or over. Married couples are at an advantage when obtaining residency in Uruguay, as “families” are invited to apply to become natural citizens after three years of residency. Single residents must wait five years to apply, according to Uruguayan law.

That puts the Uruguay residency program on par with Panama, Nicaragua, and many European countries in terms of wait time for single filers, and on par with Paraguay and Armenia for those who are married or have families. In fact, Uruguay is among the fastest options to get a second passport. But not so fast.

Uruguay imposes steep physical presence requirements that countries such as Paraguay do not. My contacts who have Uruguay residency tell me that they were expected to spend at least 9-10 months in the country in their first year.

That means any business trips, trips to see family, or leisure travel must be jammed into two months in the first year. On an ongoing basis, Uruguay immigration expects you to be physically present in the country for at least six months every year to qualify for citizenship.

How to Get Uruguay Citizenship?

The Uruguay passport is a rather good travel document, allowing the customary passport-free access to all of South America and MERCOSUR as well as visa-free access to Europe’s Schengen Area.

For four years at the beginning of the century, Uruguay citizens even enjoyed “visa-free” access to the United States via ESTA. The fact that Uruguay has among the highest incomes per capita in the Americas helped make that possible.

An Uruguayan passport no longer grants such access, but with very high visa approval numbers, Uruguay is once again a “roadmap country” being considered for visa-free access to the US again. In short, Uruguay has a good passport. Add that to a friendly tax regime and you’ve got a sure-fire winner for your second passport… or so you’d think.

The road to Uruguay citizenship starts the same way the road to other Latin citizenships does: getting second residency and letting the hourglass shift away. Applying for legal Uruguayan citizenship requires that you show proof that the country is your center of life. Sadly, Uruguay may not be the best country to get a second passport.

Taxes Advantages in Uruguay

Proper tax credits and tax treaties can be used to your advantage to make sure you’re not double-taxed when moving to another country. However, only certain countries in the Americas offer tax-free options.

Uruguay happens to offer several tax benefits, which makes becoming a legal resident or a legal citizen one of the easiest ways to pay less taxes. Let’s review how these can work in your favor. To qualify for tax residence in Uruguay, a person must meet one of the following requirements, as of 2020:

– Days Test: The person stays more than 183 days in Uruguay in a given year. These days must be consecutive, minus the exception of two “temporary absences”. Temporary absences count as a 21-day absence within a 30-day period and can occur twice within the year. Once a person fulfills the days test, they can request a Tax Certificate, which would allow them to leave the country.

– Family Ties: If the center of a person’s activities or vital interests are located in Uruguay, they can become a tax resident even if they don’t fulfill the days test. For instance, if a person’s spouse and children live in Uruguay and attend school there, that person can be eligible for tax residence.

– Equity: For a person to become a tax resident by having main economic interests in Uruguay, they must invest in real estate or an enterprise and stay in Uruguay for at least 60 days per year. The minimum amount accepted for a real estate investment is $390,000. The minimum amount for an enterprise is $1.7 million, so long as that company also creates 15 jobs throughout the year.

Steps to Obtaining Residency and Citizenship in Uruguay

Once a permanent residence is granted in Uruguay, you are usually allowed to stay indefinitely. To apply for residency, you will need the following national public documents:

1. Identity Document that you entered the country with 2. Entry visa (if your country requires it) 3. Health card issued in Uruguay 4. Vaccination certificate 5. Clean police record 6. Birth certificate registered in the Civil Status Registry 7. Marriage certificate (optional)

8. Proof of income 9. Proof of address and intention to stay 10. A passport-sized photo 11. The current application fees

Note that all documents that are not written in Spanish need to be translated by a sworn translator in Uruguay, with an official stamp.

If you choose to file it in person, you will need to first book an appointment at the National Migration Office. While the process may differ slightly per city, you can expect to file all of your documents with the NMO on the day of your appointment. Your file will go through several stages, with the final answer generally coming in 12 to 18 months.

As for citizenship, the good news is that Uruguay allows multiple citizenships. After you have been a resident for three to five years – three years if you’re married and five years if you’re single – you can apply for citizenship. The start date is the day that you arrived in Uruguay to file for residency. To file for citizenship, you will need the following documents:

1. Birth certificate 2. Uruguay permanent resident certificate 3. Proof of residence and social integration 4. Proof of identity 5. Proof of income 6. Current application fee Once you have gathered all of the necessary documents, you can file your citizen application with Uruguay’s Electoral Court. Generally, citizenship is granted within six months and a passport is issued.

Conclusion

Do you think Uruguay is right for you? If you are a global nomad or need to attend to business in various parts of the world, Uruguay may not be the best fit due to the time investment requirements. However, with the latest equity option rolled out in 2020, there may be an option for travelers like you yet.

If you’re a seven-or-eight-figure entrepreneur and convinced that the “Switzerland of South America” is right for you, reach out to the Nomad Capitalist team so we can help you consider what type of Uruguay tax resident you want to be.