Uruguay is small, calm and stable, often described as the Switzerland of South America. It ranks among the region's least corrupt and most democratic countries, with good infrastructure, reliable internet and a relaxed lifestyle along beaches and the River Plate. It is not cheap by regional standards, though.

Visas and residence

  • Digital nomad permit: a low-cost provisional identity document for remote workers with foreign income, valid for 180 days and renewable once. There is no formal minimum income.
  • Temporary and permanent legal residence: based on stable income, work, investment or family, applied for through the national migration office. Many people apply for permanent residence directly by showing sufficient regular income.
  • MERCOSUR residence: simplified residence for citizens of member and associated countries in South America.

Information is available from Uruguay's Ministry of Foreign Affairs.

How much does it cost to live in Uruguay?

Our Uruguay data puts an average one-bedroom at about $600 a month and a three-bedroom at about $1,000. Montevideo neighbourhoods such as Pocitos and Punta Carretas are popular with expats. Punta del Este is expensive in summer and quiet in winter. Groceries cost about $330 a month, higher than in neighbouring countries, and imported goods and cars are expensive.

How Uruguayan tax works

Uruguay taxes mainly on a territorial basis: Uruguayan-source income is taxed, and foreign income is largely excluded, according to the General Tax Directorate (DGI). Employment income is taxed under IRPF at progressive rates from 0% to 36%, and Uruguayan capital income at 12%. Employees pay about 18% in social security and health contributions.

New tax residents can choose an 11-year tax holiday (the year of arrival plus ten years) on foreign dividends and interest. From July 2026, Uruguay begins collecting a 12% tax on certain foreign passive income for new residents, with banks withholding it, so check how the rules apply to you with an adviser. VAT is 22%. Try our tax calculator.

Healthcare

Most residents join a mutualista, a private non-profit healthcare provider, for an affordable monthly fee. Employees are covered through the national health fund (FONASA). The public ASSE system is free but more limited.

Daily life

Uruguayans are relaxed, friendly and proud of their country's progressive history: Uruguay legalised same-sex marriage in 2013 and was the first country to legalise recreational cannabis. Mate, a bitter herbal tea, is carried everywhere in a thermos. Weekends revolve around asados (barbecues), football and the beach. Winters, from June to August, are cool and damp.

Is Uruguay a good place to move?

Uruguay suits retirees, remote workers and investors who value stability, safety and a calm lifestyle, and who can live with higher prices. Compare it with Chile and Argentina using our comparison tool.