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Uruguay - Other taxes and levies

Uruguay - Other taxes and levies

Taxation of international executives


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Social security tax

Are there social security/social insurance taxes in Uruguay? If so, what are the rates for employers and employees?

Employer and employee

Type of insurance

Paid by employer

Paid by employee


Pension      1





Labor reconversion fund




Health insurance















or 8%









or 13%

Labor credits guarantee fund


























or 23.1%

or 35.75%

There is a social security contribution system, which covers all employees. All expatriates working in Uruguay temporarily or permanently, even for periods of less than 1 year, are subject to the social security system. However, where social security contributions are being paid in their country/jurisdiction of origin and Uruguay has entered into a social security treaty with that country/jurisdiction, the expatriate is exempt.

In calculating the amount of compensation subject to social security contributions all remunerative items that the employee receives from the employer must be included. Nevertheless, certain items like food and health assistance and life and accident insurances have been declared exempt from employee´s social security charges, if their aggregate amount does not exceed 20 percent of worker’s taxable remuneration.

Other income items, which may not be subject to tax, include work clothes.

Pension fund contributions

Pension fund contributions are calculated as a percentage of salary and, under the general regime, this percentage will amount to 22.5 percent, of which 7.5 percent is borne by the employer and 15 percent is withheld from the employee. It is worth noting that these contributions only apply over the portion of salaries that does not exceed USD4,500 monthly, approximately.

Accidents at work are separately insured at the sole expense of the employer. Other contributions to the social security system are as follows.

Labor Reconversion fund

This amounts to 0,2 percent (0,1 percent borne by the employer and 0,1 percent by the employee).

Health insurance

This amounts to 8 percent, 9,5 percent, 11 percent, 11,5 percent or 13 percent (5 percent borne by the employer and 3 percent, 4,5 percent, 5 percent, 6 percent, 6,5 percent or 8 percent withheld from the employee (depending on their salary and on the number of dependent children).

Labor credits guarantee fund

This amounts to 0,025 percent borne by the employer. 

Municipal taxes

Expatriates may be subject to certain minor municipal taxes, which are typically not very significant. The main ones would be the urban land tax and vehicle taxes.

Net worth tax

Expatriates may be subject to the net worth tax on assets located in Uruguay. The tax is levied on net worth at 31 December.

This tax is levied annually on net worth (the difference between fiscal assets and fiscal liabilities) of individuals, family groups, numbered bank accounts, domestic corporations, and foreign corporations. However, in the case of individuals and family groups, only the annual average of monthly outstanding balances in debts with local banks is deductible as a qualifying liability.

Assets and liabilities should be valued according to the regulations. Foreign assets are excluded from taxation, but liabilities must be imputed first to the foreign assets, and only the balance is deducted from Uruguayan assets.

Bearer shares and government securities are tax-exempt. This exemption may be ineffective, as the values of exempted assets must be deducted from qualifying liabilities.

Individuals and family groups may deduct a non-taxable minimum2 (at the current exchange rates, approximately USD118,000 per individual and USD236,000 per family group). The tax is imposed at progressive rates ranging from 0.7 percent to 2.75 percent.3

Gift, wealth, estate, and/or inheritance tax

Are there any gift, wealth, estate, and/or inheritance taxes in Uruguay?


Real estate tax

Are there real estate taxes in Uruguay?

Some municipal taxes are applied on the ownership of real estate, as well as a national tax called Impuesto de Enseñanza Primaria, but as a general rule their amount is not relevant.

It is also worth noting that a tax is levied on local sales of real estate at the rate of 4 percent (2 percent paid by the buyer and 2 percent by the seller), applicable one the cadastral value of the property.

Sales/VAT tax

Are there sales and/or value-added taxes in Uruguay?

Value-added tax is applied at the basic rate of 22 percent.

Unemployment tax

Are there unemployment taxes in Uruguay?


Other taxes

Are there additional taxes in Uruguay that may be relevant to the general assignee? For example, customs tax, excise tax, stamp tax, and so on.

Excise tax applies on certain goods.

Customs duties apply on the importation of goods to Uruguay.


1 Pension contributions only apply over the portion of salaries that does not exceed USD5,500.

2 As per Uruguayan Decree 356/019 of 29 November 2019: UYU4,491,000 and twice that amount for family groups.

3 Uruguayan Tax Compilation, Title 14, art. 45.


All information contained in this publication is summarized by KPMG Sociedad Civil, a Uruguayan limited liability company and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. The information contained in this publication is based on the Law N° 16.713 and subsequent amendments, Law N° 18.083 and subsequent amendments, Law N° 18.131 and subsequent amendments, Title 7 and Title 8 of the Compiled Tax Text; the Web site of the fiscal administrations (DGI) and the Web site of the Uruguayan Social Security administration (BPS).

© 2021 KPMG Sociedad Civil, a Uruguay limited liability company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

KPMG International Cooperative (“KPMG International”) is a Swiss entity.  Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm.

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