Uruguay (UY)
South America's most progressive and stable country — Uruguay consistently ranks first in Latin America for democracy, press freedom, and quality of life.
2026 Annual Changes — Uruguay
Updated thresholds, benefits, and regulatory changes effective this year.
Uruguay 2026 key changes: BPC raised to $U 6,864/month (Decree 11/2026, effective January 2026), minimum wage (SMN) raised to $U 24,572/month from January 2026 (second increase to ~$U 25,383 scheduled July 2026), IRPF monthly tax-free threshold is 7 × BPC = $U 48,048/month. The 10-year foreign income exemption for new tax residents continues. UYU/USD rate approximately $U 40/USD.
Key Changes for 2026
| Category | 2026 Value | Previous | Effective Date |
|---|---|---|---|
| BPC (Base de Prestaciones y Contribuciones) Annual BPC adjustment per Decree 11/2026 — foundation for IRPF thresholds, BPS benefits, and pension calculations | $U 6,864/month (effective 1 January 2026) | $U 6,576/month (2025) | 1 January 2026 |
| Minimum Wage (Salario Mínimo Nacional — SMN) SMN raised from January 2026; second increase scheduled July 2026 | $U 24,572/month from 1 January 2026. Second increase to approximately $U 25,383/month from 1 July 2026 (+3.3%). Confirm at mtss.gub.uy. | $U 22,268/month (mid-2025) | 1 January 2026 (first increase); 1 July 2026 (second) |
| IRPF — Monthly Tax-Free Threshold (Mínimo No Imponible) Monthly MNI for Category II (employment income) is 7 × BPC | $U 48,048/month (7 × $U 6,864 BPC). Income above this threshold is subject to IRPF progressive brackets. Annual equivalent: $U 576,576/year. | Based on lower 2025 BPC | 1 January 2026 (February BPC update applies) |
| FONASA Health Contribution FONASA contribution rates are income-tiered (split at 2.5 BPC = approximately $U 17,160/month) | Above 2.5 BPC threshold — employee rates: 4.5% (no dependants); 6% (children only); 6.5% (spouse/partner only); 8% (spouse/partner + children). Below 2.5 BPC: 3% (no dependants); 3% (children only); 5% (with spouse/partner). Employer: 5% (plus Complemento de Cuota Mutual where applicable). | Same rate structure | 1 January 2026 |
| AFAP Pension Fund (Private Pension) AFAP mandatory for employees above BPS threshold (14 BPC) | BPS threshold: approximately $U 96,096/month (14 × $U 6,864 BPC). Workers earning above this: 50% of pension contribution goes to AFAP of choice. Workers below: all contributions to BPS. | Based on lower 2025 BPC | 1 January 2026 |
| Foreign Income Exemption (Opción IRPF — new residents) 10-year exemption on foreign-source income for new tax residents (extended from 5 years in Law 20,124 / Decree 118/2023) | New tax residents may elect: (a) 10-year full exemption from IRPF on foreign-source income, OR (b) permanent 7% flat rate on foreign income. Election must be made at DGI within 12 months of establishing Uruguayan tax residence — deadline is strict. | 5-year exemption (pre-2023 reform) | 1 January 2026 (Law 20,124 in force) |
| IVA Debit Card Rebate (Devolución IVA) 2% IVA reduction for debit card and electronic payments — confirmed in force under Law 19,210 | 2% IVA rebate on qualifying debit card purchases. Threshold for enhanced rebate: 4,000 Unidades Indexadas (UI) per transaction — approximately $U 7,600 at current UI values (not $U 4,000 fixed pesos). | 2% rebate (ongoing since Law 19,210) | 1 January 2026 |
| UYU/USD Exchange Rate BCU manages a floating rate; UYU has depreciated approximately 6–8% annually against USD | Approximately $U 40–41 per USD (BCU official rate: $U 40.13 on 28 May 2026). Monitor at bcustat.bcu.gub.uy. | Gradual annual depreciation trend | Market rate — check bcustat.bcu.gub.uy |
| BPS Pension Reform — Retirement Ages Law 20,130 (May 2023) establishes unified retirement age of 65 for both genders; phase-in by birth year | Workers born before 1973: old system, retirement at 60 with 30+ contribution years (unaffected). Transition cohorts: born 1973 → age 61; born 1974 → 62; born 1975 → 63; born 1976 → 64; born 1977+ → 65. Women retain child-credit bonus (each child up to 5 = 1 extra year of service credit). | Men 65, women 60 (old system) | 1 August 2023 (Law 20,130 in force) |
| Mercosur Residency Processing Mercosur nationals can apply for simplified residency under Mercosur Agreement | Mercosur temporary residency (Argentina, Brazil, Paraguay, Bolivia, Chile, Colombia, Ecuador, Peru): 2–4 months processing typical. Online tracking at migracion.gub.uy. | — | 1 January 2026 |
| DNM Residency Fees DNM fees adjusted annually by IMPO | Temporary residency fee: approximately $U 4,500–6,000. Permanent residency: approximately $U 6,000–8,000. Confirm at migracion.gub.uy. | Slightly lower in 2025 | 1 January 2026 |
| Aguinaldo (13th Month Salary) Statutory Christmas bonus unchanged | 50% paid by 30 June; 50% paid by 20 December. Calculated on average of last 6 months gross salary. | — | 30 June 2026 (first payment) |
| SUCIVE Annual Vehicle Inspection SUCIVE inspection annual requirement and fees | Basic inspection fee: approximately $U 1,200–1,800 (varies by vehicle type). Must pass before annual patent (vehicle tax) payment. | — | 1 January 2026 |
| Zona Franca — IT Services Free trade zones continue to attract tech companies with tax exemption on export income | IRAE 0% on qualifying exported services from Zona Franca companies (Zonamérica, WTC Free Zone, others). FONASA and BPS contributions still payable for employees. | — | 1 January 2026 |
| International School Fees International school tuition increases approximately 8–12% annually in USD terms in Montevideo | USD 8,000–25,000/year depending on school and level. Apply 6–12 months in advance for top schools. | — | March 2026 (academic year) |
| BPS Health Carnet (Carnet de Salud Laboral) Occupational health card required for all formal employment | $U 800–1,500 at mutualista. Renewed every 2–4 years or on change of employer type. | — | 1 January 2026 |
| Cannabis Regulations Legal cannabis available at IRCCA-registered pharmacies for residents with Cédula de Identidad | Max 10g/month per registered resident from pharmacies. Home cultivation (up to 6 plants) legal. Tourists cannot purchase. Registry updated annually by IRCCA. | — | 1 January 2026 |
January Checklist
Actions to take each January when new rates take effect.
- 1
Check passport, cédula de identidad, residency, and vehicle inspection (SUCIVE) expiry dates.
- 2
Confirm FONASA mutualista is active — verify BPS employer contributions are current.
- 3
Update IRPF withholding: the monthly MNI is now $U 48,048 (7 × BPC $U 6,864). File DGI annual return in April if you have multiple income sources.
- 4
Note SMN is $U 24,572/month from January 2026 — second increase to ~$U 25,383 expected July 2026.
- 5
Check AFAP pension fund balance and performance (afaprepublica.com.uy, sura.com.uy, etc.).
- 6
Update ID Uruguay (id.gub.uy) profile and phone number for 2FA.
- 7
New tax residents: the DGI foreign income exemption window is strictly 12 months from establishing tax residence — do not miss the election deadline.
- 8
IVA debit card rebate of 2% continues — threshold is 4,000 UI per transaction (~$U 7,600), not a fixed $U 4,000.
- 9
Renew expiring contracts, vehicle registrations, and insurance before Carnaval/Semana de Turismo closures.
Where to Track Annual Changes
-
dgi.gub.uy (DGI) — IRPF brackets, BPC-linked thresholds, foreign income exemption
-
bps.gub.uy (BPS) — BPC value, pension rules, FONASA rates, social contributions
-
bcu.gub.uy (BCU) — UYU exchange rates, monetary policy
-
migracion.gub.uy (DNM) — residency permits and fees
-
mtss.gub.uy (MTSS) — minimum wage announcements
-
gub.uy — central government portal
BPC and all IRPF thresholds are officially published by DGI each year after the annual adjustment decree (Decree 11/2026 confirmed $U 6,864). Always verify current figures at dgi.gub.uy before filing. The IRPF monthly tax-free threshold is 7 × BPC ($U 48,048/month) — it is a monthly floor, not an annual figure. The foreign income exemption election window is strictly 12 months from first establishing tax residence in Uruguay — missing this deadline forfeits the 10-year benefit.
Annual Changes
Unlock the complete Annual Changes guide for Uruguay — including every detail, document, tip and link you need.
Become a SupporterSupport the guide on Ko-fi · Unlocks every premium section, everywhere