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.
Capital: Montevideo
Region: Americas
Language: Spanish
Currency: UYU ($U)
Cost of living: Affordable (index 55)
Emergency: 911
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Business Setup
Start a business or go freelance in Uruguay.
🧑💻 Freelancer / Self-Employed Guide
Steps to register:
- 1 Obtain your Cédula de Identidad (for residents) or passport (for initial registration as foreigner)
- 2 Register at DGI (Dirección General Impositiva) to obtain your RUT (Registro Único Tributario) number — online at dgi.gub.uy or in person
- 3 Choose your tax regime: Monotributo (flat rate, simple, for small income) or IRAE + IRPF (standard corporate + personal income tax for larger income)
- 4 Register at BPS (Banco de Previsión Social) as "trabajador no dependiente" (independent worker) — required for social security and FONASA health coverage
- 5 If IRAE regime: register for IVA (22% standard, 10% reduced) and obtain e-invoicing credentials from DGI
- 6 Set up e-invoicing (factura electrónica) via a DGI-certified provider (e.g., Uruware, ANTEL, DataPyme) — required for issuing invoices to businesses
- 7 Open a bank account with BROU or a private bank — required for DGI direct debit and BPS payment
- 8 Consider joining a gremio (professional association) — e.g., ANIT (IT professionals), AUDAP (advertising) for networking and mutual support
Tax registration
DGI RUT registration is free and can be done online at dgi.gub.uy. Monotributo registration is joint BPS+DGI and processed at BPS offices or online. IRAE taxpayers must file quarterly advance tax payments (cuotas del IRAE) via DGI online portal.
VAT threshold
Monotributo: exempt from IVA up to the income ceiling (~$U 2,000,000/year, 2026). Standard IRAE regime: IVA applies from the first invoice. No de minimis threshold for standard regime. Annual IVA return (Declaración Jurada de IVA) due by June 30.
Invoicing
All businesses and freelancers in the standard IRAE regime must issue e-invoices (facturas electrónicas) through DGI-certified providers. Monotributo workers can issue simplified receipts (boletas). Invoices must include: RUT, date, description of service, IVA breakdown, and DGI resolution number.
Social security
BPS contributions as independent worker (no dependiente): total ~25–30% of declared income (jubilaciones 15% + FONASA health 3–8% depending on family + FRL 0.1%). If income above BPS threshold (~$U 76,648/month), half of pension contribution goes to AFAP. BPS contributions are paid monthly via RedPagos, Abitab, bank transfer, or online at bps.gub.uy.
💡 The 7-year foreign income exemption (Opción de IRPF) means many expat freelancers serving foreign clients only pay IRPF on Uruguayan-source income for up to 10 years. This makes Uruguay extremely attractive for international remote workers. Consult a contador (accountant) before choosing your tax regime — the cost of a consultation ($U 2,000–5,000) typically pays for itself in the first month of correct filings.
🏢 Business Structures
Unipersonal · Empresa Unipersonal
Sole Trader / Self-employed
No minimum capital
Min. capital
1–2 weeks
Setup time
Liability: Unlimited personal liability
Setup cost: $U 0–2,000 (DGI registration, BPS registration)
Best for: Freelancers and independent professionals with low overhead. Simple to set up. Requires BPS contribution as "trabajador independiente" and DGI RUT registration.
Monotributo · Monotributo (Simplified Tax Regime)
Flat-rate sole trader for micro-businesses
No minimum capital
Min. capital
3–7 days (online registration available)
Setup time
Liability: Unlimited personal liability
Setup cost: $U 0 (registration at BPS and DGI jointly)
Best for: Very small businesses with annual income under approximately $U 2,000,000 (2026). Pays a flat monthly BPS+DGI contribution ($U 1,200–3,500/month) replacing IRPF, IVA, and BPS separately. Ideal for market vendors, domestic workers, tradespeople, and small-scale freelancers.
SRL · Sociedad de Responsabilidad Limitada
Limited Liability Company (LLC)
$U 1 (no minimum, but must be adequate for activity)
Min. capital
4–8 weeks
Setup time
Liability: Limited to capital contribution
Setup cost: $U 15,000–30,000 (escribano fees, DGI/DNEAMVS registration)
Best for: Small to medium businesses with partners wanting liability protection. Most common structure for expat-owned businesses. Requires at least 2 shareholders (socios). Requires an escribano (notary) for incorporation. Managed by directors (gerentes) named in the statutes.
SA · Sociedad Anónima
Corporation (Anonymous Company)
$U 35,000+ recommended (no fixed statutory minimum since 2012)
Min. capital
8–16 weeks
Setup time
Liability: Limited to share capital
Setup cost: $U 30,000–80,000 (escribano, Auditor registration, DNEAMVS)
Best for: Larger businesses, companies seeking investment, or those wanting to issue shares. More complex governance requirements (directorio, fiscal commission). SAs must register with the Auditoria Interna de la Nación (AIN). Widely used in Uruguay by foreign-owned companies and holding structures.
SAS · Sociedad por Acciones Simplificada
Simplified Corporation
No minimum
Min. capital
2–4 weeks
Setup time
Liability: Limited to share capital
Setup cost: $U 5,000–15,000 (simplified notary process)
Best for: Modern simplified company form introduced in Uruguay 2018. Single shareholder allowed (unlike SRL). Online registration available. Lower governance requirements than SA. Recommended for solo expat founders wanting limited liability without SRL's 2-person minimum.
Zona Franca Company · Empresa en Zona Franca
Free Trade Zone Company
Varies by Zone
Min. capital
4–12 weeks
Setup time
Liability: Varies by legal form
Setup cost: USD 5,000–25,000+ (zone fees + legal setup)
Best for: Businesses exporting services or goods internationally. Operates in Uruguay's 11 free trade zones (e.g., Zonamérica, WTC Free Zone). Exempt from IVA, IRAE, and import duties. IT services, logistics, and financial services companies commonly use this structure. Must operate genuinely within the zone.
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