Value Added Tax (VAT): This tax is known as IVA in Uruguay and at the moment sits at 22% for most goods, and 14% for certain basic goods.
Property taxes: The municipal property tax is known as Contribución Inmobiliaria varies from 0.25% to 1.2% of the market value of the property. This can be paid in 3 installments, or a once off payment in January in which case you would receive a 20% discount.
School Tax: There is also a school tax which is payable every year by every residential household depending on the value of the property. At the moment this tax is not applicable to “Rural Properties..
Income tax for individuals: Personal Income Tax on wages or fees as an independent worker is only paid on income generated within Uruguay, on the amount over 173,124 pesos per year The tax rate ranges from 10% to 25%, and certain expenses are deductible. The tax paid by Uruguayan citizens and foreign residents who are in Uruguay more than 183 days per year. It is advisable to consult an accountant for up to date accurate information at the time of arrival.
Rental income tax for individuals: Individuals who rent out their property part time or full time must pay a flat income tax of 12%. If you rent out rooms to tourists you need to register a business and pay BPS. All the ins and outs of this process are best discussed with an accountant upon arrival.
Capital gains tax: The capital gains tax rate is 12% for individuals, 12% for foreign corporations, and 25% for Uruguayan corporations.
People always ask “what is BPS” Well, let me explain it briefly. BPS is the Social Security Bank – known as Banco de Previsión Social.
If you run a small business then you have to register for BPS and if you are employed the BPS is deducted from your salary by the employer (who also contributes)
The contributions you pay to the BPS gives you access to various services such as a retirement fund, disability pension, sickness and unemployment benefit, maternity leave or paternity leave, etc.
National Health Fund – Fonasa
The contributions to Fonasa (part of the BPS payment) gives you the benefit of health insurance, which gives you access to health services, consultation and medical attention.
For further and more in depth detail please visit:- https://www.bps.gub.uy/
Use your google translator to see the page in English. Again I would advise to seek the expertise of an accountant in this matter as the amount you pay depends on the type of business you register and your yearly earnings.
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