In the last few months of 2020, Uruguay modified the “tax holiday” regime, which provides a temporary income tax exemption to new tax residents for income from foreign investments. Law No. 19,904 (September 2020) allows new tax residents to choose between:
Not being subject to income tax on yields of foreign capital for the year in which they became tax residents and the following 10 years (previously it was 5 years)
Being subject to a 7% rate forever on yields of foreign capital
Once t…