Does Uruguay Citizenship by Investment Really Exist?
Contents
- Rediscovering Uruguay
- The Key to Uruguay Residency
- How Residency by Investment Works in Practice
- Step 1: Initial Planning
- Step 2: Arrival and Local Setup
- Step 3: Filing the Application
- Step 4: Processing and Decision
- Step 5: Ongoing Presence and Renewal
- Property Ownership and Residency Eligibility
- Buying Property in Uruguay: The Legal Process
- Step 1: Finding the Right Property
- Step 2: Site Visits and Due Diligence
- Step 3: Contract and Payment
- Step 4: After Closing
- Structuring Property Ownership
- Tax Treatment in Uruguay
- US Tax Implications
- Transition from Residency to Citizenship
- Avoiding Scams and False Promises
- Why Uruguay Remains a Smart Long-Term Choice
- Thinking About Residency in Uruguay?
- Sources
A prospective client asked me about Uruguay’s “Citizenship by Investment” program. The problem? It doesn’t exist.
But I know why he thought it did. Many people want an easy second passport, and with the success of real estate–based programs in parts of the Caribbean and Europe, plenty of questionable providers are happy to blur the facts.
Still, Uruguay has a lot going for it—for the right person:
- It’s one of the easiest places to get second residency (and you don’t need to buy property).
- Agricultural land remains affordable and productive, drawing clients who want something off the beaten path.
- Its territorial tax system can make life simpler for Americans who choose to live there.
- There is a path to citizenship—but nothing like what “CBI” promoters suggest.
- And for some, its distance from the US is part of the appeal.
In this article, we’ll clear up the misinformation and have a closer look at what actually makes Uruguay worth considering.
Rediscovering Uruguay
My first Uruguay-related case dates back to soon after I joined the Nestmann Group in 2013. But it was a more recent client—let’s call him Jim—who made us take a fresh look at what Uruguay offers today.
Here’s a summary of his situation, with details adjusted for privacy:
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Jim had a large, multi-generational family planning to relocate to Uruguay.
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He wanted to invest locally but wasn’t interested in the usual expat areas like Montevideo or Maldonado/Punta del Este.
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His goal was to acquire agricultural land suited to specific crops.
Most of our cases involve an individual or a couple—sometimes with a child or two. A full family move across generations is uncommon. And because Jim wanted both to invest and live outside the standard expat zones, we had to dig deeper into Uruguay’s less conventional options.
(At least, less conventional for American clients.)
The Key to Uruguay Residency
Uruguay doesn’t grant citizenship in exchange for investment. Its immigration law makes that clear. What it does provide is a practical and transparent route to permanent residency for those willing to build genuine ties to the country—what authorities call a center of life (centro de vida).
You don’t need to buy property to qualify. What matters is evidence that you’ve established real connections to Uruguay, such as:
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A local lease or property ownership.
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Documented income or business activity.
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Consistent, long-term physical presence.
And while it’s not a formal “residency by investment” program, investing in Uruguay—whether through property, business, or agriculture—can strongly support a case. The system rewards commitment and substance.
This is an important distinction. Because there is no Citizenship by Investment or formal Residency by Investment option, your residency will rely a lot on whether you show a commitment to the country.
It’s not about just ticking off the boxes; you need to spend enough time there to show that commitment.
How Residency by Investment Works in Practice
The process of obtaining residency in Uruguay is a process but not difficult. What matters most is organization and follow-through.
Step 1: Initial Planning
Before arriving, applicants should gather the required US documents and have them apostilled—typically a birth certificate, marriage certificate (if applicable), and an FBI background check issued within the past six months. All must then be translated into Spanish by a certified traductor público.
If property is part of the plan, it’s essential to retain an escribano (public notary). The escribano manages due diligence, verifies title history, and handles registration after purchase.
Step 2: Arrival and Local Setup
US citizens can enter Uruguay visa-free and stay for up to 90 days. During that time, most applicants:
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Obtain a Número de Identificación de Extranjero (NIE) or a RUT through the Dirección General Impositiva (DGI) for tax and administrative purposes.
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Establish a local residence through a lease or property purchase.
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Set up utilities or open a local bank account to document day-to-day presence.
These steps form the backbone of a credible residency file.
Step 3: Filing the Application
Residency applications are filed online through the Dirección Nacional de Migración (DNM) portal (Solicitud de Residencia). After submission, the applicant must appear in person with a passport, proof of address, vaccination certificate, and translated supporting documents.
Once accepted, the DNM issues a residencia en trámite, confirming legal residence while the application is under review.
Step 4: Processing and Decision
The DNM’s review period ranges from six months to two years. During this time, the residencia en trámite allows the applicant to remain in Uruguay legally and to re-enter the country after travel abroad.
When the process is complete, the applicant receives a permanent resident cédula, Uruguay’s national ID card.
Step 5: Ongoing Presence and Renewal
Permanent residency is open-ended but still tied to actual presence in the country. In practice, residents should spend at least six to eight months per year in Uruguay to show that their “center of life” remains there.
The cédula must be renewed periodically, but residency status itself does not expire unless abandoned or revoked for cause.
Property Ownership and Residency Eligibility
Owning property in Uruguay isn’t a requirement for residency, but it can make an application notably stronger. Immigration officials tend to view real estate ownership as a strong indication that someone intends to stay.
Property demonstrates three things that matter to the authorities:
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Commitment: It signals genuine intent to establish roots in the country.
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Financial stability: It shows the applicant has the means to support themselves locally.
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Integration: It helps document that Uruguay is becoming the applicant’s “center of life”.
There’s no minimum investment threshold. Whether the property is residential, mixed-use, or agricultural, ownership carries weight as long as it’s paired with actual time spent in the country.
In Jim’s case, his focus was on farmland, but the principle applies across the board—property ownership supports residency when it’s part of a broader, credible plan to live and participate in Uruguay, not just invest from afar.
Buying Property in Uruguay: The Legal Process
Foreigners can freely buy property in Uruguay, and ownership rights are secure. Transactions are handled through local notaries, known as escribanos, which ensures transparency and legal certainty throughout the process.
Step 1: Finding the Right Property
Most buyers start by working with a local real estate agent. Listings appear on platforms like Gallito and in smaller regional networks, depending on where you’re looking. Meta’s WhatsApp is a standard way to communicate in Uruguayan business.
Step 2: Site Visits and Due Diligence
Before making an offer, it’s important to inspect the property and review key details. An escribano handles the legal due diligence—verifying ownership, title history, encumbrances, and property boundaries.
For farm-related properties, soil productivity and water access are commonly reviewed, but for urban or residential sites, the focus is typically on zoning and infrastructure.
Step 3: Contract and Payment
Once terms are agreed, the buyer and seller sign a Promesa de Compraventa (purchase promise). This is a binding preliminary contract that sets the price, conditions, and closing date. A deposit of around 10–20% is typically paid at this stage and held in escrow by the escribano (notary).
The transaction is completed later through an Escritura Pública (public deed of sale). This deed is signed before the escribano, who then registers it with the Registro de la Propiedad Inmueble (Property Registry). Title legally transfers at that point.
General closing costs are as follows:
| Amount | Paid By | |
|---|---|---|
| Property Transfer Tax | 4.00% | Split between buyer and seller |
| Agent Fee (Buyer) | 3.00% | Buyer |
| Agent Fee (Seller) | N/A | Seller |
| Notary Fees | 3.00% | Buyer |
| Costs Paid by Buyer | 8.00% | |
| Costs Paid by Seller | 2.00% | |
| Roundtrip Transaction Cost | 10.00% |
Source: Global Property Guide, Government of Uruguay, The Nestmann Group
Step 4: After Closing
Once the deed is recorded and ownership officially registered, the buyer can request a Cédula Catastral from the Dirección Nacional de Catastro (land registry office). This confirms the cadastral information associated with the property.
If the property generates income—through rent, agricultural production, or other commercial use—it must also be registered with the Dirección General Impositiva (DGI) for local tax purposes.
Structuring Property Ownership
Foreigners can own property in Uruguay personally or through a local company — a Sociedad de Responsabilidad Limitada (SRL) or a Sociedad Anonima (SA). Which company structure is better than the other depends on your planning. But for Americans in general, an SRL is often easier to work with.
Owning property in your own name is the easiest route and works well for a personal residence or a long-term investment that doesn’t produce income. Using a company can make sense when the property generates income—such as rentals or agricultural operations—or when additional liability protection is needed.
It’s also possible to own through a US LLC, which can be convenient and offer liability protection. However, Uruguayan authorities often treat an LLC as a foreign company, which can add complications.
By contrast, holding property through a US trust is rarely practical. Trusts aren’t well recognized in Uruguay and can cause complications when registering title or proving beneficial ownership. Notaries often require detailed documentation to establish the trust’s validity, which can slow or even block a transaction.
In some situations, clients may use a multi-tiered structure that combines US and Uruguayan entities for estate or asset-protection purposes. Whatever form of ownership is chosen, it should be planned with US tax and estate considerations in mind, since the structure directly affects reporting and taxation on both sides.
Tax Treatment in Uruguay
Uruguay taxes only local-source income, meaning income earned within its borders. Key taxes include:
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Corporate Income Tax (IRAE): 25% on net profits for local entities such as SRLs or SAs.
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Property Tax (Contribución Inmobiliaria): Paid annually to the local municipality, typically modest.
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Wealth Tax (Impuesto al Patrimonio): Levied on Uruguayan assets, generally between 0.1% and 1.5%, with exemptions for smaller holdings.
If the property doesn’t generate income—such as a personal residence—annual obligations are usually limited to basic property taxes.
US Tax Implications
The US taxes citizens and residents on worldwide income, including any from Uruguayan sources. Because there’s no income tax treaty between the two countries, foreign tax credits are the main mechanism to reduce double taxation.
Ownership through a foreign Uruguayan SRL will trigger certain reporting to Uncle Sam (8858, 8865 or 5471, depending on tax classification). If you have any bank accounts or similar, you may also need to file:
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FBAR (FinCEN 114) if all of your foreign financial accounts add up to USD 10,000 on any day of the year.
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FATCA (Form 8938)
for specified foreign assets above threshold levels.
These forms aren’t terribly complicated but they do need to be done to avoid penalties.
Transition from Residency to Citizenship
After gaining permanent residency, foreigners can apply for citizenship once they’ve lived in Uruguay long enough and can show that it’s truly their home. The process is handled by the courts, not the immigration office.
In general:
Three years of residence if you’re married to a Uruguayan citizen or have Uruguayan minor children.
Five years for everyone else.
What matters most is whether Uruguay has become your center of life. The courts look for things like:
Continuous time spent in the country.
Real social or economic involvement.
A stable home, whether owned or rented.
That said, in recent years we’ve found it very difficult for Americans to get citizenship approved, even when they clearly meet the requirements and have made Uruguay their home. It’s not impossible, but approvals have become less predictable.
For those mainly seeking a second passport, there are usually better and faster options elsewhere. But if the goal is to live in a safe, stable country with a good quality of life, Uruguay is still well worth considering.
If you’re unsure which path makes the most sense, we can help you weigh your options based on your broader residency, tax, and citizenship goals.
Avoiding Scams and False Promises
A number of offshore promoters still advertise a so-called “Uruguay Citizenship by Investment” program. It doesn’t exist. Uruguay has no fast-track route to citizenship, and there’s no government-approved investment program tied to a passport.
Be cautious if you see claims such as:
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“Instant citizenship” or “passport in six months.”
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“Guaranteed citizenship through real estate.”
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“Official government-approved CBI program.”
All of these are false. Uruguay’s residency and citizenship processes are legal and transparent, but they take time and require real presence in the country.
Before engaging anyone, make sure:
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A licensed Uruguayan immigration attorney or escribano is involved.
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All filings go directly through the Dirección Nacional de Migración (DNM).
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Any property purchase is properly notarized and registered.
If someone promises shortcuts or guarantees results, that’s a sign to walk away.
Why Uruguay Remains a Smart Long-Term Choice
Yet even without a formal citizenship-by-investment program, Uruguay stands out as one of the most stable and transparent countries in the Americas. It offers a credible path for those who want a secure place to live, invest, or spend part of the year without unnecessary bureaucracy or political risk.
Key advantages include:
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A stable democracy with low corruption and strong institutions.
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Reliable rule of law and well-protected property rights.
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A territorial tax system that only taxes local income.
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A predictable government process, where rules are clear and consistently applied.
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A real, if time-based, path to citizenship for those who genuinely settle in the country.
If you value substance over speed—and prefer a jurisdiction that rewards genuine residence and compliance—Uruguay offers a solid, long-term foundation for both personal and financial stability.
Thinking About Residency in Uruguay?
If you’re looking for an easy passport, Uruguay probably isn’t the answer. As you’ve seen, Uruguay isn’t a “buy your way in” destination. But it does attract people who want a stable place that welcomes investment and people from all over the world.
Every client’s goals are different. Some want a base for family and lifestyle reasons; others are focused on investment or long-term planning. Whatever your objectives, it’s important to structure things correctly from the start—not only in Uruguay but on the US side of things.
If you’d like help to see how Uruguay – or any other country – might fit into your broader international strategy, please get in touch with us. We’ll help you figure out if it fits your goals and, if it does, make sure your move is done efficiently, legally, and with the right local support in place.
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