Foreign income and IRPF in 2026: what changed for residents
Tax residents already paid IRPF (12%) on foreign interest and dividends. From 2026 the base expands to more foreign capital income, with a credit for tax paid abroad. With the official source.
If you're a tax resident in Uruguay with investments abroad, this matters to you. Uruguay taxes certain capital income earned abroad, and from 2026 the law widened that scope. Here's what's taxed, what changed, and how to avoid paying twice.
What was already taxed
For years, resident individuals have paid IRPF on foreign movable-capital income — typically interest and dividends from deposits, loans and investments abroad — at a 12% rate. DGI puts it this way:
Per DGI:
«quedan incluidos dentro de esta categoría los rendimientos de capital mobiliario del exterior, de depósitos, préstamos y en general de toda colocación de capital o de crédito de cualquier naturaleza.»
In English: included within this category are foreign movable-capital returns, from deposits, loans and in general any capital or credit investment of any nature.
DGI — IRPF, movable-capital returnshttps://www.gub.uy/direccion-general-impositiva/comunicacion/publicaciones/irpf-rendimientos-capital-mobiliarioWhat changed from 2026
The Budget Law widened the taxable base: from 1 January 2026, foreign capital gains (for example, the gain on selling shares or other assets) and foreign real-estate income are also reached by IRPF, generally also at 12%. It also allows offsetting foreign capital losses and gains. The detail is in Title 7 of the Ordered Text:
DGI — Ordered Text, Title 7 (IRPF), updated March 2026https://www.impo.com.uy/bases/todgi-2023/7-2024How to avoid double taxation
If you already paid income tax on that same income in the source country, you can credit the tax paid abroad against your IRPF, up to the Uruguayan tax on that income. In certain cases where a resident party withholds the tax on foreign capital income, the rate can drop from 12% to 8%.
Who does it affect?
Mainly tax residents with savings, investments or property abroad (very common in the expat community). It doesn't change things for those with only Uruguayan-source income. If you hold assets abroad, review your case before the next return.
At a glance
| Foreign income | Treatment |
|---|---|
| Interest and dividends | IRPF 12% (already existed) |
| Capital gains (selling assets) | IRPF 12% from 2026 |
| Foreign real-estate income | IRPF from 2026 |
| Tax paid abroad | Credit against IRPF |
In short: from 2026 Uruguay taxes more of its residents' foreign capital income, keeping the credit for tax paid abroad so you don't pay twice. If you have investments or property abroad, review your situation with an advisor and confirm the details with DGI.