IRNR: how non-residents pay tax in Uruguay
IRNR is the mirror of IRPF for those who aren't tax residents: it taxes Uruguayan-source income. What it is, what it covers and at what rates — with official sources.
If you aren't a tax resident in Uruguay but earn income here, you don't pay IRPF: you pay IRNR. It's the same idea —an income tax— but for non-residents, and only on what has a Uruguayan source. Here's how it works.
What IRNR is
IRNR (the Non-Residents' Income Tax) taxes those who aren't tax residents but earn income in the country. The DGI applies it to:
IRNR reaches, per the DGI:
«personas físicas o jurídicas no residentes que obtengan rentas de fuente uruguaya de cualquier naturaleza»
In English: non-resident individuals or legal entities that obtain Uruguayan-source income of any nature
DGI — Non-Residents' Income Tax (IRNR)https://www.gub.uy/direccion-general-impositiva/tematica/impuesto-rentas-residentes-irnrWhat “Uruguayan-source income” means
The key to IRNR is the source: it taxes income from activities carried out, assets located, or rights used economically in the country. Your nationality and where you live don't matter: what matters is that the income originates in Uruguay.
DGI Consolidated Text — Title 8 (IRNR)https://www.impo.com.uy/bases/todgi-2023/8-2024At what rates
IRNR applies at proportional rates (flat, not progressive like IRPF) of roughly 7% to 12% depending on the type of income. For property rentals, for example, the withholding is 10.5% of the income. Verify the exact rate for your income type with the DGI.
IRNR or IRPF: it depends on your tax residency
What decides whether you pay IRNR or IRPF is your tax residency, not your passport. If you establish tax residency you move to IRPF (on Uruguayan income, and in some cases some foreign income). New residents also have the option to be taxed as a non-resident for a time, or a reduced 7% IRPF — we cover this in our residency and tax-holiday posts.
DGI — Tax-residency triggershttps://www.gub.uy/direccion-general-impositiva/comunicacion/publicaciones/causales-residencia-fiscalHow it's filed
IRNR is generally filed annually, with advance payments, and in many cases through a withholding agent (e.g. whoever pays your rent or service withholds and remits the tax). When the withholding is definitive, you skip the return.
At a glance
| Question | Answer |
|---|---|
| Who pays IRNR? | Non-residents with Uruguayan-source income |
| On what? | Activities, assets or rights used in Uruguay |
| At what rate? | Proportional, ~7%–12% by income type |
| IRNR or IRPF? | Depends on your tax residency |
In short: IRNR taxes non-residents only on their Uruguayan-source income, at flat rates. If you become a tax resident, the picture switches to IRPF. Verify your case and the current rates with the DGI or your accountant.