You live in Uruguay and work remotely for a foreign company: where do you pay?

You live in Uruguay, your laptop is here, but your client or employer is in the US, Europe or wherever. Do you pay tax there or here? It's the most common question among nomads and expats, and the DGI's answer is simpler than it seems.

The key rule: where you work from matters

What defines taxation isn't where your client is, but where you carry out the activity. And you carry it out from Uruguay. The DGI says so explicitly:

Per the DGI:

«si la asesoría profesional o la prestación del servicio son realizadas desde Uruguay, enviándose vía Internet al exterior, se encuentra gravada por IRPF ya que la actividad se desarrolla en la República.»

In English: if the professional advice or the provision of the service is carried out from Uruguay, sent via the Internet abroad, it is taxed by IRPF because the activity is developed in the Republic.

If you're a tax resident: IRPF

As a tax resident, that work income falls under IRPF (work income). In practice this means registering with the DGI and BPS, invoicing and choosing your regime (monotributo, or personal services under IRPF, depending on your income level). See our monotributo and which-regime posts.

The new-resident option (tax holiday and 7%)

If you've just moved, there's a major benefit: people acquiring tax residency can opt to be taxed as a non-resident (IRNR) for a period, or later a reduced 7% IRPF on certain foreign income. We develop this in our tax-residency and tax-holiday posts:

And if you aren't a tax resident yet?

Until you establish tax residency, the analysis goes by source: services rendered from Uruguay are still Uruguayan-source. The difference is the tax (IRNR instead of IRPF). When you become a resident is set by the DGI's triggers:

What to do in practice

“Get paid abroad and that's it” isn't enough. If you work from Uruguay you must formalize: register, issue invoices (even to foreign clients, usually export of services) and contribute. Pair this with Tributo so you don't miss due dates, and when in doubt consult an accountant.

At a glance

In short: if you work from Uruguay, you're taxed in Uruguay even if you're paid abroad — IRPF if you're a resident, with special options if you've just moved. Formalize and verify your case with the DGI or your accountant.