(MENAFN- The Rio Times) Uruguay is rewriting the deal it offers to rich foreigners. For years, newcomers could buy a home worth roughly US$559,000 and, with some residency rules, enjoy an extended tax break on income earned abroad.

From 2026, President Yamandú Orsi plans to make that path far pricier and more useful to the local economy. The headline change: to claim the foreign-income tax break via property, new applicants would need to put an extra US$2 million into Uruguayan real estate.

Or they could skip bricks and mortar and contribute at least US$100,000 a year-up to 11 years-to a government-backed innovation fund that invests in local companies and issues tradable securities.

There's also a route to tax residency by investing about US$2.4 million in a local business, though that alone would not automatically grant the foreign-income exemption.

The physical-presence path remains: live in the country for roughly half the year and you can still qualify without buying more property or funding the new vehicles.



The story behind the story: Uruguay , nestled between Argentina and Brazil, has courted affluent migrants for stability, safety, and clear rules. Since late 2020, more than 2,300 people have used the regime to shield offshore earnings.
Uruguay Channels Inflowing Capital Toward Growth and Investment
Many Argentines keep second homes in Punta del Este; several Latin American tech founders now base themselves in Montevideo.

But policymakers want the inflow to finance growth, not just seaside apartments. Channeling money into funds and businesses aims to seed jobs, innovation, and productivity.

Politics matter, too. Orsi's Broad Front holds a majority in the Senate and needs only a handful of votes in the lower house to pass his first budget, which carries these changes. That gives the plan a credible path into law.

Why you should care: If you're eyeing Uruguay for tax residency, the entry price is rising and the spending will be steered toward productive investment. For Uruguay, this is about keeping its welcome mat out-while ensuring newcomers' money does more than sit in property.

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