Banking, pensions and tax in Uruguay
Uruguay does not tax foreign pensions, but tax residents pay a flat 12% on foreign interest and dividends, unless they opt into an 11-year holiday as new residents.
How your pension reaches a Uruguay bank, what Uruguay taxes, and what you still report at home. Checked against official sources on Oct 7, 2026.
- Tax on a foreign pension
- 0% Foreign pensions are not taxed. IASS Law 18.314; DGI; PwC Tax Summaries. Checked Oct 7, 2026.
- Top rate, local income
- 36% Over UYU 9,472,320. IASS Law 18.314; DGI; PwC Tax Summaries. Checked Oct 7, 2026.
- US Social Security
- Direct deposit SSA POMS. Checked Oct 7, 2026.
- UK State Pension
- Frozen GOV.UK. Checked Oct 7, 2026.
- Canada OAS
- Agreement Canada.ca. Checked Oct 7, 2026.
- US FBAR
- Over $10,000 Combined foreign accounts at any time in the year. FinCEN. Checked Oct 7, 2026.
Getting your pension paid in Uruguay
United States
Social Security
Yes. Social Security can be paid straight into a bank in Uruguay by international direct deposit: Uruguay is on SSA's list of direct deposit countries.
SSA POMS. Checked Oct 7, 2026.
United Kingdom
State Pension
It can be paid to you in Uruguay, but Uruguay is not on GOV.UK's list of countries where the State Pension goes up every year, so it stays at the rate you first receive there.
GOV.UK. Checked Oct 7, 2026.
Canada
Old Age Security
Paid while you live outside Canada if you lived in Canada for at least 20 years after age 18. Canada has a social security agreement with Uruguay, so periods in Uruguay can help you qualify.
Canada.ca. Checked Oct 7, 2026.
Other countries: check whether your pension can be paid abroad, whether it keeps rising with inflation there, and whether your country has a social security agreement with Uruguay.
How Uruguay taxes you
Uruguay taxes mainly income from Uruguayan sources. You are tax resident after more than 183 days in a year, or when your main economic or family ties are in Uruguay. A foreign pension is outside the tax: IASS, the tax on pensions, by law does not cover pensions built on contributions to social security institutions outside Uruguay, even when a Uruguayan entity pays them. Residents' foreign capital income, such as interest and dividends, is taxed at a flat 12%, and since 2026 so are foreign rents and capital gains. People who become tax resident from 2026 can opt out of that tax on foreign capital income for the year they arrive and the next 10 years; this needs a large investment unless they spend more than 183 days a year in Uruguay. Work income from Uruguay is taxed at 0% to 36%. The income tax scale:
| Taxable income | Rate |
|---|---|
| Up to UYU 576,576 a year | 0% |
| UYU 576,576 to 823,680 | 10% |
| UYU 823,680 to 1,235,520 | 15% |
| UYU 1,235,520 to 2,471,040 | 24% |
| UYU 2,471,040 to 4,118,400 | 25% |
| UYU 4,118,400 to 6,177,600 | 27% |
| UYU 6,177,600 to 9,472,320 | 31% |
| Over UYU 9,472,320 | 36% |
IASS Law 18.314; DGI; PwC Tax Summaries. Checked Oct 7, 2026.
What US citizens still report
US citizens file a US return on worldwide income wherever they live; there is no US income tax treaty with Uruguay. Two reports cover money held abroad:
| FBAR (FinCEN Form 114) | Over $10,000 combined, any time |
| Form 8938, single, living abroad | Over $200,000 at year end or $300,000 any time |
| Form 8938, married filing jointly | Over $400,000 at year end or $600,000 any time |
FinCEN; IRS. Checked Oct 7, 2026.
Pension and tax questions
Can I get US Social Security paid in Uruguay?
Yes. Social Security can be paid straight into a bank in Uruguay by international direct deposit: Uruguay is on SSA's list of direct deposit countries.
Will my UK State Pension go up each year in Uruguay?
It can be paid to you in Uruguay, but Uruguay is not on GOV.UK's list of countries where the State Pension goes up every year, so it stays at the rate you first receive there.
Is my pension taxed in Uruguay?
No. Uruguay's tax on pensions (IASS) by law does not cover pensions from contributions to social security institutions outside Uruguay, even when paid through a Uruguayan entity, and the income tax does not list foreign pensions among the foreign income it taxes. US citizens still file a US return.
Do I still file a US tax return?
Yes, US citizens file on worldwide income wherever they live, and report foreign accounts on an FBAR once they pass $10,000 combined at any point in the year.
Can I get US Social Security paid in Uruguay?
Yes. Uruguay is on Social Security's list of international direct deposit countries, so payments can go straight into a bank in Uruguay.
Is my foreign pension taxed in Uruguay?
No. IASS, Uruguay's tax on pensions, does not apply to pensions built on contributions to social security institutions outside Uruguay, even when a Uruguayan entity pays them.
Does Uruguay tax foreign investment income?
Yes, for tax residents: foreign interest, dividends and, since 2026, foreign rents and capital gains are taxed at a flat 12%. New tax residents from 2026 can opt out for the year they arrive and the next 10 years if they meet the presence or investment conditions.
Does the UK State Pension go up in Uruguay?
No. Uruguay is not on GOV.UK's list of countries where the State Pension rises every year, so it stays at the rate you first receive there.
