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🇺🇾  Retiring in Uruguay from the US

What Americans need to know: the visa, how your pensions are taxed, what to do before you leave and every year after.

By the retireacross editorial team · Last reviewed

Visa for Americans

You can visit Uruguay without a visa for 90 days (up to 90 days per visit): enough for a trial stay before you apply. To live there you need a residence route:

  • Permanent legal residence. Official page
  • Retiree benefit (Law 16.340): income from 1,500 USD a month and a home or investment from 100,000 USD. Official page

Check your figures in the visa checker

Sources: Gobierno de Uruguay: permanent legal residence (Dirección Nacional de Migración, updated Feb 2026) (checked 2026-10-22) · Gobierno de Uruguay: benefit for foreign retirees with permanent residence (Law 16.340) (checked 2026-10-22) · UK travel advice: Uruguay, entry requirements (checked 2026-10-22)

How your pensions are taxed

US interest and dividends can be taxed at 12% in Uruguay once any tax holiday ends, and the US keeps taxing its citizens. Get advice before choosing the tax holiday option. With no tax treaty, US government pensions (federal, state or local, military) are taxed by the US and possibly by your new country, with relief only through a foreign tax credit.

  • There is no US–Uruguay income tax treaty. US Social Security is foreign-source pension income, not taxed in Uruguay; the US taxes it as usual.
  • Not taxed in Uruguay; taxed by the US.

Sources: IRS: US income tax treaties A to Z (checked 2026-10-22) · PwC tax summaries: Uruguay, taxes on personal income (checked 2026-10-22)

United States: The US taxes its citizens on worldwide income wherever they live: keep filing a US return each year (automatic extension to 15 June abroad) and the FBAR if your foreign accounts exceed $10,000. Official page

Uruguay's own rules: Uruguay taxes mainly Uruguayan-source income: pensions from abroad are generally not taxed. The exception is foreign investment income (interest, dividends and, since 2026, foreign rents and capital gains), taxed at 12%. New residents can choose a tax holiday on that income (11 years, or a reduced 7% rate); the 2026 budget law changed its terms. Net wealth tax applies only to assets located in Uruguay above about US$160,000; there is no inheritance tax.

Before you leave the US

  1. Decide about Medicare Part B (US): Medicare generally does not pay for care outside the US. Keeping Part B costs a monthly premium; dropping it and re-enrolling later means a lifetime penalty and enrolling only from January to March. See our Social Security and Medicare guide before you decide. Official page (from age band 65-74)
  2. Tell Social Security your new address and bank: Social Security keeps paying US citizens in our 20 countries: give them your foreign address and choose direct deposit to a local bank (where available) or a US account. Answer the questionnaire they mail abroad, or payments can stop. Official page (from age band 65-74)
  3. Medicare at 65 while you live abroad (US): Medicare does not pay for care outside the US. When you turn 65 abroad you can delay Part B, but if you enrol later (for example when you come back) you pay a lifetime late-enrolment penalty and can only enrol from January to March. Decide before 65 whether to keep Part B; see our Social Security and Medicare guide. Official page (before State Pension or Social Security age)
  4. Social Security later, from abroad (US): You can claim Social Security from abroad from 62. When you do, give the SSA your foreign address and bank, and answer the questionnaire it mails each year or two, or payments stop. Official page (before State Pension or Social Security age)

Every year, from abroad

  • Answer the Social Security questionnaire abroad (when it arrives (usually May or June)): Social Security mails beneficiaries living abroad a questionnaire (form SSA-7162) every year or every other year, usually in May or June. Return it promptly: if it is not returned after a second mailing, payments are suspended.
  • File your US tax return (Form 1040) (by 15 June when you live abroad): US citizens are taxed on their worldwide income wherever they live, so keep filing a US return every year. Living abroad gives an automatic 2-month extension, to 15 June, without asking (interest still runs from 15 April on tax due). Foreign tax credits or the foreign earned income rules prevent paying twice: ask an adviser who knows both countries.
  • Report your foreign accounts (FBAR) (15 April (automatic extension to 15 October)): If your foreign bank and financial accounts together exceeded $10,000 at any time in the year, file the FBAR (FinCEN Form 114) online through FinCEN's BSA E-Filing System, separately from your tax return. It is due 15 April, with an automatic extension to 15 October.

More for Americans

Rules and figures change and we can make mistakes: confirm with the official source or a licensed advisor before acting.