Essential Employment Paperwork in Uruguay

Though considered small in size and population with only a total of 3.4 million inhabitants, Uruguay still managed to be one of the most promising countries in South America. It boasts promising job opportunities in several leading sectors such as agriculture, finance, aviation and tourism. Foreign nationals who have made up their minds to work in this country will be glad to know that the process of acquiring employment paperwork is relatively easy and straightforward. 

Citizens of many countries can enter Uruguay without a visa. Generally speaking, foreigners considering a job in Uruguay may enter the country under either a temporary visa or a permanent (resident) visa, valid for the length of the employment contract. Those holding a 90-day temporary visa may, later on, apply for permanent status, upon the request of the Uruguayan employer. Expats are allowed to seek employment while waiting for their work permits. 

Applying for a Visa 

Uruguay doesn’t separate the work permit from the residence visa which means that foreign nationals who have been given the permission to stay are also legally allowed to seek employment. In this country, expatriates do not have to rely entirely on their employers when it comes to obtaining their residence visas. You can start the application process by submitting the documents listed below to the office of the Dirección Nacional de Migración in Montevideo. 

• One passport-sized photo
• Health Certificate (issued by the Ministry of Health)
• Police Clearance Certificate issued from country where the applicant last lived in
• Birth Certificate
• Original and photocopy of a valid passport 

Applicants should remember that all foreign documents must be translated into Spanish and legalised by the Embassy/Consulate of Uruguay. There are also some instances when the employer will take care of the visa application process particularly if the expat already has a job offer. 

Tax 

All citizens and resident expat employees who stay in the country for more than 183 days per year are liable for Personal Income Tax (Impuesto a las Rentas de las Personas Físicas or IRPF) with rates ranging from 10% to 36%. The IRPF is only applicable on income generated from Uruguayan sources.

Income Tax Rates from 1^st of January 2017 onwards: 

The minimum wage is set at 7,920 pesos or $390 per month while the hourly rate is $1.87 for a 48-hour workweek. Expat workers and foreigner businesses are also liable for a 12% capital gains tax.