Uruguay seeks to attract digital nomads

Uruguay launches a residence permit for digital nomads that seeks to encourage the arrival of more talent from abroad to live and work in the country in accordance with decree 238/022 and the enabling of the procedure through a digital form.

The residence permit for digital nomads (hoja de identidad provisoria – nómades) is intended for people who work for companies based abroad, or are self-employed, and allows them to settle in Uruguay for a period of six months. The permit is renewable for an additional six months or, should they decide to settle, they may choose to apply for temporary or permanent residency.

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This initiative responds to the growth of global digital nomadism as a way of life and employment. During the Test & Invest event organized by the Inter-American Development Bank at the end of 2022, Uruguayan President Luis Lacalle Pou said that during the pandemic the country was an attractive place for many people to settle or invest.

Uruguay’s attractiveness is the result of the combination of attributes it offers, such as its infrastructure, stability and economic, legal and social security, as well as its quality of life, the president added.

Digital nomads are people who work remotely from anywhere in the world using technological tools. This way of life is not a novelty, however, the pandemic contributed to making work patterns more flexible and there are currently 35 million digital nomads in the world, according to data from the World Economic Forum. This number is expected to grow exponentially in the coming years. A report by U.S. business platform MBO Partners published in 2022 that 72 million U.S.-based individuals planned to become digital nomads in the next two to three years.

The most common positions held by digital nomads are linked to marketing, software development, design, e-commerce and content writing. However, it is not the area of activity that defines the digital nomad, but the possibility of being able to perform their work remotely.

A very simple application process

This residency is offered to individuals who are self-employed or work for international companies.

The process is divided into two phases. To obtain a six-month stay as a digital nomad after entering Uruguay as a conventional tourist, interested parties must fill out an online form with their personal information and submit an affidavit confirming that they have the necessary financial resources to support themselves during their time in the country.

Step-by-step guide for application:

Once the authorization is obtained, it is necessary to schedule an appointment at the National Directorate of Civil Identification to acquire your Uruguayan ID, which is an indispensable requirement to renew your digital nomad permit.

To apply for an extension as a digital nomad, it is necessary to prove the absence of a criminal record in all countries where you have resided for more than six months during the last five years. In addition, a vaccination certificate issued in Uruguay is required.

It is important to highlight that in Uruguay, the export of technology services enjoys a tax exemption, which represents a significant benefit for digital nomads focused on the technology sector.

Currently, there are no salary requirements, however, this and other criteria could be modified in the future.

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