Money & Banking - Piriápolis Expats

Currency in Uruguay

Uruguay uses the Uruguayan peso (UYU). Here are some pics of Uruguayan pesos. Uruguay sometimes issues commemorative notes with different colors. The sizes don’t change.

U.S. dollars are widely used in real estate transactions and sometimes accepted for larger purchases, but daily expenses (groceries, utilities, buses, pharmacies, etc.) are paid in pesos.

Most prices in stores are listed in pesos.

When writing numbers, the comma and decimal point are reversed from the U.S. way of writing numbers. For example, in the U.S. we would write one thousand, two hundred thirty-four and 56 cents as 1,234.56 and in Uruguay that same number is written as 1.234,56

Withdrawing Cash from ATMs

For withdrawing cash in Piriápolis using a foreign debit card, you can use the ATMs in front of Banco República (BROU).

TIP: Save the ATM receipt with your banking records in case of discrepancies.

How to Use the ATM:

Indicate your preferred language.
Indicate the type of account you are withdrawing from (for example, checking account in dollars).
Indicate the currency you want to receive (for example, pesos).

Be aware of:

Daily withdrawal limits
Foreign transaction fees charged by your home bank
Dynamic currency conversion (if asked, decline it and let your home bank handle conversion for better rates)

Abitab

Abitab is a payment network with storefront locations throughout Uruguay. It functions as a bill pay center and financial services hub.

If you are new and do not yet have a local bank account, Abitab becomes extremely useful.

In Piriápolis, you can pay in person with cash at Abitab (there’s also a small Abitab inside the main Devoto).

Pay Bills at Abitab

At Abitab, you can show your invoice or account number to pay certain bills with cash, such as:

Electric (UTE)
Water (OSE)
Some phone or internet bills
Certain municipal payments

This is particularly handy if:

You do not yet have a Uruguayan bank account
You cannot access the website payment system
You prefer to pay in cash

Deposit Cash into the Bank Account of a Person or Business at Abitab

In Uruguay, it is common to deposit cash directly into someone else’s bank account (for rent, contractors, services, etc.).

Here is how it works:

The payee gives you their bank name and account number.
Inside Abitab is a small machine that looks like an ATM. This is where you enter the deposit information.
The menu options can be confusing.
The staff are used to helping people and are generally very patient.
Double-check the recipient’s name before confirming.
The machine prints a deposit slip.
Take the slip and your cash to the cashier.
The cashier processes the transaction and gives you a receipt.
Send a photo of the receipt to the recipient and ask them to confirm that funds were received.
Always keep your receipt until the recipient confirms.

Prex Card

Prex is a prepaid Mastercard and digital financial app operating in Uruguay and several other Latin American countries. Prex is a practical transitional tool while waiting to open a traditional bank account.

It functions like a debit card but does not require a traditional bank account.

It is often used by:

Foreigners without a local bank account
Residents who want a simple digital solution
People receiving international transfers

Key Features of Prex

Free prepaid Mastercard (physical + virtual)
No traditional credit check required
Currency exchange between pesos and dollars within the app
QR code payments
Tap to pay (add the card to your online wallet)
Online shopping
Transfers between users
ATM withdrawals
Prex can be used anywhere Mastercard is accepted.

How to Get a Prex Card

Download the Prex mobile app.
Complete the application.
You will need identification.
If you do not yet have a cédula, you can apply using your passport.
Pick up your physical card at an Abitab location.
If Piriápolis does not have available cards, try Maldonado or Punta del Este.

Western Union

There is a Western Union location in Piriápolis for sending or receiving transfers. Exchange rates and fees vary, so compare with your bank and with Prex if relevant.

This can be useful for:

Receiving funds from abroad
Short-term liquidity
Emergency transfers

Opening a Bank Account in Uruguay

Opening a bank account as a foreigner is common. The process of opening a bank account in Uruguay can be more document-heavy than in other countries.

Foreign Account Tax Compliance Act (FATCA)

Under FATCA regulations (a U.S. law that applies to Uruguayan bans with U.S. clients), local banks will often require you to provide substantial documentation when opening an account:

Some banks may be cautious about opening accounts for U.S. citizens because of compliance requirements.

What Documents Are Generally Required to Open a Bank Account:

Valid passport
Uruguayan cédula (if you have one)
Proof of local address
Proof of income or source of funds
Tax identification information (see below)
Initial deposit

Banks are required to follow anti-money laundering regulations, so they may ask detailed questions about:

Your employment
Your expected monthly deposits
Your country of tax residence
The origin of your funds

Approval can take several days or weeks depending on the bank and your documentation. As is the culture in Uruguay, having a Uruguayan make an introduction to the bank can go a long way in streamlining the process.

Some banks may be more accustomed to working with foreign residents than others. Ask other expats locally about their experiences.

ITAU: many expats in Uruguay open a bank account with ITAU in its Ciudad Viaja office.

Peso and Dollar Accounts

In Uruguay, it is common for bank accounts to include both a peso account and a U.S. dollar account under the same client profile.

This allows you to:

Receive deposits in either currency
Pay local expenses in pesos
Transfer between your own peso and dollar accounts

When you use your debit card, the transaction will typically draw from the account that matches the currency of the purchase.

You can usually transfer funds between your peso and dollar accounts through online banking or at the branch, using the bank’s exchange rate at the time of transfer.

Because Uruguay operates as a partially dollarized economy, this dual-account structure is standard and very practical for residents.

Regulatory & U.S. Tax Reporting Issues

If you are a U.S. citizen, opening a bank or other financial account outside the United States could trigger additional tax reporting obligations.

This section is an alert to possible requirements exists, not tax or legal advice.

Foreign Bank Account Reporting (FBAR)

If you’re a U.S. citizen (or a U.S. resident for tax purposes) and you have one or more financial accounts outside the United States, the U.S. government requires a separate annual reporting form called an FBAR even if you live in Uruguay and pay Uruguayan taxes.

What FBAR Is

FBAR stands for Foreign Bank Account Report.

The official form is FinCEN Form 114, Report of Foreign Bank and Financial Accounts.

It is required by the U.S. Treasury’s Financial Crimes Enforcement Network (FinCEN). It is not filed with your U.S. tax return — it’s filed separately.

Who Must File

You must file an FBAR if you are a U.S. person (citizen, green card holder, resident for tax purposes) and you had, at any time during the calendar year, foreign financial accounts that in total were worth more than $10,000 U.S. dollars. This total is the aggregate value, not per account, and is measured using the exchange rate as of the highest-value day of the year.

Examples of accounts typically included:

Foreign checking and savings accounts

Brokerage/investment accounts

Mutual funds

Certain foreign retirement, insurance, or cash-value accountsEven if these accounts didn’t earn income in the year, they must be reported.

When FBAR Is Due

FBAR filings are based on the calendar year:

The original deadline is April 15 of the year after the reporting year.

For example, 2025 accounts are due April 15, 2026.

Automatic extension: If you miss April 15, you automatically get a six-month extension to October 15.

You do not have to request this extension– it’s automatic for everyone.

Important: FBAR deadlines are separate from U.S. tax return deadlines. The form is not attached to your IRS Form 1040.

How to File

FBAR must be filed electronically through the U.S. Treasury’s BSA E-Filing System at https://bsaefiling.fincen.gov/file/NoRegFBARFiler.html

Penalty Risk (Why This Matters)

Failing to file an FBAR when required can result in significant penalties — even if you didn’t owe any U.S. tax on those accounts.

FBAR vs. FATCA

FBAR (FinCEN 114) is different from FATCA’s Form 8938:

FBAR is filed with FinCEN electronically. It’s based on a $10,000 threshold of foreign accounts.

FATCA Form 8938 is filed with your U.S. tax return (IRS) and has higher thresholds for reporting specified foreign financial assets.These are separate requirements one does not replace the other.

Where to Learn More About Reporting Requirements

Here are good authoritative resources:

IRS FBAR Overview Page

FinCEN FBAR Filing Instructions

Official FBAR E-Filing Portal

U.S. Taxes

U.S. citizens are generally taxed on worldwide income regardless of where they live.

This means:

You generally will still file U.S. taxes annually.
Foreign bank accounts are typically reportable.
Local interest income may be taxable in the U.S.

Because the rules are specific and penalties can be significant, you might want to consult a U.S. tax professional who specializes in expat taxation.

There are several firms that focus specifically on people living abroad, including:

Uruguay Tax Considerations

New residents of Uruguay may benefit from a significant tax holiday on foreign-sourced income. Uruguay’s tax rules changed as of January 1, 2026, so if you are planning to establish tax residency, consult a professional familiar with current Uruguayan tax law. See Favorable Tax Treatment of Living in Uruguay for an overview.

Also see PWC Worldwide Tax Summaries