Invest in Uruguay

There are multiple reasons that make Uruguay an attractive and reliable country to invest in.

Foreign Direct investment has reached record levels in recent years, positioning our country as the #1 option in Latin America.

Uruguay has a strong political system and social stability, as well as a consolidated democracy. Foreign investors enjoy the same benefits as local investors, determined by a Law of National Interest that considers companies of one both kinds – from a tax point of view – on equal terms. On the other hand, capital movements without restriction and banking secrecy make Uruguay a very attractive market for foreign investments.

Uruguay is a country with a high Investor Grade and ratified by the main credit rating agencies: Moody’s, Standard & Poor’s, Fitch Ratings and DBRS.

URUGUAY IN LATIN
AMERICA

URUGUAY IN LATIN AMERICA

# 9

17 consecutive years of GDP growth.

Why do Business in Uruguay?

Uruguay has for years boasted strong political and social stability, backed by a consolidated democracy and strong legal security. It has great macroeconomic solidity with uninterrupted product growth in the last 12 years.

Uruguay’s membership in Mercosur, and the free trade agreements (FTA) it maintains with India and Mexico give access to enormous markets. Likewise, the strategic location as a gateway to the region offers the perfect springboard to Latin America. Through Uruguay you can access a market of 400 million people, which accumulates 68% of Latin America’s GDP and represents a foreign trade flow of almost 74% of the total in Latin America.

Uruguay offers first-class logistics infrastructure, innovative technology in telecommunications and the best energy offer in Latin America based on renewable sources.

Investment in Uruguay, both national and foreign, is declared of national interest. Foreign and local investors are treated equally, with a wide range of incentives that adapt to different types of activities, whether industrial, commercial or services that want to be carried out in the country. Business activity is exempt from restrictions both in terms of capital mobility and dividends, and in relation to the purchase and sale of foreign currency.

The high quality of basic, technical and university training makes human resources in Uruguay highly competitive.

TAX TREATMENT OF INCOME

Uruguay only taxes Uruguayans or residents on income generated by activities carried out in the country, assets located and rights exercised economically in the local territory with certain exceptions, such as interest on deposits or loans located abroad.
Non-Resident Income Tax (IRNR): Non-Resident Income Tax is considered over income generated in Uruguay by non-residents. The rate will vary depending on the activity that generates said income. (Example: interest on deposits: 3%-5%; dividend distribution 7%; rent 10.5%; others 12%).

TAX HOLIDAYS FOR NON-RESIDENT NATURAL PERSONS

In 2020, Law No. 19,937 was approved, extending the tax holiday period from 5 years +1 to 10 years. This benefit includes income from capital gains from abroad obtained by natural persons from abroad who become tax residents in Uruguay.

To be included in this tax exemption, individuals must have investments in real estate worth more than 3,500,000 UI (US$ 390,000 approx.), provided that these investments have been made as of January 22, 2021 or later. Additionally, a minimum stay of 60 days in the country in the calendar year must be verified.