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Uruguay
We have a team of seasoned professionals ready to support your business ventures in Uruguay, ensuring a seamless experience so you can focus on growth, strategy, and expansion across South America and beyond.
Why Uruguay?
Uruguay, officially the Oriental Republic of Uruguay, is a country in South America. It shares borders with Argentina to its west and southwest and Brazil to its north and northeast, while bordering the Río de la Plata to the south and the Atlantic Ocean to the southeast. It is part of the Southern Cone region of South America. Uruguay covers an area of approximately 176,215 square kilometers (68,037 sq. mi.). Amongst all the countries in South America, Uruguay is a small, democratic, renowned for its high quality of life, strong democratic institutions, and progressive social policies. The capital of Uruguay is Montevideo, which is also its largest city, main port, and the economic and cultural centre of the country. It has a population of almost 3.5 million people, of whom nearly 2 million live in the metropolitan area of its capital and largest city, Montevideo.
According to the report of the World Bank, Uruguay has been classified as a High-Income Economy, making it one of the most developed and prosperous nations in Latin America. The currency of Uruguay is the Uruguayan Peso (UYU). The official and most commonly spoken language in the country is Spanish. Uruguay has one main international airport: Carrasco International Airport (Montevideo), offering good air connectivity to regional and international destinations. With its extensive coastline along the Atlantic Ocean and the Rio de la Plata, Uruguay boasts several major commercial seaports, primarily Montevideo and Nueva Palmira, which are crucial for its international trade requirements and as a regional logistics hub. Uruguay offers a very open and welcoming environment for foreign investment, with legal frameworks that generally do not discriminate between local and foreign investors.
ADVANTAGES
Stability and Security:
Known as an "island of certainty" in the region, Uruguay boasts strong democratic institutions, low corruption, and high legal security.
Tax Incentives and Free Zones:
• Free Trade Zones (FTZs): Companies in FTZs enjoy exemptions from corporate income tax, VAT, and other taxes. • Investment Promotion Law: Provides significant tax exemptions on investments, including income tax reductions (IRAE) and import duties. • Territorial Tax System: Foreign-earned income is often not taxed, and new tax residents can benefit from a "tax holiday" for up to 11 years.
Strategic Location and Logistics:
Positioned as a regional hub for South America, with excellent, modern infrastructure, including free ports and airports.
Skilled Workforce:
Uruguay has a highly educated population and is a top software exporter per capita in South America, with a thriving IT and fintech sector.
Investor-Friendly Policies:
No restrictions on foreign capital, no requirement for a local partner, and free repatriation of profits
Green Economy:
Almost 100% of electricity is generated from renewable sources, providing a competitive edge for sustainable, energy-intensive businesses.
High Quality of Life:
Offers a secure environment with high living standards, making it attractive for foreign executives and talent relocation
TAX REGIME
Corporate Tax (IRAE):
Generally 25% on net income from business activities within Uruguay.
Individual Income Tax (IRPF):
- Labor Income: Progressive rates (0%–36%) for residents.
- Capital Income: Generally taxed at 12% for interest and dividends.
Non-Resident Income Tax (IRNR):
Fixed rate of 12% on most Uruguayan-source income, with no deductions.
Value Added Tax (VAT):
Standard rate is 22%, with reduced rates (10%) for specific goods/services and a 4% or 2% reduction if paid via electronic cards.
Wealth Tax (IP):
Progressive scale, generally 0.7% to 2.75% for individuals, with a non-taxable minimum.
Tax Holidays for New Residents:
Individuals becoming tax residents can opt for an 11-year exemption on foreign-source income or a 7% tax rate on specific foreign income.
URUGUAY COMPANIES
Simplified Joint Stock Company (SAS – Sociedad por Acciones Simplificadas):
Introduced in 2019, this is a flexible, modern structure allowing for a single shareholder, commonly used for startups and small-to-medium enterprises.
Limited Liability Company (SRL – Sociedad de Responsabilidad Limitada):
Regulated by Law No. 16,060, this structure requires 2 to 50 partners, with liability limited to their contributions.
Corporation (SA – Sociedad Anónima):
Ideal for large businesses, these entities have capital divided into shares and are often used for general commercial or industrial activities.
Sole Proprietorship (Empresa Unipersonal):
A business run by a single individual.
Branch of a Foreign Company (Sucursal):
Foreign entities can establish a local branch to conduct business, although it is not considered a separate legal entity from the parent company.
Other Structures:
These include general partnerships (sociedades colectivas), limited partnerships (sociedades en comandita), and labor and capital partnerships (sociedades de capital e industria).
