• Uruguay has several incentives which adjust to different types of activities, from industrial to commercial and service activities intended to be performed in the country. Schemes provided for by the Investment Law, free zones, free port and free airport schemes, public-private partnership agreements, industrial parks and temporary admission are some of the main incentive schemes available in the country.


    + Investment Promotion Law

    The investment promotion system is provided for by Law No. 16,906 whereby the promotion and protection of investments made by national and foreign investors in the national territory are declared of national interest.

    Automatic benefits for investment and benefits regarding specific investments are granted by this law. According to the latter criterion, companies operating in any sector of activity that produce an investment project which is further promoted by the Executive Branch will be eligible for additional benefits.

    Benefits available for companies whose investments are promoted by the Executive Branch include Corporate Income Tax (IRAE) exemption for a maximum amount equivalent to 100% of the total invested amount. In addition, investments may be exempt from Wealth Tax (IP) on movable fixed assets and civil works, and Value Added Tax (VAT) may be recovered for purchases of materials and services for the latter. Moreover, the import of movable fixed assets, which are not competitive with the national industry, is exempt from import taxes or duties..

    + Sector Systems

    The Investment Law sets forth that promotional declaration can fall on a specific sector activity. In this framework, the following sectors have been promoted: Call Centers, Shipbuilding and Electronics Industry, Manufacturing of Agricultural Machinery and Equipment, Power Generation, Tourism, Forestry Industry, Treatment and Final Disposal of Industrial Solid Waste, Vehicle Manufacturing and freight transportation equipment, Hydrocarbon and Biotechnology Industry.

    Moreover, there are other benefits granted by Uruguay according to the sector, regardless of the provisions set forth by the Investment Law. The following sectors are favored with these incentives: External Financial Intermediation, Forestry, Graphic Industry, Maritime and Air Navigation, Software, Vehicle and auto parts, Biofuel, Communication and Housing Industry.

    + Free Zones

    This scheme will enable the development and export of goods and services to the world free from any national tax.

    Legal entities which set up as free zone users are exempt from any current or future national tax. In particular, they are exempt from the Income Tax, VAT, Wealth Tax, Excise Tax and Corporation Control Tax. Assets going in and out the duty free zone are tax-exempt. This exemption is not applicable to social security contributions, except for foreign personnel who may choose to contribute in their country of origin.

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    + Industrial Parks

    In these parks, apart from industrial operations, storage, conditioning, selection, classification, fractioning, assembly, disassembly, handling or combination of goods or raw materials can be performed, provided they are exclusively associated to the industrial activities set up in the parks.
    Natural and legal persons that develop an industrial park, as well as the companies that operate therein, may be included in the benefits and obligations set forth in the Investment Law, with specific additional benefits.

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    + Free Ports and Airports

    When operating in a free port, goods circulate freely without the need for permits or formal procedures. Goods are exempt from all import duties and surcharges as long as they remain within the customs port area. Activities related to the merchandise and related or associated to the services rendered to the merchandise can be carried out.

    + Public-Private Participation

    In 2011, the Public-Private Partnership Law, which sets forth the regulatory framework for public-private partnership (PPP) agreements was approved. PPP agreements are those in which a Public Administrative Body entrusts, for a given period, the design, construction and operation of infrastructure or any such services to a private party, in addition to financing.

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    + Foreign Trade-Related Systems

    The investment promotion system is supplemented by an attractive foreign trade promotion system which includes tax refund, temporary admission and draw-back. Temporary Admission (TA) allows introducing to the market, free of taxes, foreign goods. These goods must be exported after having undergone specific transformation, manufacturing, repair or value-adding processes.

  • Investor Guide

    Uruguay has become a reliable and attractive destination for foreign investors. Start to work in the best country to invest. For more information, visit our Investor Guide