Why Startups Are Looking to Uruguay: A Reliable Hub of Talent, Stability, and Quality of Life for Growth in Latin America

The second edition of Sprint —the program promoted by the National Research and Innovation Agency (ANII) and Uruguay XXI—was designed as an intensive immersion into the country’s innovation ecosystem. It targeted foreign startups seeking to establish operations, validate their business models, and scale regionally.

Over the course of a week, participants visited companies, laboratories, and free trade zones; attended workshops and presentations; and met with both public and private leaders from the entrepreneurial ecosystem.

A Stable and Connected Environment for Innovation

The goal of Sprint UY was to showcase the tangible opportunities Uruguay offers for building innovative businesses: a stable, well-connected country backed by active policies in science, technology, and investment. As the organizers explained, Sprint UY seeks to “show on the ground what the indicators already reflect—that Uruguay is a reliable destination for growth and expansion into Latin America.”

The agenda included an opening session at the Technological Laboratory of Uruguay (LATU), visits to the Pando Science and Technology Park, Zonamerica, Microsoft AI Lab, ATGen, and Science Park, along with presentations, workshops, pitch sessions, and opportunities to connect with the local entrepreneurial community.

At the opening, Alejandro Ferrari, Investment Manager at Uruguay XXI, emphasized that the country offers a predictable, transparent, and welcoming business environment. He highlighted Uruguay’s principles of equal treatment for local and foreign investors, its completely free exchange market—allowing for multi-currency accounts and unrestricted profit repatriation—and a stable regulatory framework that transcends changes in government.

Ferrari explained that current legal regimes enable both multinationals and startups to operate efficiently and scale from Montevideo to the wider region. Among these incentives, he noted free trade zones, which exempt income and imports from taxes, and the benefits of free ports and airports, which simplify logistics and regional distribution.

Uruguay also offers a particularly favorable framework for the technology sector: software exports are exempt from income tax, while double-taxation agreements and low withholding rates make exporting services and working with distributed teams more competitive.

“Uruguay offers certainty: clear rules, stability, and concrete tools for centralizing regional operations from Montevideo,” Ferrari summarized. “You don’t need to be a large company to base your operations in a country that combines efficiency with international projection.”

From the World to Uruguay: Global Entrepreneurs Find Proximity and Balance

Two panels at Cubo Itaú completed the week’s agenda. In “From the World to Uruguay,” four foreign residents—Argentine entrepreneurs Fernando Johann (CEO of TELL Toolkit) and Pablo Celsi (Senior UX Director at PedidosYa); British founder Karen Higgs (CEO of Guru’Guay); and Colombian entrepreneur Johanna Merchán (CFO and Co-Founder of Press StARt Evolution)—shared their experiences of settling in Uruguay.

Their conclusion was unanimous: Uruguay’s scale is its advantage.

“In Uruguay, you’re always just a phone call away from the person you need,” said Johann. “This week I met with three deputies and a senator in two hours. That kind of proximity is unthinkable in other countries.”

Higgs added a personal dimension that often shapes long-term decisions: “I finish work at 5:30 p.m. and, 15 minutes later, I’m at my favorite beach in Montevideo. That’s priceless—it makes life so much more enjoyable.”

Merchán highlighted security and financial fluidity: “Getting paid from the U.S. and seeing the funds credited the same day is something that really matters when you’re running a business.”

From Uruguay to the World: Local Startups with Global Reach

The second panel, “From Uruguay to the World,” showcased homegrown startups with international operations. Micaela Suárez, CEO of Flokzu, summed up a key intangible advantage: reputation.

“When we say we’re a Uruguayan company, the first reaction we get is trust,” she said. “Uruguay is seen as a stable democracy with clear rules.”

According to Suárez, that reputation rests on diverse talent, strong English proficiency, and a time zone that allows live collaboration with both the U.S. and Europe—critical for a company serving customers in 70 countries.

In the life sciences sector, María Pía Garat, CEO and co-founder of Eolo Pharma, offered data-driven insight: “With $7 to $10 million, we can carry out a Phase II clinical trial. In other countries, that amount would barely cover the team’s salaries. That level of efficiency surprises investors.”

She added that scientific validation (including publication in Nature) and the ability to create hybrid structures—for holdings, intellectual property, and operations—further enhance Uruguay’s appeal for biotech ventures.

From the creative-tech industry, Diego Lemos, founder of Millsonic, described Uruguay as “a small but demanding market that works like a laboratory.”

“Uruguay forces you to move fast. Testing here is a great opportunity before scaling to larger markets,” he said. “And the fundamentals are solid: regional-leading broadband, institutional stability, and a science-technology ecosystem that connects startups with academia, corporations, and labs.”

A Collaborative Culture and a Strategic Choice

Beyond the policies and programs, the week also revealed something harder to measure: a collaborative and close-knit entrepreneurial culture.

“We all know each other, we share experiences, and we support one another,” said Garat. “That makes you feel accompanied on what is often a lonely journey.”

In a country where “everything is 15 minutes away,” that network shortens timelines, opens doors, and multiplies opportunities.

Sprint UY concluded with a clear message: Uruguay is not only a great place to live, but also a strategic platform for scaling in Latin America.

International trust, globally competitive talent, transparent rules, strong connectivity, tax advantages, and exceptional quality of life come together in an equation that reduces risk and enhances execution.

For startups aiming to expand across the region, the takeaway from Sprint UY was unmistakable: setting up in Uruguay is a smart and strategic decision.