Investing in Uruguay
The investment regime in Uruguay is completely open, no matter if the capital is domestic or foreign. The main features of this system are:
• Stable security environment for investors, both in the defense of the principle of private property as in the stability of its economic policy.
• Permission to install new businesses is not required. People and companies are free to begin business activities without state authorization or approval.
• There is no limit on foreign equity participation in companies. Excepting rare exceptions, foreigners can hold 100% equity of a company or in establishing a joint venture.
• Investment can be made on repatriation as well as non-repatriation basis. Repatriation can be made without state authorization or approval.
• The change market is open and unregulated. This allows the free purchase or sale of currency.
• Favorable treatment for imported capital goods. Most of the capital goods are brought into the country with a very low tariff or even zero, based on different systems.
• Freedom of importing all kinds of goods. Tariffs range from 0% to 23%, with some transitory exceptions.
• Total freedom of exports. There are no charges or prohibitions.
• There is an indirect tax refund and a temporary admission regime that promote the export sector.
• Freedom to nominate contracts for the sale of goods or services, including employment contracts in foreign currency.
• Freedom of recruitment, including foreign employees.
• Investment protection agreements to avoid double taxation.
• Total anonymity guaranteed for investors with the possibility to resorting to a Trust (recently adopted in the country).
• Access to a market of over 200 million consumers: the MERCOSUR which just added the Mexican market on the basis of recently expanded agreements.
• Possibility of getting a national interest declaration from the Government for private investment projects (Law Nr. 16,906), with a certain quantity of tax exemptions.
• Nevertheless, there are many other promoted sectors, such as afforestation. The installation of industries in the so-called Industrial Parks (Law 17,547) is also encouraged.