Uruguay is a country of european tradition, the Spanish colony being very numerous and economically important.
In Uruguay you can live in a safe and healthy way. The country offers one of the highest degrees of security in Latin America and the Caribbean. There are no racial, religious or other conflicts.
Uruguay occupies the 6th place worldwide in the Environmental Sustainability Index. The mildness of the climate and the absence of environmental pollution, the breadth of sanitary networks and drinking water, together with the level and scope of medical care, make the population enjoy a high degree of health.
Due to its territorial extension, the distances to travel to access recreational areas, the countryside, the beaches and the river coasts, are reduced. The national sport par excellence is soccer, which attracts the majority of the population of all social levels. The Uruguayan market offers consumer goods of any origin and quality level at international prices.
The government promotes investment in general, and in particular maintains a favorable policy towards foreign investment.
The general regime is totally open and does not discriminate between foreign and local investors, from a tax point of view.
The foreign investor enjoys the same incentives as the local investor. No prior authorization is required for foreign investment.
The foreign investor can carry out any type of activity, under the same conditions as local investors.
In some sectors of activity specially regulated by the State, the foreign investor may carry out activities under the public works concession regime. There is an exception for access to foreign investment that refers to the operation of radio stations and television stations: the ownership of companies that develop these activities is restricted to Uruguayan citizens.
The foreign investor can operate in the country constituting a Uruguayan corporation – which is the most frequently used type of company – of which it can own 100% of its share capital. It can also operate through the constitution of a Uruguayan limited liability company or other types of personal companies made up of partners that are natural persons or foreign legal entities.
Likewise, the foreign investor may choose to operate in the country through a foreign company, installing a branch of the same in the country.
Current incentives, aimed at creating jobs, introducing high-tech industries and increasing exports, are available to both local and foreign investors. The most generic incentives refer to tax exemptions on investment.
Both branches and local companies can be financed with local banks, with loans from abroad or with their Parent Company or shareholders. Exchange market and repatriation of capital and profits:
There are no limitations on the transfer of profits or the repatriation of capital, for which no authorization from the State is required.
The exchange market is free, there are no limitations for the purchase or sale of foreign currency, and investments can be made in any currency.
Protection of foreign investments:
Uruguay has traditionally provided a security framework to the foreign investor for the effective validity of the law and for economic stability. He is also a member of international organizations that promote the security of investments, such as the Multilateral Investment Guarantee Agency (MIGA) and the International Center for Settlement of Investment Disputes, based at the World Bank. Foreign personnel There are no limitations for hiring foreign personnel.
Source: Uruguay XXI
The approval of national tax laws is the power of the Legislative Power, which are then regulated by the Executive Power. The Tax Administration does not have powers to modify the tax legislation.
The nineteen departments in which the national territory is divided can establish, collect and control through their Departmental Boards only certain departmental taxes. The most important departmental taxes are the Real Estate Tax, the Rolled Patent and the Bromatological Rate, but its incidence in companies in general is not significant.
The Uruguayan tax system is based on the combined application of direct and indirect taxes.
Source: Uruguay XXI