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