{"id":9057,"date":"2025-12-17T18:27:46","date_gmt":"2025-12-17T16:27:46","guid":{"rendered":"https:\/\/www.feliu.biz\/?p=9057"},"modified":"2025-12-17T18:35:37","modified_gmt":"2025-12-17T16:35:37","slug":"uruguay-strengthens-its-attractiveness-as-an-investment-destination","status":"publish","type":"post","link":"https:\/\/www.feliu.biz\/en\/uruguay-strengthens-its-attractiveness-as-an-investment-destination","title":{"rendered":"URUGUAY STRENGTHENS ITS ATTRACTIVENESS AS AN INVESTMENT DESTINATION WITH BROAD TAX INCENTIVES"},"content":{"rendered":"<p>Uruguay continues to consolidate its position as one of the most stable and reliable destinations in the region for foreign investment. Its well-known political and economic stability, combined with a tax system based on the <strong>source principle<\/strong> and a robust set of promotional regimes, positions the country as a strategic hub for companies across a wide range of sectors.<\/p>\n<p>According to <em>Revista Tributaria No. 309<\/em> (27 October 2025), Uruguay offers a broad array of incentives that promote sustainable development, innovation, and job creation, facilitating both the establishment of new projects and the expansion of existing operations.<\/p>\n<p><strong>Investment Promotion Law: a key pillar<\/strong><\/p>\n<p>Law No. 16,906 establishes tax benefits applicable to both local and foreign investments, including:<\/p>\n<ul>\n<li>Exemption from <strong>Net Worth Tax (IP)<\/strong>.<\/li>\n<li>Exemption from <strong>VAT and customs duties<\/strong> on the import of capital goods.<\/li>\n<li><strong>VAT refunds<\/strong> on local purchases.<\/li>\n<li>Partial or total exemption from <strong>Corporate Income Tax (IRAE)<\/strong>, depending on indicators such as employment, innovation, exports, and decentralisation.<\/li>\n<\/ul>\n<p>This regime represents one of the main drivers for attracting productive investment projects to the country.<\/p>\n<p><strong>Free trade zones: a competitive ecosystem<\/strong><\/p>\n<p>Uruguay\u2019s free trade zones remain one of the country\u2019s key differentiating factors. Users benefit from exemptions from national taxes\u2014including <strong>IRAE, IP, VAT, ICOSA<\/strong>, and customs duties\u2014allowing them to operate in a highly tax-efficient environment with a strong international focus.<\/p>\n<p><strong>Free port and free airport: world-class logistics<\/strong><\/p>\n<p>The free port and free airport regime allows for the storage and movement of goods without the payment of taxes while they remain within these areas, making it a key tool for logistics companies and global trade operators.<\/p>\n<p><strong>Incentives for the technology sector<\/strong><\/p>\n<p>Uruguay strongly promotes the knowledge-based economy through incentives for:<\/p>\n<ul>\n<li>Software companies.<\/li>\n<li>Exportable technology services.<\/li>\n<li>Biotechnology and R&amp;D projects.<\/li>\n<\/ul>\n<p>These regimes provide <strong>IRAE exemptions<\/strong> on income derived from licences, services rendered from Uruguay, and innovative projects that meet substance requirements. In addition, there are incentives aimed at attracting foreign IT talent.<\/p>\n<p><strong>International trading: a highly competitive regime<\/strong><\/p>\n<p>Under the international trading regime, only <strong>3% of the margin<\/strong> is subject to taxation, resulting in an effective tax rate of <strong>0.75%<\/strong>, compared to the standard corporate tax rate of 25%. This makes Uruguay particularly attractive for international trading and intermediary structures.<\/p>\n<p><strong>Strategic sectors: forestry, agribusiness, and renewable energy<\/strong><\/p>\n<p>Uruguay promotes activities considered to be of national interest through exemptions from <strong>IRAE and IP<\/strong>, along with other sector-specific benefits. Key sectors include:<\/p>\n<ul>\n<li><strong>Forestry<\/strong>, with significant tax advantages for both natural and planted forests.<\/li>\n<li><strong>Renewable energy and green hydrogen projects<\/strong>, which are priority areas within the country\u2019s energy transition strategy.<\/li>\n<\/ul>\n<p><strong>Incentives for real estate development<\/strong><\/p>\n<p>Social housing projects and large-scale real estate developments benefit from exemptions and tax credits designed to encourage investment in the construction sector.<\/p>\n<p><strong>Tax regime for new residents: tax holiday<\/strong><\/p>\n<p>Uruguay offers a highly attractive option for individuals who acquire tax residence. New tax residents may choose between:<\/p>\n<ul>\n<li>A <strong>10-year exemption<\/strong> on foreign-source movable capital income, or<\/li>\n<li>An <strong>indefinite reduced tax rate of 7%<\/strong> (instead of the general 12%).<\/li>\n<\/ul>\n<p>This choice must be formalised through a sworn statement upon obtaining tax residence.<\/p>\n<p><strong>Network of double taxation treaties<\/strong><\/p>\n<p>Finally, Uruguay has signed <strong>more than 20 Double Taxation Agreements (DTAs)<\/strong>, strengthening legal certainty and the country\u2019s international competitiveness.<\/p>\n<p><strong>Interested in investing or establishing operations in Uruguay?<\/strong><\/p>\n<p>At <strong>Feliu N&amp;I<\/strong>, we can advise you on identifying the most suitable tax regime for your project, as well as on all procedures required for your establishment in Uruguay. Our team is available to support you at every stage of the process.<\/p>\n<p style=\"text-align: center;\"><a href=\"http:\/\/www.feliu.biz\/\" target=\"_blank\" rel=\"noopener\">www.feliu.biz<\/a>\u00a0\u2502\u00a0<a href=\"http:\/\/www.expatfeliu.com\/\" target=\"_blank\" rel=\"noopener\">www.expatfeliu.com<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Uruguay continues to consolidate its position as one of the most stable and reliable destinations in the region for foreign investment. Its well-known political and economic stability, combined with a tax system based on the source principle and a robust set of promotional regimes, positions the country as a strategic hub for companies across a [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":9055,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"default","adv-header-id-meta":"","stick-header-meta":"default","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"set","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[25],"tags":[],"class_list":["post-9057","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/www.feliu.biz\/en\/wp-json\/wp\/v2\/posts\/9057","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.feliu.biz\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.feliu.biz\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.feliu.biz\/en\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.feliu.biz\/en\/wp-json\/wp\/v2\/comments?post=9057"}],"version-history":[{"count":1,"href":"https:\/\/www.feliu.biz\/en\/wp-json\/wp\/v2\/posts\/9057\/revisions"}],"predecessor-version":[{"id":9058,"href":"https:\/\/www.feliu.biz\/en\/wp-json\/wp\/v2\/posts\/9057\/revisions\/9058"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.feliu.biz\/en\/wp-json\/wp\/v2\/media\/9055"}],"wp:attachment":[{"href":"https:\/\/www.feliu.biz\/en\/wp-json\/wp\/v2\/media?parent=9057"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.feliu.biz\/en\/wp-json\/wp\/v2\/categories?post=9057"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.feliu.biz\/en\/wp-json\/wp\/v2\/tags?post=9057"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}