10 reasons to invest in Uruguay
Political, legal and social stability
Uruguay has a democratic system with strong institutional and legal continuity, ensuring a favorable business environment and respect for the rules of the game.
Macroeconomic strength
In 2019, Uruguay reached the longest period of economic growth in its history, consolidating 17 years of expansion at an average annual rate of 3.8%.
Access to an expanded market
Uruguay is a member of Mercosur and has a free trade agreement with Mexico, positioning the country as a gateway to a potential market of 550 million people.
Investor benefits
Uruguay offers significant incentives for both foreign and domestic investment, including tax benefits and special regimes such as Free Trade Zones, Free Ports and Free Airports, among others.
Ease of doing business
Uruguay guarantees equal treatment for investors and business operations free from restrictions.
Modern logistics
With first-class port infrastructure, an extensive road network and a Free Port regime, Uruguay is the leading logistics platform in Mercosur and a strategic distribution hub for goods in transit.
Leader in technology
Uruguay leads the ICT Development Index in Latin America (ITU, 2017). In addition, it is the first and only country in South America to be part of the D9, the group of the world’s most advanced governments in digital governance.
Competitive national talent
As the first country to implement the One Laptop per Child program, Uruguay enjoys full digital inclusion, free education, widespread proficiency in English and Portuguese, and universal access to public higher education.
Renewable energy
Uruguay is one of the Latin American countries with the highest investment in clean energy and is at the forefront of global wind power generation. Between 2017 and 2020, 97% of the country’s electricity was generated from renewable sources, with wind energy accounting for 32%.
Excellent quality of life
Montevideo offers the highest quality of life in Latin America (Mercer, 2019), and Uruguay has the highest and most evenly distributed income in the region.
Uruguay, a preferred destination for investment
The country’s significant growth over the past decade is closely linked to a strong increase in investment. In Uruguay, Foreign Direct Investment (FDI) has reached record levels, allowing the country to rank among the leading FDI recipients in South America in terms of GDP.
Investors trust Uruguay due to the returns achieved, its favorable business climate, and its status as an investment-grade country.
Uruguay occupies a strategic position as a gateway to Mercosur, with two of its main ports — Montevideo and Nueva Palmira — located at the outlet of the Paraná–Paraguay–Uruguay waterway.
Its time zone, located between the United States and Europe, makes Uruguay an ideal complement for the provision of global services to the region and the world.
An excellent environment for doing business
- A unified tax system across the entire territory
- No limits on foreign capital participation in companies
- Free foreign exchange market
- Equal treatment for foreign and domestic investors
- No local partner, authorization or prior registration required
- No restrictions on the repatriation of profits
The legal framework that protects investors and ensures equal treatment for both foreign and local investors, together with a free foreign exchange market and a unified tax system nationwide, are among the factors that make Uruguay an attractive and secure destination for doing business.
Attractive tax incentives
Uruguay offers a wide range of incentives tailored to different business sectors operating in the country, including industrial, commercial and service activities.
- Investment promotion regime (Investment Law): between 20% and 100% reimbursement of the invested amount
- Free Trade Zones: users are 100% exempt from taxes
- Temporary admission of raw materials and inputs
- The only country in South America with a Free Airport regime, and the only one on the South Atlantic coast with a Free Port regime
An investment-grade country
Uruguay is an investment-grade country, as confirmed by leading credit rating agencies: Moody’s, Standard & Poor’s, Fitch Ratings, DBRS and R&I.
Macroeconomic balance and stability, economic diversification and efficient debt management are among the key reasons supporting this vote of confidence in Uruguay.
Stability, transparency and international competitiveness
These characteristics make Uruguay the best destination for investment in Latin America and one of the most reliable and attractive countries in the world. Recognized international rankings confirm its strong political, legal and social stability, as well as its democratic solidity.
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Fuente: Uruguay XXI – Promoción de inversiones, exportaciones e imagen país | uruguayxxi.gub.uy