FDI in figures

The government favors investment in general and maintains particularly a favorable environment for foreign investments. The foreign investor benefits from the same rights and fiscal incentives as the local investor. He can operate in the country by a local company (PLC,PC...) but also through a local subsidiary or branch owned by a foreign company. It is important to mention that there is no limit concerning out going transfers of profits or withdrawing of capital. Uruguay is member of the Multilateral Investment Guaranty body (MIGA) and of the International Arbitration Center relative to investments and depending from the world bank.

Why you should choose to invest in Uruguay

Strong points

Uruguay has always had a better situation compared to other Latin American countries. This country is famous for its progress concerning the education system, the reform of the health care as well as the new regulations between the different social workforces. Uruguay was within the first nations in Latin America to reach a certain level of economic stability and well-being, maintained by a relatively high taxation on the industrial sector. During the last years, Uruguayan economy has benefited from a favorable international environment for its agricultural product exports. On the other hand, the different governments have implemented economic steps favoring international investments, what has as a consequence attracted considerable foreign cash flows.

Weak points

The weaknesses of the Uruguayan economy include the high proportion of the national debt as a percentage of the GDP, as well as a big part of this debt being issued in US Dollars, and therefore submitted to the fluctuations, exchanges and shocks of that currency. Despite these weaknesses, growth perspective remain positive. Uruguay benefits from internal consumption growth, developing exports, high leveled and diversifying investments and a lesser reliance an the Mercosur.

Government measures to motivate or restrict FDI

Foreign investors can start any type of activity, in the same conditions as local investors. In some areas protected by the state, foreign investors can start activities within the framework of public works (i.e civil engeenering) granting system. Incentive to foreign investment thanks to tax exemptions.

Procedures relative to foreign investment

Freedom of establishment

Yes

Acquisition of holdings

A majority holding interest in the capital of a local company is legal in Uruguay.

Obligation to declare

The Uruguay XXI body was specifically created to guide foreign investors about authorizations and formalities needed for implantation. That body has a centralizing role for all administrations and ministries in order to make any administration's step or procedure easier.

Competent organization for the declaration

Central Bank of Uruguay.
State department of finance and economy.

Requests for specific authorizations

The ownership of companies developing activities relative to radio or television channels is limited to Uruguayan citizens.

Finding assistance for further information

Investment aid agency

General Small and medium company office for ministry of industry
Uruguay Investment and Export Promotion Agency (in Spanish)

Other useful resources

Commerce chamber of Uruguay.