Investing in Uruguay

For years the country has shown a strong political and social stability, supported by a consolidated democracy and strong legal certainty. Nowadays, the political system has three major parties which have taken turns in office, always keeping a strong respect for the rules of the game and the essentials of economic activity.This is regarded by investors as a distinguishing feature when it comes to choosing Uruguay as a mainstay for trust generation in business environment.

• Macroeconomic soundness: Uruguayan economy has achieved the longest period of growth in history, by accumulating 12 years of uninterrupted growth of its GDP - an annual average expansion of 5.4% between 2004 and 2014. This expansion was accompanied by a growth of the GDP per capita, which grew from US$ 10,000 in 2005 to almost US$ 17,000 in 2014. This has allowed Uruguay's economy to stand out as having the highest GDP per capita in Latin America (measured in current USD).
• Access to a market with great potential: Uruguay is a gateway to Mercosur. Our free access to Mercosur provides us with access to a market with over 270 million people, which accumulate 56% of Latin America's GDP. Moreover, with Mercosur and the Free Trade Agreement with Mexico, Uruguay has tariff-free access to a market of 400 million people, which signifies 76% of Latin Americ's GDP, and to a flow of foreign trade that accounts for almost 80% of Latin America's total.
• Attractive schemes for the investor: FDI received by Uruguay reached US$ 2,755 million in 2014. Thus, the last decade had the strongest FDI growth in the history of the country. The IED average, which represents 5,6% of the GDP, makes Uruguay the second largest FDI recipient in South America from a GDP standpoint. 60% of foreign companies' profits were reinvested in our country in the past year. National and foreign investment in Uruguay is declared of national interest by law. Thus, foreign investors are granted the same incentives as local investors and there is no tax discrimination in favor of any of them. No prior authorization or registration is required to operate and there are no limits on transferring capital or profits from foreign investments.
• Ease of doing business: Uruguay ensures the same treatment to investors and the possibility to operate freely without restrictions on business activities, both in terms of movement of capital and dividends, as well as foreign currency exchange. The country works on providing an appropriate business climate on an ongoing basis and the best facilities for investors. Thus, Uruguay has fostered a number of reforms to materially enhance efficiency and expedite state processes including, but not limited to, Company-in-a-day program, electronic invoicing, electronic signature and international trade one-stop-shop.
• Modern infrastructure: Uruguay has a top-class port infrastructure in Montevideo, connected to the most dense network of roads across the continent with excellent contacts with neighboring countries. It also has a modern airport, designated as one of the best airports of the world. Uruguayan ports and airports can operate under the free port/free airport scheme, whereby logistics operations, even within value adding and re-exporting processes, can be performed tax free.
• Leader in technology: Uruguay has the largest Internet penetration and greatest download speed of the region. Uruguay is the most advanced country in Latin America according to the International Telecommunication Union's 2014 Information and Communication Technologies (ICT) Development Index. This is also shown by the degree of Internet penetration and by mobile phone users, where our country holds a prominent position in the region.
• Talent availability: Human Resources in Uruguay are highly competitive due to a combination of several factors, including high quality of basic, technical and university training, flexibility and ease of Uruguayan workers to adapt to new production processes or technologies. The Uruguayan workforce has been showing a steady increase in its ability to master other languages, in particular English.
• Respect for environment: Uruguay has “Uruguay Natural” as country brand, a positioning strategy that involves showing consumers that Uruguayan products have been produced in the most environmentally friendly way. This shows the country's great responsibility for environmental issues and features an added value for many consumers. 50% of the global energy matrix and 90% of the electric matrix in Uruguay will come from renewable energy in 2015, it being the country with the largest share of renewable sources in Latin America. Among other things, this ensures the global stability and sustainability in energy supply and electric bills in the long term.
• A country to live in: Montevideo is a peaceful city of 1.5 million inhabitants that, just like Punta del Este, offers excellent living conditions for executives and their families with access to first-class health services and education. More and more foreigners from the northern hemisphere are choosing Uruguay as their place of residence. Montevideo offers the Best Quality of Life in Latin America (Mercer 2014). Residents, whether on business or retired, also enjoy the pleasant climate, the absence of extreme events, the friendly people and a more relaxed and calm pace of life.