Uruguay: strengthens its position as a regional HUB for European investment
In a complex regional landscape, Uruguay stands out as one of the most stable and predictable jurisdictions in Latin America. It offers a regulatory environment focused on attracting foreign direct investment. The country also provides an international integration strategy that creates real opportunities for European investors.
Spanish investment in Uruguay
On July 22, during a business meeting organized by the leading chambers of commerce of Spain and Uruguay, growing interest was highlighted among multinational companies and investment funds to use Uruguay as a regional platform. Currently, over 100 Spanish companies operate in the country. The main sectors are banking, insurance, technology, and infrastructure, with accumulated investments exceeding €7.6 billion.
This positioning takes place in a political context marked by a government change in 2025. The institutions have reaffirmed the continuity of policies aimed at macroeconomic stability and fostering foreign investment, thus generating confidence in the private sector.
EU-MERCOSUR agreement
Furthermore, this momentum is reinforced by the relaunch of the Association Agreement between the European Union and Mercosur, which in 2024 incorporated new provisions on sustainability, dispute resolution, and public procurement. The agreement is expected to boost trade in goods and services, facilitate cross-border operations, and modernize the South American regulatory framework, providing greater legal certainty and fiscal predictability for European companies operating from Uruguay.
Advantages from Uruguay
Uruguay offers unique advantages in the region:
- Over 90% of its energy comes from renewable sources, supporting ESG strategies and decarbonization projects.
- It leads the transition toward green hydrogen, backed by public support and international private capital.
- Concrete opportunities exist in infrastructure tenders (logistics, water, rail transport) and digital services.
- Its network of bilateral investment and double taxation treaties enhances its appeal as a regional hub for multinational groups.
According to the 2024 Annual Foreign Trade Report by Uruguay XXI, the European Union was Uruguay's third-largest export destination, accounting for US$1.786 billion in sales. It reported a significant growth expected in the coming years because of this new cooperation framework.
Uruguay not only offers stability but also a favorable legal, fiscal, and operational environment to structure international investments, establish regional service centers, and plan sustainable long-term growth in Latin America.
If you are interested in expanding your multinational to Uruguay, do not hesitate to contact us to learn more about our accounting, tax, payroll, transfer pricing, and corporate legal services in Uruguay or in any of the over 50 jurisdictions where we operate.
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All information contained in this publication is up to date on 2024. This content has been prepared for general guidance on matters of interest only, and does not constitute professional advice. You should not act upon the information contained in this chart without obtaining specific professional advice.No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this content, and, to the extent permitted by law, AUXADI does not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this chart or for any decision based on it.
