As a member of Mercosur, with free trade agreements with other LATAM countries, Uruguay provides access to a market of more than 400 million people, and represents a flow of foreign trade of almost 74% of Latin America’s total. The country also hosts the highest literacy rate in Latin America (98% of the population), and modern infrastructure.
Foreign investors are attracted to Uruguay’s political stability, business climate, and skilled workforce. FDI mainly comes from Argentina, Brazil, Spain, the Netherlands, and the USA, directed towards manufacturing, construction, and agriculture. Foreign investors enjoy the same rights and fiscal incentives as local investors. Moreover, FDI are free from restrictions and declaration.
Despite its relatively low ranking for Ease of Doing Business (101/190), Uruguay is keen on attracting FDI and has an investment promotion law that guarantees equal treatment for local and foreign investors. Individuals and corporations can launch businesses without having to comply with prerequisites, obtain special permits from the state, or have a local counterpart. There is no distinction between national and foreign capital, incentives are available to both, and it takes less than a week to set up a business.
There are some challenges, however, such as Uruguay’s strict labour laws, small population, and vulnerability to the economic shifts of its neighbours.
AUXADI can become your ideal investment partner in Uruguay. We offer a One Stop Shop value added Outsourcing services in the areas of Accounting and Reporting, Tax Compliance, Payroll Management and Representation services, among others.