Uruguay free trade zone: A unique opportunity to invest

Free trade zones are particularly well-known and popular because of their tax advantages. In Uruguay, a company that operates in a free trade zone is exempt from paying all current or future national taxes. The Ecovis experts know what other advantages there are for multinational companies that want to settle in a free zone.

There are different types of free trade zones depending on the type of activity that can be carried out, which can be industrial, commercial, or services. In Uruguay, the government declared the free trade zone regime to be of national interest, which reflects the interest and support for the activities carried out there. As a result, Uruguay has 14 free trade zones in different parts of the territory, with a wide variety of sectors and companies.

Uruguay’s Law 15,921 declares “the promotion and development of free zones is of national interest, with the objectives of

• promoting investments,
• diversifying the productive matrix,
• generating employment,
• increasing the capabilities of the national workforce,
• increasing national added value,
• promoting activities with high technological content and innovation,
• promoting the decentralization of economic activities and regional development, and in general terms
• favour the insertion of the country in the dynamics of international trade in goods and services, and international investment flows.”

Being a regime of national interest guarantees the support of the government and the reliability of the regime in a country that also stands out in the region for its political, economic, and social stability, which makes it an attractive and safe destination to invest.

We will open an office in a free trade zone by the end of 2024. This will enable us to offer our services such as auditing, tax and management consulting or process outsourcing, to those companies that are in Uruguayan free zones or in other countries.

Cristina Caiafa, Advisory services, ECOVIS Uruguay, Montevideo, Uruguay

Additional advantages for companies in free trade zones

In addition, it is important to highlight that the regime allows the possibility of hiring up to 25% foreign personnel, which allows qualified people to be brought in from abroad to train local employees. Also, although the regime establishes that the operations of free trade zone users must necessarily be carried out within the territory of the free trade zone, the rule was made more flexible as a result of the COVID pandemic to incorporate the option of home office. This recognises the new reality of working life, but is limited to 90% of staff completing 60% of their working time in person within the free trade zone.

Free trade zones in Uruguay are very attractive for companies, and many multinationals have already chosen Uruguay as the location for their regional hubs or shared services centres.

For further information please contact:

Cristina Caiafa, Advisory services, ECOVIS Uruguay, Montevideo, Uruguay
Email: cristina.caiafa@ecovis.uy