Uruguay: Investing

FDI in Figures

Traditionally low, FDI inflows in Uruguay increased rapidly in the recent years, reaching 6% in 2008. They petered out under the effect of global recession and have been progressively recovering.

In 2011, the government extended an economic plan of the previous years, which reassured the business environment by prudent budget and monetary policy, accompanied by a structural reforms progrem aiming to attract foreign investment.

Foreign investors benefit from the same rights and fiscal incentives as local investors. Foreign investments enjoy a total freedom in Uruguay and they are not subject to any declarations and there is not a limit regarding the transfer of profits or repatriation of capital. Uruguay is a member of MIGA, the Multilateral Investment Guarantee Agency and also a member of the International Arbitration Center in relation to investments that depend from the World Bank.

Foreign investment (+3.5% of the GDP in 2010) are attracted to the country's political stability, business climate and a skilled workforce.

Why You Should Choose to Invest in Uruguay

Strong Points

The main strong points of Uruguay are:
-The outstanding educational and health systems;
- The new laws that regulate the relationship among business partners;
- Its economic stability. Uruguay is among the first nations in Latin America to reach a certain level of stability and economic well-being, maintained by a relatively high taxation on the industrial sector. During the last years, Uruguay's economy has benefited from a favorable international environment for the export of its agricultural products;
- Positive growth perspectives. Uruguay benefits from an increase in domestic consumption, export development, high level and diversified investments and less dependence of Mercosur.

Weak Points

The main weak point of Uruguay is the high proportion of its foreign debt, which is subject to the fluctuations in trade and sudden changes in foreign currency exchange.

Government Measures to Motivate or Restrict FDI

Foreign investors have the possibility of developing any type of activity and in the same conditions as local investors. In some areas protected by the state, foreign investors can start activities within the framework of the concessions system of the  public working market. The government stimulates foreign investment by proposing tax exemptions on their investments.

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 through authorizations and formalities needed for implantation. This body has a centralizing role for all administrations and ministries to facilitate all procedures.

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.

Investment Opportunities

Investment Aid Agency

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

Tenders, Projects and Public Procurement

Tenders Info, Tenders in Uruguay
Inter-American Development Bank, Tenders in South America
Globaltenders, Tenders & Projects from Uruguay
DgMarket, Tenders Worldwide

Other Useful Resources

Commerce chamber of Uruguay.

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