Uruguay: New Opportunities for International Business, Investment and Relocation

Lawitt Buro has a wide international network of professional partners, broadening the range of jurisdictions and solutions available to our clients.

We are cooperating with local experts in Uruguay, a jurisdiction that may receive less international attention than traditional European or Middle Eastern business hubs, yet offers interesting opportunities for corporate structuring, international trade, financial and technology businesses, investment and relocation.

Below, we take a closer look at what Uruguay has to offer and which types of projects may particularly benefit from considering this jurisdiction.

Why Uruguay?

One of Uruguay’s key advantages is its combination of political and economic stability with an open environment for foreign capital.

The country maintains investment-grade ratings from leading international rating agencies, a well-established legal system, and strong protections for private property and foreign investment.

Uruguay also has no foreign exchange controls or restrictions on the repatriation of capital and profits, while US dollar transactions are widely accepted within its financial system.

Its membership in MERCOSUR (a South American trade bloc and customs union founded in 1991 by Argentina, Brazil, Paraguay, and Uruguay) and strategic location between some of South America’s largest economies also make Uruguay worth considering as a base for regional operations.

What types of companies can be established in Uruguay?

International investors can choose from several corporate structures.

Sociedad Anónima (SA) is the traditional joint-stock company structure, with shareholders’ liability limited to their contributions.

Sociedad de Responsabilidad Limitada (SRL) is a limited liability company that can have between 2 and 50 members.

Sociedad por Acciones Simplificada (SAS) offers a more flexible alternative. It can be established by a single individual or legal entity and provides considerable freedom in determining corporate governance, shareholder rights, profit distribution and decision-making procedures.

Foreign companies may also operate through a branch (Sucursal Extranjera).

Special structures are available for businesses intending to operate within Uruguay’s Free Trade Zones.

Where timing is critical, it is also possible to acquire pre-incorporated Uruguayan companies with no previous business activity, allowing clients to move to the operational stage considerably faster.

Free Trade Zones: one of Uruguay’s most attractive regimes

Uruguay’s well-established Free Trade Zone regime deserves particular attention.

Companies operating within a Free Trade Zone and meeting the applicable requirements may carry out commercial, industrial and service activities, primarily for foreign markets, while benefiting from a full exemption from national taxes, including corporate income tax (IRAE), VAT, wealth tax and certain other national taxes.

However, this is not a regime designed for companies with merely formal registration and no actual presence in Uruguay.

Businesses are expected to maintain local substance, including office premises and employees in Uruguay.

As a general rule, at least 75% of the workforce must be Uruguayan citizens. Depending on the characteristics of the project, it may be possible to obtain authorisation to reduce this requirement to 50%.

The regime may be particularly attractive for international trading companies, technology and software businesses, fintech projects, consulting firms, regional headquarters, shared service centres and other export-oriented operations.

Uruguay has several established Free Trade Zones, including Zonamerica, WTC Free Zone and Aguada Park, as well as industrial zones focused on logistics, manufacturing and agribusiness.

Fintech, VASPs and regulated financial activities

Another area that makes Uruguay particularly interesting for certain projects is its financial sector.

The country has an established ecosystem comprising banks, investment advisers, portfolio managers, electronic money institutions and other financial market participants. The regulatory framework for Virtual Asset Service Providers (VASPs) is also developing.

This is particularly relevant to Lawitt Buro given our experience in supporting fintech, financial and digital asset businesses across different jurisdictions.

Through our growing local partner network, we can assess such projects beyond the simple incorporation of a company, taking into account the applicable regulatory framework, licensing requirements, corporate structure, AML/CFT and compliance obligations, banking infrastructure and local substance requirements.

Taxation and investment incentives

Uruguay generally follows the territorial principle of taxation, under which taxation is primarily based on Uruguay-source income, subject to certain statutory exceptions.

The standard corporate income tax (IRAE) rate is 25%, while the general VAT rate is 22%. Exports are subject to a 0% VAT rate.

In addition to the Free Trade Zone regime, Uruguay offers a range of investment incentives.

Projects approved under the COMAP investment promotion regime may qualify for an IRAE exemption corresponding to 30% to 100% of the eligible investment amount, depending on the characteristics and evaluation of the project and subject to applicable limitations.

The assessment considers factors such as job creation, increased exports, innovation, technological development and sustainability.

Additional incentives may include exemptions relating to wealth tax, VAT and certain taxes and duties applicable to imported investment assets.

Uruguay for personal relocation and tax residency

Uruguay may also be attractive to entrepreneurs looking beyond corporate structuring and considering personal relocation.

The country provides several routes to legal and tax residency, making it possible in certain cases to combine the relocation of business activities with personal relocation.

One of the criteria for obtaining Uruguayan tax residency is spending more than 183 days in the country during a calendar year. Certain temporary absences of less than 30 consecutive days may be taken into account when calculating this period, meaning that, depending on the circumstances, approximately 140 days of effective physical presence may be sufficient.

Other routes are based on an individual’s centre of vital or economic interests and qualifying investments.

Of particular interest from 2026 is Uruguay’s updated Tax Holiday regime for new tax residents.

Subject to the applicable requirements, the benefit applies during the year in which Uruguayan tax residency is established and for the following 10 years.

Qualifying conditions may include spending more than 183 days in Uruguay or investing more than approximately USD 2 million in real estate. Certain investments in qualifying funds may also provide access to the regime.

Following the end of the Tax Holiday period, additional alternatives are available. These include, in certain circumstances, the possibility of applying a 6% rate to relevant foreign-source income for a further five years, subject to specific investment requirements.

Uruguay can therefore be considered not only as a jurisdiction for establishing a company, but also as part of a broader business + investment + personal and tax residency strategy.

Who should consider Uruguay?

Uruguay is most relevant where there is a specific commercial or personal objective behind choosing the jurisdiction.

This may include international trade in goods or services, establishing a holding structure, launching a fintech or other regulated financial project, operating a technology business, establishing a regional presence in Latin America, using a Free Trade Zone, or relocating a business together with its owner.

There is, however, no universal structure. A solution suitable for an international trading company may be very different from the structure required for a fintech business or an entrepreneur who also intends to establish personal tax residency.

Another direction in Lawitt Buro’s international network

Our international partner network enables Lawitt Buro to support clients in new jurisdictions with the involvement of professionals who work directly in the local market and understand its regulatory and business environment.

In Uruguay, we can assist with projects involving company incorporation and acquisition, international trading and holding structures, Free Trade Zones, banking and financial infrastructure, fintech and VASPs, regulated financial activities, investments, tax and legal residency, and business relocation.

If you are considering Uruguay, or Latin America more broadly, for international business, investment or relocation, Lawitt Buro can assess your specific objectives and, together with our local partners, determine an appropriate corporate, tax and regulatory structure.