URUGUAY IS A LAND OF OPPORTUNITY: STABLE, SPARSELY POPULATED AND IDEAL FOR A COMPANY THAT WISHES TO EXPORT. URUGUAY IS A COUNTRY TRADITIONALLY FORESTRY AND TOURISTIC AT THE SAME TIME, THE URUGUAYAN CONTRACTOR BECOMING MORE COSMOPOLITAN, MORE EXPERIENCED AND MORE PREPARED FOR THIS NEW GLOBAL ECONOMY
The MERCOSUR accounts for 45% of Latin American population (200 millions of inhabitants) -with a GDP of more than 400 milliards dollars– it represents 50% of the regional production.
The customs union created, called MERCOSUR, is constituted by four countries: Argentina, Brazil, Venezuela, Paraguay and Uruguay, and associated countries such as Ecuador, Colombia, Venezuela, Chile, Bolivia and Peru.
Covering a 2.500 km area, Montevideo, Uruguay capital, reaches Buenos Aires, Rosario, Cordoba and Mendoza (Argentina), Sao Paulo, Porto Alegre, Curitiba y Florianópolis (Brazil), Santiago (Chile), and Asunción (Paraguay). Really region center, Montevideo, becomes the door for mayor Latin American markets.
Well located around the country, the Uruguayan FTZ, represent an attractive opportunity for the development of any industrial or commercial activity (law nº 15.921 of December 1987) Uruguayan FTZs are located in eight strategic points: Colonia, San José, Florida, Río Negro, Rivera, Nueva Palmira and Montevideo (hydrographic network of Río Uruguay and its outfall in the Atlantic Ocean, called Cuenca del Plata). Beside the liberties in force for the economic activities there is a series of advantages regarding the work in FTZs:
- Total national tax exemption, except the social security contributions paid for Uruguayan employees which have to be at least 75% of the company labor force.
- Exoneration of in and out taxes for goods, merchandises, raw materials or manufactured products from any origin.
- State monopolies doesn’t exist in FTZs, that’s why any company can freely use services from any other country or produced by it selves.
- In some cases, products manufactured in FTZ, which meet origin conditions, can be exported to Argentina and Brazil by preferential agreements: CAUCE and PEC.
- Kinds of activities which can be done on Uruguayan FTZs:
⋅Marketing, warehousing, preparation, selection classification, division, assembly, mixture and manipulation of local and foreign goods as well as raw materials.
⋅Establishment and activity of factories.
⋅Management of financial information, repair and maintenance, professional services and other services needed by companies to improve their activities.
The system works through the auto regulation of a stock market monitored and controlled by the Uruguayan Central Bank. An electronic stock market was established in 1994.
Today, the law supports the sector development, providing investors with precise and reliable information.
This law grants the status of national interest to local or foreign investments in Uruguay.
Admittance and treatment of investments are guaranties by the state:
- Investments are admitted without any previous authorization or requirement.
- Investors profit from an equal treatment.
- Free capital and income repatriation.
Some exemptions of taxes may be obtained by a promotional declaration, than the Executive power gives to some specific investments in industrial, commercial and services projects.