🍎Tax benefits

Foreign tax benefits in Uruguay

For foreigners:

• Beneficial tax residency: Uruguay offers a tax residency regime that may be attractive to foreigners. Foreigners who become Uruguayan tax residents can benefit from favorable tax rates, especially compared to other countries in the region.

• Capital gains tax exemption: Capital gains obtained from the sale of property, stocks and bonds in Uruguay are generally exempt from taxes for Uruguayan tax residents, whether national or foreign.

• Exemption from taxes on inheritance and donations: Uruguay does not tax inheritances or donations, which can be beneficial for people who wish to transfer assets to their heirs or make donations.

• No wealth or patrimony tax: Uruguay does not charge taxes on wealth or patrimony, which can be advantageous for people with large assets.

For foreign companies:

• Free zone regime: Uruguay has free zones that offer tax incentives to foreign companies that operate within these areas, such as income tax exemptions for a certain period and exemption from import and export taxes.

• Double tax treaties: Uruguay has signed double tax treaties with several countries, which can prevent foreign companies from paying duplicate taxes on their income in both countries.

• Fiscal stability: Uruguay has maintained a policy of fiscal stability in recent years, which provides a predictable environment for foreign companies.

• Benefits for investment in specific sectors: On occasions, the Uruguayan government has granted tax benefits to foreign companies that invest in specific sectors of the economy, such as technology or agribusiness.

Benefits for technology companies

• Technological Free Zones: Uruguay has technological free zones that offer tax advantages to technology companies. These zones can provide income tax exemptions for a specified period of time, as well as tax exemptions on the import and export of equipment and technology.

• Advantages for the export of services: Uruguay offers a special regime for the export of services, which means that technology companies that export their services can be exempt or benefit from reduced tax rates in relation to the income generated by those exports.

• Income tax exemption for investment projects: The Uruguayan government can grant tax exemptions to technology companies that carry out specific investment projects in the country, which may include job creation and technological development.

• Promotion of R&D: Uruguay has also implemented policies to promote research and development (R&D) in the technology sector, which may include tax incentives for companies that invest in R&D activities.

• Investment system and tax benefits in Startups: Uruguay has established a special regime for emerging companies (startups) that includes tax benefits for investors and companies that invest in this type of companies.