Uruguay free zones

Free trade zones in Uruguay

    setup Uruguay company in free zone area

  • The Uruguay government currently operates twelve Free Trade Zones: i) Nueva Palmira ii) Fray Bentos (UPM) iii) Libertada iv) Punta Pereira (Montes del Plata) v) Colonia vi) Colonia Suiza vii) Floridasur viii) Rivera (state controlled) ix) Zonamerica x) WTC xi) Praque de las Ciencias and xii) Aguada Park;
  • The Uruguay Free Trade Zones provide businesses with advantages including: i) corporate income tax (IRAE), wealth tax and all other national tax exemptions ii) exemptions from taxes on dividends paid to non-residents iii) VAT exemptions on foreign sales and purchase of goods and services as well as sales and services rendered within the Free Zones and iv) customs duties exemptions on goods traded by Free Zones with the rest of the world;
  • In order to conduct operations in the Uruguay FTZs, a company must i) submit an agreement with the free zone operator together with a business plan to the National Office of Free Zones for approval and ii) ensure that 75% of its employees are Uruguayan Nationals (there are exceptions to this rule that may lower the requirement).

Table of comparison – Uruguay free trade zones (1)

Free zone comparisonRivera FTZColonia FTZFrey Bentos (UPM) FTZPunta Pereira FTZ
1234
FTZs used mostly by which industry?ManufacturingManufacturingManufacturingManufacturing
Average annual warehousing space rent per 1000 sq. m.US$22,000US$24,000US$32,000US$22,000
How long to set the company up?9 weeks9 weeks9 weeks9 weeks
How long to open company bank account?4 weeks4 weeks4 weeks4 weeks
Quality of utilitiesExcellentGoodGoodExcellent
Allowed to sign sales contracts with Uruguay Clients?YesYesYesYes
Allowed to invoice Uruguay Clients?YesYesYesYes
Corporate tax payable in Uruguay0%0%0%0%
Corporate bank account?YesYesYesYes
Physical office space requiredNoNoNoNo
Allowed to import raw materials?YesYesYesYes
Allowed to export goods?YesYesYesYes
Can be wholly foreign ownedYesYesYesYes
Can the entity hire expatriate staff in Uruguay?Yes (only 25% of workforce)Yes (only 25% of workforce)Yes (only 25% of workforce)Yes (only 25% of workforce)
Minimum number of directors1111
Minimum number of shareholders2222
Tax registration certificate requiredYesYesYesYes
Individual shareholders allowedYesYesYesYes
Corporate shareholders allowedYesYesYesYes
Corporate director(s) allowedYesYesYesYes
LLC company allowed?YesYesYesYes
Annual audited financial statementsNoNoNoNo

Table of comparison – Uruguay free trade zones (2)

Free zone comparisonFloridasur FTZLibertada FTZNueva Palmira FTZMontevideo FTZ
5678
FTZs used mostly by which industry?Trade and LogisticsTrade and LogisticsTrade and LogisticsPort Services
Average annual warehousing space rent per 1000 sq. m.US$29,000US$22,000US$22,000US$40,000
How long to set the company up?9 weeks9 weeks9 weeks9 weeks
How long to open company bank account?4 weeks4 weeks4 weeks4 weeks
Quality of utilitiesGoodExcellentGoodExcellent
Allowed to sign sales contracts with Uruguay Clients?YesYesYesYes
Allowed to invoice Uruguay Clients?YesYesYesYes
Corporate tax payable in Uruguay0%0%0%0%
Corporate bank account?YesYesYesYes
Physical office space requiredNoNoNoNo
Allowed to import raw materials?YesYesYesYes
Allowed to export goods?YesYesYesYes
Can be wholly foreign ownedYesYesYesYes
Can the entity hire expatriate staff in Uruguay?Yes (only 25% of workforce)Yes (only 25% of workforce)Yes (only 25% of workforce)Yes (only 25% of workforce)
Minimum number of directors1111
Minimum number of shareholders2222
Tax registration certificate requiredYesYesYesYes
Individual shareholders allowedYesYesYesYes
Corporate shareholders allowedYesYesYesYes
Corporate director(s) allowedYesYesYesYes
LLC company allowed?YesYesYesYes
Annual audited financial statementsNoNoNoNo

Contact us

For additional information on our free-zones services in Uruguay, please email us at email@healyconsultants.com. Alternatively please contact our in-house country expert, Ms. Chrissi Zamora, directly:
client relationship officer - Chrissi