INVEST IN URUGUAY
Uruguay is a country with strong respect for the rules of the game and the essential foundations of economic activity.
There are no limitations on the transfer of profits or the repatriation of capital, nor are prior permits from the authorities required.
The exchange market is free, without limitations for the purchase or sale of foreign currency.
What taxes are paid in Uruguay?
The main taxes on business activity are the Value Added Tax (VAT), the Wealth Tax (IP) and the Income Tax on Economic Activities (IRAE).
The IRAE, taxes Uruguayan source income from activities carried out, assets located and rights used in UY, regardless of the residence of the intervening parties.
The IRAE amount is obtained by applying the 25% rate to the net tax income, which is calculated as the difference between gross income and tax deductible expenses.
The agricultural and export sectors have various benefits and tax incentives.
There is an investment promotion regime, which allows the cost of taxes to be lowered.
The IP taxes equity (assets less deductible liabilities) located in Uruguay at a rate of 1.5% on the value of fiscal equity.
What benefits are there for foreigners?
In 2020, Decree No. 163/020 was published, which made the regime more flexible so that foreigners can access tax residence, making Uruguay an even more attractive country.
If the foreigner stays in Uruguay for 60 days and makes an investment in real estate of approximately USD 385,000, he becomes a tax resident.
It should be noted that this is one of the ways that exist to become residents, there are others that can be accessed.
In turn, the tax holidays were extended to 11 years, which allows foreigners who become residents not to pay personal income tax for 11 years on capital returns obtained from foreign companies.
What companies can a foreigner open in Uruguay?
There is a wide range of companies that can be opened in Uruguay through which to do business, from sole proprietorships, de facto partnerships to SA, SAS and SRL, among others.
Choosing the legal form of a business is a very important task. Fundamental aspects will depend on this, such as costs and times of incorporation, taxes to be paid, liabilities on debts, among others.
What is MRC & Asociados?
MRC & Asociados is a firm that specializes in tax advice to individuals and companies.
We offer professional services for opening companies, opening bank accounts, accounting, labor and business management advice.
We provide a comprehensive service to foreigners.
We invite you to meet us.
Schedule a meeting at no cost, we will find the solution that best suits your needs.