Uruguay

Uruguay is a country in the southeastern region of South America. It is bordered by Argentina to its west and Brazil to its north and east, with the Atlantic Ocean to the south and southeast. Uruguay is home to 3.3 million people, with almost two thirds of them residing in the metropolitan area of its capital and largest city, Montevideo. With an area of approximately 176,000 square kilometers (68,000 sq mi), Uruguay is geographically the second-smallest nation in South America.

For years the country has shown a strong political and social stability, supported by a consolidated democracy and strong legal certainty. Nowadays, the political system is comprised of leaders from three major parties. The peaceful transition of leadership between these parties has allowed Uruguay to remain a nation of remarkable political, social and economic stability. This is regarded by investors as a distinguishing feature when it comes to choosing Uruguay, and it is seen as a mainstay for trust generation in the business community.

Uruguay ranks first in Latin America (and is well positioned in the world) on aspects of political stability and democratic soundness according to The Economist´s Democracy Index and the Corruption Perception Index published by Transparency International. These indicators show that Uruguay is a country with a strong democratic tradition, based on transparent government policy and broad economic freedom.

The Uruguayan economy has achieved its longest period of growth in history from 2004 to 2013. During that period, it accumulated 11 years of uninterrupted GDP growth with an annual average expansion of 5.7%. This growth was accompanied by an increase of the GDP per capita from US$ 10,000 in 2005 to almost US$ 17,000 in 2013. This has allowed Uruguay's economy to stand out as having the highest GDP per capita (measured in current US$) in Latin America according to a World Bank´s report from 2014.

Uruguay is a full member of Mercosur, a sub-regional trading bloc comprising Argentina, Brazil, Paraguay and Venezuela. Our free access to Mercosur provides us with access to a market with over 270 million people, which accumulate 56% of Latin America's GDP. Combining Mercosur and its Free Trade Agreement with Mexico, Uruguay has tariff-free access to a flow of foreign trade that accounts for almost 70% of Latin America's total. Uruguay is positioned as a regional logistics hub, with a remarkable proximity to the wealthiest cities in the region. The existing regulation on free zones, free port/airport and bonded warehouses provides an ideal framework for the setup of distribution centers to these cities.

According to the World Bank, foreign direct investments (FDI) received by Uruguay reached a record high at US$ 2.8 billion in 2013 and, consequently, the last decade had the strongest FDI growth in Uruguayan history. This figure, which accounts for 5% of GDP, makes Uruguay the second largest FDI recipient in South America from a GDP standpoint. Over the last decade, these foreign companies reinvested 63% of their profits in our country, which proves the existence of a mutually beneficial relationship between Uruguay and international investors.

Foreign and local investors are granted the same incentives and tax benefits in Uruguay. No prior authorization or registration is required to operate and there are no limits on transferring capital or profits derived from foreign investments.