Why Do You Set Up Business in Uruguay?
The lovely country of Uruguay is filled with beautiful people, vibrant culture, stunning landscape, robust political framework and appealing economy. What’s more, it ranked among the high-income country in Latin America so you can start to set up business in Uruguay.
Uruguay practices territorial based tax. For any business operating within Uruguayan borders, it will need to comply with a corporate tax of 25%. This applies to both local and foreign enterprises. But international business owners that also generates income via interests or dividends outside of Uruguay will enjoy a five-year tax break for that worldwide income. This five-year window applies if a foreign national intends to spend more than half a year in Uruguay. After one year of becoming a tax resident in Uruguay, international business owners will enjoy a flat tax rate of 12%. Another interesting fact, if you are paying more than 12% for tax elsewhere, declare it in Uruguay and you will not be taxed again. If you spend less than 12%, you only need to pay the difference.
For a small country, Uruguay boasts an appealing economy. It is one of the most socially and economically developed countries in Latin America. The government of Uruguay is continuously looking to improve its economy to be sustainable in the long term. Uruguay enjoys an excellent macroeconomic performance through enhancing the business sector. As with most countries, Uruguay continues to be more resistant to the economic crisis so that foreign direct investment will continue to choose Uruguay. Thus, leading to economic growth, increased employment and boost technology transfers. Set up a business in Uruguay will be useful as with the robust economy, businesses will flourish.
Geographically Speaking – Business Set Up in Uruguay
Located between Argentina and Brazil, Uruguay enjoys left and right excellent trading neighbours. On its own, Uruguay no longer imports any electricity and 95% of its energy are sourced from renewable sources, basically Nature. Hence, it is another benefit for a company to choose to set up business in Uruguay as operations will cost lower. Uruguayan soil and climate are lush as agriculture is a large part of its economy. Its temperate weather is also pleasant, and natural scene is worth visiting and promoting.
Extra for Better
With the economy stabilising year on year, Uruguayans have more in their pockets. They ranked as socially developed in the region. Thus, their needs and wants have also improved, desiring better services, quality products and experiences. With technology and millennial consumers in the picture, businesses operating in Uruguay have a better chance of promoting or introducing a new product or service. The middle-class society has also expanded, making this group of consumers a target audience for a business is highly commendable.
Uruguay is a land of plenty. Look beyond its size, Uruguay is a must for businesses looking to expand their ventures. With its robust economy, pleasant people, and open market, Uruguay offers more than just agriculture. It is opening its doors to even more possibilities to ensure economic sustainability in the long run.