Investing and doing business in Uruguay as a foreigner: complete guide

By Global Tax · October 7, 2026

GlobalTax meeting room in Montevideo, guide to investing and doing business in Uruguay

In short (updated 2026):

  • Foreigners invest in Uruguay under the same rules as Uruguayans, with no prior authorisation or registration, and can freely transfer capital and profits abroad (Law 16.906).
  • There are no exchange controls: you can operate in pesos or US dollars and move funds freely, with the source-of-funds documents banks require.
  • The most popular vehicle today is the SAS; there are also limited companies (SRL), corporations (SA), sole proprietorships and branches of foreign companies.
  • Investment projects can be partly exempt from corporate income tax (IRAE) under the COMAP regime, updated by Decree 329/025 from February 2026.

Contents

  1. Why Uruguay
  2. Legal framework for foreign investors
  3. Which vehicle to use
  4. Getting started step by step
  5. Business taxes
  6. Investment incentives (COMAP)
  7. Free trade zones
  8. Holding companies
  9. The bank account
  10. Investing and residency
  11. FAQ

Uruguay attracts foreign investors and companies thanks to its stability, legal certainty and a system that treats local and foreign capital equally. Investing well still means choosing the right vehicle, understanding taxes and meeting transparency rules from day one. This guide covers what a foreigner needs to know to invest and do business in Uruguay, with links to each topic in depth.

Guides to investing and doing business in Uruguay

Why invest and do business in Uruguay

  • Equal treatment of local and foreign investors.
  • No exchange controls and free repatriation of profits and capital.
  • Institutional stability and rules that last.
  • Territorial taxation: generally only Uruguayan-source income is taxed.
  • Incentive regimes: COMAP, free zones, industrial parks and sector regimes.
  • Regional platform into Mercosur, with port, airport and logistics free zones.

The legal framework for foreign investors

Guarantee under Law 16.906 (1998) Article
Same treatment for foreign and domestic investors 2
No prior authorisation or registration 3
Free transfer abroad of capital and profits 5

Uruguay also has investment protection treaties and double tax treaties with a number of countries.

Which vehicle to use

Vehicle When it fits
SAS The most flexible: a single shareholder is allowed, it is formed by private document and foreign shareholders are welcome. The most used today.
SRL Businesses with a few partners (two or more), with restricted transfer of quotas.
Corporation (SA) Large projects, many shareholders, or raising capital.
Sole proprietorship An individual trading in their own name, without separate assets.
Branch of a foreign company When the parent wants to operate directly without a new company.

See types of companies in Uruguay and our step-by-step guide to set up a business in Uruguay.

Getting started, step by step

  1. Design the structure: vehicle, shareholders (individuals or a holding) and where each part is taxed.
  2. Form the company or acquire a ready-made one.
  3. Register with the tax office (DGI) and social security (BPS).
  4. Declare the beneficial owner to the Central Bank. See beneficial ownership and financial regulation in Uruguay.
  5. Open the company’s bank account with the KYC file.
  6. Apply to COMAP if the investment qualifies for incentives.

Foreign shareholders’ documents must be apostilled and translated. See apostille and legalisation.

Business taxes in Uruguay

Tax General rate
IRAE (corporate income tax) 25% on Uruguayan-source net income
VAT 22% standard, 10% reduced
Net wealth tax (companies) 1.5%
Dividends to shareholders 7%

See taxes in Uruguay for businesses. If you will also live in Uruguay, see tax residency in Uruguay.

Investment incentives (COMAP)

Companies presenting an investment project to COMAP can obtain a partial IRAE exemption based on the project’s score (employment, innovation, sustainability, decentralisation), net wealth tax exemption on the investment assets, import duty exemptions on non-competing goods, and VAT credits on civil works. Decree 329/025, in force since 1 February 2026, adds extra points for micro, small and medium firms and full IRAE exemption for projects above 180 million UI filed by the end of 2027. See benefits for investment projects.

Free trade zones

Free zone users are exempt from national taxes on the activities carried out there, subject to substance and local employment requirements. They are used for logistics, global services, trading and shared service centres. See Uruguay’s free trade zones.

Holding companies

Uruguay is used as a base for regional holdings thanks to territorial taxation and its treaty network, provided there is real substance. See setting up a holding company in Uruguay.

The bank account

The company needs an account with a Uruguayan bank, which will ask for corporate documents, the beneficial ownership filing and source of funds, and will report foreign-resident owners under CRS. See open a bank account in Uruguay and KYC and corporate compliance.

Investing and residency

Investing does not grant legal residency automatically, but it can support proof of means and, above certain amounts, tax residency. See residency by investment and tax residency by investment.

FAQ

Can a foreigner own a company in Uruguay?

Yes, under the same rules as Uruguayans and without prior authorisation. A foreigner can be the sole shareholder of an SAS.

Do I need to be resident to open a company in Uruguay?

No. Non-residents can form and own a company; a local representative helps with day-to-day operations.

What taxes does a company pay in Uruguay?

Mainly 25% IRAE, 22% VAT and 1.5% net wealth tax; dividends are taxed at 7%.

Are there tax incentives to invest in Uruguay?

Yes: COMAP exempts part of IRAE for approved investment projects, and free zones have their own regime.

Investing or starting a business in Uruguay?

At GlobalTax we design the structure, form and register the company, file its beneficial ownership and support you with the bank and COMAP, in English, Spanish or Portuguese. See corporate & cross-border or contact us.

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