INVESTMENTS IN URUGUAY
The Uruguayan government has, by law, an incentive program for companies which settle in the country. This program includes many tax benefits, the possibility of importing used equipment without incurring on import taxes, concession of areas and even warehouses, amongst other benefits.
Labor and government tax costs in Uruguay are at 31% of the payroll, whereas in Brazil the same costs are well above 80%.
This factor is in itself an enormous incentive, not to mention the high quality labor force and strategic geographical position for distribution for the whole of Latin America and the world, from the harbor in Montevideo.
A scarcely known and seldom publicized aspect about Uruguay is that it has a free trade treaty with Mexico. This treaty therefore allows for free access to a consuming market similar to the Brazilian one in size, with 200 million inhabitants and, moreover, connected to the USA.
In conclusion, a company established in Uruguay has both the Mercosul and Mexico as potential business consumers.
Another extremely relevant feature is the free use (both legally and in banking) of any currency, bringing stability to investments, which are not subjected to the ups and downs of currency exchange rates.
A key differential about Uruguay is also related to the fact that the country allows used equipment and machinery to be imported. If it is necessary a company may, therefore, transfer its equipment to Uruguay without paying taxes, and this machinery can it turn become the company’s property assets. This certainly helps if the company then wishes to search for partners and/or investors, as well as if it applies for a banking loan.
One more essential characteristic is that Uruguay has a policy of temporary admission for imported products to be used in the manufacturing of secondary products to be exported and this admission is tax-free.
A company established in Uruguay can therefore import the base products for the manufacturing of its final products without paying customs import taxes.
Considering all the above benefits, undoubtedly Uruguay is an ideal place for production and export.
ZONAMERICA & TAX-FREE HARBOR
Uruguay has various tax-free zones.
The biggest tax-free zone is called ZONAMERICA, located in Montevideo, housing more than 350 companies (60 multinational ones). 17 thousand people work in the campus, comprised of 26 buildings, storage and logistics warehouses, leisure and entertainment infra-structure (horse-riding, golf course, polo track), restaurants, hotels, etc.
Within the tax-free zones you may import and export without incurring on any taxes. Many services, including financial ones, are also provided.
There are endless possibilities, depending on what the company wishes to do.
It is a center comprised of banks, trading companies, logistics, multinational corporations, etc, allowing for a huge networking of global standard and scope.
INHERITANCE – TRUST
According to studies by the Organization for Economic Cooperation, Brazil has the highest taxing system in Latin America.
From an average tax burden of 13,8% in 1974, the figure today is 37% in relation to the GDP.
There is, therefore, a tendency to increase tax collection, meaning higher charges of taxes and duties.
In this scenario, which is certainly not a passing circumstance but rather a long term trend, it is legitimate that one seeks legal protection.
There are numerous legal mechanisms to achieve taxing savings.
With strategic planning, in our expertise we are able to offer you solutions to legally obtain taxing savings.
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