Uruguay, located in the southeastern part of South America, borders the Atlantic Ocean, Brazil, and Argentina. The capital and the commercial center of Uruguay is Montevideo.
Uruguay’s strategic location, political and economical stability, first-rate infrastructure, and legal framework make it very attractive and profitable for foreign investors.
Uruguay has become the first exporter of software in Latin America. Uruguay grants equal treatment to national and foreign investors and, aside from very few sectors, there is neither de jure nor de facto discrimination toward investment by source or by origin.
Corporations are taxed on Uruguay-source income, defined as income derived from activities performed, property situated or economic rights used in Uruguay. Any profits, including capital gains, are taxable at a rate of 25%.
Dividends paid to nonresident companies and individuals and branch remittances are subject to withholding tax at a rate of 7% if they are paid out of income subject to corporate income tax. Dividends and branch remittances paid out of income not subject to corporate income tax are exempt from tax.
In general, a 12% withholding tax is imposed on the following payments to nonresidents:
Uruguay currently has tax treaties with Ecuador, Finland, Germany, Hungary, India , Korea (South) Liechtenstein, Malta, Mexico, Portugal, Spain and Switzerland.
HBM Uruguay S.A.
P.5 Esc. 512, Montevideo