Why Uruguay? Key Insights from the BDO Webinar

Why Uruguay? Key Insights from the BDO Webinar

On July 30, 2025, BDO Latvia, in collaboration with BDO Uruguay, hosted an online webinar highlighting the opportunities Uruguay offers to Latvian and European businesses entering the Latin American market. Experts from both countries discussed the tax, legal, and structural factors that make Uruguay a strategic business hub in the region.

Key Topics and Takeaways

1. Uruguay as a Business Gateway

Uruguay offers a stable political and economic environment, favorable access to regional markets (via Mercosur), and a well-developed legal and financial infrastructure. It is a suitable location for international companies looking to establish a presence in Latin America.

2. Tax and Legal Benefits for Businesses

The webinar covered Uruguay’s key taxes, including corporate income tax (CIT), VAT, net worth tax, and non-resident income tax. A practical case study of a service-exporting company was also presented to illustrate the application of these taxes.

3. Free Trade Zones (FTZ)

Uruguay’s FTZ regime offers full exemption from several major taxes, including:

  • Corporate income tax

  • Dividend tax

  • Capital taxes

  • Import duties

FTZs are especially advantageous for IT, consulting, logistics, finance, and other international businesses. A specific case study demonstrated how a tech company can benefit from this model.

4. Intellectual Property and Technology Incentives

Uruguay provides tax incentives for companies engaged in software development or innovation. Up to 80% of income from software can be exempt from CIT if certain conditions are met, making it a favorable jurisdiction for tech-driven business models.

5. Latvian Tax Perspective

From the Latvian side, the following points were emphasized:

  • There is currently no double taxation treaty between Latvia and Uruguay, so domestic tax laws apply to transactions.

  • Dividends that have already been taxed abroad are generally not taxed again in Latvia.

  • Transfer pricing issues in Uruguay are addressed using OECD guideline principles, even though Uruguay is not an OECD member.

Contact Us to Learn More about Opportunities in Latin America:
https://www.bdo.lv/en-gb/contact