Doing Business In Uruguay: Investment Outlook For 2018

There are some changing regulations on the horizon, and some political uncertainty with government elections next year. But a strong track record of economic growth, plus a well-established framework to support investors, provide a foundation for business development.

Economic outlook

Despite the volatility experienced in Latin America in recent years, Uruguay's economy has grown year-on-year for the past 15 years, in one of the most extensive periods of economic expansion in the country's history.

Since 2003, Uruguay has grown at rates above regional average, exceeding 7% on several occasions. With the economic downturn in Latin America, this trend slowed in recent years, reaching its lowest level in 2015 but since then, growth rates have risen.

Although the 2017 figures are not yet finalised, economic growth is expected to be nearly 2%, with further growth of approximately 3% projected for 2018. Inflation in 2017 was at its lowest level since 2010, closing at 6.6%, and is expected to remain around 7% this year.

Regulatory challenges

One of the main challenges this year is regulatory changes. Some of the change is due to Uruguay adopting international trends such as CRS and the UBO register. There is also a new law changing some aspects of the Free Trade Zones.

Compliance is key, and professional business support organisations such as TMF Group can advise and support investors on legislation, taxation, employment, and the formation of new business enterprises.

In addition to complying with regulatory change, business adherence can be bureaucratic. Although Uruguay has improved, digitalised and simplified many of its aspects to business progress, there are still hurdles that can make it difficult. For instance, in the last version of the 'Doing Business' report prepared by World Bank Group, in which TMF Group participated as contributor, Uruguay was ranked number 94 out of 190 jurisdictions. Organisations such as TMF Group can help you to navigate local bureaucracy and develop your investment strategy.

Political stability

Uruguay has maintained a stable democracy for more than 30 years, with a commitment to facilitate and set clear rules to investors, whether they are Uruguayan or from overseas.

Next year will see government elections, which could generate some doubts among investors, but the investments promotion...