Taxes in Uruguay

If you haven’t considered Uruguay as an offshore location either as a resident, or an investment location, it’s a great time to take a look at the benefits it can offer. The security, stability and location of Uruguay, away from the unstable Eurozone and US is a benefit in itself and it’s rules and regulations entice investors and high net worth individuals.

Uruguay was described as the best tax haven you’ve never heard of by Spear’s in 2010, due to its low taxes and friendly laws. In this article they highlight the “sociedad anonima” which is Uruguay’s offshore vehicle and is similar to an English trust. With this, you pay no tax on offshore income and assets, just a $390 annual fee. The government is very pro international investment and offers excellent tax incentives as well as Free Trade Zones which allow all types of commercial, manufacturing, industrial and service activities’ conducted with overseas firms to be ‘exempt from all domestic taxes’.

Uruguay was also described as A Ticket to a Life without taxes by website No More Tax which showed that the country was a “attractive destination for residence and business investments” being a great place to live and do business, with real estate and agricultural land investments showing rapid growth and opportunities for foreign residents to buy real estate easily.

We have chosen Uruguay as a base for our forestry investments as the perfect safe haven for investments. The country is stable, with low unemployment and an increasing GDP and very low levels of corruption. The forestry sector in Uruguay is particularly attractive, as they have excellent farmland which has been steadily increasing in value for many years, but has recently experienced a price correction, to create very attractive prices at present. There is excellent growth potential within the sector within Uruguay and increasing demand, worldwide but also from the pulp and paper mills in the country.

Deloitte’s 2015 Tax and Investment Profile of Uruguay showed that the government encourages foreign investment in national territory and declares them of national interest, treating domestic and foreign investors equally and guarantees “the transfer of capital and profits abroad in freely-exchangeable currency” and adds that there are no restrictions on capital repatriation. Investments in the agricultural sector are favoured, especially when they create employment and so investing in forestry in Uruguay offers some very attractive tax benefits.

As experts in offshore investments and tax management, JP Capital Investments is able to obtain preferential tax treatments for you as a foreign investor under current Uruguayan tax directives. Furthermore strong tax reliefs and low tax rates for agricultural and forestry investments make for highly attractive returns in this particular space in Uruguay.

Find out more about investing in forestry in Uruguay by downloading our free guide. Simply fill in your details below to receive the informative guide, or contact one of our expert financial advisors to discuss the investment opportunities and how it can help you to minimise your tax liability.

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