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Why Uruguay?

Corporations and family offices focus on Uruguay as their hub for regional and global investments. Family offices increasingly view Uruguay as a starting point for diversifying their portfolios by way of asset allocation in Latin America.
But why start in Uruguay?

Uruguay offers an ecosystem with a global perspective from the start, and has the tax incentives and institutions to support this. Uruguay positions itself as a globally recognized country with a solid democracy, well known for the respect for institutions and foreign investments, and boasts a sound judicial system.

Investment assets in Uruguay are mainly traded in US dollars, especially in securities, real estate and automotive transactions. Profits can be kept in Uruguay (dollar, or euro bank accounts are permitted) or even re-patriated to other jurisdictions, without limitation or restraint; something that has survived for decades through many governments, regardless of their ideology. Uruguay has no capital controls. Uruguay was ranked No. 1 in individual freedom in Latin America and the Caribbean and No. 6 worldwide according to the 2021 edition of Freedom House’s Freedom in the World survey.

Real estate investments:
safe, productive and appreciating.

Real estate is a key investment opportunity in Uruguay. The variety of real estate investment opportunities being marked by the equally attractive angle of its agribusiness and cattle ranching sectors. Prominent family offices are investing heavily in these sectors, and the publicity generated by their involvement has contributed to Uruguay being viewed as well positioned on price and opportunity in these industries. Families are acquiring property and immediately applying for Uruguay’s advantageous fiscal residency by investment laws. Investing in productive farmlands in Uruguay is the ideal asset for diversified portfolios, giving long-term growth and stability with increased total return potential stemming from environmental markets, with benefit from stable current income, low-correlation to other asset classes and inflation hedge. All of these competitive advantages have positioned the Uruguayan agribusiness sector in the top 10 places in the ranking of global exports for several products:

  • Uruguay is the 3rd global exporter of cellulose (wood pulp).
  • Uruguay is the 4th global exporter of combed wool.
  • Uruguay is the 4th global exporter of rice.
  • Uruguay is the 5th global exporter of dairy products.
  • Uruguay is the 6th global exporter of soybeans.
  • Uruguay is the 7th global exporter of beef meat and accounts for 5% of global beef exports. In addition, Uruguay is the only country in the world with 100% traceability of its herd.

Uruguay is one of the best places in the world for forestry projects:

  • Uruguay enjoys one of the fastest global growth rates in eucalyptus with 8-10 year harvest cycles.
  • Uruguay does this in a sustainable way and has the world’s highest FSC certification: 85% of forests.
  • Highly integrated sector: in 2006 UPM (Finland) and in 2010 Stora Enso (Sweden) built the world’s largest and newest pulp mills, and UPM is building a 2nd state of the art plant in 2022.

Investment framework

Regulatory incentives for family offices include Free Zone Law, Tax Benefits, Residence by Investment, and FDI-friendly measures.

Uruguay offers an ecosystem with a global perspective from the start, and has the tax incentives and institutions to support this. Uruguay positions itself as a globally recognized country with a solid democracy, well known for the respect for institutions and foreign investments, and boasts a sound judicial system.

Investment assets in Uruguay are mainly traded in US dollars, especially in securities, real estate and automotive transactions. Profits can be kept in Uruguay (dollar, or euro bank accounts are permitted) or even patniated to other jurisdictions without limitations or restraints; something that has survived for decades through many government administrations regardless of their ideology. Uruguay has no capital controls. Uruguay was ranked No. 1 in individual freedom in Latin America and the Caribbean and No. 6 worldwide according to the 2021 edition of Freedom House’s Freedom in the World survey.

Free Zone Law

To draw foreign investment into Uruguay, a series of incentives was established around a free zone system. The free zone system was designed not just for investors coming to Uruguay, or purely for Uruguay as a market, but with the idea for Uruguay serving as a hub in the region, or even as a global hub. The free zone system is very attractive for investors. Upon authorization, foreign companies (as well as family enterprises) can carry out any industrial or commercial activity on an international basis, with no obligation to pay taxes in Uruguay. The law provides that the Uruguayan state explicitly ensures the total exemption of current and future taxation. That is of enormous benefit and it merely involves the filing and approval of a business plan.

Residency by Investment

Some recent changes were made to Uruguay’s residency by investment program by the new government of President Luis Lacalle Pou, who took office in March 2020. In September of that year, the government lowered the requirements for foreign families considering operations in or relocating to Uruguay. In the past, the minimum threshold for investment under the residency law was US$1.8 million. Under the new guidelines, it was lowered to approximately US$450,000. The minimum amount of time one must spend in Uruguay to meet the residency requirement has also been reduced to 60 days from 6 months.

Independent
& solid Judiciary

Government Stability

A key selling point for Uruguay is its historic political stability, especially compared to the turmoil in some other countries in the region and the world in recent years. President Lacalle Pou has been in power since March 2020, when his Partido Nacional (along with what has been called the “Multicolor Coalition”) won a runoff election, that marked a transformation to a more conservative government after 15 years of rule by the left-of-center Frente Amplio coalition. The transition from a progressive to conservative government proceeded far more smoothly than in some other nations in the region that underwent recent changes in party control of government.

The new coalition administration has developed a strong business friendly profile, placing high emphasis on entrepreneurship and individual freedom.

Rural Wealth
Experts, Uruguay

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    Southland360 is an accredited team of recognized academics with over 50 years of combined experience, perfectly trained for providing tailor-made alternative investment solutions in Agriculture and Forestry in Uruguay.

    Our recognized international legal and farming experts will professionally advise you on an individual basis to identify and select the most appropriate agricultural or forestry investment that suits your personal needs and portfolio.

    We provide a full and complete range of services, including legal and tax advice in Uruguay, working with you and your trusted professional advisors to create the ideal structure and select the most appropriate agricultural investment for your specific needs.

    By providing an industry-unique investor educational service and understanding for our clients of this exciting new asset class, and carefully considering all important and critical aspects of choosing any type of investment in the ‘Black Gold’ of our earth correctly, we will assure you ultimate success.

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    Why invest in Agriculture?

    Agriculture continues to demonstrate long-term growth and stability across different jurisdictions and sectors. Investors enter the agricultural investment space for several reasons:

    • The search for security, investing in secure, developed markets providing quality farmland in reliable climatic zones.
    • Triple bottom-line approach, where financial, environmental and social factors are in focus. The best use of land is carefully considered, including carbon-farming practices and farmland optimization by integrating Ag-Tech solutions.
    • Long-term growth, regular income coupled with a sector typical stability, offering an increased long-term total return potential.
    • No correlation to traditional asset classes and the ultimate inflation hedge.
    • An absolute ‘Must’ for any portfolio diversification

    Transparency International ranked Uruguay the least corrupt Latin American country in its 2020 Corruption Perceptions Index. Anti-corruption statutes are enforced to prevent bribery and other corrupt practices.

    Why Uruguay?

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    Uruguay is an exemplary model of professionalism, transparency and egalitarianism in South America. It is relatively small both in terms of geography and population, but it packs a powerful punch as it plays a vital role as a business centre and a trading port between the two giants Brazil and Argentina.

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    Investment
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    Uruguay has clear investment-encouraging policies (in general, but with strong emphasis on foreign investment). An open regime, equal conditions for domestic and foreign investors, based on a solid and world recognized respect for private property and a solid and impartial judiciary system.

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    Independent
    & Solid Judiciary

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    According to the Corruption Perception Index developed by Transparency International, Uruguay in ranked 24th amongst 180 countries, and is ranked 2nd in Latin America, as the country with the lowest corruption index.

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    In terms of lifestyle, Uruguay has it all; from the cosmopolitan beachfront cafes and bars of Montevideo to the stunning and fashionable jet-set beach resorts of Punta del Este and Jose Ignacio -so hip, chic and cool they easily rival their European counterparts, St Tropez and Portofino, in all aspects.

    The country seems like a European enclave in South America, caught in a soothing time-warp; a fairy-tale like countryside with rolling hills, lakes and rivers, grazing cattle and abundance of peace and security. The absence of racial tensions and violence and extremely low crime-rate make Uruguay a rare gem in today’s world.

    It is also a playground for the world’s rich-and-famous, many of whom have discovered, and come to appreciate, the calm tranquillity and, above all, the safety of the country.  Uruguay, a ‘diamond in the rough’ has attracted many billionaire investors who have helped to shape and develop this paradise.

    World-famous chefs and haute cuisine restaurants allow Uruguay to boast some of the best food in the world. The country offers 5 Star luxury resorts, ranging from ravishing rustic wine lodges to ‘uber-cool’ and super-chic artist retreats.

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