Uruguay’s newly elected government on June 12 formalized Uruguayan President Luis Lacalle Pou’s recent announcements indicating that the country is open for business with a Decree aimed at attracting foreigners to establish tax residency in the sparsely populated country. Although the measures are generally viewed as aimed toward Argentine nationals facing increased taxation under Argentinian President Alberto Fernandez’s newly elected government, they extend to other nationalities as well.
The Decree and other related announcements are expected to be the first in a number of proposed measures related to foreign direct investment, with more incentives likely to be announced in the coming months.
The tax incentives already enacted by the Uruguayan government, as well as other recent announcements, are designed to attract investors and investment to Uruguay. Uruguay is expected to continue adopting other investment promotion measures to reactivate the economy.