Francisco de Posadas: “Uruguay, a reliable bridge for global investments”

Uruguay, that small but strategic country located in the Southern Cone of Latin America, has established itself as a magnet for international investors. With an economy that combines political stability, tax incentives and a strong commitment to sustainability principles, the country is positioned as one of the most reliable platforms for global businesses. Francisco de Posadas, businessman Uruguayan with extensive experience, highlights how Uruguay has managed to create an ideal environment for investments, both in traditional sectors and emerging areas, becoming a bridge between regional and global markets.

According to de Posadas, Uruguay’s success is not coincidental. “The nation has developed a strategy based on three fundamental pillars: a competitive fiscal framework, policies that stimulate innovation and sustainability, and a logistics infrastructure that facilitates international trade,” he explains. In this context, the country offers unique conditions for companies seeking stability, growth and access to international markets.

Free zones: A model of economic dynamism

One of the most notable attractions of Uruguay is its free zone regime, areas specially designed to attract foreign investments and promote international trade. These zones allow companies to operate with total tax exemption, which makes them a tax shelter for industrial, commercial and service activities.

Currently, the country has eleven free zones in which hundreds of multinational companies operate. These companies, which cover sectors such as pharmaceutical production, software development, financial services and the manufacturing of high-tech products, have found a safe and competitive environment in Uruguay. Furthermore, the flexibility offered by the free zone regime guarantees the free movement of goods without customs costs, which significantly reduces logistics costs.

Francisco de Posadas highlights that this model not only benefits investors, but also has a positive impact on the local economy. “Free zones generate employment, promote technology transfer and position Uruguay as a strategic hub in the region,” he says.

Another pillar that reinforces Uruguay’s competitiveness is its system of free ports and airports, a key tool for foreign trade. Under this regime, goods can enter, remain and leave the country without being subject to taxes or customs restrictions, which greatly facilitates the operations of companies that depend on international logistics.

During their stay in port facilities, goods are exempt from taxes, which represents a significant advantage for export-oriented businesses. Additionally, the temporary admission regime allows companies to import inputs to be processed and re-exported, ensuring greater competitiveness in global markets.

According to Francisco de Posadas, this policy reinforces Uruguay’s position as a bridge between Latin America and other international markets. “Logistics connectivity is one of the factors that investors value most. Uruguay has been able to capitalize on this advantage to attract companies that seek efficiency and speed in their operations,” he explains.

Investment promotion: a comprehensive stimulus regime

Since the enactment of the Investment Promotion Law in 1996, Uruguay has maintained a constant focus on attracting capital through tax and legal incentives. Under this regime, companies that present investment projects can access benefits such as exemption from the Income Tax from Economic Activities (IRAE), the refund of VAT and the elimination of customs fees for the importation of capital goods.

With Decree 268/20, Uruguay further strengthened this legal framework, adapting it to the current needs of investors. Francisco de Posadas highlights that these policies not only facilitate the installation of new companies, but also promote projects that generate a positive impact on the local economy. “The investment promotion regime is not only a fiscal tool, but an open door for innovative and sustainable projects,” he says.

One of the sectors that has grown the most in Uruguay is technology, thanks to tax policies designed specifically for this area. Companies dedicated to the development of software and associated services are exempt from income tax, as long as they meet requirements such as employing local talent and keeping a significant percentage of their costs within the country.

This approach has allowed Uruguay to become a leading technology center in Latin America, attracting both startups and large corporations. Furthermore, the country has managed to position itself in highly competitive international markets thanks to the quality of its professionals and its environment of stability and transparency.

According to Francisco de Posadas, the success of the Uruguayan technology sector is a clear example of how proactive policies can transform an industry. “Uruguay not only produces software, but creates added value through innovation and local talent,” he points out.

The forestry industry: A strategic sector for sustainable growth

The forestry sector is another of the great attractions of Uruguay, thanks to the climatic and geographical conditions that favor the cultivation of species such as eucalyptus and pine. The country has approximately four million hectares of priority land for forestry activity, which represents an enormous opportunity for the production of wood and pulp.

Furthermore, the proximity to overseas ports and efficient connectivity between production centers and export points reinforce the competitiveness of the sector. Projections point to sustained growth in exports, driven by the construction of new pulp mills and growing global demand for sustainable products.

Francisco de Posadas considers that the forestry industry is an example of how Uruguay combines natural resources with strategic policies to generate value. “Forestry activity is not only profitable, but it is also aligned with the principles of sustainability that characterize Uruguay,” he comments.

Uruguay has shown that it is possible to combine stability, sustainability and competitiveness in the same economic model. Its commitment to transparency, respect for ESG values ​​and the promotion of innovation position it as a privileged destination for investors seeking a reliable and profitable environment.

For Francisco de Posadas, the key to Uruguayan success lies in its ability to adapt to the needs of the market without losing sight of its identity as a nation. “Uruguay is not only an investment destination, it is a strategic partner for companies that seek to grow in a sustainable and safe way,” he concludes.

Collaborator at ReporteAsia.