Free Trade Zone: a robust, growing system

Companies operating in Free Trade Zones are exempt from national taxes, including Income Tax (IRAE), Value Added Tax (IVA/VAT) and Wealth Tax, among others. Plus, there are no customs duties on imported goods.

Any domestic or foreign company can set up in a Free Trade Zone, as long as it meets the requirements and operates the types of business activities approved by the administrative body. Commercial, industrial and service companies can operate there.

Services, trade, industry, warehousing and tech activities can be carried out in Free Trade Zones. This includes logistics, call centers, data centers, manufacturing, and financial services, among others.

Companies must sign a contract with the Free Trade Zone operator and be approved by the Directorate General of Trade. They must also fulfil the investment, employment and regulatory compliance obligations under the system.

Goods entering or leaving a Free Trade Zone are not subject to the usual customs controls. However, proper documentation is required to ensure compliance with the system’s rules.

Companies can sell goods and services to the Uruguayan market, but they will be subject to the applicable domestic taxes. The products will be subject to the relevant tariffs and customs duties.

Yes, companies are subject to annual audits by the Directorate General of Trade. They must also file periodic reports on the fulfillment of their investment, employment and business activity commitments.

Contracts with the Free Trade Zone operator usually have an initial term of 15 years, with the possibility of additional extensions, provided the terms and conditions in the contract are met.

Failure to comply with the obligations may result in penalties, ranging from fines to cancellation of the permit to operate in the Free Trade Zone. These regulations are enforced by the administrative body and the General Directorate of Trade.