Beyond the emotional elements, the investor must analyse the advantages each country offers. Investors are becoming more aware that foreign investment competition is fierce among countries, especially those in the same geographic area; therefore, comparing the advantages offered by each country is very helpful in deciding which option is best.
The American Nobel prize winner, Milton Friedman (economist), quoted ”Investors in the current context are like consumers, they are benefited because of the strong competition faced by countries, which compete to capture those who want to invest”. Successful countries seek to look more attractive than their neighbours, and thereby attract more investment, making significant efforts such as low taxes, low labour costs and social security, reduced paperwork, and expanding their domestic markets through free trade agreements, among others.
In this context, Uruguay offers significant advantages.
Commercial entities
Taxes
Labour laws
Social security
Special promotions offered by the government
Financial system: Special credit lines available
Capital market: Especially as a way of funding, an alternative to banks
Farms and Orchards of an international standard
Consumer protection
Competition’s Control and industrial and intellectual property.
Overall, the main advantage is the privileged location in America: Montevideo is the administrative capital of MERCOSUR and is close to the major cities of South America. It is 30 minutes by plane from Buenos Aires, 2 hours from São Paulo, and 2 hours from Santiago de Chile.
All of the above conditions of Uruguay are important when investing in a country. There are other, more specific points that the investor must analyze given by the regulations that the country offers, in which we can highlight the following aspects:
What are the advantages offered by the country to the investor? The country offers stable political, economic and social security. Over its history, the stability has been unblemished; it has fulfilled its obligations unreservedly. Because of this, it has earned a high reputation and respect in the region and the world.
Although it has a limited domestic market, unlike Brazil and Argentina, the country can integrate MERCOSUR by allowing its production units to access its neighbours with no tariffs. In addition, Uruguay has signed a trade agreement with Mexico that allows Uruguayan products to access the market with minimal tariffs, making Uruguay an ideal country to serve as a production and export platform in the region.
Based on the above market analysis of labour, social security, taxes, government services, and financial costs, we believe they are more than competitive with other parameters offered in the region.
Contact the Gateway to South America team to learn about the best investment opportunities in the region. The company is a benchmark for foreign investors wishing to invest in Argentina, Brazil, Chile, Paraguay, Peru and Uruguay, providing expert advice on property acquisition and investment tours.
The Gateway Team – When You are Serious About Property
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Founded in 2004, GTSA began as a single office in Buenos Aires. Since then, it has grown into a vibrant regional network, providing professional real estate marketing services to clients in AR, BR, CL, PY, PE, and UY.
