Free trade zones
Concept
Free Trade Zones are specially designated areas within Uruguay that are considered beyond the country's borders for tax and customs duties purposes. Uruguay has eleven Free Trade Zones, in which users may engage in a wide range of activities, including:
- Storage, preparation, selection, subdivision, assembly, disassembly or mixture of merchandise or raw materials of any origin (foreign or national).
- The operation of manufacturing / industrial facilities.
- The provision of financial, professional and any other services (including banking services after a special authorization by Uruguay's Central Bank) to customers beyond Uruguay's borders.
In sum, any commercial, industrial or services activity can be performed in the Free Trade Z
Operating in a Free Trade Zone
Any party interested in operating within a Free Trade Zone may do so by seeking authorization to be a "Free Trade Zone User" from the Finance Ministry, and submitting a business plan.
Benefits provided to users of a Free Trade Zone
The benefits that a user of a Free Trade Zone enjoys consist mainly of an exemption of any tariffs or customs duties on all goods that enter or leave the Zone from or to any other country. There are no restrictions to the entry or exit of securities, any currency or precious metals into the Zone, or to the sale, circulation or transfer of these. Users of Free Trade Zones are not subject to government utilities monopolies, and thus may freely choose their providers of electricity, telecommunications services and fuel. Additionally, users are exempt from all national taxes (including corporate income tax and property taxes) related to the activities performed by these users (with the sole exception of social security taxes on national labor employed and taxes on royalties related to technical assistance).
