Uruguay launches new investment incentives, prioritises R&D+i amongst others projects

Uruguay unveils investment promotion package with tax incentives, streamlined procedures, and support for SMEs, large projects, tech, and housing.

The Ministry of Economy and Finance announced on Monday, 18 August 2025 a package of measures aimed at promoting investment in the country. During the press conference, led by Minister Gabriel Oddone, the National Director of Free Trade Zones, Isabella Antonaccio, and the President of the National Development Agency (ANDE), Juan Ignacio Dorrego, explained the measures in detail.

The announcements, which involve changes in several areas, are grouped into five thematic points to boost investment attraction: hierarchy, agility, incentives, talent and technology, and promoted housing.

Among the announcements, the creation of a new executive unit stands out, which will bring together COMAP and the National Directorate of Free Trade Zones. This new unit, to be headed by Isabella Antonaccio, will be called the National Directorate for Investment Incentives (Dinaii).

Antonaccio explained that new technologies, including artificial intelligence, are being applied in COMAP to improve processes that facilitate access and shorten processing times. According to the MEF director, analysis speed could be increased by up to 50 times in some processes.

To accelerate evaluations, projects involving less than USD 5 million in investment will benefit from a simplified evaluation system.

Regarding the incentive guidelines, the following points were highlighted:

• Priority will be given to projects with impacts in the following areas: Employment, Exports, Decentralisation, Sustainable Production, R&D+i + Technological Upgrading.
• Greater incentives will be provided for projects that hire individuals from groups facing barriers to employment: women, young people under 29, persons with disabilities, ex-prisoners, members of the LGBTIQ+ community, and participants in protected employment programmes.
• Incentives will be strengthened for investments located in regions facing higher unemployment and/or poverty levels.
• Additional incentives will be granted for internationalisation, particularly focused on companies that start exporting or significantly increase their foreign sales.

In addition, the new measures provide several benefits for SMEs, expanding existing ones and adding new options:

• The cap of 3.5 million Indexed Units (approx. USD 500,000) will be removed, 15 additional percentage points of IRAE benefits will be granted, and the period for use extended by two extra years.
• Special benefits will be available for micro-enterprises under Literal E or those paying IRAE on a notional basis without sufficient accounting records.
• Medium-sized enterprises with up to 50 employees will receive 10 additional percentage points of IRAE exemption and one extra year for its application.

For large investments, the following measures will apply:

• A 100% IRAE exemption on eligible investments for projects exceeding USD 30 million, provided that:
  • They begin before 31 December 2027.
  • Their maximum execution period runs until 31 December 2029.
  • They meet R&D+i + Technological Upgrading and employment indicators.
• A 100% IRAE exemption on eligible investments for projects exceeding USD 50 million, provided that:
  • They begin before 31 December 2028.
  • Their maximum execution period runs until 31 December 2031.
  • They also meet R&D+i + Technological Upgrading and employment indicators.

As for promoting talent and technology, the following measures will be introduced:

• A programme to attract skilled foreign talent to work in companies or scientific-technological institutions through tax incentives.
• A simplified regime for importing supplies, machinery, and equipment by science-based SMEs for testing and technological and scientific development activities applied to human and animal health as well as environmental management.

Regarding promoted housing, incentives not covered by the Entre Todos programme will be managed by the Ministry of Economy and Finance, in recognition of the importance of this activity for investment and job creation.

In addition, special encouragement will be given to promoted housing projects developed in regions with greater employment and/or poverty challenges, considering territorial planning criteria coordinated with the Ministry of Housing, Territorial Planning and Environment (MVOT) and local governments.