Agribusiness

Natural conditions and many years of experience in agriculture create high-quality products that are increasingly in demand internationally. Uruguay is known for the excellent quality of its agricultural products, including beef, olive oil, rice, soybeans, citrus fruits, honey and dairy products.

Uruguay offers investors tax incentives in the agricultural sector, including:
 

• Tax exemptions for certain agricultural investments: Certain investments in the agricultural sector, such as agricultural machinery, equipment and technology, may be exempt from income tax (IRAE - Impuesto a la Renta de las Actividades Económicas - Law No. 16.906 on the Promotion and Protection of Investments - Ley de Promoción y Protección de Inversiones).
   

• Exemption from import duties: Tax exemption for the import of machinery, equipment and technologies that are necessary for agricultural production. These can be imported duty-free, provided they are not produced in the country. (Customs legislation in conjunction with the Investment Promotion Act)
   

• Tax exemption or reduction on agricultural products for export: Exporters of agricultural products are exempt from VAT on export revenues – IVA, Impuesto al Valor Agregado. (Law no. 17.887 on tax relief for exports).
   

• Reduced property tax (Contribución Inmobiliaria Rural): Property tax rates are reduced for certain agricultural land - especially for farms that use environmentally friendly practices or invest in remote areas. (Municipal ordinances and national guidelines to promote rural development)
   

• Amortization options: Companies can use accelerated depreciation for investments in buildings, infrastructure and equipment in the agricultural sector, which reduces the tax base (Ley del Impuesto a la Renta de las Actividades Económicas - IRAE).
   

• Tax incentives for sustainable agriculture: Investments in projects that promote sustainable agriculture - such as organic farming methods or water conservation measures - can receive additional tax concessions. (Environmental legislation and initiatives to promote sustainable development).
   

• Capital repayments and profit distributions: No withholding tax is levied on the repatriation of capital or profit distributions abroad, which makes Uruguay even more attractive for foreign investors. (Tax treaty and investment protection agreement between Uruguay and other countries - Ley N° 16.906 de Promoción de Inversiones).
   

• Tax exemptions for business start-ups: Newly founded companies in the agricultural sector can be partially or fully exempt from income tax in the first few years after their foundation (Law on the Promotion of SMEs - Ley de Promoción de PYMES).
   

• Reimbursement of value added tax IVA: Under certain conditions, investors can receive a VAT refund (IVA) on investments and current expenditure in the agricultural sector (Uruguayan VAT law).
   

• Double taxation agreements: Uruguay has double taxation agreements with various countries worldwide that prevent foreign investors from being taxed twice. The list includes countries such as Germany, Switzerland, the United Kingdom, the UAE, Argentina, Brazil, Chile, Spain, Italy and India.

Thanks to numerous free trade agreements, Uruguay has direct access to the major international markets. The free trade agreements increase the export of agricultural products and at the same time create additional potential for scaling a profitable business.

A growing world population is increasing the demand for high-quality food, resulting in a continuously growing agricultural market. Uruguay is very well positioned to benefit from this development thanks to its stable production and the high quality of its products.

Uruguay focuses on sustainable production and traceability of its products. This meets the increasing demands of global markets and makes the country an attractive investment location - not only, but also for sustainable agriculture.

Uruguay is one of the most politically and economically stable countries in Latin America. This provides security and confidence for investments, particularly in the agricultural sector.

The agricultural sector in Uruguay has enjoyed stable growth for years. With an average annual growth rate of around 3%, the sector offers plenty of potential for future investment. The main reasons for this growth are the country's export orientation, the steady increase in efficiency through the use of modern technologies and management, and the growing demand for sustainable, organic products. In addition, grain prices for rapeseed and soya as well as for the winter crops wheat and barley have risen.

In addition to livestock farming, Uruguay is also strong in other areas of agriculture - for example, dairy farming (milk powder, cheese, etc.), arable farming (especially rice and soy to Brazil and countries in the Middle East) and forestry (the main crops are eucalyptus and pine, which are mostly used for pulp production). This diversification offers investors a wide range of opportunities.
 

Uruguay has a well-developed infrastructure and efficient logistics networks that facilitate the transport and export of agricultural products. Access to ports and international markets is considered excellent.

Uruguay has sufficient water resources and land areas that enable profitable agricultural production. According to the FAO (Food and Agriculture Organization of the United Nations), Uruguay has an estimated total water runoff of about 150 billion cubic meters per year. According to data from the Uruguayan Ministry of Agriculture (MGAP), about 200,000 hectares of agricultural land have been equipped with modern irrigation technology.