Nomad Watch
UY

Zonas Francas (Free Trade Zones)

Active Free zone

Uruguay · special tax regime

Rate —
Duration —
Prior non-residency — required before applying
Standard top income tax 36.0% Uruguay, without the regime

Overview

Regime
Zonas Francas (Free Trade Zones)
Country
Uruguay
Type
Free zone
Status
Active
Effective from
—
Expires on
—

Details

Summary
Companies operating in Uruguayan Free Trade Zones are fully exempt from all national taxes, including income tax.
Eligibility
Companies operating in designated FTZs: Zonamerica, Aguada Park, WTC Free Zone, and others.
Benefits
100% exemption from all national taxes including IRAE (corporate income tax), IVA, and patrimony tax. No withholding on profit distributions. Employees working in FTZ can opt for IRNR (non-resident tax regime).
Requirements
Must operate within designated FTZ. Must comply with FTZ regulations. Services rendered to entities outside the FTZ.
Limitations
Subject to Pillar Two DMTT for large MNEs from 2026. Cannot provide services to Uruguayan entities outside the FTZ (generally). FTZ employees may choose IRNR regime which taxes only Uruguayan-source income.
Income types covered
All business income from activities within the FTZ.
Duration details
Indefinite while operating in the FTZ.

View source PwC Worldwide Tax Summaries