KNOW URUGUAY

Uruguay, natural country

In South America, between Argentina and Brazil, is placed Uruguay, an enjoyable and pacific country with a generally mild and stable climate year 'round, favoured by its smooth geography. Uruguay not only has a high life standard and is considered one of the safest countries in the world, but also stands out due to its huge concern with the environment, as well as to its large variety of landscapes.

The perfect balance among green prairies and long beaches together with the long rivers and lagoons make up a big hydrographical net, which models the landscape with undulations that divide the streams and irrigate a wide natural prairie. This provides endless natural landscapes all around.

With very low pollution levels, Uruguay is the paradise for ecotourism, providing several flora and fauna reserves, as well as protected areas, such as Colonia del Sacramento, declared world's cultural heritage by UNESCO, a real trip to the past with its typical streetlamps and paved streets.

Punta del Este, the main seaside resort of America, is visited year after year by thousands of tourists coming from all around the world, and is the first touristic capital of the MERCOSUR. Additionally, it offers beautiful oceanic beaches and rich hotel and gastronomic choices, as well as rich cultural activities during the whole year.

Montevideo, the capital city of the country, with one million three hundred thousand people, was chosen capital city of the MERCOSUR due to its strategic location. Besides its typical peace and safety, the influx of Afro-American and European immigrants, mostly Spanish and Italians, make up the rich cultural diversity of the city in all fields, from art to gastronomy. All this comes together with an excellent hotel offer.

Therefore, this city is a very attractive destination for visitors. Uruguay's long democratic tradition, the large amount of lucrative investment opportunities and its healthy environment place the country in an excellent position in the international indicators. So much that it is in the 38th position in the ICAD (International Community for Auditory Display) World Ranking 2005 and in the 7^th position in the ICAD Ranking for the Americas.

The International Conferences Institution itself chose Uruguay world venue for 2005. The most outstanding event was the Ibero-American Summit of Heads of State and Government, which took place in Montevideo and in which twenty-three Ibero-American countries took part.

Direct Foreign Investment

The Uruguayan economy has experienced a sharp growth in the last years, supported both by the favourable external context and the dynamic recovery of the domestic activity. Thus, the Gross Domestic Product (GDP) surpassed the percentage attained in the preceding years to the 2002 crisis: in 2007 it reached 23.143 million US dollars and in 2009 it reached 31.006 million US dollars.

Within this context, in the last years, investments have been growing faster than during the nineties. Especially remarkable were the Direct Foreign Investments (DFI), reaching the highest historical levels, even excluding the important investment of Botnia.

Within this framework, the strategy of the economic policy is based on the need of building trust and stability in the Uruguayan economy and society. Therefore, among other aspects, it was considered essential to prioritize the investment in physical and human capital, by assigning most of the additional resources to education and investments in infrastructure.

According to this objective, a new regulation for the Investments Law Nr. 16.906 (Decree Nr. 455/007) was passed and the Support Unit to Development and Investments in the Private Sector was created (June 2007).

The new investments promotion regime, which was established in the regulation of the Investments Law, aims at granting tax benefits to companies carrying out investment projects that take into account the objectives of the economic policy.

Specifically, the granted benefits include:

· Capital Gains Tax Exemption: 100%

· Import taxes Exemption: 100%

· Value-Added Tax refund for the purchase of supplies for Civil Works: 100%

· Income Tax Exemption on Economic Activities: up to 100% in a 25 year term

Regarding the last item, the amount and the term of the granted exemption will be subject to the following indicators:

· Employment generation

· Decentralization

· Exports increase

· National Added Value Increase

· Increase of innovation research and development

· Project's Impact on the Economy

· Use of cleaner technologies

The goal of the Support Unit to Development and Investments in the Private Sector is to advice, propose, implement and facilitate the coordination of policies and actions in order to improve the negotiation environment and favour the development of the private sector and productive investments. It aims at being an Institutional referent for the service, promotion and development of the private sector.