The investment regime in Uruguay is completely open, no matter if the capital is domestic or foreign. The main features of this system are:

• Stable security environment for investors, both in the defense of the principle of private property as in the stability of its economic policy.

• Permission to install new businesses is not required. People and companies are free to begin business activities without state authorization or approval.

• There is no limit on foreign equity participation in companies. Excepting rare exceptions, foreigners can hold 100% equity of a company or in establishing a joint venture.

• Investment can be made on repatriation as well as non-repatriation basis. Repatriation can be made without state authorization or approval.

• The change market is open and unregulated. This allows the free purchase or sale of currency.

• Favorable treatment for imported capital goods. Most of the capital goods are brought into the country with a very low tariff or even zero, based on different systems.

• Freedom of importing all kinds of goods. Tariffs range from 0% to 23%, with some transitory exceptions.

• Total freedom of exports. There are no charges or prohibitions.

• There is an indirect tax refund and a temporary admission regime that promote the export sector.

• Freedom to nominate contracts for the sale of goods or services, including employment contracts in foreign currency.

• Freedom of recruitment, including foreign employees.

• Investment protection agreements to avoid double taxation.

• Total anonymity guaranteed for investors with the possibility to resorting to a Trust (recently adopted in the country).

• Access to a market of over 200 million consumers: the MERCOSUR which just added the Mexican market on the basis of recently expanded agreements.

• Possibility of getting a national interest declaration from the Government for private investment projects (Law Nr. 16,906), with a certain quantity of tax exemptions.

• Nevertheless, there are many other promoted sectors, such as afforestation. The installation of industries in the so-called Industrial Parks (Law 17,547) is also encouraged.

Without prejudice to other areas that could be attractive for specific sectors of activity, we expose those activities that currently offer very favorable conditions for investment in our country, either by the values of assets and inputs associated with them and / or because of a convenient tax system:

• Acquisition of sub-urban and urban property in the country.

• Acquisition of rural property for productive and / or investment purposes.

• Acquisition of / partnership with agro industrial companies; installation of new ones mainly in the sectors of meat, rice, milk, wine, citrus, apiculture and fisheries.

• Ventures into textile and leather areas.

• Installation of companies in Free Trade Zones for the provision of different services (communication, software development, research and development, distribution and logistics, international trading, etc.) complemented or replaced by free port scheme.

• Guidance on investment affairs, funding, international trade services through Uruguayan onshore and offshore companies, which could be complemented or replaced by companies from other jurisdictions managed from our country.

• Offshore financial activity through external intermediation of financial entities.

• Afforestation and related industries.

• Investment through the regime of public works assignment.

• Tourism investment.

• Bioenergy investment.

• Participation in privatization programs and partnerships with the state in the areas enabled to that purpose.

• Mining and related industries: extraction of granite, marble and granite processing, granite ornamental products, extraction and processing of semi-precious stones.