Argentine consultations to set up companies in Uruguay are up 42%

RIO DE JANEIRO, BRAZIL – The economic situation in Argentina does not seem to benefit technology entrepreneurs and, as a result, many are looking to Uruguay as an ideal destination to expand their business.

Uruguay XXI government agency – dedicated, among other things, to promoting and attracting investment to the country – has observed an increase in the number of open business “opportunities,” as a result of consultations and advisory proceedings begun during the year. In particular, and as expected, has highlighted the growing interest from Argentina, particularly focused on the technology sector.

Alejandro Ferrari, Uruguay XXI’s Investment Manager, reported that last year there were “42% more consultations, resulting in an interesting portfolio with over 200 open opportunities” to do business. Ferrari emphasized the “great interest from Argentina,” where the number of consultations increased fourfold, while the number of procedures initiated for technology ventures grew threefold. Other areas of growing interest were distribution centers for pharmaceutical companies, customer service and industrial projects. According to the government agency, 263 consultations were received in 2020: 162 started the process last year and 214 are ongoing.

Another striking fact reported by the same organization is that the case of Brazil contrasts with what occurred in the country, since the number of consultations fell by half.  In addition to the development of technology processes, there is interest in providing financial or trading services abroad, and call centers for customer service.

In 2018, Infotechnology reported how Uruguay is trying to attract Argentine companies through tax incentives for imports of prototype components to be used in electronics and robotics innovations. The Uruguayan government at the time enacted a law that enables exemption of taxes and duties on the import of supplies for the prototyping process or small production series, associated with technological innovation in the electronics or robotics sector, and to waive the need for customs clearance intervention.

Source: La Republica