The general regime of free zones is legislated by law number 15,921 with recent modifications of law number 19,566.

Main characteristics of this law:

It declares of national interest the promotion and development of free zones with the objective of generating employment, promoting investment, diversifying the productive matrix, increasing exports and favouring Uruguay’s insertion in international trade.

The free zones are intended to carry out the following activities:

1. Commercialisation of goods.
2. Setting up and operation of manufacturing establishments.
3. Provision of all types of services, both within the free zone and from it to third countries, as well as to users of other free zones.

The services rendered to third countries may be provided, from the free zone to non-free national territory, to companies that are taxpayers subject to the Tax on Income from Economic Activities (IRAE).

Free zone users may be any natural or legal person who acquires the right to carry out any of the aforementioned activities in the free zone.

A direct user is such person who acquires the right to operate in the free zone by means of a contract concluded with the free zone administrator.

An indirect user is one who acquires the right to operate in the free zone by means of a contract concluded with the direct user using or taking advantage of its facilities.

All contracts must be previously authorised by the National Directorate of Free Zones.

Free zone users shall employ a minimum of 75% (seventy-five percent) of Uruguayan citizens as their personnel in the activities they carry out in the free zones.

The foreign personnel working in the free zone may express in writing their wish not to benefit from the social security system in force in the Republic; there shall be no obligation to make the corresponding contributions.

Users are exempt from all national taxes, created or to be created, including those which by law require specific exemption, with respect to the activities they carry out in the free zone, provided that these are carried out within the framework of the law.

Goods, services, merchandise and raw materials, whatever their origin, introduced into the free zones shall be exempt from all taxes.

The State, under liability for damages, assures the user, for the duration of the contract, the tax exemptions, benefits and rights established by law.

The entry to and exit from the free zones of securities, national and foreign currency, precious metals for any concept, their possession, commercialisation, circulation and conversion or transfer are entirely free.