Updates its investment incentives regime

23 Dec 2026

On 23 December 2025, the Government of Uruguay issued Decree No. 329/2025, substantially revising the regulatory framework implementing the Investment Promotion Regime established under Law No. 16,906. While preserving the statutory incentive structure and policy objectives of the law, the decree reforms the administrative operation of the regime by transitioning from a predominantly discretionary, negotiated approval model to a rules-based and performance-driven system, aimed at strengthening the targeting, measurability, and effectiveness of fiscal incentives, including:

• Clarifying eligibility conditions by defining eligible beneficiaries and eligible investments and reaffirming exclusions applicable to certain sectors and entities. Eligibility is limited to cooperatives and taxpayers subject to the corporate income tax (IRAE) whose investment projects are declared promoted by the Executive Power pursuant to Law No. 16,906.

• Establishing a unified, score-based evaluation methodology for promoted investment projects, aligned with the statutory objectives of Law No. 16,906. Projects are assessed against predefined indicators, including employment generation, territorial decentralization, export performance, environmental sustainability, technological upgrading, research and innovation, and strategic sector contribution, with minimum scoring thresholds required for promotion.

• Linking incentives to performance, whereby fiscal incentives—primarily corporate income tax (IRAE) exemptions—are determined based on the score obtained and the amount of eligible investment, subject to caps and minimum benefit periods set out in the decree.

• Enhancing incentives for large-scale investments, providing for corporate income tax (IRAE) exemptions of up to 100% of the eligible investment for projects exceeding UI 180 million or UI 300 million (~$ 30 or 50 million), subject to submission and execution deadlines and minimum scoring thresholds, with priority given to employment generation and technological upgrading, research and innovation indicators.

• Introducing procedural streamlining measures, including defined timelines for project evaluation by the Commission for the Application of the Investment Promotion Regime (generally 90 business days), simplified evaluation procedures for certain projects—particularly smaller-scale investments—the formal incorporation of digital administrative processes, and a mechanism of deemed (“ficta”) recommendation in cases of administrative silence, alongside clearer rules on project monitoring and reporting.

Earlier in 2025, on 18 August, the Ministry of Economy and Finance (MEF) announced the creation of the National Directorate for Investment Incentives (DINAI), integrating the Commission for the Application of the Investment Law (COMAP) and the National Free Trade Zones Directorate, as part of the institutional framework supporting the implementation of the regime.

Nature of measure:

• Facilitation
• Incentives

Type:

• Promotion and facilitation (Investment facilitation , Investment incentives)

Industry:

• Not industry specific

Sources:

• Ministerio de Economia and Finanzas, El MEF anuncia medidas para incentivar las inversiones, https://www.gub.uy/ministerio-economia-finanzas/comunicacion/noticias/mef-anuncia-medidas-para-incentivar-inversiones, 18 Aug 2025
• Ministerio de Economia and Finanzas, Régimen Decreto Nº 329/025, https://www.gub.uy/ministerio-economia-finanzas/politicas-y-gestion/regimen-decreto-329025, 08 Jan 2026