The main aspects that bring Uruguay into consideration at the time of planning offshore operations are:
1. Total freedom to move funds and exchange The entrance and exit of funds is totally free in Uruguay, there are no limits in terms of type of currency, metals, values, or the reason the funds are remitted. Likewise, the access to the exchange market is also free, allowing direct operation with banks and exchange offices without restrictions. The exchange rates fluctuate according to the oscillation of supply and demand, following the world market tendencies. The most used foreign currency is the U.S. dollar, the Argentinean peso and the Brazilian real.

2. Good financial system and bank secrecy Uruguay offers a financial market with first class banks considered such worldwide, working within a system that guarantees bank secrecy which assures confidentiality of the parties involved and of the operations. The existence of first class banks guarantees connections with any financial market in the world, and it is easy to open and work with bank accounts in the United States, Europe or any other place, including tax heavens.

3. Acceptable communications level The majority of telephone and telecommunication services are rendered by Antel that is a public entity that offers fax, telex, telegram services and a network of services of data transmission by computers. Two private cellular phone companies also exist.

4. Entrance and residence advantages The entrance of foreign travelers from Argentina, Brazil, Bolivia, Chile and Paraguay is allowed as long as the I.D. is exhibited. No passport is needed. It is possible for foreigners to obtain an Uruguayan permanent residency, if they can comply with minimum health and income requirements.

5. Identification of the investor Our commercial law establishes companies that can hide the identity of the shareholders. Either commercial or financial companies can have their capital represented by bearer shares which allows the anonymity of the shareholder.

6. Tax advantages The Uruguayan tax system offers interesting aspects for the investor. As an example we can mention the following:
6.1 Income tax The taxation of income is based on the source principle, that is why it doesn't reach the income obtained from activities or investments made outside the country. It is also important to point out that there is no personal tax on income, the only income tax is that obtained from enterprise activities.
6.2 Capital tax The principle of territoriality is also used in this case, therefore goods outside the country are not reached by this tax. As opposed to the income case, there exists a tax on an individual’s wealth.
6.3 Imposition on consumption There is a value added tax and a specific one for some goods, being both internal and therefore not reaching operations performed outside Uruguay.
6.4 Special situations There are special cases of tax exoneration and benevolent treatment over certain promoted activities. That is the case of offshore investment, for which a special legislation has been created establishing an almost total tax reduction for corporations which exercise these activities. As we shall see later, this kind of corporations are only subject to a tax of 0.3% on their capital plus such portion of liabilities that exceeds the capital twice. We shall also see the case of free trade zones, concerning which a total tax exoneration (income, capital, value added) has been established for corporations developing commercial, industrial or services activities. Finally we will consider the use of domestic corporations for trading operations that are celebrated between third parties.