Democracy Index The country Country Ranking - Uruguay has a strong Uruguay 23 democratic tradition, char- acterized by political and Costa Rica 27 social stability. Chile 32 - Open, stable and rapidly Brazil 41 developing economy with Panama 43 reliable and high level institutions. Argentina 56 - One of Latin America’s Colombia 60 highest GDP growth rates. Source: The Economist, 2008 - Modern and attractive Business costs of crime and violence investment regime. Country Ranking - Remarkable public educa- Uruguay 70 tion and human capital; Chile 80 ﬁrst country to implement One Laptop per Child Panama 89 (OLPC). Costa Rica 104 - There are no racial or Argentina 107 religious conﬂicts. Uruguay is free from epidemics and Brazil 118 natural disasters. Colombia 126 Source: World Economic Forum’s Global Competitiveness Report, 2009-2010 Lowest corruption Economic freedom Country Ranking Country Ranking Uruguay 25 Chile 10 Chile 25 Uruguay 33 Costa Rica 43 Costa Rica 54 Brazil 75 Colombia 58 Colombia 75 Panama 60 Panama 84 Brazil 113 Argentina 106 Argentina 135 Source: Transparency International, 2009 Source: The Heritage Foundation, 2010 Uruguay is a member of the Mercosur Common Market (Brazil,Argentina, Paraguay and Uruguay), and has signed FTAs withMexico and Israel, and a Trade and Investment FrameworkAgreement (TIFA) with the USA, among others. INVESTMENT AND EXPORT PROMOTION AGENCY
Tax and other incentives - Service exports are exempt from VAT. - There is a special promotion regime for contact centers: if the contact center employs more than 150 sta the company may obtain a 10-year corporate income tax exemption. - Companies based in a tax free zone are exempt of ALL national taxes, and foreign sta may opt not to contrib- ute to the Uruguayan social security system. Comparative compensation, net of taxes and social security contributions16014012010080604020 0 Chile Colombia Costa Rica Argentina Uruguay Administrative Finance Manager IT Manager Source: PWC, 2009. Rebased to Uruguay = 100 Human capital- The government guarantees free access to education throughUniversity.- Literacy rate: 98%.- 4.5% of GDP invested in education.- 100% of 15-year-olds attending high school have completed atleast 3 years of English and 2 years of computer training. The digital country- Uruguay is Latin America’s top technology country according toLatin Business Chronicle’s Latin Technology Index.- Uruguay is one of the hot new destinations for outsourcing. Mon-tevideo, its capital city, is ranked among the top 50 outsourcingcities according to Global Services/ Tholons (2009).- 40.0% of Uruguay’s population uses the internet. ( Source: Inter-national Telecommunications Union (ITU)).- Spanish is the main language, but English is widely spokenamong the young.- 58.3% of those using the internet know English (Source: INE –Uruguay’s Statistics Agency).
- Several other languages are spoken. For example, in Sabre Holdings’ global customer service center, 15 languages are spoken, incluiding, apart from Spanish and English, other languages such as Portuguese, Italian, French, German, Swedish and Turkish. - Cooperation between the government and a private company: The Knowledge Development Center was devel- oped by LATU (Uruguay’s Technological Laboratory) and Tata Consultancy Services. It provides high quality training for the IT sector in state-of-the-art facilities. Success stories “Our newest o ce is the one we opened in Montevideo, Uruguay in March 2009, responding to the country’s strong growth and the swiftly-increasing presence of multinational ﬁrms, some of which have chosen Uruguay as the headquar- ters of their Latin American operations. In addition to serving Uruguayan clients, Burson-Marsteller Montevideo is expec- ted to begin to perform a more international role within our ﬁrm, o ering such services as media monitoring and analy- sis for clients operating in Latin America and elsewhere. Uruguay’s highly-skilled and cost-competitive executives, as well as the country’s time zone between Europe’s and North America’s, will enable us to respond more quickly and cost- e ectively to client demands.” SANTIAGO HINOJOSA. CEO, Burson-Marsteller Miami/Latin America. Human development index Tertiary enrollment Country Ranking Country Ranking Chile 44 Argentina 20 Argentina 49 Uruguay 23 Uruguay 50 Chile 38 Costa Rica 54 Panama 48 Panama 60 Colombia 68 Brazil 75 Brazil 73 Colombia 77 Costa Rica 78 Source: UNDP, 2009 Source: World Economic Forum’s Global Competitiveness Report, 2009-2010 Internet access in schools Broadband penetration Country Ranking Country Ranking Chile 38 Uruguay 46 Uruguay 43 Chile 47 Costa Rica 62 Argentina 48 Brazil 64 Brazil 54 Colombia 81 Panama 57 Panama 82 Colombia 61 Argentina 89 Costa Rica 63Source: World Economic Forum’s Global Source: World Economic Forum’s Global Competitiveness Report, 2009-2010 Competitiveness Report, 2009-2010
Examples of multinational companies serving the world from Uruguay Success stories“We ﬁrst came to Uruguay in early 2004... to create a world customersupport center. We did an extensive search of many countries all overthe world. Some of the key criteria we looked at were economic stability,the safety of the location we were in, the legal structure, the ability todo business in the country. Language diversity was very important forus. We wanted as a global center, of course to support Spanish andPortuguese in Latin America, in North America, English, Spanish andFrench, and across Europe a number of di erent languages as well. Solanguage availability was very important to us. Today, our operationhere has become the second largest site after our headquarters.”YANNIS KARMIS. Vice President Global Customer Support, SabreHoldings.“The reason why we decided on Uruguay is that we found that thelegal system in Uruguay protects the foreign investor, the transpar-ency of the system is very important to us, the stability of the countrywas very important and the attention the government gives to investorsfrom overseas was key for us to decide to come here. This country providesan ideal context for the development of the software industry. Uruguay’sadvantages as outsourcing center were crucial in setting up the TATAConsultancy Services development center.” GABRIEL ROZMAN. VicePresident for Emerging Markets, Tata Consultancy Services.“In outsourcing, Uruguay has leapt ahead of its neighbors by beingthe ﬁrst to understand what could be done -that in today’s worldhaving an Indian company led by a Hungarian-Uruguayan servicingAmerican Banks with Montevidean engineers managed by Indiantechnologists who have learned to eat Uruguayan veggie is just thenew normal.” THOMAS L. FRIEDMAN. The New York Times.
Invest & ExportAbout UsAmong other functions, Uruguay XXIprovides support to foreign investorswho are considering investing in ourcountry as well as those who are alreadyoperating in Uruguay, at no cost.Our Investor ServicesUruguay XXI is the ﬁrst point of contact forforeign investors. Services we provideinclude:- Macroeconomic and industry information.Uruguay XXI regularly prepares reports onUruguay and on various sectors of theeconomy.- Tailored information. We preparecustomized information to answer speciﬁcquestions, such as macroeconomic data,labor market information, tax and legalaspects, incentive programs for invest-ments, location and costs.- Contact with key players. We providecontacts with government agencies, industryplayers, ﬁnancial institutions, R&D centersand potential partners, among others.- Promotion. We promote investmentopportunities at strategic events, busi-ness missions and round tables.- Facilitation of foreign investor visits,Including organization of meetings withpublic authorities, suppliers, potentialpartners and business chambers.- Publication of investment opportunities.On our website, we periodically publishinformation on investment projects bypublic entities and private companies. Rincón 518/528 - CP 11000 Phone: (598 2) 915 3838 - Fax: (598 2) 916 3059 Montevideo - Uruguay - firstname.lastname@example.org www.uruguayxxi.gub.uy