Uruguay elections not expected to shake up investment framework

Investors need not worry about sweeping changes to Uruguay’s regulatory framework, even after this year’s general elections. 

“The trading law dates back to 1997, the free zone law is over 17 years old. These are all laws that have endured the passing of time, and they have not only endured but solidified, meaning that it is not likely this will change in the short or medium term despite the elections,” Perla Julián, country manager of law firm Montt Group, said in response to a question by BNamericas.

During a webinar on the country’s investment framework, Julián highlighted that Uruguay offers certain tax exemptions for projects that, among others, promote clean technologies or increase exports. She also emphasized that profits can be repatriated without much restrictions.  

Elections are slated for October 27 and a runoff for November 24.

Center-left Frente Amplio coalition is leading the polls, while the current center-right administration led by Luis Lacalle Pou has drawn criticism for its handling of security and economic issues. 

Lacalle Pou’s government also lost approval over its management of last year’s water crisis in Montevideo. 

Julián said investment projects like the Central rail line and road circuit 6 have advanced during this government, although they started under the previous one, led by Tabaré Vázquez of Frente Amplio.

Party primaries will take place on June 30, with polls indicating that Canelones governor Yamandú Orsi will likely win the nomination as Frente Amplio’s candidate, while former cabinet chief Álvaro Delgado is poised to become the candidate for the ruling National Party.

Frente Amplio passed a preliminary 2025-30 government program during its convention in December. The program includes studying options to “increase fiscal income from dividends and profits,” while also emphasizing the need for private investments in infrastructure, among other aspects. 

Delgado has also started to outline a program with the help of current and former administration officials, weekly Búsqueda reported. 

While launching his campaign earlier this month, Delgado said that he embodies the option of reelecting the current government. Lacalle Pou is constitutionally barred from running for a consecutive term.