UPDATE: Uruguay’s Legal System and Research

By Cecilia Orlando and Melanie Ollero

Cecilia Orlando is Counsel at the law firm Guyer & Regules in Montevideo, Uruguay. She works in the litigation and arbitration department. She has extensive experience in advising multinational and national companies operating in Uruguay. In 2013, she earned an LL.M. degree from New York University, where she was awarded a merit-based scholarship. She is a practicing attorney of Uruguay and of New York. Her litigation and arbitration practice covers a broad range of complex civil litigation matters. She is highly regarded for her vast experience in handling complex negotiations, lawsuits and domestic and international arbitrations related to civil and commercial matters. Her experience litigating in a common law country is extremely valuable. She is assistant professor at “Universidad de la República” in “Civil Law”. She has attended numerous seminars and both national and international conferences on civil law (with a focus on contractual issues).

Melanie Ollero is an associate of the litigation and arbitration department at Guyer & Regules. She has experience in advising clients on issues related to arbitration and civil and commercial contracts. Melanie develops her duties mainly in the litigation department, participating in litigation and arbitration related to civil and commercial matters. In the academic field, she is an assistant professor on Contract Law at the University of Montevideo. Also, she studied at the Austral University of Buenos Aires, Argentina, where she obtained a postgraduate diploma on Contracts and International Judicial Litigation in 2021. She participated in representation of the University of Montevideo in the X Latin American Commercial Arbitration Moot that took place in Buenos Aires, Argentina, in the 25th Willem C. Vis International Commercial Arbitration Moot that took place in Vienna, Austria and in the Foreign Direct Investment Arbitration Moots that took place in Stockholm, Sweden and Miami, United States. Since 2020, she is coaching the University of Montevideo’s team in their participation in the abovementioned competitions.

This update was drafted with the support from the diverse departments of the law firm Guyer & Regules.

Published May/June 2023

(Previously updated by Pablo Sandonato de Leon in January/February 2010; and by Juan Troccoli, Mariana Barua and Juan Fischer in July/August 2016)

See the Archive Version!

Table of Contents

1. General Country Information

Uruguay is located in a strategic geographical area in the region: it is a buffer state between Brazil and Argentina and a gateway to the basins of the River Plate and the River Parana. Its population has a high literacy rate and there is a large urban middle class. Income distribution is relatively even, infrastructure is good, and telecommunications are well-developed. There is an adequate and dependable juridical framework. Regarding governance and governability, Uruguay is known in the region for its political and economic stability. It is a market-oriented economy in which the state still plays an important role.

Uruguay is a major destination for regional and extra-regional investment, and provides market opportunities in information technology, telecommunications equipment, and chemicals. Major infrastructure projects in the pipeline are the Paraná-Paraguay River Transportation System, energy projects (combined power plant, transmission, and wind), railway rehabilitation, port projects and cellulose and wood chipping plants. More information regarding Uruguay’s economy can be found on the Investment, Export, and Country Brand Promotion Agency of Uruguay XXI.

At a diplomatic level, Montevideo hosts the headquarters of a number of regional international organizations: the Secretariat and the Permanent Representatives Commission, as well as the Parliament of MERCOSUR; all three organs of MERCOSUR; the Latin American Integration Association (ALADI for its Spanish acronym, created at Montevideo in 1980); the Postal Union of the Americas, Spain and Portugal (UPAEP); and the Inter-American Children’s Institute, a subsidiary organ of the Organization of American States.

See the Corruption Perceptions Index (CPI) at Transparency International. Uruguay is ranked 18th in 2021.

Basic Facts:

The website of the Investment and Export Promotion Institute, called Uruguay XXI, includes general data of Uruguay, and is published in English.

2. The Uruguayan State

Frontiers: To the North and Northeast: with the Federal Republic of Brazil; to the East: with the Argentine Republic; to the South-Southwest: with the River Plate and the Atlantic Ocean

Form of Government: Semi-Presidential, Proportional, Representative Republic.

Administrative Divisions: 19 departments [“departamentos” (pl.) “departamento” (sing.)]: Artigas, Canelones, Cerro Largo, Colonia, Durazno, Flores, Florida, Lavalleja, Maldonado, Montevideo, Paysandú, Río Negro, Rivera, Rocha, Salto, San José, Soriano, Tacuarembó, Treinta y Tres. A map of Uruguay with all its departments can be found at the website of the Military Geographic Service of Uruguay (Instituto Geográfico Militar).

Institutional Background: Rule of Law and democratic values are a constant in the civic life of the country, with exceptions in the late 19th century and between 1972 and 1985. The President and Vice-President of the Republic are elected by direct, universal, and secret ballot, as are the legislators, both national (in a bicameral system of Senators and Representatives, the latter also known as “Diputados”) and departmental, and the departmental executive branch (“Intendente Municipal”). The legislative branch, in a joint session of both Chambers (General Assembly), elects citizens to constitute the jurisdictional organs: namely, for judicial justice (the Supreme Court of Justice), for electoral justice (the Electoral Court), and for administrative justice (Contentious Administrative Court); all of whom are known as “Ministers”. It also elects the members of the disbursements and payments external control organ (Court of Audit).

The President of the Republic is elected for a period of five years, non-renewable consecutively. According to most received constitutional doctrine, the President is only the Chief of State, while the office of Chief of Government corresponds to the President acting in Cabinet (with his Ministers). The President acting with one or more Ministers, or with the entire Cabinet depending on the issue, constitutes the Executive Branch. It is said that Uruguay’s system is not entirely presidential because, even though the President elects his Ministers freely (according to the Constitution); he can only do so from amongst citizens who, through Parliamentary support, are assured of their permanence in office. State Ministers can be censured by Parliament.

The Legislative Branch is composed of three organs: the Chamber (House) of Senators, the Chamber (House) of Representatives and the General Assembly (both Houses in joint session). Members of this branch are also elected by universal and secret ballot by means of an integrated system of proportional representation (albeit in a weakened version). The Vice-President of the Republic is President of the Senate, which has 31 members. The House of Representatives has 99 members.

As a remnant of early and mid-20th century state interventionism, the state is still engaged in commerce and industry, acting through autonomous entities and decentralized services, which have varying degrees of independence from the Executive Branch. A brief comment about Uruguayan form of government can be found on the official website of the Ministry of Foreign Affairs, which is published in Spanish. The Constitution of Uruguay sets the main features of Uruguayan Government. It can be found in Spanish on the website of the National Office of official Printouts and Publications (Dirección Nacional de Impresiones y Publicaciones Oficiales) (article 82 and the following).

Territorial Administration: Territorial administration is decentralized and carried out in 19 Departments, each of which has its own non-autonomous executive branch (the executive authority is the Mayor, or Governor, known as the Intendente) and legislative branch (Departmental Council). The Departmental Council is composed of 31 honorary members (councilors), who pass regulations which are legally binding within the territory of the department. The Council must approve the departmental budget (that is, the budget proposed by the Council itself and the Executive Authority).

Uruguay operates on a five-year national budget, with yearly balances and indispensable adjustments. The initiative in budgetary issues is the exclusive responsibility of the Executive Branch, except in the cases of the controlling organs and the decentralized services and autonomous entities.

3.1. General Background

The Uruguayan juridical system comprises a code of Civil Law based on the Spanish legal system, since Uruguay’s territory was once part of the Kingdom of the Indies, whose sovereign was the King of Spain. This code can be found in Spanish on the website of the IMPO Legal Publications for purchase, and on WIPO site where the code, updated as of Feb 26, 2010) is available in ENG for download as PDF.

The current Constitution was approved in 1967 (with amendments in 1989, 1994, 1996 and 2004). It establishes that laws should be written and passed by Parliament and enacted by the President of the Republic. Uruguay has adopted the Civil Law system; however, sentences issued by jurisdictional justice (Courts of the first instance, Higher Courts and the Supreme Court of Justice), are used as a guide in subsequent trials; although they are not binding (do not constitute a legal precedent). Sentences of Higher Courts and the Supreme Court can be found in Spanish, in the National Public Case-Law Database (Base de Jurisprudencia Nacional Publica)

In issues pertaining to property rights and their guarantees, secured interests in property and contracts are recognized and enforced. Mortgages exist, and there is a recognized and reliable system of recording such securities. Uruguay’s legal system protects the acquisition and disposition of all property, including land, buildings, and mortgages. Nevertheless, execution of guarantees is usually a slow process.

3.2. Sources of Law

The only two sources of Law in Uruguay are the Constitution and the legislation. Custom is only a source of law when the law expressly refers to it, and settled views among scholars and case law are only used as instruments of interpretation. Sources of law are established by the preliminary title of the Uruguayan Civil Code, articles 1, 3, 9 and 16). The structure of the Uruguayan juridical system is strongly pyramidal in shape, with the Constitution at the apex. Below the Constitution is the Law (and Departmental Council decrees—departmental legislative acts which are binding within their territory—the decrees of the Executive Branch, Ministerial Resolutions, etc.).

3.3. The Law and its Procedures

Bills may originate amongst the citizens (by means of a popular initiative, both for the passing or the repeal of a law), in the Legislative Branch (in any of the two Houses of Parliament) or in the Executive Branch. However, legislative initiatives in matters related to the budget, public expenditure, tax exemptions, and minimum wages are the exclusive prerogative of the Executive Branch (in its capacity as leader of the State’s economic policy), as are bills which are declared urgent. This is established in articles 79, 85, 133 and 305 of the Uruguayan Constitution.

In every case, Bills must be considered and passed by both Houses. Thus, a Bill passed by one of the Houses must be sent to the other, but if the latter fails to pass it and rejects it; the Bill will not be approved and may not be submitted again during the same year’s session. On the other hand, if the House receiving the Bill should only have observations or addenda to include, the Bill is returned to the originating House which, if it accepts the observations or addenda, will communicate this fact to the other House and send the Bill directly to the Executive Branch so that the process may continue. However, if the originating House does not accept the observations or addenda and insists upon the original Bill, an assembly of both Houses may be requested (General Assembly), which will reach a decision, by two-thirds of the votes, passing one of the two Bills or drafting a new one.

Once a Bill is passed by both Houses, it is sent to the Executive Branch to be enacted and published. However, if the Executive Branch should have objections or observations, in total or in part (veto), the Bill must be returned with the objections or observations to the General Assembly, within a peremptory term of ten days. The General Assembly is convened and must decide, by three-fifths of the members present in each of the Houses, whether to accept the Executive Branch’s modifications, or to reject them, maintaining the Bill which was previously passed. If, after 30 days, the General Assembly has not expressly rejected the modifications, they will be taken as approved. On the other hand, if the assembled Houses reject the Bill returned by the Executive Branch, it will not be passed and may not be submitted again during the year’s session. If, however, the Executive Branch’s modifications are reconsidered, the Assembly will vote nominally, for aye or for nay, and each voter’s vote and justification is published in the press.

3.4. Interpretation of the Law

The interpretation of the Law is regulated by the Preliminary Chapter of the Civil Code. The established method is referred to in doctrine as the “logical-systematic” method and consists of interpreting the text and context of a law, avoiding abstract results which may not be just. Thus, if the letter of the law is clear, it must be applied: “the literal meaning of a law may not be ignored, under the pretext of consulting its spirit”. On the other hand, if the literal meaning of a law is not clear, the intention or spirit of the law, as clearly manifested by the law itself, or by reliable records of its application, may be invoked. The historical method is, therefore, only auxiliary.

3.5. Codification and De-Codification of the Law

National legislation is heavily decodified, despite the existence of ten Codes: Civil, Commercial, Criminal, Civil Procedures and Criminal Procedures, Mining, Water, Rural and Tax. The Civil Code was passed in 1867, the Commercial Code in 1865 and the Criminal Code, in 1934. The remaining Codes are more recent but, in every case, are evidently outdated, with the sole exception of the General Procedural Code, of 1988, which has been used as a model for procedural codes in various Latin American countries.

There are at present innumerable laws which expressly or tacitly modify the regulations contained in the codes and which generate practical difficulties for those who must apply the law, and students. The problem is also invested with systemic significance, in view of the general obsolescence of juridical institutions which are somewhat anachronistic and others which lack regulation, considering the advances of science and technology in the last few decades. The phenomenon of de-codification in Uruguayan law has not been fully considered by national doctrine, but it is a serious problem that requires attention.

3.6. The Resolution of Conflicts

In Uruguay, juridical controversy may be resolved in one of two ways (except where the law states otherwise): judicially or extra-judicially. The first consists of applying to the Judicial Branch’s institutions; the second, to the institutions of conciliation and arbitration existing in Uruguay or abroad. The Uruguayan Stock Market has a Conciliation and Arbitration Centre, which also officiates as an International Court of Arbitration for the MERCOSUR.

Uruguayan arbitration system is dualist: (i) on the one hand, the Uruguayan General Code of Procedure regulates domestic arbitration (Articles 472 to 507 of the General Code of Procedure); (ii) on the other hand, Law No. 19,636 regulates International Commercial Arbitration. The arbitration is considered International when: (a) the parties to the arbitration agreement have their places of business in different States; or (b) when the place where a substantial part of the obligations of the commercial relationship or the place with which the subject matter of the dispute is most closely connected are located outside the State in which the parties have their place of business. The sole will of the parties shall not determine the internationality of the arbitration (Art. 1.4).

Regarding the commercial aspect of the arbitration (which should be complied together with the internationality to be covered by Law 19,636), Law 19,636 provides a broad definition in its Art. 1.7, by stating that the term commercial shall be construed broadly as comprising all matters arising in commercial relationships, either contractual or non-contractual. Such commercial relationships include, as way of example and without limitation, among others: supply or exchange of goods or services, distribution agreements, commercial agency, assignment of credits (factoring), leasing operations, construction matters, consultancy agreements, engineering agreements, license agreements, investment, financing and banking, insurance agreements, concession or exploitation agreements, joint ventures or other forms of industrial or commercial cooperation, air, road or maritime transport of goods or passengers, etc.

Additionally, Uruguay has ratified the following arbitration conventions and agreements:

Labor and Administrative matters of 1992. Additionally, Uruguay has ratified the ICSID Convention. In absence of an applicable bilateral or multilateral treaty between Uruguay and the other States involved in a specific case, or for all matters not addressed by such treaties, international arbitration is governed by Law No. 19,636.

3.7. Applicability of International Law in Uruguay

The negotiation, signing (of assent or adherence) and ratification of treaties is the responsibility of the Executive Branch, in its capacity as the conductor of Uruguay’s foreign policy. Once a treaty is signed, the Executive Branch sends it to the Legislative Branch for approval. In Uruguay, this is affected by means of a law, in both the formal sense (the same process is followed as in the case of a regular law) and the material sense (the text of the law which approves a treaty usually uses the following terms: Aprúebase el tratado sucrito por la República el..., that is, “the treaty… is hereby approved... subscribed by the Republic on...”).

The only formal difference regarding other types of law is that the Legislative Branch may only pass or reject the treaty; it may not, obviously, introduce modifications or amendments. Once the text has been approved, it is sent to the Executive Branch, who now has a double task: as a law, it must be enacted (and ordered to be enforced within the national territory) and published (in the official Gazette). However, as a treaty, the Executive Branch is also responsible for depositing the instrument of ratification, a procedure carried out by the Ministry of Foreign Affairs.

The approval of a treaty by means of a law generates a problem concerning the hierarchy of the treaty within the legal system, since the Constitution lacks any express or tacit reference to the subject. Doctrine is not in agreement in this matter and jurisprudence very rarely expresses an opinion on international treaties and, when it does, it refers to the laws which approve them. It may be seen that Uruguay is an extremely dualistic country.

There is a problem regarding the method of interpretation of treaties, which has not been considered by jurisprudence, although it has, however, been considered by Uruguayan internationalist doctrine. As each treaty is also a law, a judge could interpret it in accordance with the procedures laid down for the interpretation of laws; on the other hand, as it is also a treaty, it must be interpreted according to the provisions of the Vienna Convention on the Law of Treaties (which is also in force in Uruguay as a law). Furthermore, as the text of a treaty is legally binding, due to its nature as a law, it could be modified internally by a subsequent law (“lex posterior derogat legi priori”). All this could generate, in our view, different and irreconcilable interpretations (due to the lack of provision as regards the hierarchy of international treaties) or a regulatory conflict, with the consequent danger of incurring international liability.

Uruguay has approved or ratified the following international instruments (not a comprehensive list):

3.8. Conflict of Laws (Private International Law)

The Uruguayan juridical system provides a series of solutions regarding Private International Law, or the conflict of laws, established in the Appendix to the Civil Code, and in the Treaties on Private International Law of Montevideo, of 1889 and 1940, both still current. Regulations in this matter are of “ordre publique”, and thus may not be modified by agreement of the parties.

It is also established that in Uruguay, “in no case, [shall] foreign laws which manifestly contravene the essential principles of international public order on which the Republic bases its juridical individuality” be enforced (an expression which doctrine has used to define the concept of “public order” in the matter of conflicting laws).

The solutions are:

In Uruguay, the parties are free to choose the applicable law and jurisdiction of a given court, as long as the contract can be categorized as international. Contracts can be categorized as international if the parties have their habitual residence or their premises in different countries, or if the contract has objective relevant links with more than one State.

3.9. Recognition of Foreign Rulings

As established in the General Procedural Code, rulings issued in a foreign country in matters of civil, commercial, family, labor, and public administrative law; rulings issued in criminal matters, with regard to their civil effects when these refer to private persons or interests; and rulings issued with regard to such matters by International Courts; shall, in Uruguay, be endowed with imperative, evidentiary and final effect. In other terms, foreign rulings shall be recognized and enforced in Uruguay, if appropriate, without any need for review regarding the background of the matter which is the object of the proceedings related to the rulings which were issued.

Foreign actions of voluntary jurisdiction come into effect in Uruguay so long as they comply with the requirements established hereinafter, in all relevant ways. For a foreign ruling, on both contentious and voluntary jurisdictions, to be effective in Uruguay, it must comply with the following conditions:

To request fulfillment of a foreign ruling the following supporting documentation is required:

The enforcement of a foreign ruling is limited only to rulings which are subject to enforcement. A request for enforcement must be submitted to the Supreme Court of Justice of Uruguay. Once the petition has been submitted, a summons is issued to the party involved, who will be issued with a twenty-day notice. The Court Prosecutor is then heard, and a resolution is issued, which is not subject to appeal. If enforcement is confirmed, the sentence is remitted to the competent court, so that it may act in accordance with the appropriate procedures according to the nature of the sentence.

Recommended further reading on the Uruguayan legal system:

4. The Judicial System

Justice in Uruguay is centralized in the Judicial Branch, which has national authority; that is, there are no autonomous judicial institutions within each department or city. The Judicial Branch is organized based on its independence with respect to the other governing branches in the State, and of the functional independence of the judicial institutions which compose it. That is, there is no functional hierarchy between the various institutions of the Judicial Branch, in the exercise of the jurisdictional function. In its administrative activities, however, all institutions and offices of the Judicial Branch are subject to the authority of the Supreme Court of Justice.

The institutions of jurisdictional justice in Uruguay are the Supreme Court of Justice, the Courts of Appeal, District Courts (Juzgados Letrados), Peace Courts (Juzgados de Paz) and Rural Courts (Juzgados Regales).

The average duration of civil suits in Uruguay has increased because of the increase in judicial activity. The official Judiciary website provides data: In 1998, 968 judgments were rendered in the first instance in civil matters, and 245 in the second instance. A total of 1284 judgments were rendered in civil matters in that year. In 2007, 1328 judgments were rendered in civil matters and 418 in the second instance. A total of 1746 judgments were rendered in civil matters in that year. In 2013, 1730 judgments were rendered in Montevideo in the first instance in civil matters, and 1602 in the second instance. A total of 2,973 were rendered in civil matters in that year. In 1998, the average duration of a civil suit was 18.5 months for the first instance and 4.4 months for the second instance, whilst in 2007, the duration was 26.3 months for the first instance and 5.8 months for the second instance. In 2013, the average duration of a civil suit in Montevideo was of 21.1 months for the first instance, and of 5.4 months for the second instance.

4.1. The Supreme Court of Justice

The Constitution establishes that the responsibilities of the SCJ (Supreme Court of Justice) are:

The SCJ is composed of five judges, elected by the General Assembly with two-thirds of the votes of the total number of members.

4.2. Courts of Appeal

The Courts of Appeal find, in the second instance, in appeals lodged against sentences of the first instance passed by District Courts in the respective areas. The Courts of Appeal are specialized according to subject matter; at present there are Courts of Appeal in the following areas: Civil, Family, Labour, and Criminal.

4.3. Other Courts

The Court is the basic jurisdictional unit; the difference between a Court and the Courts of Appeal being that the Courts find in the first instance and are individual, whereas the Courts of Appeal find in the second instance and are composed of a tribunal (three members). Courts may be of three types: District, Peace, or Rural.

District Courts (Juzgado Letrado): District Courts are of two kinds: District Courts of First Instance, with territorial jurisdiction within the department of Montevideo, and District Courts of First Instance in the Interior, with jurisdiction in departments other than Montevideo (in Uruguay, the area beyond the capital city of Montevideo is known as the “interior” of the country).

District Courts of First Instance: Although their full name includes the term “of First Instance”, this is a redundancy, as, in fact, there are no District Courts of Second Instance. Furthermore, District Courts of First Instance act as appeal courts for Peace Courts, so the name is not entirely apt.

Specialization of the District Courts, according to subject matter, is as follows:

District Courts of First Instance in the Interior: Their territorial jurisdiction is in the departments in the interior of the country (outside of Montevideo), whereas their material jurisdiction comprises various matters: criminal, labor and customs; and in civil matters, commerce, property, family, and minors. They also find in the second and final instance in appeals originating against sentences passed by the Peace Courts within their territorial jurisdiction.

Peace Courts (Juzgado de Paz): As in the case of the District Courts, Peace Courts are of four types, and their jurisdiction is distributed according to two criteria: territorial and monetary.

Departmental Peace Courts in the Capital: These Courts find in non-contentious judicial matters, which are outside the orbit of Family District Courts, whatever the monetary sum involved. Also within their jurisdiction are contentious matters; civil, commercial and of property when the monetary sum involved does not exceed a fixed amount which is determined annually (in 2007; approx. USD 7,000).

Offence and Misdemeanour Courts: find in a single instance in cases which arise from offences committed within the department of Montevideo; however, their involvement in forensic procedures is minimal.

Departmental Peace Courts in the Interior: Their territorial jurisdiction is limited to the department in the interior of the country in which they are located. In material terms they find in the first instance in contentious matters, civil, commercial, and relating to property, involving monetary sums not exceeding an amount fixed annually (in 2007; approx. USD 3,800 or 1,700, depending on the case); in voluntary jurisdiction; non-contentious jurisdictional actions, whatever the sum involved.

Peace Courts in Cities, Towns or Villages in the Interior: These Courts find in single instance in contentious matters, civil, commercial, and relating to property, involving monetary sums not exceeding an amount fixed annually (in 2007; approx. USD 1,700); and in the first instance, in matters involving sums exceeding that amount but not exceeding an amount fixed annually (in 2007; approx. USD 3,800).

Rural Peace Courts: These Courts find, in the first instance, in civil, commercial and property suits involving monetary sums not exceeding an amount fixed annually (in 2007; approx. USD 1,700).

Recommended further reading on the Uruguayan judicial system:

5. Citizenship and Status of Foreigners

5.1. Citizenship

Citizens of Uruguay (known as Orientales from the country’s official name, República Oriental del Uruguay) may be natural or legal citizens. Citizenship does not extend jure sanguinis beyond the second generation. Natural citizens are:

The phrase “become residents in the country” is understood to imply the carrying out of actions which make the individual’s intention in this regard unequivocally manifest; such as, for example, remaining in the country for over a year; renting, promising to acquire or acquiring real estate in order to reside in it; installing a place of business or industry, becoming employed in the public or private sector, or “other similar actions which provide evidence of intention”.

Legal citizenship may be requested by any person who:

In addition to the above conditions, it is required that the foreigner:

The rights inherent to legal citizenship may not be exercised until three years have lapsed since the citizenship was granted. The existence of any of the reasons for suspension referred to in Article 80, will be an obstacle to granting citizenship. However, the General Assembly may, notwithstanding, grant special grace and favour citizenship, when an individual’s notable services or significant merits should so warrant. There is no provision for jure matrimonii citizenship in Uruguay.

5.2. Status of Foreigners

Entry to Uruguay is free, and there are no prior permits, invitations, visas (in some cases), nor vaccinations required. Foreigners arriving in Uruguay may remain for 90 days, without paid employment. This may be extended to a further 90 days at the request of the interested party.

Citizens of the following countries do not require visa to enter Uruguay: Andorra, Argentina, Armenia, Australia, Austria, Bahamas, Barbados, Belgium, Belize, Bolivia, Brazil, Bulgaria, Canada, Chile, Colombia, Costa Rica, Croatia, Cyprus, Czech Republic, Denmark, Dominican Republic, Ecuador, El Salvador, Estonia, Finland, France, Georgia, Germany, Great Britain, Greece, Granada, Guatemala, Guyana, Holland, Honduras, Hong Kong, Hungary, Ireland, Iceland, Israel, Italy, Jamaica, Japan, Korea Republic, Latvia, Lichtenstein, Lithuania, Luxembourg, Malaysia, Malta (Republic of), Malta (Sovereign Military Order of), Mexico, Monaco, New Zealand, Nicaragua, Norway, Panama, Paraguay, Peru, Poland, Portugal, Romania, Russia, Saint Kitts And Nevis, San Marino, Saint Vincent And The Grenadines, Slovakia, Slovenia, Spain, Serbia, Seychelles Islands, Singapore, South Africa, South Korea, Sweden, Switzerland, Trinidad and Tobago, Turkey, United States and Venezuela. (See Ministerio del Interior – Visas)

There is no discrimination in law or in fact between nationals and foreigners, except as regards the exercise of political rights and those rights which are inherent to nationality, such as employment in the civil service.

Recommended further reading on citizenship and status of foreigners in Uruguay:

6. Human Rights

6.1. Domestic System

The Constitution devotes its second chapter to the protection of Human Rights. In this section, the article establishes that: the inhabitants of the Republic have the right to be protected in their enjoyment of life, honor, freedom, safety, work, and property. No-one may be deprived of these rights except in the cases determined by laws which are established in the general interest.

The Constitution expressly protects the right to the status of a person in the eyes of the law, to personal integrity; it prohibits slavery, protects personal freedom, establishes judicial guarantees and the principles of legality and non-retroactivity, indemnity, the protection of honor and dignity, identity, freedom of conscience and religion, and of association, protection of the family, the right to nationality and to a name, the rights of children, the right to health-care, education, recreation, culture, to private property, to freedom of circulation and residence, political rights, equality in the eyes of the law, judicial protection, progressive development and minimum guarantees in times of exception.

The right to petition is also acknowledged. By means of this right, any administrative authority is required to rule upon any petition presented by the holder of a legitimate interest in the execution of a specific administrative act, and to resolve the administrative appeals which may be made against its decisions, following the appropriate procedures established for the due process of the matter, within a term of 120 days, from the date when the final action took place, in accordance with the applicable law or regulation.

6.2. Some Treaties to which Uruguay is a Party

Uruguay is party to the International Covenant on Civil and Political Rights and its Optional Protocols; the International Covenant on Economic, Social and Cultural Rights and its Optional Protocol; the American Convention on Human Rights; the Convention on the Rights of the Child; the Convention against Torture and Other Cruel, Inhuman or Degrading Treatment or Punishment and its Optional Protocol; the International Convention for the Protection of All Persons from Enforced Disappearance; the Convention against the Taking of Hostages; the Supplementary Convention on the Abolition of Slavery, the Slave Trade, and Institutions and Practices Similar to Slavery; the Convention on the Prevention and Punishment of the Crime of Genocide; the Convention on the Elimination of All Forms of Discrimination against Women; the International Convention on the Protection of the Rights of All Migrant Workers and Members of Their Families; the International Convention on the Elimination of All Forms of Racial Discrimination; the Convention on the Civil Aspects of International Child Abduction (approved by law N° 17,109); and the Convention on the Protection of Children and Co-operation in Respect of Inter-Country Adoption (approved by law N° 17,670); amongst others.

At the Inter-American level, the most significant are the Inter-American Convention on the Elimination of All Forms of Discrimination Against Persons With Disabilities; the Inter-American Convention to Prevent and Punish Torture, the Inter-American Convention on Forced Disappearance of Persons; the Inter-American Convention on International Traffic in Minors (approved by law Nº 16,860); the Inter-American Convention on Support Obligations (approved by law Nº 17,334); and the Inter-American Convention on Jurisdiction in the International Sphere for the Extraterritorial Validity of Foreign Judgments (approved by law Nº 17,533), amongst others.

6.3. Criminal Law on Grave Offences against Human Rights and Humanitarian Law

International Crimes as established in article 5 of the Statute of the International Criminal Court have been incorporated into domestic law and are therefore also offences under national law. It should also be mentioned that, according to domestic law: The Eastern Republic of Uruguay has the right and the duty to adjudge acts prescribed as an offence under International Law.

The country will grant neither asylum nor refuge when there are sufficient grounds to believe that a person has committed the crimes in question. Such crimes are imprescriptible (meaning that they are not affected by any statute of limitations) and cannot be the object of any amnesty or pardon.

Genocide: According to domestic legislation, genocide is committed when there is the intent to destroy, in whole or in part, a national, ethnical, racial or religious group; but also, a political, or an associative group; or a group with a self-identity based on gender, sexual orientation, culture, society, age, different capabilities, or health. Genocide can be committed through regular means, but also through torture, forced disappearance, imprisonment, sexual aggression, forced pregnancy, inhuman or degrading treatment, the intentional subjection to deprivation of resources which are indispensable for survival; through a serious disruption of health; to the systematic expulsion of persons from their homes or through conditions of existence which can hinder persons from pursuing their way of life or give rise to the full or partial physical destruction of the group. Uruguayan Law also adds as an autonomous crime the public incitement to commit genocide.

Crimes against Humanity: Are those established in article 7 of the Rome Statute. However, domestic law has incorporated other acts as crimes against humanity. Crimes against humanity that are committed in the context of a domestic or international armed conflict will be considered "war crimes” by reason of specialty.

Those acts are:

Recommended further reading on Human Rights in Uruguay:

7. Family Law

7.1. Marriage

Marriage is regulated as in most Civil Law systems. Marriage creates a link between persons and a community of property for goods acquired by them in the future. Divorce is incorporated in national law and can be granted upon the fulfillment of certain requirements. Prior to the issuance of a divorce decree, our law requires the spouses to resolve the custody, visitation, and alimony of their minor children (if any), at least on a provisional basis.

Additionally, spouses may grant marital contracts in which they will establish the property regime they agree to govern during the duration of the marriage. In general, when capitulations are granted, the absolute separation of assets and debts is agreed. Although other agreements could be established that deviate from the legal regime, which will apply in everything that the spouses have not agreed.

The marriage contracts must always be executed before to the celebration of the marriage and will be effective as of its celebration. Once the capitulations have been granted, the spouses will not be able to modify what has been agreed. If the spouses do not execute marriage contracts, the Uruguayan legal property regime will apply to them. The legal regime is of community property of all assets and liabilities acquired by the spouses during the term of the marriage, except for those exceptions expressly established by law. If during the term of the marriage the spouses want to dissolve the marital property partnership, they will be able to proceed with the dissolution of the marital property partnership through the courts.

7.2. ‘Concubine’ Union (Civil Unions)

The de facto union between two persons living together without being united in marriage is protected under Uruguayan law. For this to occur, the two persons must live together united by a sexual interest in an exclusive, singular, stable, and permanent manner for an uninterrupted period of five years; and must not be united in marriage.

Concubinage gives rise to a duty of reciprocal assistance, both personal and financial regarding the expenses of the common household; partners must assist each other in all needs related to sustenance even after the concubinage is over (but limited only to the period of time the concubinage actually existed, and only in cases in which one of the partners is in need of this assistance), and owe each other a duty of reciprocal fidelity. The law authorizes a state of community property to be created, in the same terms as in a marriage. As it is protected by law, concubinage gives rise to the same prohibitions as marriage regarding the contract between the partners. They cannot sell, buy, or donate to each other. As regards inheritance, concubines are in the same degree as if they were married.

Concubines or any interested persons, with a brief justification, are enabled to request judicial recognition of the union. The purpose of this is to enforce any of the duties entailed by concubinage and/or to create the community property. The cohabitants may also grant cohabitation agreements in which they may establish the patrimonial regime to govern between them in the five years prior to the recognition of the union and thereafter. Concubinage is ended by death, at the request of any of the partners (without expression of cause) or by the declaration of absence.

7.3. Child Law

All children and adolescents, without distinction, enjoy the rights which are inherent to their condition as human beings. There are special regulations for the protection of children and adolescents who are disabled. Regarding procedural issues, children are allowed access to the courts in defense of their rights, although their appearance is not mandatory. Protection is accorded to all children and adolescents subject to the State’s jurisdiction, independent of ethnic, national or social origin, gender, language, religion or any other condition.

Parents or persons legally responsible for children and adolescents have a duty to respect them, feed them, watch over their health and their clothing, as well as their education, and to provide guidance. These persons should also provide monetary assistance, or in kind, to satisfy, according to the circumstances of each case, all needs related to sustenance, lodging, clothing, health and the expenses related to acquiring a profession or trade, education, culture and recreation. This duty is not transferable, cannot be renounced, cannot be impounded, is not subject to compensation and does not expire. As a further safeguard for the protection of children, it is forbidden for a person who provides sustenance to leave the country without providing sufficient guarantees for the period during which he or she will be absent.

Maintenance duties are owed by parents even when they have lost parental authority over their children. In such a case, the parent will lose the rights he/she has with respect to his/her children but not his/her obligations.

7.4. Inheritance Law

Under Uruguayan conflict of law rules the applicable law to the inheritance should be the law of the country in which the deceased has left assets. Our regime establishes the “plurality of inheritance proceedings” principle, which means that there will be as many inheritance procedures as countries in which the deceased had assets. Therefore, regarding to the assets located in Uruguay, the inheritance will be governed by Uruguayan law, notwithstanding the fact that nor the deceased or the heirs are domiciled in Uruguay. As a result, if a person dies leaving assets in more than one country/jurisdiction, different laws should be simultaneously applied.

Our law provides for a compulsory portion (“porción legitimaria o legitima”). The percentage of the total estate will depend on the compulsory heirs existing. Uruguayan law provides that descendants and parents of the deceased are compulsory heirs. Descendants prevail parents, so if a person dies leaving children, his parents have no right to inherit. The percentage of the compulsory portion will depend on the existing compulsory heirs.

Children are compulsory heirs in a percentage of the whole estate located in Uruguay which will depend on the number of such forced heirs. For instance: one child is entitled to 50% (fifty percent) of the estate; two children are entitled to 66% (sixty six percent); and finally, in case there are three or more children, they are entitled to 75% (seventy five percent) of the estate. This percentage is called “compulsory portion”. These heirs could be represented by their respective off-springs in case of predeceasing, renunciation, or disqualification from inheritance.

If the deceased leaves no children, then his parents are called to inherit, beginning with the closest alive. In such case, the compulsory portion will always be 50% (fifty percent) of the estate. And if, in addition to the parents, a spouse or cohabitant survives, these will also have the right to inherit in the second order. In the case of a surviving cohabitant and spouse, the cohabitant will only have the right to inherit for the period he/she lived with the deceased.

Also, in accordance with article 881 of the Uruguayan Civil Code, if the surviving spouse does not have a household to live in – similar to that which constituted the matrimonial household – at the time of the decease of the other spouse, the surviving spouse will have the right to reside in the matrimonial household for life, without any costs entailed.

The surviving spouse will be entitled to the right, if the matrimonial household: (a) remains among the inheritance assets once the inheritance debts are cancelled; (b) was owned by the deceased spouse or was an asset owned in community property or owned by both spouses. Additionally, to have this right, the marriage must have two years of age. This right could also correspond to the surviving cohabitant, but in this case, the legislator adds other requirements, such as being over 60 years of age.

Additionally, the deceased’s surviving spouse is not a compulsory heir, but may be entitled to a legal share bequest called marital portion (porción conyugal). The same is similar to the share that corresponds to a child but could suffer special discount considering the surviving spouse’s estate before the death, including his/her share in community properties.

Recommended further reading on Family Law in Uruguay:

8. Corporate Law

Corporations and companies enjoy ipso facto legal personality and are incorporated by contract, either by natural persons or moral entities, domestic or foreign, with the object of pursuing a trade or commercial activity and the participation in the earnings and the assumption of debts.

8.1. Corporations

Their capital is represented by shares, which can be represented as marketable securities Corporation’s capital shall be denominated in the national currency; unless the main purpose of the corporation is the investment in assets existing abroad (an authorization is required in this latter case).

Shares are commercial documents representing shareholders’ participation in a corporation, their rights and obligations. A corporation may issue series of shares and securities representing one or more shares. Shareholders’ liability is limited to payment of the shares they subscribe.

Administration and representation of a corporation is entrusted to an Administrator or a Board of Directors (composed of one or more persons, appointed by the Shareholders' Meeting). The administrator or the directors shall be jointly liable to the company, the shareholders and third parties in damages resulting, either directly or indirectly, from infringement of the law, the bylaws or the regulations, wrongful performance of their duties and damages caused by abuse of authority, fraud or gross negligence.

The Shareholders’ Meeting is the sovereign body of the corporation which must meet at least once a year to approve the annual balance sheet and the distribution of profits, as well as to appoint the Board of Directors. A government department oversees the constitution, function and liquidation of corporations, including dissolutions, transformations, mergers, spin-offs and changes in their authorized capital.

There are two types of corporations:

These are corporations whose main purpose is foreign investment. As from the entry into force of Law N° 18.083, no procedures for the approval of bylaws or incorporation of investment financial corporations may be initiated. SAFIs existing before the adoption of Law N° 18,083 continue to exist. Because of the mentioned law, they are governed by the standard tax system.

8.2. Partnerships and Other Forms of Companies

General Partnership: The members of a general partnership are liable, jointly and severally, without limitation, for the full amount of the company’s obligations. The capital is divided into social parts (not in shares or quotas) and cannot be represented in marketable securities. The circulation of the social parts is restricted to that the other partners admit it.

Limited Liability Partnerships: These companies have two types of partners. On the one hand, there are partners who are liable, jointly and severally, without limitation for the full amount of the company’s obligations. On the other hand, there are limited partners whose liability is limited to the capital they have paid in.

Limited Partnerships by Shares: These companies also have two types of partners. On the one hand, there are general partners who are liable, jointly and severally, without limitation, for the full amount of the company’s obligations. On the other hand, there are limited partners are whose capital shall be divided into shares, which may be represented by marketable securities; their liability is limited to the payment of the shares they subscribe.

Labor and Capital Partnerships: In these companies, the partners who furnish the capital shall be liable to the same extent as partners in general partnerships (see above), whereas the partners whose contribution is their labor, shall be liable up to the corporate profits not yet distributed.

Limited Liability Companies: The capital of limited liability companies shall be divided in equal-value quotas, cumulative and undivided, which may not be represented by marketable securities. Members' liability shall be limited to payment of their quotas. The number of members must be at least two and shall not exceed fifty. If this occurs, within two years the company must be transformed into a corporation, falling which, the company shall be dissolved, unless the number of members is reduced to fifty or less within that same term.

Temporary Partnerships or Joint Ventures: These are companies whose sole object is to carry out a specific and temporary business, undertaken by one or more agents. They are not legally incorporated (hence, shall have no legal personality and no name) and therefore, third parties can only claim rights or assume obligations regarding the individual agents, whose liability is unlimited.

Simplified Corporations: Is a new type of commercial company whose capital is represented by shares and whose shareholders are not liable for corporate obligations beyond the amount of their respective contributions. It may be incorporated by a single shareholder. The founder may be a natural person or a legal entity other than a corporation or several of them. The corporate purpose of the company may be indeterminate or all-encompassing, with the only limit being unlawfulness.

8.3. Groups of Economic Interest

These involve a contract between two or more persons, either physical or legal, whereby they constitute an organization with the purpose of facilitating or developing the economic activity of its members, or to improve or increase the product of these activities. They are legally incorporated, but not entitled to obtaining and distributing profits amongst its associates and it may be created with no capital requirement.

The participation of their members cannot be represented by marketable securities and the managers incorporate the groups in all their relationships with third parties as well as in all activities consistent with its objectives. For their part, the members of the group are jointly and secondarily responsible for all obligations assumed by the group. A Group of Economic Interest is not a business company, but nonetheless, it is classified within the category of plurilateral contracts related to unassociated organizations.

8.4. Consortia

These involve a contract between two or more persons, either physical or legal, who come together temporarily to undertake a task, perform a service, or supply certain goods. A consortium shall not be a corporate legal entity. They lack legal status, and each party must undertake its specified activity in accordance with the terms of the contract, answering personally to third parties regarding the obligations assumed in said undertaking, service or supply, without joint responsibility unless specified. A consortium is managed by managers or administrators and represented by the administrator or whoever is nominated by the consortium.

8.5. Foreign Companies in Uruguay

A company duly incorporated abroad shall be recognized as such by operation of law within the national territory, upon verification of the existence thereof. Foreign companies are subject to the laws of the place in which they are incorporated if these are not contrary to Uruguayan international public policy (orden público). However, a foreign company may only carry out sporadic activities and take part in valid legal activities in a court of law.

On the other hand, if they wish to undertake activities included in their objectives, on a regular basis, establishing branches, they must register their contracts and decision to establish their residence in the Republic, with the National Commercial Registry (Registro Nacional de Comercio), indicating their address, administration and representation and the determination of the capital capital assigned to it, when required by law. Company’s interest in other companies: Current applicable corporate law authorizes the participation of corporations in the capital of other corporations, up to the limit of its corporate equity, except for the case of investment companies.

Recommended further reading on Corporate Law in Uruguay:

9. Foreign Investments Law

Uruguay has taken measures to encourage private investment in various fields and activities, within a framework of legal and financial security. Law Nº 16,906, known as the “Investments Law”, of 1998, constitutes (together with a series of decrees issued by the Executive Branch) the basic legal framework for investment in Uruguay. It declares that the promotion and protection of national and foreign investment is in the national interest. The Law defines foreign investment as any capital originating abroad.

According to this law, a national interest status may be granted to any activity, specific project or company which meets certain objectives such as the increase and diversification of exports of processed goods, the establishment of new industries or the expansion or the refurbishing of existing ones amongst others. The Investments Law enables the Executive Branch to provide tax advantages to certain activities which are then qualified as “promoted activities”.

The basic principles of this law are as follows:

There are no restrictions to the transfer of technology, one hundred percent foreign ownership is allowed, except when restricted for reasons of national security.

9.1. Temporary Admission

Products may be imported into Uruguay under temporary admission or drawback provisions, exempt from import duties, to be processed, assembled, transformed, or integrated, but they must be re-exported within 18 months. The system applies to raw materials; parts and accessories; motors; packaging and packaging materials; matrix, molds, and models; intermediate goods; agricultural products and products that are part of the manufacturing process.

The goods imported that are covered by the investment promotion regime regulated by Decree No. 268/020, can enter to the country under the temporary admission regime if they do not have a decision approving their fiscal benefits if they have been declared non-competitive to national industry by the National Direction of Industries. For those cases, the National Customs Authority requires a security deposit, which amounts to the equivalent of the exonerated taxes. This security deposit will be refunded once the Executive Branch issues the decision granting them fiscal benefits.

9.2. Free Trade Zones

These are areas within the territory which are enclosed and isolated and in which industrial, commercial and services activities are carried out, under a special legal system of customs and fiscal exemptions and state monopoly exclusion. Companies acting in a FTZ are exempted from all national existing or future taxes. The circulation of goods and the rendering of services within FTZs, as well as the introduction of goods from abroad into these FTZs, are exempted from VAT. The introduction of goods from FTZ territory into non FTZX territory shall be considered imports to all effects. All types of activities are allowed, be they commercial, industrial, service-related or others. The law allows storage and warehousing, manufacturing, and financial and data processing, and related activities to take place within FTZs. However, FTZ companies may not perform any industrial, commercial, or service activities in non FTZ territory.

MERCOSUR regulations treat products manufactured in all member state FTZs as extra-territorial. Products manufactured by Uruguayan or foreign firms in Uruguayan FTZs are not eligible for MERCOSUR certificates of origin. Furthermore, these products do not benefit from MERCOSUR customs union advantages and must pay the MERCOSUR common external tariff when entering member countries. However, the MERCOSUR´S Decision N° 33/15 authorize to warehouse products manufactured in MERCOSUR and to keep their benefits when these products are destined to MERCOSUR. Finally, there is an agreement (not yet in force) between Uruguay and Brazil that will allow products manufactured in FTZ to be eligible for MERCOSUR certificates of origin.

Goods, services, products, and raw materials of foreign and Uruguayan origin may be brought into the zones, held, processed, and re-exported without payment of Uruguayan customs duties or import taxes (temporary admission); and goods of Uruguayan origin entering FTZs are treated as Uruguayan exports for taxation and other legal purposes.

The only additional cost to employers is the contribution to social security for Uruguayan employees. The employer does not pay social security taxes for non-Uruguayan employees if those employees waive coverage under the Uruguayan social security system. However, Uruguayans must comprise 75% of a company’s labor force. In certain cases, considering the characteristics of the activities to be performed, and for reasons of general interest, the Executive Power may authorize a reduction of the indicated percentage. In case of services companies this percentage could be reduce to a 50% for the whole term of the agreement.

Recommended further reading on Foreign Investments Law in Uruguay:

10. International Trade Relations

10.1. Preferential Trade Agreements

ALADI: Uruguay is a member of the Latin American Integration Association (ALADI for its acronym in Spanish), since its creation by the Treaty of Montevideo, in 1980. Within the framework of ALADI, Uruguay has subscribed to 37 Partial Scope Agreements (AAP for its acronym in Spanish) and ten regional agreements regarding tariff preferences.

Within the framework of the ALADI Agreements, Uruguay signed a Free Trade Treaty with Mexico on November 15, 2003, establishing a Free Trade Zone between both countries and stipulating that the treaty’s provisions would prevail in case of incompatibility between them and the provisions of the treaties and agreements both countries are party to, including the WTO and MERCOSUR Agreement. Both parties undertook to eliminate tariffs as from the date on which the Agreement came into force, except for car manufacturing, crude oil and its by-products, and the products contained in the list of exceptions.

MERCOSUR: Uruguay was a founding member, together with Argentina, Brazil, and Paraguay, of the Common Market of the South (MERCOSUR), in 1991, by the Treaty of Asuncion. At a later stage, Venezuela and Bolivia joined the MERCOSUR. The aim of MERCOSUR is to establish a common market which includes the free circulation of goods, services, capital and labour between the member countries. The Additional Protocol to the Treaty of Asuncion on the Institutional Structure of MERCOSUR (Ouro Preto Protocol), signed in 1994, granted MERCOSUR legal status in international law.

MERCOSUR signed Free Trade Agreements with Chile (1996), Bolivia (1996), Mexico (2003), Peru (2005) and Israel (2007). On 2011 MERCOSUR signed a Free Trade Treaty with Palestine. MERCOSUR also signed Free Trade Agreements with Egypt (2010) and with Southern African Customs Union (SACU), with are currently not in force.

10.2. Multilateral Trade Relations

Uruguay hosted the inauguration of the GATT Uruguay Round and is a member of the World Trade Organization (WTO), the Latin American Integration Association (ALADI) and the Common Market of the South (MERCOSUR). Trade relations with neighboring Argentina and Brazil are less important than in the past but are still significant. In late 2004, Uruguay and the United States signed an Open Skies Agreement, which was ratified in May 2006. In November 2005, Uruguay and the United States signed a Bilateral Investment Treaty (BIT), which was subsequently ratified by both legislatures and came into force on November 1, 2006.

Uruguay also has BITs with Australia, Belgium, Canada, Chile, China, Czech Republic, Finland, France, Germany, Great Britain, Hungary, Israel, Italy, Luxembourg, Malaysia, Mexico, The Netherlands, Panama, Poland, Romania, Spain, Switzerland, and Venezuela. BITs with Armenia, Portugal and Sweden are pending ratification. In addition, Uruguay has signed Double Taxation Agreements with Germany, Korea, and Hungary.

As regards multilateral trade relations, Uruguay was a signatory of the International Bovine Meat Agreement and the International Dairy Agreement, both plurilateral, which were terminated in late 1997, but it is not a signatory of the WTO’s other plurilateral agreements. Uruguay took part in the WTO’s extended negotiations on financial services but did not participate in negotiations regarding telecommunications. As a mainly agricultural country, Uruguay has suggested that agriculture should be fully included in multilateral trade regulations, eliminating internal support and export subsidies, and at the same time, opening new market access opportunities for agricultural products. It considers that it is essential to agree upon special and differentiated treatment for developing countries, to meet their development needs and maintain fair proportionality with respect to the more substantial commitments developed countries must adopt.

Since its last review in 2012, Uruguay has taken part in 15 cases within the framework of the WTO’s mechanisms for the resolution of differences, in one case as a complainant, in a second case as a respondent and in third case as a third party. Uruguay participates in the negotiation processes related to the Free Trade Area of the Americas (FTAA-ALCA).

11. Intellectual and Property Rights

The basic legal regime of intellectual property is composed of the following laws: Law No. 9.739 of 1937, which was amended by Law No. 17.616 of 2003 on copyrights, Law No. 17.011 of 1998 on trademarks, Law No. 17.164 of 1999, on patents of invention and utility models. With respect to industrial property, our legislation is governed by the Paris Convention for the Protection of Industrial Property of 1883, to which Uruguay adhered through Decree Law No. 14,910 of 1979. Since 1995, according to Law No. 16,671 of 1994, the Agreement on Trade-Related Intellectual Property Rights, annexed to the Treaty Establishing the World Trade Organization, has been in force.

Additionally, Uruguay is party of the Berne Convention for the Protection of Literary and Artistic Works (Decree Law No. 14.910 of 1979) and World Intellectual Property Organization Treaty on Performances of Phonograms and their Statements (Law No. 18.253 of 2008). In 2019, Uruguay approved the Singapore Treaty on the Law of Trademarks (Law No. 19.808).

11.1. Patents

Law No. 17,164 regulates the rights and obligations relating to:

11.2. Trademarks

A trademark is understood to be any sign capable of distinguishing the goods or services of one natural or legal person from those of another. The legally recognized right implies the right to use it exclusively, although only in relation to the products and services for which it has been applied for (the principle of specialty applies, by virtue of which the registration of the trademark only confers rights with respect to the products or services for which it has been applied for). Under our legislation a registered trademark lasts ten years and can be renewed as many times as desired. It provides prison penalties of six months to three years for violators. Enforcement of trademark rights is adequate and has improved in recent years because of an intense anti-smuggling campaign.

In relation to the rights related to trademarks, there are also obligations. Based on that, Law No. 19,149 amended Article 19 of the Trademark Law, establishing that the use of registered trademarks is mandatory in Uruguay. This means that the registration of trademarks may be cancelled, but not by any person, but by the holder of a direct, personal and legitimate interest through the action of cancellation for non-use, which must be filed before the Industrial Property’s Authority.

11.3. Trade Name

The legislation does not define the trade name, but it is understood from the rules that regulate it, that the trade name is the form in which the commercial or industrial activity of a merchant is identified. The trade name may be the name of a natural person or the denomination of a company or a fancy name may be used as a trade name. The right to the trade name is acquired by use and is not registrable. The ownership of the trade name confers the right to exclusive use and the right to oppose its use by third parties.

11.4. Geographical Indications

Indications of source and appellations of origin constitute geographical indications. Indication of source is the use of a geographical name on a product or service that identifies the place of extraction, production or manufacture of a given product or provision of a given service, as the place of origin. The appellation of origin is the geographical name of a country, city, region or locality designating a product or service whose qualities or characteristics are due exclusively or essentially to the geographical environment, including natural or human factors. The protection of indications of source and appellations of origin does not depend on any registration and has the effect of protecting the veracity of the claims of market competitors as to the place of origin or appellation of origin of a product or service.

11.5. Copyrights

Copyright protection covers intellectual, scientific or artistic production such as:

Law No. 9.739, after the aforementioned enumeration, establishes that the protection shall include "any production in the domain of intelligence". The author retains his right of ownership during his lifetime, and his heirs or legatees for a heirs or legatees for a term of seventy years from the death of the deceased.

It is established that the enjoyment and exercise of the rights are not subordinated to any formality or registration and both are independent of the existence of protection in the country of origin of the work. It is established that the owners of the works and other rights protected by law, in order to sue the infringers, it will be sufficient that their name appears stamped on the work, performance, phonogram or broadcast in the usual form.

Recommended further reading on Intellectual and Property Rights Law in Uruguay:

12. Personal Data

Law No. 18,331 on Personal Data Protection and "Habeas Data" Action and Decrees 414/009 and 64/020, among other regulation, regulate the protection of personal data in Uruguay. Personal data is defined by the mentioned law as information of any kind relating to specific or determinable natural or legal persons.

12.1. Principles

Two of the fundamental principles contained in the regulation, which are very relevant in this matter, are the principle of purpose and the principle of prior informed consent. In accordance with the principle of purpose, personal data may not be used for purposes other than or incompatible with those for which they were collected. On the other hand, the principle of prior informed consent means that the processing of personal data is lawful when the owner has given his free, prior, express and informed consent, which must be documented. Notwithstanding the foregoing, there are exceptions to the duty to obtain prior consent, for example, when the data come from public sources of information, such as records or publications in the mass media; or in the case of lists whose data are limited, in the case of natural persons, to first and last names, identity document, nationality, domicile and date of birth, or in the case of legal persons, their corporate name, fantasy name, single taxpayer registry, domicile, telephone number and identity of the persons in charge of the same; or when they derive from a contractual, scientific or professional relationship with the owner of the data, and are necessary for its development or fulfillment.

From the conjunction of said principles it is necessary to obtain the prior consent of the data owners for its processing and also in case the intention is to use the same for a wider purpose or different from the one that motivated its collection. In line with the above, if it is intended to use personal data obtained, for example, from a promotion, to offer certain goods or services, the prior consent of the owner of the data must be required. Likewise, prior consent is required in case you intend to communicate or transfer personal data to third parties (except in certain exceptional cases such as, among others, in the case of public data or a basic list of demographic data that are specifically listed in the regulations). If the transfer is to entities located in countries that do not offer adequate levels of personal data protection, the prior authorization of the supervisory entity must be obtained (unless an exception is applicable).

12.2. Databases

The Regulation establishes the obligation of individuals and legal entities responsible for personal databases to register them before the Regulatory and Control Unit of Personal Data (hereinafter the "URCDP"). Regarding video surveillance databases, on April 16, 2010, the URCDP issued Opinion No. 10/010 in which it was expressly established that video surveillance, as any recording, capture and storage of images and even in some cases of sounds, is considered personal information and therefore all the provisions of data protection regulation are applicable to it. Like any other database, video surveillance databases must be registered in the Register to be considered lawful.

Additionally, all holders of personal data have the right to request the rectification, updating, inclusion or deletion of their personal data in case of error, falsehood or exclusion with respect to the information of which he/she is the holder. In such case, the person responsible for the database must -at its own cost- proceed to rectify, update, include or delete the information within five working days of receiving the request or inform the applicant of the reasons why the requested modification does not correspond.

In addition to the rights of rectification, updating, inclusion and suppression, every holder of personal data has the right to access his data, that is, to obtain all the information about himself that is stored in public or private databases. Pursuant to the provisions of article 14 of the mentioned law, this right may be exercised free of charge at intervals of 6 months, unless the existence of a legitimate interest of the owner that merits access in a shorter period is proven. It is important to point out that the information must be provided in a clear manner and include the entire record of the data pertaining to the owner, even when the request for access only refers to one aspect of the personal data. Notwithstanding the foregoing, data belonging to third parties may not be disclosed, even if they are related to the owner.

12.3. Data Communication and International Transfer

Personal data may only be communicated to a person other than the owner for the fulfillment of purposes directly related to the legitimate interest of the sender and recipient and with the prior consent of the owner, which is revocable, and the owner must be informed of the purpose of the communication, the recipient and the activity carried out by the same. Notwithstanding the above, article 17 of the mentioned law provides for a series of exceptions in which the aforementioned consent is not required when: (a) it is so provided by a law of general interest; (b) in the cases of Article 9 of the law (these are the hypotheses in which it is not necessary to obtain the prior consent of the data subject for its processing that we saw in the introduction); (c) it concerns personal data relating to health and its communication is necessary for health reasons, emergency or for the performance of epidemiological studies, preserving the identity of the data subjects by means of adequate disassociation mechanisms where appropriate; and (d) a procedure for disassociation of the information has been applied, so that the data subjects are not identifiable.

In addition to the restrictions for the communication of data, please note that our regulation expressly prohibits the transfer of personal data to countries or international organizations that do not provide adequate levels of protection. Notwithstanding the foregoing, the law establishes a series of exceptions to such prohibition, among which stand out having the prior consent of the data subjects as well as situations in which such transfer is necessary for the execution of a contract between the data subject and the controller or for the execution of pre-contractual measures taken at the request of the data subject, or that the transfer is necessary for the conclusion or execution of a contract concluded or to be concluded in the interest of the data subject, between the controller and a third party, among others. Please note that such exceptions must be analyzed on a case-by-case basis and with a restrictive criterion.

It should also be noted that the URCDP may authorize transfers of personal data to countries that do not guarantee adequate levels of protection, provided that the controller offers sufficient guarantees regarding the protection of privacy, fundamental rights and freedoms of individuals, as well as the exercise of the respective rights. Such guarantees may derive from appropriate contractual clauses, for example from an international data transfer contract.

12.4. Personal Data Protection Officer

Note that any public entity (state or non-state), as well as any private entity wholly or partially owned by the state or those private entities that process large volumes of personal data (more than 35,000 persons) or whose main business is the processing of sensitive data, must appoint a data protection officer, whose main functions are: (i) to advise on the formulation, design and implementation of personal data protection policies; (ii) to supervise compliance with the regulations on such protection in its entity; (iii) to propose all measures it deems relevant to adapt to the regulations and international standards on personal data protection; and (iv) to act as a liaison between its entity and the URCDP.

13. Environmental Law

The basis for regulation in this area in Uruguay is to be found in Article 47 of the Constitution, which states that protection of the environment is in the general interest. Persons must abstain from any act which causes severe depredation, destruction, or contamination of the environment. The Law shall regulate these provisions and may establish sanctions for violators.

In accordance with the Constitutional mandate, the Law 17.283 published on December 12th, 2000, has established that the following are of general interest: the protection of the environment, the quality of the air, the water, the soil and the landscape; the conservation of biological diversity and the configuration and structure of the coast; the reduction and adequate handling of toxic or hazardous substances and of waste materials of any kind; the prevention, elimination, mitigation and compensation of negative environmental impact; the protection of shared environmental resources and of those located outside the areas under national jurisdiction; regional and international environmental cooperation and participation in the solution to global environmental issues; as well as the formulation, instrumentation and application of a national environmental and sustainable development policy. The right of the inhabitants of Uruguay to be protected in their enjoyment of a healthy and balanced environment is recognized, as is the duty of persons (physical and legal, public and private) to abstain from any act which causes severe depredation, destruction or contamination of the environment.

The legal definition of “environmental damage” is given as: any significant loss, reduction or detriment which is inflicted upon the environment. The right of the State to sponsor an environmentally sustainable development model, protecting the environment and, if it should be deteriorated, restoring it or demanding that it should be restored, is established.

The following are established as basic principles of environmental policy: that Uruguay be acknowledged as a “Natural Country”; the establishment of policies of prevention and precaution in environmental management; the protection of the environment as a commitment undertaken by society as a whole; the trans-sectorial nature of the issue; informed environmental management and access to information afforded to any person interested in the subject, and the increase and strengthening of international cooperation in the issue.

Among other regulations, it is forbidden to release or emit into the atmosphere, direct or indirectly, substances, materials, or energy beyond the maximum limits or in contravention of the conditions established by the Ministry of Environment. To this end, this Ministry will consider the levels or situations which may endanger human, animal, or vegetable health, harm the environment or cause risk, damage or serious discomfort to living beings or assets.

The protection of the environment is declared to be in the general interest; as are the production, import, export, transport, packaging, labelling, storage, distribution, commercialization, use and disposal of all chemical substances to ensure adequate levels of environmental protection against the adverse effects derived from normal use, accident or waste they may generate or derive in. Similar provisions exist in the matter of environmental protection; conservation and sustainable use of biological diversity, prevention and control of environmental risk derived from the creation, manipulation, utilization or release of genetically modified organisms as a result of biotechnological applications, the introduction of live organisms; acoustic contamination; prevention and control of risks derived from the use and disposal of packaging, the prohibition to commercialize gasoline, paint, pipes and containers which contain lead; as well as the creation and management of a Natural Protected Areas National System.

13.1. International Regulations Ratified by Uruguay

Uruguay is party to numerous international conventions in this field, such as the Vienna Convention for the Protection of the Ozone Layer and its Montreal Protocol on Substances which Deplete the Ozone Layer; the United Nations Framework Convention on Climate Change and its Kyoto Protocol on the United Nations Framework Convention on Climate Change; the Stockholm Convention on Persistent Organic Pollutants; the MERCOSUR Framework Agreement on Environment; the Comprehensive Nuclear-Test-Ban Treaty; the United Nations Convention to Combat Desertification in Those Countries Experiencing Serious Drought and/or Desertification, Particularly in Africa; the Protocol to the Antarctic Treaty on Environmental Protection and the International Convention on Oil Pollution Preparedness, Response and Cooperation;, the Regional Agreement on Access to Information, Public Participation and Justice in Environmental Matters in Latin America and the Caribbean (Escazu Agreement), among others.

13.2. Prior Environmental Authorization and Environmental Impact Assessment

Regulation on Environmental Impact Assessment and Environmental Authorizations (Decree 349/005) establishes that activities, construction and building works with certain features, such as construction or modification of ports, airports, roads, railways, oil and gas pipelines, waste treatment plants, power generation plants, free trade zones, industries, among others, would require “Prior Environmental Authorization”. Activities that include the extraction of minerals which require the opening of quarries or galleries, new perforations or re-opening quarries, galleries or perforations which have previously been abandoned and whose original authorization has not been subject to environmental impact evaluation; or the exploitation of fossil fuels whatever the method of extraction would also require a Prior Environmental Authorization.

The Environmental Impact Study must contain:

Recommended further reading on Environmental Law in Uruguay:

14. Labour and Social Security Law

Uruguay does not have a general labor law or labor code. The rules that govern labor relationships are scattered through different texts of various hierarchies. Therefore, there are constitutional rules, others from a legal source, provisions passed via decrees of the Executive Power and, finally, contractual rules, this is, created by parties through contract.

As a rule, labor regulations are deemed public policy and thus, non-waivable, being in general an inflexible regime. Labor relations are also ruled by Collective Agreements entered between unions and employers. We must point out that collective agreements apply to all the employees, even to those that are not members of the union. Although Uruguay does not formally adhere to stare decisis doctrine, case-law is particularly authoritative in this area of the law. Moreover, scholarship work by certain reputable authors is highly relevant.

14.1. Labor Contracts

Labor contracts are entered into between the employee and the employer, with no obligation whatsoever as to the registration of the agreement before the Ministry of Labor. Unless there is an express agreement to the contrary, contracts are deemed to be entered without a time limit (open-ended). Therefore, despite no being a requirement of formality, contracts for a specified term should be entered into in writing. For the hiring for a specified term to be valid, there should be a justifiable ground. Said ground lies on the actual duration of the specific work to be done.

There is no regulation stipulating a maximum term. Books of authority and the courts state that the maximum term should be that of the duration of the hired work. Consequently, the term should be fixed for each specific case. It is broadly admitted — for all labor categories — that prior to the employee's final incorporation to the company, the company may enter a probation contract. It should be noted that probation contracts are not presumed. That is, they should be necessarily agreed upon. Although the probation contract has no legal regulation, it is unanimously accepted.

Probation contracts should not exceed three months. During said term, the contract can be terminated at any time by any of the parties and without cause. Its termination does not bring along any dismissal compensation whatsoever although accrued benefits as of termination date must be paid.

14.2. Labor Conditions

The regulation of working hours applied to the commercial sector is 44 weekly hours with a daily limit of 8 hours. Although there is no regulation regarding the services sector, we understand (together with most scholars and almost most courts) that this sector is regulated by the same rules applicable to the commercial sector.

The employee has the right to 36 hours of uninterrupted rest. It is possible to agree the use of the rest during any days of the week, provided that its duration is of 36 consecutive hours (one day and a half). Furthermore, there should be a period of rest in between the working hours, which should be taken between the fourth and the fifth hour. Its duration may last from 30 minutes to two hours. The 30-minute rest is paid, being considered as worked time. The one-hour rest might not be paid if agreed upon by the parties. The two-hours rest is never paid.

All working time exceeding the maximum limit of the daily working time applicable to each employee is regarded as overtime. The exceptions to the above are, among others, the executive personnel, that is, those who hold a higher position to the Chief of Department, professionals, and highly specialized experts (nevertheless, those employees are still entitled to the weekly rest).

Overtime has a different surcharge rate depending on whether it has been done during a working day or during a holiday. The former is paid double. The latter are worth three times and a half the price of the ordinary hour on a working day. The amounts paid as overtime are intrinsically considered salary, thus they should be considered for the calculation of the remaining labor credits, including dismissal compensation. It is advisable to have tracking systems to determine the working hours performed by the employees. On the contrary, the company may have difficulties proving — in case of overtime claims — the number of hours worked by the claimant employee.

Complementary benefits established by law are paid holidays (between 20 and 30 days, according to length of service), an extra payment — a bonus (divided into two halves, payable in June and December) and a second extra payment, known as “holiday wages”, which is paid before the worker takes his or her annual holiday; that is, in total, at least 14 payments are made to each worker every year.

In 2006, Congress passed a Law on the Promotion and Protection of Labor Unions, rendering illegal any discriminatory action affecting the employment of unionized workers, providing for the reinstatement of the employee if any infringement of the law is proven. Also in 2006, the left-wing government approved a decree on the “Prevention of Conflicts and Regulation of Worker Occupation of the Workplace”, which provides for obligatory negotiations between employer and employees prior to employees resorting to the occupation of the workplace. However, the decree validates the occupation of the workplace as a legitimate extension of the right to strike, provided that all previous steps have been followed.

A law approved in May 1998 provides incentives for companies to hire young people, including a reduction of between 12-18% in employer social security and healthcare contributions. Employer and employee contributions to the Social Security system amount to close to 19%, with a reduction of up to 13% in the case of the manufacturing industry. Social security payments are high and increase employers’ basic wage costs by almost 50%. The social security system currently allows for retirement at age 65 for both men and women. The government provides six months of unemployment benefits, which can be extended in some cases.

Labor-related actions have a special statute of limitations, prescribing after one year after the end of the labor relation; and in these actions the employee can only ask for labor related credits generated five years back from that date. Workers who become disabled on the job receive a monthly pension from the government equal to 70% of their salaries plus free medicine and medical care. In 2014 a law was passed establishing the criminal liability of the employer in case of workplace accidents, when it is proven that the employer did not comply with the law, exposing his employees to great danger. Uruguay has ratified most ILO conventions that protect workers’ rights, and generally adheres to their provisions.

Recommended further reading on Labour and Social Security Law in Uruguay:

15. The Tax System

Uruguay’s tax system was substantially reformed on July 1, 2007. In general terms, and for the moment, it is possible to describe the system as follows.

Value Added Tax (VAT): VAT is imposed on the circulation of goods and services, as well as imports. The basic rate for this tax is 22% and the minimum rate is 10%, which is applied to prime necessity and medical products.

Income Tax: The structure of income tax in Uruguay is based on the following:

The principle of territorial source is preserved in the taxation of income, according to which taxation is applied exclusively to income deriving from activities undertaken, or assets located, or economic rights exercised, within the country. Please note that a law proposing amendments to the taxation of passive income from abroad took effect on January 01, 2023. Income derived from intellectual property rights obtained by an entity belonging to a multinational group relating to patents or software registered, disposed of or economically used outside national territory, in the part that does not correspond to “qualified income”, as well as real estate returns, dividends, interest, royalties and other movable capital returns and equity increases arising from asset transfers of the assets that generate the preceding returns, provided that they are obtained by an entity that is part of a Multinational Group considered “unqualified”, are regarded as income from Uruguayan sources and thus will be under the scope of IRAE. Income derived from the disposal or economic use outside national territory of trademarks is considered of Uruguayan source in all cases for the entities that are members of a Multinational Group (there is no exception for qualified entity).

A Uruguayan tax resident has levied the dividends and interests obtained from abroad, at a rate of 12% and the law acknowledges an automatic tax credit if some tax has been paid abroad. New tax residents in Uruguay are five years exempted of this taxation on dividends and interests from abroad. Individuals who have acquired the status of tax resident prior to 2020 in Uruguay will be able to opt for the sole time to tax the IRNR for the fiscal year in which the change of residence to national territory was verified and during the following five (5) fiscal years exclusively in relation to movable capital returns coming from abroad. But the law allows those who have made use of this option to extend the tax benefit to the completion of the 10-year exemption, for which they must cumulatively meet certain conditions.

Individuals who acquire the status of tax resident in Uruguay as of the year 2020 may elect to tax IRNR for the fiscal year in which the change of residence was verified and during the following ten fiscal years, only with respect to the income from movable capital returns from abroad (from non-resident entities) at the rate of 12% (not applicable to income from financial derivative instruments), or to opt to tax IRPF and, in the case of income from movable capital returns from abroad, at a rate of 7% (instead of 12%).  In the latter case, the benefit is to reduce the applicable rate for income from foreign capital returns, although it will begin to be taxed from the year in which the tax residence was verified.

15.1. Business Activities Income Tax (IRAE)

The tax base for this tax is 25% on net fiscal income duly adjusted. To establish net income, expenses accrued in the year necessary to obtain and retain the duly documented taxable income shall be deducted from gross income. Only those expenses that constitute income for the counterparty taxed by IRAE, IRPF, IRNR or by an effective tax on income abroad may be deducted.

However, simplified systems have been devised for small and medium enterprises and agricultural taxpayers. The amendment of the tax system in 2007 included transfer price rules. The transfer pricing system considers the more widely accepted international methodologies, based on comparability and free competition. For the purposes of the IRAE determination, transactions between related parties shall be considered as between independent parties when their benefits and conditions conform to normal market practices between independent entities. If the benefits and conditions do not conform to market practices between independent parties, which must be reliably tested by Tax Authority, they must be adjusted so that prices, amounts of the agreed consideration or margins used were the same as those agreed upon in transactions between independent parties.

Special Features:

15.2. Physical Persons Income Tax

This tax is a variation of the system known as dual taxation. The main characteristic of this system is the differential treatment afforded to income derived from labor in relation to income derived from capital. It is designed to cover all income derived from Uruguayan sources, whatever its origin (category), plus dividends and interests obtained abroad.

Category I: Capital Income: This is generated by all income originating in this area, such as interest, rents, bonuses, distribution of dividends, capital profits and other similar sources. The general proportional rate is 12%. However, interests on fixed term deposits for a term of over a year in local currency or in indexed units will be taxed at a proportional rate of 3%, and interest on fixed term deposits for a term of under a year in local currency, with no readjustment clause, will be taxed at 5%. As regards profits and dividends for the basic amount subject to this tax, these will be taxed at a proportional rate of 7%. Interest and dividends obtained from abroad are taxed at 12%. Public debt bonds and income from provisional savings funds are exempt. Articles 164 and 170 of Law No. 19,438 on Accountability approved a 7% tax on dividends and fixed profits in both IRPF and IRNR. This is calculated on the net tax income taxed by IRAE that at the close of each fiscal year features more than three years and is allocated as fixed dividends in the third month of the year following the calculation of such term.

Category II: Income from Labor: Unlike capital income, in this category a system of progressive rates is used, applicable to every stage of income, with an individual non-taxable minimum, and specific admissible deductions. Rates go from 0 to 36,148%.

15.3. Non-Residents Income Tax (IRNR)

Income taxed by this IRNR are those derived from activities carried out, goods located, or rights economically used in Uruguayan territory. In addition, the income obtained from advertising and propaganda services and technical services rendered from abroad to taxpayers of IRAE will be of Uruguayan source, provided that they are linked to obtaining income under this tax. Technical services mean those provided outside the dependency relationship, in the fields of management, technical, administration or advice of any kind.

IRNR taxpayers are non-resident individuals or legal entities not acting in Uruguay through a permanent establishment. To be included in the definition of non-resident, none of the following assumptions should be met:

The general IRNR rate is 12%, but for dividends or profits paid by IRAE taxpayers is 7%. Dividends and profits, which correspond to income not taxed by IRAE, shall be exempt from IRNR, while dividends distributed by IRAE taxpayers who obtain taxed and untaxed income, for example income from foreign sources or exempted, will be partially exempt, determining the amount taxed according to the composition of income for the year in which it was generated.

Finally, the distribution of the cumulative results of fiscal years initiated before July 01, 2007, will not be taxed by IRNR. In the case of advertising services and technical services defined above, there may be a reduction to the effective rate of the IRNR. In the case of IRAE taxpaying companies that have their income taxed by IRNR but not exceeding 10% of their total income, the Uruguayan income taxed by the IRNR shall be 5% of the total income, and thus the effective rate in such cases is reduced to 0.6% In case the company does not have income from Uruguayan sources, the income taxed by IRNR will be 0%.

Please note that interest on loans granted to IRAE taxpayers whose assets allocated to obtaining income not taxed by that tax exceed 90% of their total assets valued under tax rules are exempt from IRNR. For such purposes, the composition of the assets of the previous fiscal year shall be considered. On the other hand, the disposal of shares, whether registered or bearer, is taxed by IRNR, considering as taxable income 20% of the sale price, with which the effective rate is 2.4%. Differences in taxation may exist depending on whether the non-resident is a resident of a jurisdiction with which Uruguay has a Double Taxation Agreement or is a Low or No Taxation jurisdiction.

15.4. Net Wealth Tax

This tax is applied to assets existing within the country at the end of the financial year, at a rate of 1.5% for industrial, commercial, and agricultural enterprises; 2.8% for banks and financial enterprises, and 2% for all other legal persons. Taxation of individuals is by means of progressive rates, from 0.7% to 1.5% for non-residents who do not tax IRNR and 0.1% to 0.4% for all other taxpayers on amounts above the exemption level (approximately to this date, USD 118,650) and that doubles for the case of households (spouses living together).

Agricultural Net Wealth Tax: Currently, there is no IP exemption for agricultural property whose holders are foreign entities, or local legal entities holding bearer shares, or for those local legal entities holding registered shares whose partners or shareholders are not individuals. Therefore, in this situation, the assets will be taxed in all cases. On the contrary, agricultural and livestock goods whose holders are local legal entities with registered shares owned by individuals will be exempt if the value of the real estate plus 40% of the value to account for livestock and other property, is less than 12 million indexed units (UI). In this case, the property is taxed by the IP at a base rate of 0.75%, and in case of exceeding 30 million UI the rate is 1.5% plus an IP surcharge ranging from 1% to 1.5%. In addition, in the particular case of foreign entities, or legal entities holding bearer shares or registered shares whose partners or shareholders are not individuals, the IP surcharge will also apply if they have assets affected to the agricultural sector in excess of 12 million UI and up to 30 million Ui. In this case the IP surcharge will be 0.7%.

15.5. Specific Internal Tax (IMESI)

This tax is applied to the first sale of certain goods, such as beverages, tobacco, fuel, cosmetics, vehicles, etc.; at variable rates according to the product. Together with VAT, this tax adds to approximately 70% of total tax revenue.

15.6. Corporations Control Tax (ICOSA)

ICOSA taxes corporations at the time of their incorporation and at the close of each fiscal year. The rate is 0.75% for each year-end and is applied on a taxable basis of 578,428 IU. For such purposes, the price of the indexed unit on December 31 of the year preceding the occurrence of the triggering event will be considered. For the year 2022, the amount of the tax amounts to $ 22,389 (approximately US$ 520). This tax may be charged to the Net Wealth Tax for the period, but if a surplus arises by such concept, this will not entitle to refund. Those companies whose assets allocated for agricultural exploitation exceed 50% of the total tax assets, those having the exclusive purpose of administering pension savings funds, users of free trade zones and financial investment corporations shall be exempt from this tax.

16. Registry System

The General Registry Office is part of the Executive Branch (Ministry of Education and Culture), although it is technically autonomous. The principal registry offices are the following:

In each of the registries are inscribed, at the request of the parties involved, the actions pertaining to the matters appropriate to each office. Inscribing an action at the Registry Office does not validate content which is null or subject to neither annulment, nor does it rectify vices or defects which these actions may suffer from. The object of registration is to publicize the existence of actions, legal business, and recordable judicial and administrative decisions and, depending on the case, to ability to grant exceptions against third parties exist. The system is based on the principle of good faith, according to which it is presumed that the third party is unaware of register inaccuracy. All Registries have been computerized since 1998.

17. The Practice of Law in Uruguay

It is not necessary to be a citizen to practice Law in Uruguay. Foreigners can practice law, if authorized by the competent national authority. To practice law in Uruguay the following conditions must be fulfilled: possession of a degree which qualifies the holder to practice law, to be 21 years of age and be enrolled in the registry, and to have been sworn in by the Supreme Court of Justice.

Prosecution for a willful or ultra-intentional crime is grounds for disqualification of a person from the exercise of the legal profession if the illicit action, by its nature, is incompatible with the dignity and decorum of the same. Judicial sentences of suspension or privation of freedom also constitute grounds for disqualification.

A culpable offence is not grounds for disqualification; that is, when mens rea, as it is known in common law, is not present. Legislation expressly establishes the professional responsibility of lawyers: Lawyers are responsible to their clients for any damage or harm with which they may legally be attributed. Disciplinary proceedings against lawyers are within the jurisdiction of the Supreme Court of Justice and may be applied in the following cases:

Disciplinary measures may be:

All these decisions are open to the administrative appeals which may be applied to any administrative action. It is not compulsory to belong to the bar association; a lawyer may practice law without belonging to the Uruguayan Bar Association (Colegio de Abogados del Uruguay). The aims of this institution are, among others, to encourage a spirit of unity and professional solidarity; to keep the cult of Justice alive; to support the improvement of judicial and administrative organization and the respect for the essential principles of the Constitution; to favor the perfection of the juridical system; to maintain relations with similar professional entities, both national and foreign; to encourage national juridical production; to carry an exact copy of the Registry of Lawyers; to ensure that the duties which professional ethics imposes are strictly complied with; to defend the rights and interests of the legal profession; to assist and guide recent graduates in all the issues which arise from the practice of the profession.

The Bar Association in Uruguay also contains a Court of Honor, composed of nine members. This Court will find in any matter related to the professional ethics of a Lawyer or which may affect the dignity and honor of the national legal profession or of any of its representatives, submitted to its consideration by any interested party or ex officio. The ruling handed down by the Court of Honor must be founded and will state whether the conduct under review has violated the ethical rules which a Lawyer must observe during the practice of the profession or has affected the dignity and honor of the national legal profession. Members of the Court of Honor are forbidden to comment on the resolutions of the Court, either in public or in private.

18. Bibliography

Most of the following books are still available through the publisher.

18.1. Constitutional Law

Classic Treatises

JIMÉNEZ DE ARÉCHAGA, Justino

Essential Bibliography

Additional Bibliography

18.2. Administrative Law

Classic Treatise

Essential Bibliography

Additional Bibliography

18.3. Public International Law

Classic Treatise

Additional Bibliography

18.4. Integration Law

Essential Bibliography

Additional Bibliography

18.5. Human Rights

Essential Bibliography

Additional Bibliography

18.6. Family, Matrimonial and Successions Law

Classic Treatise

Essential Bibliography

Additional Bibliography

18.7. Contracts and Obligations Law

Classic Treatise

Essential Bibliography

Additional Bibliography

18.8. Commercial Law

Classic Treatise

Essential Bibliography

Additional Bibliography

18.9. Intellectual Property

18.10. Conflict of Laws (Private International Law)

Classic Treatise

Essential Bibliography

Additional Bibliography

18.11. Labor Law

Classic Treatise

Essential Bibliography

Additional Bibliography

18.12. Procedural Law

Classic Treatise

Essential Bibliography

Additional Bibliography

18.13. Tax Law

Classic Treatise

Additional Treatises

18.14. Criminal Law

Classic Treatise

Essential Bibliography

Additional Bibliography

19. Other Sources

Periodicals

Yearbooks

Bookstores

The main juridical book publisher is Fundación de Cultura Universitaria, whose titles can be ordered through the Internet. Other juridical publishers are:

Online Legislation

Electronic databases in Uruguay are not much developed, yet some links are available:

Constitutions and Codes

All Uruguayan Constitutions and most Codes can be found (in Spanish only) on the Parliamentary website. Some English versions of Uruguay’s codes are available on the WIPO Country Profile – National IP Laws and Regulations page (Civil, Penal, and General Procedure Code).

Codes

The parliament of Uruguay website offers access to a list of codes. Listed in alphabetical order, one can assess the PDF version of the current codes.

Law, Jurisprudence and Doctrine Websites

Government Websites

Government sites provide institutional information and news about their respective fields.

University education has only recently been open to the private sector, and thus, some diffidence is still perceived in some sectors of society towards private universities, even though they offer fine rates of production and professionalism. Currently, there are five Universities (one public and four private), and 11 University-institutions. A full list of approved law schools may be found in the Ministry of Culture and Education website.

There are five Law Schools in Uruguay, one public and the others private, offering law degrees authorizing graduates to be admitted to the practice of the law.