Setting Up Business Trusts (Fideicomisos) in Uruguay: Types and Steps
Setting up business trusts in Uruguay has become an increasingly common tool for structuring investments, protecting assets and managing business projects efficiently. Thanks to its legal and tax flexibility, the business trust (fideicomiso) is widely used in real estate, financial and corporate transactions. In Uruguay, trusts — governed by Law No. 17,703 — allow estates to be ring-fenced, specific assets to be managed and greater legal certainty to be given to investors, creditors and companies.
What Is a Business Trust?
A business trust is a legal structure through which a person or company transfers certain assets or rights to a trustee, who manages them for the benefit of third parties or to fulfil a specific purpose.
The trust estate is kept separate from the personal or corporate assets of the parties involved, providing asset protection and greater operational transparency.
How Does a Trust Work in Uruguay?
A trust generally involves three main parties:
- Settlor (fideicomitente): the person who contributes the assets or rights to the trust.
- Trustee (fiduciario): the person or entity that manages the trust estate. Professional trustees must be registered with the Central Bank of Uruguay (BCU).
- Beneficiary: the person who receives the economic or patrimonial benefits.
The structure can be adapted to many business and financial purposes.
Advantages of Setting Up Business Trusts in Uruguay
Setting up business trusts in Uruguay offers many advantages:
- Separation of assets
- Asset protection
- Greater legal certainty
- Contractual flexibility
- Ease of structuring investments
- Professional asset management
- Succession and wealth planning
For these reasons, trusts are used by both local companies and foreign investors.
Types of Business Trusts in Uruguay
There are different types of trusts depending on their purpose:
Administration Trust
Used to manage specific assets or businesses under predefined rules.
Guarantee Trust
Used to secure financial obligations with the assets placed in trust.
Real Estate Trust
Widely used in real estate developments and construction projects.
Financial Trust
Used for securities issues and regulated investment structures.
Setting Up a Business Trust in Uruguay Step by Step
The process generally includes:
- Defining the purpose of the trust
- Choosing the trustee
- Drafting the trust agreement
- Transferring the assets or rights
- Registrations and legal formalities
- Tax and regulatory compliance, including the beneficial ownership declaration to the BCU
Depending on the structure, notarial and registry involvement may be required (for example, when real estate is transferred).
Business Trusts for Real Estate Investment
Real estate trusts are among the most widely used structures in Uruguay.
They channel investment into construction projects, property management and large-scale developments with greater security for investors.
Taxation of Business Trusts in Uruguay
The tax treatment depends on the type of trust and the activity carried out. As a general rule, trusts are IRAE (corporate income tax) taxpayers, with the exception of guarantee trusts.
It is essential to analyse IRAE, VAT, IRPF and wealth tax aspects to structure the transaction correctly.
Business Trusts for Foreigners
Uruguay is considered an attractive country for international fiduciary structures because of its legal and financial stability.
Many foreign investors use Uruguayan trusts to manage regional assets or develop projects in Latin America.
Key Points When Structuring a Business Trust
- Clearly define the purpose of the trust
- Choose a reliable trustee
- Analyse the tax and regulatory implications
- Draft the trust agreement properly
- Assess asset and compliance risks
Conclusion
Setting up business trusts in Uruguay is a strategic tool for companies, investors and families who want to manage assets and projects efficiently and securely.
Thanks to their legal flexibility, asset protection and potential tax efficiency, trusts continue to grow as one of the most widely used structures in Uruguay for investment, asset management and corporate planning.
Proper legal, notarial and tax advice is essential to design a solid fiduciary structure adapted to each project’s needs.
You may also find these guides useful: