Uruguay keep working to become a innovation hub at a regional and global level, with different initiatives that seek to position the country as a reference in the sector of Information Technologies (ICT): with the recent approval of law of attraction talentmanagement headed by Luis Lacalle Pou took another step to develop the business that continues to grow year after year.
He Parliament approved last week law of attraction talentthe project that enables technicians and professionals from the ICT sector from abroad —regardless of their nationality of origin— to work and settle in Uruguay with tax incentives. The initiative had been announced by President Lacalle Pou in November of last year, as part of a broader strategy to boost the IT sectorone of the main engines of the exportation of services of the country, which reached 2,882 million pesos during 2022.
For the president of the Uruguayan Chamber of Information Technologies (CUTI), Carlos Acle, The approval of the law is positive, not only because the initiative —which, among its provisions, allows technicians and professionals from the information technology sector to move to Uruguay for the “compliance with work contracts in a dependency relationship with companies with regular and permanent activity” in the country “they may choose, in relation to work income, to pay taxes on the Income Tax for Non-Residents (IRNR)“- will enter into force; but also because during the debate “different actors and organizations that expressed their opinion and points of view on the project” participated.
“From CUTI we also believe that this bill is important, not only for our sector, but also for other sectors of activity that need have IT talent to incorporate technology to their companies. The search for IT talent for non-IT companies is increasingly relevant and has been growing year by year”; Acle pointed to Scope.com.
A sector that grows despite obstacles
The information technology sector is navigating a strong growth momentum which, in any case, is limited by current market conditions: locally, mainly by the lack of trained personnelbecause Uruguay still does not have an academic offer that allows matching the offer of these jobs with the demand by the technology companies who settle —or seek to settle— in the country.
Thus, there are about 3,500 vacancies. The law of attraction of talent aims precisely at this problem, offering tax incentives to professionals who decide to settle in Uruguay to practice their profession.
But, on the other hand, the international market it has also presented its obstacles. “This year, for companies that export, particularly for the market of USA, It has been a different year from the previous ones, with ups and downs as a result of the economy in that market, but if we consider other destinations or the local market, which is very relevant to our sector (almost 50%), they have behaved more stable” , explained Acle, about it.
In this sense, exports of global services continue to grow at a good pace in the country and reached 2,882 million pesos in 2022, which represents a record level for the data of the Central Bank of Uruguay (BCU)according to Uruguay XXI. Of this total, the computer service placements represented 980 million dollars, a 20% more than in 2021.
“Looking at the sector in the medium and long term, it is un sector that will continue to grow and this law aims at that”, remarked the president of the CUTI.
Initiatives to maintain IT development
The talent attraction law is not the only one that the government has promoted in relation to the country’s information technology sector. An example of this is the residence permit for digital nomadsintended for people who work for companies located abroad or on their own account, and which allows them to establish themselves in Uruguay for a period of six months, extendable for another six months.
Alexander Ferrari, investment manager of Uruguay XXI in charge of promoting this new legal framework, stated in dialogue with Ámbito.com that beyond the fact that some digital nomads may choose to settle in Uruguay —which would make them remote workers— “the main objective is attract that highly-skilled talent and that in addition to carrying out his work from Uruguay abroad, you can also get to know the country, do tourism”. He investor interest The fact that these types of benefits exist in the country is also a relevant factor taken into account by the government.
“All these initiatives are positive and each one aims to different profiles and realities. The digital nomad has a focus on talent that lives in Uruguay temporarily, seeking to facilitate their arrival and stay for that period, while this law aims at people who will relocate for a longer time in the country”, considered, for his part, Acle, in dialogue with this medium. For the president of CUTI, “these are two initiatives complementary and important”.
In this sense, the sector continues to work: “in the month of June we held a meeting with leaders of partner companies of CUTI to assess the needs and concerns of the IT sector in Uruguay and one of the points that arose to work towards 2030 was to further develop the business vertical of the technological productssince the sector is currently very focused on services”, explained the head of the Uruguayan Chamber of Information Technologies, which is currently designing a strategy that is based on other initiatives already underway, such as the Uruguay Innovation Hub -of the Ministry of Industry, Energy and Mining (MIEM)—, the programs of the National Administration for Research and Innovation (ANII) and other CUTI programs.
“But we do not rule out proposing new initiatives that promote this line of work,” said Acle, in line with a sector that continues to grow in Uruguay.
Source: Ambito
