Uruguay Corruption Report

Corruption is a low risk when dealing with Uruguay’s police. Impunity is not an issue as allegations of corruption in the police are commonly addressed in the courts (HRR 2014). Uruguay is a safer place to conduct business than other regional countries, which suffer from high crime rates (FitW 2015). Nonetheless, the police cannot be consistently relied upon to enforce law and order, and crime and violence impose costs on businesses (GCR 2015-2016).

In 2015, following a three-year-long investigation, nine police officers were prosecuted for corruption, abuse of office and fraud, as they bartered vouchers intended for patrol and products for money (República, July 2015).

There is a low risk of corruption when accessing public services and acquiring licenses. Undocumented payments are rare when obtaining utilities (GCR 2015-2016). In late-2014, around 7 percent of citizens reported having paid a bribe for public services in the past 12 months (Vanderbilt University, Dec. 2014). Starting a business takes on average 6.5 days, while getting electricity takes less time than elsewhere in Latin America and the Caribean and is significantly less costly (DB 2016).

Corruption is a low risk in Uruguay’s land administration. Rules and regulations on the acquisition, benefit, use and sale of property are well-defined and enforced and can only be limited for reasons of public interest (BTI 2016). Registering property takes on average 66 days, while dealing with construction permits is more cumbersome and takes businesses 251 days on average (DB 2016).

Corruption in the tax sector is a low risk. Irregular payments or bribes in connection with annual tax payments are uncommon (GCR 2015-2016). Uruguay implemented an online filing and payment system, which it continuously upgrades and improves for filing and paying taxes (DB 2016). A business executive spends on average 277 hours per year preparing and paying taxes (DB 2016).

The customs sector carries a low corruption risk. Businesses report very rare irregular payments and bribes when importing and exporting goods; corruption is not a significant obstacle when importing or exporting goods (GETR 2014). Import procedures and tariffs can be burdensome (GETR 2014). In the most recent citizen survey on corruption in Uruguay, around half of respondents identified the customs administration as corrupt (Miller Chevalier, Jun. 2012).