Uruguay's Free Trade Zones (FTZs) offer various benefits to businesses and investors. In order to draw attention from foreign investors, Uruguay has set several incentives for companies to benefit from when setting up operations in these areas. One of the most significant incentives offered is a favourable tax regime. In Uruguay, income generated from the utilization of intellectual property (IP) and other intangible assets is exempt from the Tax on the Rents and Activities in Uruguay (IRAE), thereby encouraging knowledge-based industries to establish their presence within the FTZs.