June 5, 2020
Uruguay’s Executive Power modifies tax incentives to promote social interest housing
Uruguay’s Executive Power issued Decree No. 129/020, which modifies Decree Nos. 355/011 and 34/017 by changing the requirements for real estate property to be considered social interest housing (i.e., low-income housing) and, therefore, subject to tax benefits.
Projects related to the construction, recycling, expansion or renovation of housing may qualify as social interest housing, if they meet specific requirements detailed in the regulations. Under the new decree, habitable areas equal to or greater than 25 square meters and equal to or less than 40 square meters are incorporated into the definition of housing projects and may be declared as studio apartments that comply with the municipal regulations.
The decree removes the 100-house cap on the number of houses that may be involved in one project.
Additionally, the decree modifies the tax benefits as follows:
For additional information with respect to this Alert, please contact the following:
Ernst & Young Uruguay, Montevideo
Ernst & Young LLP (United States), Latin American Business Center, New York
Ernst & Young Abogados, Latin American Business Center, Madrid
Ernst & Young LLP (United Kingdom), Latin American Business Center, London
Ernst & Young Tax Co., Latin America Tax Desk, Japan & Asia Pacific