globaltaxnews.ey.comSign up for tax alert emailsPrintDownload

26 May 2021

Uruguayan Executive Power issues decree regulating new 10-year option under “tax holiday” regime

The new decree regulates the 10-year option for those individuals who applied for the “tax holiday” regime before year 2021.

On 12 May 2021, the Uruguayan Executive Power issued a decree that regulates the 10-year “tax holiday” option for individuals who applied for the tax holiday regime before year 2021.

Until 2020, the “tax holiday” regime applied for five years. Law 19,904, however, extended the term to 10 years (see EY Global Tax Alert, Uruguay modifies the “tax holiday” regime, dated 11 February 2021).

The decree establishes how individuals who applied for the “tax holiday” regime before 2021 may benefit from the 10-year period. To qualify for the 10-year period, individuals must meet the following two conditions:

  1. Have a real estate investment in Uruguay with a value greater than 3.5 million Indexed Units (approx. US$390,000), provided the investment was made on or before 22 January 2021
  2. Register an effective physical presence in the country for at least 60 days during the year

In addition, individuals must submit an affidavit to the Uruguayan tax authorities (DGI) at the end of each tax year, indicating that they have complied with the two conditions. They also must allow the withholding agent to submit the affidavit to the DGI.

__________________________________________

For additional information with respect to this Alert, please contact the following:

EY Uruguay, Montevideo

Ernst & Young LLP (United States), Latin American Business Center, New York

Ernst & Young Abogados, Latin America Business Center, Madrid

Ernst & Young LLP (United Kingdom), Latin American Business Center, London

Ernst & Young Tax Co., Latin American Business Center, Japan & Asia Pacific

Document ID: 2021-5601

 
 

The information contained herein is general in nature and is not intended, and should not be construed, as legal, accounting or tax advice or opinion provided by Ernst & Young LLP to the reader. The reader also is cautioned that this material may not be applicable to, or suitable for, the reader's specific circumstances or needs, and may require consideration of non-tax and other tax factors if any action is to be contemplated. The reader should contact his or her Ernst & Young LLP or other tax professional prior to taking any action based upon this information. Ernst & Young LLP assumes no obligation to inform the reader of any changes in tax laws or other factors that could affect the information contained herein.

 

Copyright © 2025, Ernst & Young LLP.

 

All rights reserved. No part of this document may be reproduced, retransmitted or otherwise redistributed in any form or by any means, electronic or mechanical, including by photocopying, facsimile transmission, recording, rekeying, or using any information storage and retrieval system, without written permission from Ernst & Young LLP.

 

Any U.S. tax advice contained herein was not intended or written to be used, and cannot be used, by the recipient for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code or applicable state or local tax law provisions.

 

"EY" refers to the global organisation, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients.

 

Privacy  |  Cookies  |  BCR  |  Legal  |  Global Code of Conduct Opt out of all email from EY Global Limited.

 


Cookie Settings

This site uses cookies to provide you with a personalized browsing experience and allows us to understand more about you. More information on the cookies we use can be found here. By clicking 'Yes, I accept' you agree and consent to our use of cookies. More information on what these cookies are and how we use them, including how you can manage them, is outlined in our Privacy Notice. Please note that your decision to decline the use of cookies is limited to this site only, and not in relation to other EY sites or ey.com. Please refer to the privacy notice/policy on these sites for more information.


Yes, I accept         Find out more