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May 26, 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


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