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May 25, 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 May 12, 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 Tax Alert 2021-0311).

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. USD 390,000), provided the investment was made on or before January 22, 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.


Contact Information
For additional information concerning this Alert, please contact:
EY Uruguay
   • Martha Roca (
   • María Inés Eibe (
   • Nadine Bruck (
Latin American Business Center, New York
   • Ana Mingramm (
   • Enrique Perez Grovas (
   • Pablo Wejcman (