September 7, 2022
Uruguay extends VAT reduction and tax credit on short-term rentals for tourism sector
Pursuant to the Uruguayan Government's Decree 262/022, a VAT rate reduction applies on the following activities:
In addition, a 10.5% deduction is granted on the gross price agreed for the temporary assignment of a real estate property for tourism purposes, for assignments that do not exceed a period of four months, paid to a resident real estate manager.
Both benefits will be applicable to payments made with credit or debit cards issued abroad by nonresident individuals.
Decree 262/022, was published in the Official Gazette on 29 August 2022.
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 LLP (United Kingdom), Latin American Business Center, London
Ernst & Young Tax Co., Latin American Business Center, Japan & Asia Pacific