The national government defined that real estate agents cease to be withholding agents for temporary rental contracts of real estate for tourism purposes whose term, between January 1 and April 9, 2023, does not exceed 31 days.
The measure seeks to establish equal conditions between the services provided by local tour operators and digital platforms.
The announcement was made by the Minister of Tourism, Tabaré Viera, on Friday the 27th.
Home rentals and tourist use are taxed with personal income tax (IRPF), explained Viera. He added that real estate agents were defined as retainers and, when advertising, “they felt they were promoting a higher-priced product and that it affected their marketing and their competition.”
He stated that the signed decree exempts temporary rentals in real estate from personal income tax withholding. “It is something that the sector was demanding and now it has been considered,” he said.
Likewise, he announced that a project will be submitted to the Legislative Branch shortly, for its consideration, referring to the definition and regulation of housing for commercial tourist use. “Today, through the platforms, an informal system competes unfairly with those who pay taxes,” he said.
