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January 28, 2023
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Government exempts real estate from tax on rentals for tourism purposes

Government exempts real estate from tax on rentals for tourism purposes

The measure, expressed in a decree, seeks to establish equal conditions between the services provided by local tour operators and digital platforms. In this sense, it was 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 announcement was made by the Minister of Tourism, Tabaré Viera, this Friday the 27th, during the presentation of activities that will take place in Durazno in February. The call was also attended by the Secretary of the Presidency, Álvaro Delgado; the Minister of Livestock, Fernando Mattos, and the mayor of Durazno, Carmelo Vidalín

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 decree signed on Monday the 23rd 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.

February in Peach

In the conference held in the Arredondo room of the ministerial headquarters, the minister detailed the events that will take place in the department of Durazno during the month of February.

The National and International Folklore Festival, the Gaucho Meeting, the 33rd edition of the First Calls of the Interior of the Country and the Expo Durazno are some of the activities that will take place over the next month.

These events will make Uruguay pay attention to Durazno, said Delgado in his speech, who also considered that artistic, cultural, productive and entertainment proposals are opportunities for growth and development.

Viera, meanwhile, indicated that on February 3, 4 and 5, for the 49th edition of the All Uruguay and America Sing in Durazno folklore festival, more than 20,000 people are expected to attend.

Also during this period, the 22nd Gaucho Meeting will take place in the Parque de la Hispanidad, with reining events, horse riding, pialadas, national pericón, gaucho cavalry parade and live shows.

Likewise, on Saturday the 18th a new day of the First Calls of the Interior of the Country will be held, which will tour the streets of Peach until the monument to the drum.

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