Uruguay has issued Decree No. 85/025 on 2 April 2025, extending the tax benefits for large investment projects in construction and urban development.
These incentives were first introduced in 2020 under Decree No. 138/020 as part of measures to support economic activity during the COVID-19 pandemic. The scheme offers tax exemptions of up to 40%, depending on the investment amount.
The new decree updates key deadlines. The application period has been extended by one year, allowing developers to submit proposals until 31 December 2025. The projects must have been submitted before 1 January 2026. The deadline to complete approved projects has also been extended to 30 September 2028.
