Uruguay issued Decree No. 353/25, updating housing and construction incentives, offering tax exemptions for qualifying projects while promoting sustainable development and local industry.
Uruguay issued Decree No. 353/25 on 15 January 2026, revising and consolidating existing incentive regimes for housing and construction projects.
The decree updates provisions previously set out in Decree No. 329/016 of 2016 for housing and Decree No. 138/020 of 2020 for building construction and urbanisation, under the framework of Law No. 16.906 of 1998.
The new decree establishes a legal framework to stimulate the national economy by supporting large-scale construction and private land development. Projects in housing, offices, and urban infrastructure that meet specific financial thresholds in indexed units and comply with required timelines are eligible for substantial tax exemptions. These benefits include relief from import duties, value-added tax, and corporate income tax.
The decree encourages sustainable construction practices and the use of local industry. Developers prioritising environmental considerations may access additional incentives. Oversight is provided by a special commission, which monitors compliance and ensures that reporting requirements are met to maintain tax advantages.
The measures are intended to drive economic growth and job creation, with incentives available to qualifying projects until 2031.
