Uruguay has extended tax incentives for non-resident tourists by renewing a reduction in value-added tax (VAT) on eligible purchases and services through April 30, 2026, according to Decree No. 220/025 published in the Official Gazette.

The decree, signed by President Yamandú Orsi and members of his cabinet, reinstates VAT benefits previously granted under Decree No. 279/024. The measure will apply to eligible transactions carried out between 15 November 2025 and 30 April 2026.

Measure Targets Foreign Visitors

According to the decree, the benefit applies to operations covered by the 2024 regulation, which was issued under powers granted to the Executive Branch by national tax legislation. The legal framework allows the government, under certain conditions, to reduce VAT on specific purchases made by non-resident individuals in Uruguay.

The previous round of benefits expired on 30 April 2025.

Government Cites Regional Price Conditions

In the decree’s explanatory section, the government said the extension was justified by the continued impact of regional price conditions affecting the competitiveness of goods and services.

Authorities stated that maintaining the tax relief during the upcoming summer tourism season would help strengthen Uruguay’s competitiveness as a destination for international visitors.

The measure comes as countries across South America continue to compete for tourist spending amid shifting exchange rates and cost differentials across the region.

Benefits Effective Until End of April 2026

Article 1 of Decree No. 220/025 grants the VAT rate reduction to all transactions covered by Decree No. 279/024 conducted from 15 November 2025 through 30 April 2026, under the same conditions established in the earlier regulation.

The decree entered into force following its promulgation on 23 October 2025 and publication on 30 October 2025.