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24 October 2019 Share

The first government measures to lower rents begin next season



In previous news, we have already described what have been the measures that the Executive Branch has taken to attract tourists in the summer season.

For this particular end of the year and the beginning of 2020, the government is expected to make a specific provision on income tax.

Minister Liliam Kechichián announced a few days ago - in an event organized by private operators - that the collection of Income Tax (IRPF) was suspended until March 30. However, doubts persist if it is an exoneration or if instead, it means that real estate companies are no longer retaining agents of this tax.

So there are still some doubts about the scope of the measure, such as that expressed by the newspaper El País by an operator, where he comments that, in case of exemption from personal income tax, it could be transferred the price of rentals. Otherwise, if there is no such benefit, the owner would then be the one who pays it when paying his income.

On the other hand, sources of information such as Maldonado News, ensures that the measure is already a fact and that the announcement is an achievement for the real estate sector that since 2007 has been requesting concrete measures for the season. As it is calculated, the government's decision will make it possible to reduce the cost of rentals by up to 10%, which is why it is expected to have a favorable impact on foreign clients, but also Uruguayan tourists.

Another of the measures announced by the minister and which was also held, particularly concerns digital platforms for accommodation services. That is, they must pay taxes to be placed on equal terms in relation to traditional rental systems. To give an example: many were the real estate companies that reported that online hosting platforms (such as Airbnb) are not taxing, and this results in significant inequality when competing in the market.

Javier Sena, president of the real estate union said: “From now on renting by platforms or by a real estate has the same cost. In addition, doing it for real estate have benefits such as personalized attention and more guarantees because we are registered".

Other measures related to gastronomy and hospitality will also be decreed soon, such as the elimination of VAT on lodging and restaurants. In this way, it also has a direct impact on the price for the season.

To know what are the full benefits that were approved in 2018 - 2019 (and that will surely continue in this year) visit the following link: Click here
 
Material generated from the information on the site: El País

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