{"id":9320,"date":"2020-09-17T12:39:00","date_gmt":"2020-09-17T10:39:00","guid":{"rendered":"https:\/\/auren.com\/il\/global-blog\/new-promotional-regime-for-real-estate-investments\/"},"modified":"2025-01-14T11:24:59","modified_gmt":"2025-01-14T10:24:59","slug":"new-promotional-regime-for-real-estate-investments","status":"publish","type":"global-blog","link":"https:\/\/auren.com\/il\/global-blog\/new-promotional-regime-for-real-estate-investments\/","title":{"rendered":"New promotional regime for real estate investments"},"content":{"rendered":"<p><strong>Decree No. 138 of 2020<\/strong> recently published introduces a new promotional regime for <strong>real estate investments<\/strong>, under <strong>Law No. 16.906 of 1998<\/strong>, Investment Law.<\/p>\n<p><strong>Promoted activities<\/strong><\/p>\n<ul>\n<li>Construction of <strong>office buildings<\/strong>, for sale or rental.<\/li>\n<\/ul>\n<ul>\n<li>Construction of <strong>residential buildings<\/strong>, for sale or rental.<\/li>\n<\/ul>\n<ul>\n<li>Urban development projects (private initiative), of suburban or rural area, including:<\/li>\n<\/ul>\n<ul>\n<li>infrastructure development and subdivision,<\/li>\n<\/ul>\n<ul>\n<li>subdivision and construction of housing units over this land.<\/li>\n<\/ul>\n<p><strong>Conditions for applying to benefits<\/strong><\/p>\n<p>Projects without registration before the publication of this Decree:<\/p>\n<ul>\n<li>projects with an investment of <strong>USD<\/strong> <strong>6,5 million <\/strong>or more, in civil works and equipment of common areas, registered as of this Decree,<\/li>\n<\/ul>\n<ul>\n<li>common areas should be at least 10% of the project,<\/li>\n<\/ul>\n<ul>\n<li>promoted investment should be executed in a period of <strong>up to 60 months<\/strong>, since the approval of the building permit, maximum 30<sup>th<\/sup> April of 2025.<\/li>\n<\/ul>\n<p>Projects previously registered (initiated or not):<\/p>\n<ul>\n<li>projects with pending investments for at least USD 6,5 million (civil works and equipment of common areas),<\/li>\n<\/ul>\n<ul>\n<li>common areas should be at least 10% of the project,<\/li>\n<\/ul>\n<ul>\n<li>promoted investment should be executed in a period of up to <strong>48 months<\/strong>, since the submission of the project among COMAP, maximum 30<sup>th<\/sup> April of 2025.<\/li>\n<\/ul>\n<p>Investment projects should be submitted before the 31<sup>st<\/sup> of December of 2021 in COMAP.<\/p>\n<p><strong>Fiscal benefits<\/strong><\/p>\n<ul>\n<li><strong>Income Tax exemption<\/strong>,considering: &nbsp;<\/li>\n<\/ul>\n<p>The maximum period for using this exemption is <strong>10 years<\/strong>, counted since the first year with positive taxable income (up to 4 fiscal years since the promotional declaration).<\/p>\n<p>In every fiscal year, the exemption must not exceed:<\/p>\n<ul>\n<li>90% of Income Tax,<\/li>\n<\/ul>\n<ul>\n<li>total investment to date of presentation of Income Tax affidavit,<\/li>\n<\/ul>\n<ul>\n<li>maximum exemption considering project\u2019s investment range.<\/li>\n<\/ul>\n<p>In case investment is not accomplished in the maximum granted period (60 or 48 moths, maximum 30\/04\/2025), when the percentage of completion is at least 50% Income Tax exemptions would be apportioned considering execution progress.<\/p>\n<ul>\n<li><strong>Net Worth Tax exemption<\/strong> for the project promoter:<\/li>\n<\/ul>\n<ul>\n<li>land and improvements: 8 years for projects in Montevideo and 10 years in outside de capital city,<\/li>\n<\/ul>\n<ul>\n<li>equipment of common areas: for all its useful life.<\/li>\n<\/ul>\n<ul>\n<li><strong>Value Added Tax refund<\/strong>: associated to civil Works and equipment of common areas.<\/li>\n<\/ul>\n<ul>\n<li><strong>Exemption of customs duties and other taxes<\/strong>:on importsof equipment, machines and materials for civil works and equipment of common areas, to be imported directly by the promoted company. Provided they are not competitive with the national industry.<\/li>\n<\/ul>\n<p><em>Ver\u00f3nica Rodr\u00edguez, Auren Uruguay<\/em><\/p>\n<p><!-- AddThis Advanced Settings generic via filter on the_content --><!-- AddThis Share Buttons generic via filter on the_content --><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Decree No. 138 of 2020 recently published introduces a new promotional regime for real estate investments<\/p>\n","protected":false},"featured_media":9321,"template":"","meta":{"_acf_changed":false},"global-blog-category":[],"class_list":["post-9320","global-blog","type-global-blog","status-publish","has-post-thumbnail","hentry"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.2 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>New promotional regime for real estate investments - Auren Israel<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/auren.com\/il\/global-blog\/new-promotional-regime-for-real-estate-investments\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"New promotional regime for real estate investments - 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