The incentive is aimed at productions, co-productions, and audiovisual production and post-production services, covering feature films, series, advertising, and other formats, with no cap per project.
The Uruguayan Film and Audiovisual Agency (ACAU) and Uruguay Audiovisual have unveiled Tax Credit Uruguay Audiovisual, a new tax incentive designed to expand financing opportunities and attract international productions and co-productions to the country.
The scheme offers a tax credit equivalent to 30% of eligible expenses incurred in Uruguay. It covers international audiovisual productions, co-productions and post-production services, as well as domestic feature films, including series, television projects, advertising and other audiovisual content.
Among its main features, the incentive has no cap per project and provides transferable tax credit certificates valid for 36 months. To qualify, projects must meet a minimum eligible expenditure threshold of 1.2 million indexed units (UI).
The new incentive includes several support categories, with an initial phase focused on international non-advertising production services and advertising productions. Its implementation aims to expand financing alternatives for companies choosing Uruguay as a base for their projects.
The initiative builds on the country’s competitive advantages for the audiovisual industry, including political, economic and legal stability, infrastructure and connectivity, a skilled workforce, and a diverse range of locations within short distances. Uruguay also has an established audiovisual ecosystem, with experience in domestic and international productions and public policies aimed at developing the sector.
The new tax credit complements other benefits available to the industry, such as the 0% VAT regime for audiovisual production services provided to international clients and existing cash rebate schemes, with the aim of offering greater predictability and competitiveness to companies interested in producing in the country.
A Highly Competitive Region
With a 30% rate, Uruguay ranks among the South American countries offering the most competitive audiovisual incentives, amid growing regional competition to attract investment and international productions.
In Colombia, one of the region’s leading markets, the Audiovisual Investment Certificate (CINA) offers a tax benefit equivalent to 35% of eligible expenditure on audiovisual and logistical services incurred in the country, through transferable tax certificates. However, the program has an overall funding allocation determined annually.
Chile, meanwhile, offers the High-Impact Audiovisual Investment Support Program (IFI Audiovisual), which provides rebates of up to 30% of eligible expenses and can reach 40% for productions carried out outside the Santiago Metropolitan Region. The scheme operates through application rounds with allocated budgets.
In Brazil, where different incentive mechanisms are available at the state and municipal levels, São Paulo offers a cash rebate program ranging from 20% to 30% for international audiovisual productions, subject to investment requirements and the availability of funds.
Compared with these schemes, one of the main features of Uruguay’s new incentive is the absence of a cap per project, which could help attract larger-scale productions, although the framework allows for annual limits on the total amount of benefits granted.
With this new measure, Uruguay aims to strengthen its ability to attract investment, expand employment opportunities for the local audiovisual industry and consolidate its position as an international production destination.
