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Uruguay Film Tax Incentive

Ask about the Uruguay film incentive and the first thing worth clearing up is that there isn’t just one — there are two. Since 2019, the Programa Uruguay Audiovisual (PUA) has offered a cash rebate of 20–25% on qualifying local spend. In July 2026, the government layered a second, uncapped option on top: a transferable tax credit worth up to 30%. A production can use one or the other, never both, so the real work is knowing which route fits your budget.

Uruguay Film Tax Incentive — Up to 30% Back on Production Spend

Uruguay has quietly become one of South America’s most competitive production hubs, and its Uruguay film tax incentive program is the reason why. Producers now have two distinct routes to recoup local spend: the long-running Programa Uruguay Audiovisual (PUA) cash rebate, and a brand-new transferable tax credit worth up to 30%, launched in July 2026. Together, they position Uruguay alongside Colombia and Mexico as one of the region’s most aggressive incentive destinations.

Uruguay film tax incentive — Montevideo coastline production location

Uruguay – Up to 30%

Uruguay offers international productions two complementary — but not stackable — incentive routes, both administered by the Agencia del Cine y el Audiovisual del Uruguay (ACAU) in partnership with the Ministry of Economy and Finance (MEF) and the Ministry of Industry, Energy and Mining (MIEM).

1. Cash Rebate — Programa Uruguay Audiovisual (PUA)

Running since 2019, the PUA cash rebate returns 20% to 25% of eligible local production expenditure directly to the production company after an audit, with no local tax liability required.

Feature films, series, documentaries, animation: 20–25% cash rebate on qualifying Uruguayan spend, tiered by budget level
Commercials and advertising: minimum local spend of USD 150,000 required; rebate is 20% (capped at USD 100,000) for smaller budgets, rising to 25% for larger campaigns
Payments are capped per project (historically up to roughly USD 12 million on the largest qualifying productions)
Applies to feature films, shorts, music videos, animation, documentaries, TV series, and any format destined for TV, OTT, or theatrical release

2. Tax Rebate Audiovisual — the New 30% Transferable Tax Credit

On 3 July 2026, Uruguayan President Yamandú Orsi signed a decree creating the Tax Rebate Audiovisual, a transferable tax credit designed to complement — not replace — the PUA cash rebate.

Returns up to 30% of eligible expenses incurred in Uruguay
Issued as a transferable certificate valid for 36 months, which can be used by the recipient company (or sold/transferred) to offset IRAE tax obligations with banks, autonomous entities, and insurance companies
Minimum eligible spend of roughly USD 120,000–200,000, depending on the qualifying category
No project cap, unlike the PUA cash rebate — making it the better fit for large-budget international productions
Open to production and post-production service companies working on international projects, international advertising productions, and national or co-produced content
A single project cannot combine the cash rebate and the new tax credit — productions must choose one route

3. VAT Exemption

Under Decree 220/998, foreign productions filming in Uruguay are exempt from Uruguay’s 22% VAT on production costs, provided the production holds a tax-exemption certificate issued by ICAU (Dirección de Cine y Audiovisual Nacional). This exemption applies independently of which cash incentive route is used.

Why It Matters

According to ACAU’s own impact studies, every dollar disbursed through the PUA rebate has generated roughly USD 6.9 in economic activity and USD 3.91 in wages, while returning USD 1.62 in tax revenue to the state — figures the government has cited as justification for layering the new, uncapped tax credit on top of the existing cash rebate. The tools are already reshaping regional production patterns: several Argentine productions are now routing through Uruguayan co-production structures to access the incentive, a trend expected to accelerate now that larger, uncapped budgets can qualify.

Frequently Asked Questions

What is Uruguay's film tax incentive worth in 2026?

Productions can choose between a 20–25% cash rebate under the Programa Uruguay Audiovisual, or a new transferable tax credit worth up to 30% of eligible local spend, introduced in July 2026.

Can a production use both the cash rebate and the tax credit?

No. The two incentives are complementary at the program level but mutually exclusive per project — a production must choose one or the other.

Who administers Uruguay's film incentives?

The Agencia del Cine y el Audiovisual del Uruguay (ACAU), together with the Ministry of Economy and Finance and the Ministry of Industry, Energy and Mining.

Is there a minimum spend requirement?

Yes. The cash rebate for commercials requires a minimum of USD 150,000 in local spend; the new tax credit requires roughly USD 120,000–200,000 in eligible expenses, depending on category.

Is there a cap on the incentive amount?

The PUA cash rebate is capped per project. The new Tax Rebate Audiovisual has no stated cap, making it more attractive for large-budget productions.