Short-term and touristic rentals in Uruguay: how they're taxed (Airbnb & co.)

More and more people put their apartment or house on Airbnb, Booking and the like for a few days or weeks. The natural question is: does this pay the same taxes as renting it out to a family for the whole year? Not necessarily. The key isn't the platform — it's what you're actually doing: are you just handing over the property, or are you offering an accommodation service with cleaning, linen, reception and a constant turnover of guests? That's what drives the tax treatment. Here's the general picture; your specific case is worth confirming with DGI or an accountant.

The starting point: a normal rental pays IRPF

A traditional rental — you hand the property to someone who uses it as a home or premises — is capital income and pays IRPF Category I (rentals), at a 12% rate. There's also an exemption for small landlords: if your total rental income for the year is under 40 BPC (and you meet the conditions, such as lifting banking secrecy), that income may be exempt. That's the baseline treatment for a 'pure' property rental.

Why a touristic rental can be different

Short-term or touristic renting often goes beyond just 'handing over the property'. When you also offer cleaning, fresh sheets and towels, guest support, check-in and a frequent turnover of people, the activity starts to look less like a rental and more like a lodging business: you're selling an accommodation service. And a service is taxed differently from capital income. That change of nature is what can pull your case out of simple IRPF and into IRAE (business income tax) and IVA (VAT, 22%) territory.

The dividing line: property or service?

There's no single on/off switch; the whole set of facts is looked at. The more you resemble a hotel or apart-hotel, the more likely it's a business activity. Some signs that push toward 'lodging service':

• You provide hotel-style services: cleaning during the stay, linen and towels, reception or guest support.
• High, continuous turnover of guests for short periods, all year round.
• You run it as an organized, habitual activity rather than something occasional.
• You offer several units or bundle it with other services (breakfast, daily cleaning, etc.).

Which taxes appear if it's a service: IRAE and IVA

If your activity counts as providing an accommodation service (rather than a mere rental), the treatment is typically the business one: the income moves to IRAE instead of the rental IRPF, and the service falls under IVA at the standard 22% rate, with the duty to invoice (electronic tax receipt) and register the activity. That's a considerably more demanding regime than a plain rental, which is why it matters to know which side of the line your case falls on before you start. DGI is the source to confirm the specific classification.

Careful: the platform doesn't pay your taxes

Airbnb, Booking and similar charge their commission, but they don't withhold or settle the Uruguayan taxes you owe for you. Those taxes are your responsibility as the person earning the income. And here's an important point: DGI has ruled that digital-platform operators intermediating in property rentals in Uruguay must periodically report the operations and who receives the income. In other words, DGI is seeing this activity better and better, so declaring correctly isn't optional.

In practice: what do I do with my case?

As a general guide: if you rent your own home occasionally and without hotel-style services, it's reasonable for it to resemble a normal rental (IRPF rules). If you're running it as a continuous lodging business, with services and permanent turnover, be ready to register the activity and possibly enter IRAE and IVA. Between those two extremes there are grey areas, and that's exactly where you shouldn't guess. Before listing your property regularly, confirm your classification with DGI or an accountant — it saves you surprises and penalties.

• IRPF on rental income in Uruguay: how it's taxed
• Taxes for a property owner in Uruguay

Frequently asked questions

• Does an Airbnb pay the same taxes as a yearly lease? Not always: it depends on whether it's a simple rental (IRPF) or a lodging service (IRAE and IVA).
• What defines the classification? The whole set of facts: hotel-style services, turnover, habituality and business organization.
• Does the platform withhold my taxes? No; the Uruguayan taxes are your responsibility, even though the platform reports data to DGI.
• Is an occasional touristic rental always a business? Not necessarily; occasional and service-free looks more like a normal rental. Confirm your case.
• How much is the IVA if it's a service? The standard rate is 22%.
• Can I use the 40 BPC exemption? That exemption is for rental IRPF; if your case is a lodging service, the regime changes. Check with DGI or an accountant.

In short: renting by the night isn't automatically 'the same' as a yearly lease. If you just hand over the property, you're in rental IRPF (with its small-landlord exemption); if you offer a lodging service, you may enter IRAE and IVA. The platform doesn't handle your taxes, and DGI sees the activity more clearly every year. When in doubt — which, on this topic, is normal — confirm your classification with DGI or an accountant before you start.