Property Taxes in Uruguay (2026): Complete Guide

INGAR · · Legal

Property Taxes in Uruguay (2026): Complete Guide

Summary

Uruguay does not have a single property tax: it has several, and they stack up. Contribución Inmobiliaria, Primaria, Wealth Tax (Patrimonio), IRPF on rental income, ITP on property transfers, and capital gains tax when selling. None is punishing on its own, but together they define your real cost of owning a property.

This guide organizes each tax for you: who pays it, how much it is, when it is due, and what exemptions exist (including vivienda promovida and the new Tax Holiday 2.0). If you are looking for the total cost of a purchase, start with what costs are involved in buying a property. If you are going to rent, check rental law in Uruguay.

Important Notice

This is for informational purposes only and does not substitute professional advice. The taxes that apply depend on your situation (individual or legal entity, resident or non-resident), the department, the type of property, and the specific transaction. Always consult an accountant or notary before making decisions.

1) General Overview: What Taxes Exist and When They Apply

Before going into detail, a quick map. The following table summarizes the eight main taxes linked to properties in Uruguay:

Tax / levy When it applies Who pays it Where it is paid
Contribución Inmobiliaria for owning the property (annual) owner Departmental municipality (Intendencia)
Impuesto de Primaria for owning the property (annual) owner / usufructuary DGI
Impuesto al Patrimonio if your net worth exceeds the minimum threshold individual / family unit DGI
IRPF on rental income if you receive rental income (resident) tax-resident owner DGI
IRNR on rental income if you receive rental income (non-resident) non-resident owner DGI
IRPF on capital gains when selling at a profit resident seller DGI
ITP (Property Transfer Tax) when transferring the property buyer (2%) + seller (2%) DGI
VAT on construction new construction (not resale) buyer / developer DGI

Complement with: costs of buying a property and what does a notary do in a sale.

2) Contribución Inmobiliaria (Municipality)

This is the departmental tax you pay for owning a property. It is set and collected by each Intendencia, so rates vary by department. We focus on Montevideo as the most relevant market.

How It Works in Montevideo (2026)

Montevideo applies a progressive bracket system on the assessed value (catastral value) of the property. The rates range from 0.18% to 1.80% and are applied marginally: each rate only applies to the corresponding bracket, not to the total property value.

Value bracket Rate (lower-value properties*) Rate (higher-value properties)
Up to ~$793,000 0.18% 0.25%
From ~$793,000 to ~$1,983,000 0.75% 0.75%
From ~$1,983,000 to ~$7,930,000 -- 1.35%
Above ~$7,930,000 -- 1.80%

* Properties with an assessed value equal to or below ~$1,983,000 qualify for the reduced rates (left column). Since 2024, approximately 70% of properties in Montevideo fall into this category. Amounts are adjusted by CPI.

Due Dates and Discounts

  • Paid in 3 four-monthly installments: March, July, and November.
  • From 2026, all are due on the 15th of each even-numbered month.
  • If you pay the full annual amount before the first due date, you qualify for a discount.

Exemptions

  • Retirees and pensioners: may qualify for a 50% or 100% exemption depending on the property's taxable value. Thresholds are updated annually by decree.
  • Vivienda promovida (Law 18,795): exempt from contribución during the promotion period.

Practical note: for a typical apartment in Montevideo with a cadastral value of $1,500,000, the annual contribución is around $3,000-$4,000. This is a small amount compared to property taxes in other countries, but combined with Primaria and Patrimonio, it adds up.

3) Impuesto de Primaria (DGI)

This is a national tax that funds public primary education. It is paid by all owners of urban, suburban, and rural properties. It is administered by the DGI, not the Intendencia.

Exemption by Cadastral Value

If the cadastral value of your property is below $282,612 (2026), you are exempt. This covers a significant portion of the country's most modest dwellings.

Progressive Rates

For properties that exceed the exempt minimum, 4 brackets apply with progressive rates ranging from 0.15% to 0.30% on the cadastral value. The rate is marginal: each bracket applies only to the excess above that tier.

Due Dates

  • Paid in 3 installments throughout the year (check due dates on the DGI website).
  • For rural properties, deadlines and conditions differ; there are special exemptions for small producers (paddocks under 300 CONEAT 100 hectares).

Practical note: an apartment with a cadastral value of $1,500,000 pays between $2,000 and $3,500 per year in Primaria. Combined with the contribución, you are already at $5,000-$8,000 per year just in taxes for "owning" the property.

4) Impuesto al Patrimonio - Wealth Tax (DGI)

This tax applies to your net fiscal worth as of December 31 of each year. It is not just on real estate: it includes all your assets (cash, investments, vehicles, etc.) minus deductible liabilities. But your property is part of that base.

2026 Non-Taxable Minimum

Situation Non-taxable minimum (2026)
Individual / undivided estate $6,653,000
Family unit (both spouses) $13,306,000

If your net fiscal worth does not exceed those amounts, you pay no Patrimonio.

Rates for Residents

Bracket Rate
Excess up to 2x the non-taxable minimum 0.10%
Excess above 2x the non-taxable minimum 0.30%

Rates for Non-Residents

These are significantly higher: between 0.70% and 1.50% on a sliding scale based on the value of assets in Uruguay. This applies particularly to foreign investors who hold properties in the country without being tax residents.

Concrete Example

If you are an individual resident with a net worth of $10,000,000 (an apartment and some savings), you pay 0.10% on the excess above $6,653,000, i.e., on $3,347,000. That comes to ~$3,350 per year. Not much, but it adds up.

5) IRPF on Rental Income (Residents)

If you are a tax resident of Uruguay and collect rental income, you pay IRPF Category I - Capital Income from Real Estate at a rate of 12% on net income.

How It Is Calculated

  1. Start with gross rental income for the period.
  2. Subtract allowable deductions:
    • Contribución Inmobiliaria paid.
    • Impuesto de Primaria paid.
    • Property management commission (if applicable).
    • Fees for contract signing or renewal.
    • VAT on commissions and fees.
    • Bad debts (unpaid rents after 3 months).
  3. Apply 12% to the resulting net income.

Monthly Advance Payments

DGI requires monthly advance payments of 10.5% on the gross rental amount. At year-end the difference is settled: if you overpaid, it remains as a tax credit.

Exemption for Low Income

If your total rental income is below 40 BPC per year (~$274,560 in 2026, with BPC = $6,864), you waive banking secrecy before DGI, and you generate no other capital income above 3 BPC per year, you are exempt.

To organize the full rental process: rental law in Uruguay and rental guarantees.

6) IRNR on Rental Income (Non-Residents)

If you are not a tax resident of Uruguay and have a rented property, instead of IRPF you pay IRNR (Non-Resident Income Tax) at a rate of 10.5% on gross rental income.

Key Difference vs. IRPF

Concept IRPF (resident) IRNR (non-resident)
Rate 12% on net 10.5% on gross
Deductions contribución, primaria, commissions no deductions
Effective burden ~6-8% of gross (depending on deductions) 10.5% of gross
Low-income exemption yes (up to 40 BPC) no

For foreign investors, the fixed 10.5% on gross is a critical data point when calculating net yield. If you are evaluating an investment, check rental yield by zone.

7) IRPF on Capital Gains (Property Sale)

When you sell a property at a profit, you pay IRPF Category II - Capital Gains. The rate is 12% on the actual gain.

Real Method vs. Deemed Method

Method How it is calculated When it applies
Real 12% on (sale price - inflation-adjusted cost) properties acquired after 01/07/2007 (mandatory)
Deemed 12% on 15% of sale price = 1.8% of sale price properties acquired before 01/07/2007 (optional)

Example

You bought an apartment in 2010 for USD 100,000 and sell it in 2026 for USD 160,000:

  • Real method: gain = USD 60,000 (simplified). IRPF = 12% x 60,000 = USD 7,200.
  • If you had bought it in 2005 and opted for the deemed method: IRPF = 1.8% x 160,000 = USD 2,880.

The deemed method may be more advantageous if the real gain is high in percentage terms. Your notary or accountant can help you decide. For more on selling costs: costs of buying and selling a property.

8) ITP (Impuesto a las Transmisiones Patrimoniales - Property Transfer Tax)

This is paid when transferring a property. The total rate is 4% on the assessed value (catastral value) of the property:

  • 2% borne by the seller
  • 2% borne by the buyer

Tax Base

It is calculated on the assessed value set by the National Cadastre Directorate, not on the transaction price. The cadastral value is typically well below the market value, which means in practice the effective impact on the real price is less than 4%.

Example

If the cadastral value is $5,000,000 and the actual sale price is $15,000,000:

  • Total ITP: 4% x $5,000,000 = $200,000.
  • Buyer pays $100,000, seller pays $100,000.
  • On the actual price, the effective cost is ~1.3% (not 4%).

For all the details on closing costs: what costs are involved in buying a property and what does a notary do.

9) VAT on Construction

VAT applies to new construction. If you buy a brand-new property directly from the developer/builder, part of the price carries VAT (22%). In resales of existing properties between private parties, VAT does not apply.

In practice, VAT is "baked into" the final price quoted by the developer. What matters to know: in vivienda promovida projects, the fiscal exemptions offset part of this cost.

10) Vivienda Promovida (Law 18,795): Fiscal Exemptions

Law 18,795 was designed to stimulate the construction of affordable housing and offers significant fiscal benefits for developers, buyers, and investors alike. It applies to projects approved by the ANV (National Housing Agency).

What It Exempts

Exempted Tax Benefit Typical Duration
ITP exempt on first sale first transaction
IRPF / IRAE on rental income full or partial exemption up to 10 years
Impuesto al Patrimonio promoted property exempt up to 10 years
Contribución Inmobiliaria exempt depending on department up to 10 years

Who Benefits Most

  • Investor planning to rent: the first 10 years without IRPF on rental income make a huge difference in net yield.
  • Buyer to live in: the ITP savings on the first purchase and the Patrimonio exemption add up.

If you are evaluating an off-plan project with vivienda promovida benefits: complete guide to vivienda promovida and buying off-plan vs. completed.

11) Tax Holiday 2.0 (New Tax Residents, 2026)

Uruguay maintains a regime to attract high-net-worth tax residents. From January 1, 2026, the rules changed with Budget Law 20,446:

Paths to Tax Residency

Path Requirement
Physical presence more than 183 days per year (no investment required)
Real estate investment 12.5 million UI (~USD 2,000,000) in properties
National Innovation Fund USD 100,000/year for 11 consecutive years

Tax Holiday Benefit

  • Full exemption from foreign capital income during the year of acquiring residency + 10 calendar years = 11 years total.
  • Transition: 5 additional years taxed at 6% (half the 12% IRPF rate).
  • Requirement: must not have been a Uruguayan tax resident in the prior 2 years, nor have used the benefit before.

The real estate investment threshold rose from ~USD 590,000 to ~USD 2,000,000. This changes the profile of the foreign investor who can access the benefit through this route.

12) Scenario Table: What You Pay Depending on Your Situation

This table consolidates which taxes apply to you depending on what you are doing with the property:

Your situation Contribución Primaria Patrimonio IRPF/IRNR rental ITP IRPF sale
Owner living there yes yes* yes** -- -- --
Owner renting (resident) yes yes* yes** IRPF 12% net -- --
Owner renting (non-resident) yes yes* yes (0.7-1.5%) IRNR 10.5% gross -- --
Buying a property from purchase date from purchase date yes** -- 2% buyer --
Selling a property until sale until sale -- -- 2% seller 12% gain
Vivienda promovida (investor) exempt -- exempt exempt exempt (1st sale) --

* Exempt if cadastral value < $282,612.
** Only if your net worth exceeds the non-taxable minimum ($6,653,000 individual / $13,306,000 family unit).

13) Full Example: How Much Does a Landlord Pay

Assume you have an apartment in Montevideo with a cadastral value of $3,000,000, a market value of ~USD 120,000, and you rent it out at $35,000/month:

Item Estimated Annual Amount
Contribución Inmobiliaria ~$8,000
Impuesto de Primaria ~$5,500
Impuesto al Patrimonio $0 (net worth below non-taxable minimum)
IRPF on rental income (12% on net) ~$42,000
Total annual taxes ~$55,500
Gross annual income $420,000
Tax burden on gross income ~13%

That ~13% is the real tax burden. It does not appear on any single bill, but rather is the sum of several taxes that many property owners never see together. That accumulation is the number that matters.

14) Tax Checklist by Transaction

If You Are Buying

  • Ask the seller for a certificate showing they are current on Contribución Inmobiliaria and Primaria.
  • Calculate the ITP (2% on cadastral value, at your expense).
  • If it is a condo (PH), request the common charges statement: common charges.
  • Coordinate with the notary for certificates and the calculation base: what does a notary do.
  • If it is vivienda promovida, verify that the fiscal benefits are still active.

If You Own a Property and Are Renting It Out

  • Register with DGI if you have not done so yet.
  • Pay the monthly IRPF advance payments (10.5% of gross).
  • Keep receipts for contribución, Primaria, and commissions (they are deductible).
  • Assess whether you qualify for the 40 BPC exemption.
  • Clear contract: rental law.

If You Are Selling

  • Calculate IRPF on capital gains (real or deemed method depending on acquisition date).
  • Budget the ITP (2% at your expense on the cadastral value).
  • Obtain certificates showing you are current on all taxes (required to execute the deed).

If You Inherited

  • Check the tax situation of the property (there may be accumulated debt).
  • Review whether there is outstanding Patrimonio from the deceased.
  • Full guide: estates: what happens to a property.

15) Common Mistakes

  • Looking at only one tax: the real cost is the sum. Contribución + Primaria + Patrimonio + IRPF on rental income. They must be viewed together.
  • Not budgeting for IRPF when renting: many owners collect rent and forget about the advance payments until DGI sends a notice.
  • Confusing cadastral value with market value: ITP is calculated on the cadastral value (much lower). But IRPF on capital gains is calculated on the actual transaction price.
  • Not evaluating vivienda promovida: if you are buying to invest, the exemptions under Law 18,795 can make a huge difference in net yield over the first 10 years.
  • Ignoring Patrimonio: if you own more than one property, or the property is high-value, Patrimonio starts to weigh in, especially for non-residents (rates of 0.7-1.5%).

Conclusion: The Real Tax Burden

Compared to the region, the tax burden on real estate in Uruguay is relatively light. There is no inheritance tax, ITP is based on the cadastral value (not market value), and contribución rates are low for most properties.

But the real cost is not in any single tax: it is in the accumulation. Contribución + Primaria + Patrimonio + IRPF on rental income + capital gains tax when selling. If you do not budget them together, your yield figure is incomplete.

Before deciding, build your complete scenario: purchase (purchase costs), ownership (contribución + primaria + patrimonio), rental income (yield by zone), and exit (ITP + IRPF capital gains). That way you make the decision with the real numbers.

Sources

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