Property Taxes in Uruguay (2026): Complete Guide

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Property Taxes in Uruguay (2026): Complete Guide

What property taxes do foreigners pay in Uruguay?

Direct answer: nationality does not create a separate property tax. On purchase, the buyer pays ITP at 2% of the updated cadastral real value. During ownership, departmental Contribución Inmobiliaria and the national Primary Education Tax may apply; rental income and a later sale are taxed according to fiscal residence and the transaction.

Official basis: DGI — ITP.

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) How Much Contribución Inmobiliaria Do You Pay in Montevideo?

In Montevideo, the Contribución Inmobiliaria runs from 0.18% to 1.80% per year on the assessed (catastral) value of the property, in progressive brackets. It 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.

2026 taxable-value bracket Rate (special rate: 2026 taxable value below $2,481,577) Rate (general scale)
$1 to $992,630 0.18% 0.25%
$992,631 to $2,481,576 0.75% 0.75%
$2,481,577 to $4,963,144 -- 1.00%
$4,963,145 to $8,551,753 -- 1.20%
$8,551,754 to $17,103,509 -- 1.65%
$17,103,510 and above -- 1.80%

** The special 0.18% rate on the first bracket applies to properties whose 2026 taxable value is below $2,481,577 (in force since 01/01/2024, departmental Decreto n° 38.156). The Intendencia republishes the scale every year with the brackets already updated: check the current year's before running numbers.

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 2026 taxable value of $1,500,000, the annual contribución comes to ~$5,600 (an effective rate of ~0.37%). This is a small amount compared to property taxes in other countries, but combined with Primaria and Patrimonio, it adds up.

3) How Much Do You Pay in Impuesto de Primaria?

The Impuesto de Primaria ranges from 0.15% to 0.30% per year on the cadastral value, and properties with a cadastral value below $282,612 (2026) are exempt. It is a national tax that funds public primary education: it is paid by all owners of urban, suburban, and rural properties, and 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) Who Pays Wealth Tax (Impuesto al Patrimonio) on a Property in Uruguay?

You pay Impuesto al Patrimonio if your net fiscal worth as of December 31 exceeds the non-taxable minimum: $6,653,000 for an individual and $13,306,000 for a family unit (the latest figures published by the DGI, 2025 tax year; still in force as of August 5, 2026), with a 0.10% rate on the excess for residents. 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.

Non-Taxable Minimum (latest published: 2025 tax year)

Situation Non-taxable minimum (2025 tax year)
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 over the non-taxable minimum (single bracket) 0.10%

Rates for Non-Residents

The 0.70%-to-1.50% scale (0.70% / 1.10% / 1.40% / 1.50%, taxed from the first peso) reaches only non-residents who are not IRNR taxpayers. A foreigner who rents out a property in Uruguay does pay IRNR and therefore applies the general 0.10% rate on the excess over the tax-free threshold.

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) How Much IRPF Do You Pay on Rental Income?

Rental income is taxed at 12% on the net amount, as IRPF Category I - Capital Income from Real Estate, if you are a tax resident of Uruguay.

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. Alternatively, you can elect to treat that 10.5% withholding on gross as a final tax and skip the annual settlement (Decree 148/007); this pays off only if your deductions are below 12.5% of gross.

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) What Tax Does a Non-Resident Pay When Renting Out Their Property?

A non-resident renting out a property in Uruguay pays IRNR (Non-Resident Income Tax): 12% on net rental income, instead of IRPF. For real estate rentals there are two regimes (Decree 149/007, articles 24 and 33 literal a): the general regime of 12% on net rental income — gross rent minus the allowed expenses: property manager's commission, contract fees (plus their VAT), Contribución Inmobiliaria and the Primary Education Tax — or the option of treating the 10.5% withholding on gross rent as a final tax, with no annual filing. Which one is better depends on your deductions: the break-even point is deductions of 12.5% of gross. Maintenance, repairs and insurance are not deductible. Other real estate capital income earned by non-residents is taxed at 12%.

Key Difference vs. IRPF

Concept IRPF (resident) IRNR (non-resident)
Rate 12% on net (option: final 10.5% on gross) 12% on net (option: final 10.5% on gross)
Deductions contribución, primaria, commissions and fees (+VAT), bad debts manager's commission, contract fees (+VAT), Contribución and Primaria
Effective burden ~9-10.5% of gross (depending on deductions) ~9-10.5% of gross (depending on deductions)
Low-income exemption yes (up to 40 BPC) no

To calculate net yield, use supported rent for the specific property and separate the applicable tax treatment, vacancy, management and other expenses.

7) How Much IRPF Do You Pay When Selling a Property?

When you sell a property at a profit, you pay 12% on the actual gain, as IRPF Category II - Capital Gains; for properties acquired before 01/07/2007 there is an optional deemed method, which works out to 1.8% of the sale price.

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) How Much ITP Do You Pay in a Property Sale?

In a property sale, a total of 4% ITP is paid on the assessed value (catastral value) of the property, split evenly:

  • 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. The transfer of the property itself does not carry VAT: VAT is levied on CONSTRUCTION, which is why part of the price a developer quotes already has it built in. In resales of existing properties between private parties, VAT does not apply. If you are buying new, the first sale by the company is taxed at the minimum VAT rate, 10% (Title 10 of the 2023 T.O., art. 36 lit. I). Under vivienda promovida that first sale is exempt (Ley 18.795, art. 4 lit. D). Construction materials and services, by contrast, are taxed at the basic 22% rate. Ask the developer for the price breakdown anyway.

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 / IRNR on rental income 60% (100% in MVOTMA zones or with FGA) year construction ends + 9 following
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: for the tax year in which construction is completed and the nine that follow, rental income is 60% exempt in the general case, and 100% exempt only in MVOTMA-designated zones or where the lease runs through the FGA (Decreto 355/011, art. 12).
  • 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) What Is Uruguay's Tax Holiday and Who Can Qualify in 2026?

The Tax Holiday is the regime that lets new tax residents elect to pay IRNR for 11 years, covering only certain foreign capital income and capital gains (arts. 24 and 24-Bis of Title 7; art. 24-Bis applies to anyone acquiring tax residency from 1/1/2026, with its own investment requirements and later extension options). Employment and services income is not covered. From January 1, 2026, under Budget Law 20,446, you can qualify through physical presence of more than 183 days in the calendar year, a real estate investment above 12,500,000 UI (~USD 2,066,000), or contributions of at least 625,000 UI per year to productive investment or innovation funds.

Careful: the Tax Holiday and tax residency are not the same thing

Law 20,446 did not change the criteria for tax residency: it changed the requirements of the tax benefit on foreign income. The tax residency criteria remain unchanged (art. 5 BIS of Decree 148/007 and Decree 163/020; DGI page "Causales de Residencia Fiscal"):

  • Staying more than 183 days in the calendar year (sporadic absences of up to 30 days count as presence).
  • Real estate investment above 3,500,000 UI (~USD 578,000) + 60 days of physical presence in the calendar year (for investments made since 7/1/2020).
  • Real estate investment above 15,000,000 UI (~USD 2,479,000), with no day-count requirement.
  • Business investment above 15,000,000 UI with 15 jobs, or above 45,000,000 UI in projects of national interest.
  • Main center of activities or center of vital interests (spouse and children) in Uruguay.

Practical takeaway: a foreigner with ~USD 578,000 in real estate + 60 days per year can still obtain Uruguayan tax residency. What became more expensive in 2026 is the Tax Holiday, not the residency.

Paths to the Tax Holiday (from 1/1/2026, art. 648 of Law 20,446)

Path Requirement
Physical presence more than 183 days in the calendar year (no investment required)
Real estate investment more than 12,500,000 UI (~USD 2,066,000) in properties
Productive investment / innovation funds contributions of at least 625,000 UI per year (~USD 103,000)

Tax Holiday Benefit

  • IRNR option: no IRPF is paid on the foreign capital income covered by numeral 2 of art. 6 of Title 7, during the year of the residency change + the following 10 tax years = 11 years total.
  • After the 11 years: (A) pay IRPF at 50% of the rate for 5 more years, maintaining an investment of 6,250,000 UI in real estate or 625,000 UI/year in funds; or (B) a fixed annual payment of 1,875,000 UI (1,250,000 UI if you also spend more than 183 days) for up to 20 fiscal years.
  • Requirement: must not have been a Uruguayan tax resident in the prior 2 fiscal years.
  • Grandfathering: those who exercised the option up to 12/31/2025 keep their previous regime for its original term.

What went up is not the cost of becoming a tax resident (the 3,500,000 UI + 60 days route is still in force), but the cost of the Tax Holiday via real estate investment: from the investment that sufficed via residency (~USD 578,000) to more than 12,500,000 UI (~USD 2,066,000). This changes the profile of the investor who accesses the benefit, not of those seeking residency.

Last verified: July 12, 2026. The IRPF/IRNR treatment of rental income (general regime of 12% on net, optional final 10.5% on gross) was verified against official sources (DGI, IMPO, BPS, IMM). USD equivalents calculated with DGI's July 2026 UI and dollar quotations (approximate). The regulations implementing Law 20,446 are still pending and operational details may be adjusted by decree. This content is informational and does not constitute tax advice.

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 (0.10% on the excess over the threshold, as an IRNR taxpayer) IRNR 12% on net (option: final 10.5% on 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 (if rented ≥ 6 months/tax year) 60% exempt (100% in MVOTMA zones or with FGA) 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 2026 taxable 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 ~$18,800
Impuesto de Primaria ~$5,500
Impuesto al Patrimonio $0 (net worth below non-taxable minimum)
IRPF on rental income (12% on net) ~$40,700
Total annual taxes ~$65,000
Gross annual income $420,000
Tax burden on gross income ~15.5%

That ~15.5% 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.

If you are considering investing in Uruguay, build your complete scenario before deciding: 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.

Frequently asked questions

What property taxes do foreigners pay in Uruguay?

Nationality does not create a separate tax. On purchase, the buyer pays ITP at 2% of updated cadastral real value according to DGI. Contribución and Primary Education Tax may apply during ownership; rental and sale taxation depend on fiscal residence and the transaction.

How much is annual property tax in Uruguay?

There is no single nationwide Contribución rate: it is departmental and property-specific. The Primary Education Tax is separate and national, with bands published by DGI. Check both liabilities for the exact property rather than applying a national percentage.

Sources

Questions about your real estate transaction? At INGAR we guide you end to end: message us on WhatsApp or browse the available properties.

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