Question 1

What is the difference between gross yield and net return?

Accepted Answer

Gross yield is annual rent divided by price: it is computed identically in every neighborhood, which is what makes it comparable. Net return deducts vacancy, management, tenant placement, maintenance, property tax, school tax, building fees, insurance and income tax, and it also accounts for acquisition costs. Because those costs depend on each individual deal, the net figure is not a fact about a neighborhood but a result of an investment.

Question 2

Why does the Índice INGAR publish only gross yield?

Accepted Answer

Because it is the only figure computed identically across neighborhoods and therefore the only comparable one. Until September 2026 the Index also published an estimated net yield that applied a fixed 35.16% deduction to every segment: since the same factor applied to every row, it did not change the ranking or add comparative power, and it conveyed false precision. That scenario remains documented in the methodology and the column remains available in the dataset CSV and JSON.

Question 3

How much is deducted from gross rent in Uruguay?

Accepted Answer

It depends on the owner's profile. The Índice INGAR standard reference scenario deducts 35.16% of gross rent, broken down into management, income tax, maintenance, vacancy and property taxes. With self-management, or with the income tax exemption of a Promoted Housing project, the deduction drops considerably. The calculator lets you move each assumption independently.

Question 4

What income tax applies to rent in Uruguay?

Accepted Answer

The standard scenario assumes an individual owner elects the final 10.5% withholding on gross accrued rent, applicable to residents under IRPF (Decree 148/007) and to non-residents under IRNR (Decree 149/007, articles 24 and 33 literal a). There is also the general assessment of 12% on net income with the expressly admitted deductions. Which one suits you depends on your deductible expenses: confirm it with an accountant.

Question 5

Does the calculator include property appreciation?

Accepted Answer

No, and that is deliberate. This tool measures rental performance. Total return on a property investment is rent plus appreciation, and merging them into a single percentage conflates two things measured from different sources. Capital appreciation is estimated separately, using the INE IAI purchase-sale series and DGI rental contracts, and published as its own metric in the Index.

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