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Property taxes in Montevideo can significantly impact your investment returns and ownership costs. Understanding the complete tax structure is essential before making any real estate purchase in Uruguay's capital.
As of September 2025, property owners in Montevideo face four main recurring taxes and fees: Contribución Inmobiliaria (property tax), Impuesto de Enseñanza Primaria (school tax), Tributo Domiciliario (municipal services fee), and Tarifa de Saneamiento (sewerage fee). These taxes are calculated based on different methodologies and payment schedules, with total annual costs typically ranging from 1.5% to 3% of property value depending on the assessment bracket.
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Property owners in Montevideo pay four main recurring taxes totaling 1.5-3% of property value annually.
The largest component is Contribución Inmobiliaria with progressive rates from 0.18% to 1.80% based on property value brackets.
| Tax/Fee | Rate/Amount (2025) | Tax Base |
|---|---|---|
| Contribución Inmobiliaria (CI) | 0.18% - 1.80% (progressive) | Cadastral/Fiscal Value |
| Impuesto de Enseñanza Primaria (IEP) | 0.15% flat rate | Cadastral/Fiscal Value |
| Tributo Domiciliario (TD) | ~UYU 14,800/year | Fixed amount |
| Tarifa de Saneamiento (TS) | UYU 77.54/month + UYU 43.49/m³ | Fixed + water consumption |
What are all the recurring property-related taxes, fees, and municipal charges due in Montevideo in 2025?
Property owners in Montevideo face four main recurring charges in 2025.
The Contribución Inmobiliaria (CI) serves as the primary property tax, functioning similarly to property taxes in other countries. The Impuesto de Enseñanza Primaria (IEP) is a national school tax that funds primary education across Uruguay. The Tributo Domiciliario (TD) covers municipal services including garbage collection, street lighting, and local infrastructure maintenance.
The Tarifa de Saneamiento (TS) covers sewerage and sanitation services provided by OSE (Obras Sanitarias del Estado), Uruguay's national water utility. This fee applies to all properties connected to the municipal sewerage system, which includes virtually all urban properties in Montevideo.
These four charges represent the complete list of recurring property-related obligations for residential and commercial properties in Montevideo as of September 2025.
Who is legally responsible for paying each tax and which property types do they apply to?
The registered property owner bears legal responsibility for all four charges, regardless of occupancy status.
For the Contribución Inmobiliaria and Impuesto de Enseñanza Primaria, the registered titleholder (propietario) is legally obligated to pay. In cases where a usufruct arrangement exists, the usufruct holder assumes this responsibility. Buyers with properly registered promissory purchase agreements (promitente comprador) also become liable for these taxes.
The Tributo Domiciliario follows the same responsibility pattern, with owners or HOA boards handling payments for condominium properties. For the Tarifa de Saneamiento, property owners are responsible, though in apartment buildings, HOA boards typically manage collective payments and distribute costs among unit owners.
All four charges apply to houses, apartments, land lots, commercial units, and garages located in both urban and suburban zones of Montevideo. No property type is exempt from these basic obligations.
Rental status does not transfer tax responsibility to tenants unless explicitly stated in lease agreements, which is uncommon in Montevideo's rental market.
What is the tax base used for each item in 2025 and how is it calculated?
Each tax uses a different calculation base, creating a complex but predictable cost structure.
The Contribución Inmobiliaria uses the "valor imponible" (cadastral or fiscal value), which the municipal government assigns based on location, size, construction quality, and market conditions. This value typically represents 70-80% of market value and gets updated annually through municipal decrees that factor in inflation and local market changes.
The Impuesto de Enseñanza Primaria relies on the "valor catastral," which is essentially the same fiscal value used for the Contribución Inmobiliaria. The tax applies a flat 0.15% rate to the entire property value without brackets or reductions.
The Tributo Domiciliario operates on fixed amounts that vary by property category and zone classification. Standard urban residential properties pay approximately UYU 14,800 annually as of 2025, with adjustments made through municipal ordinances.
The Tarifa de Saneamiento combines a fixed monthly charge of UYU 77.54 per property unit plus a variable component of UYU 43.49 per cubic meter of water consumed, as measured by OSE meters.
What are the precise 2025 rates, brackets, and calculation formulas for each tax?
| Property Value (UYU) | CI Rate | Special Rate |
|---|---|---|
| 1 – 957,675 | 0.25% | 0.18% |
| 957,676 – 2,394,188 | 0.75% | 0.75% |
| 2,394,189 – 4,788,369 | 1.00% | — |
| 4,788,370 – 8,250,606 | 1.20% | — |
| 8,250,607 – 16,501,215 | 1.65% | — |
| 16,501,216 and up | 1.80% | — |
The Contribución Inmobiliaria uses progressive taxation with six brackets. Properties valued up to UYU 2,394,188 qualify for reduced rates in the first bracket (0.18% instead of 0.25%). Each bracket applies its rate only to the portion of value within that range, similar to income tax calculations.
For example, a UYU 3,000,000 property pays: (957,675 × 0.18%) + (1,436,513 × 0.75%) + (605,812 × 1.00%) = UYU 1,724 + UYU 10,774 + UYU 6,058 = UYU 18,556 annually.
The Impuesto de Enseñanza Primaria applies a flat 0.15% to the total property value with no brackets or reductions. A UYU 3,000,000 property pays exactly UYU 4,500 annually.
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Are there minimum charges, caps, or zone-based multipliers for these taxes?
Montevideo's property tax system includes several special provisions that can significantly affect your total tax burden.
The Contribución Inmobiliaria has no explicit minimum charge, meaning very low-value properties pay proportionally small amounts. However, a unique lottery system randomly selects up to 700 accounts annually for full tax exemption as a reward for timely payment history. Properties in certain promoted neighborhoods like Ciudad Vieja may receive rate reductions or surcharges based on urban development policies announced each January.
Heritage properties officially catalogued by the Intendencia often qualify for reduced Contribución Inmobiliaria rates, though specific percentages vary by historical significance and preservation requirements. Commercial properties in designated development zones may face surcharges of 10-20% above standard rates.
The other three taxes operate without minimum charges or caps. The Tributo Domiciliario varies by property classification (residential, commercial, industrial) but maintains consistent rates within each category. The Tarifa de Saneamiento applies uniform rates citywide regardless of neighborhood or property value.
No maximum caps exist for any of the four taxes, meaning high-value properties face proportionally higher absolute costs.
What are the official 2025 due dates and installment options?
Payment timing varies significantly across the four taxes, requiring careful calendar management.
The Contribución Inmobiliaria offers two payment schedules: a single annual payment due in March (typically between March 8-27, with exact dates varying by property registration number) or three equal installments due in March, July, and November. Bills are issued between March 1-20, giving property owners advance notice.
The Impuesto de Enseñanza Primaria provides three installment windows: first installment from January 2 to May 30, second from July 1 to August 29, and third from September 12 to October 31. These dates align with the national DGI (tax authority) calendar and remain consistent across Uruguay.
The Tributo Domiciliario gets billed and collected alongside the Contribución Inmobiliaria, following the same annual or three-installment schedule. This bundling simplifies payment management for property owners.
The Tarifa de Saneamiento operates on a monthly cycle, collected through regular water utility bills for most properties. Independent buildings may receive separate monthly billing or quarterly consolidated charges.
Payment agreements for overdue taxes include minimal administrative charges but no standard interest rates for regular installment plans.
What early-payment discounts and late-payment penalties apply in 2025?
Montevideo rewards prompt payment while imposing significant penalties for delays.
The Contribución Inmobiliaria offers a 6% discount for payments made in January (advance payment for the coming year's tax). Property owners with consistent payment history can qualify for "good payer" status, earning additional discounts up to 8%. These bonuses can accumulate, potentially reducing total tax liability by 14% for the most reliable payers.
Late payments on the Contribución Inmobiliaria incur monthly interest charges calculated according to Central Bank rates plus penalty percentages. As of September 2025, these rates follow official CPI adjustments and typically range from 2-4% monthly. Penalties compound, making delays extremely expensive.
The Impuesto de Enseñanza Primaria does not offer standard percentage discounts for early payment. Late payment penalties follow DGI regulations with interest rates updated quarterly based on inflation indices and currently averaging 1.5-2% monthly.
The Tributo Domiciliario follows the same discount and penalty structure as the Contribución Inmobiliaria since they're billed together. Properties selected in the annual lottery receive full exemption from both charges.
The Tarifa de Saneamiento operates under OSE regulations with standard utility penalty structures, typically adding 10% surcharges after 30 days overdue and additional monthly interest thereafter.
What exemptions, deductions, or relief programs exist in 2025?
Several exemption programs can significantly reduce property tax burdens for qualifying owners.
Primary residence exemptions apply to properties designated as the owner's main home, with income thresholds and property value limits varying by program. Senior citizens over 65 may qualify for partial or complete exemptions on both Contribución Inmobiliaria and Impuesto de Enseñanza Primaria, requiring annual income certification and residency proof.
Low-income households can access relief programs administered jointly by ANEP (education authority) and DGI (tax authority), typically requiring documentation of total family income below specified thresholds updated annually for inflation. These programs most commonly affect the Impuesto de Enseñanza Primaria.
Properties classified as "vivienda promovida" under Law 18,795 (affordable housing) receive substantial tax benefits including partial or complete Contribución Inmobiliaria exemptions for specified periods, usually 5-10 years depending on the development program.
Heritage properties officially designated for preservation may qualify for reduced tax rates, though owners must demonstrate ongoing maintenance and compliance with historic preservation requirements. The application process involves submitting architectural plans and maintenance schedules to the municipal heritage office.
New construction projects may receive temporary exemptions during the first years of occupancy, particularly for developments in promoted neighborhoods or those meeting specific urban planning objectives.
Do rates change for owner-occupied versus rented, vacant, or short-term rental properties?
Property tax obligations remain identical regardless of occupancy status or rental arrangement.
Owner-occupied properties pay the same rates as rental properties for all four taxes. Vacant properties face no additional surcharges or penalties beyond the standard tax amounts, though they receive no usage-based discounts either.
Short-term rental properties ("vivienda turística") operating through platforms like Airbnb do not face additional municipal surcharges at the Montevideo level as of September 2025. However, these properties may be subject to national VAT obligations and require specific business registrations that can affect overall tax liability.
Properties in social housing or affordable housing programs may qualify for rate reductions when rented to qualifying tenants, but these benefits relate to the housing program status rather than the rental arrangement itself.
Investment properties held by foreign owners face the same tax rates as locally-owned properties, with no discrimination based on owner residency status. The tax obligation follows the property regardless of owner nationality or residence.
Commercial properties converted to residential use maintain their tax classification until formally reclassified through municipal procedures, which can take 3-6 months and may result in rate changes depending on the specific zone and property type.
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Can you provide worked examples for properties valued at UYU 2,000,000, UYU 5,000,000, and UYU 10,000,000?
| Property Value | UYU 2,000,000 | UYU 5,000,000 | UYU 10,000,000 |
|---|---|---|---|
| Contribución Inmobiliaria | UYU 9,542 | UYU 39,226 | UYU 107,529 |
| Impuesto Enseñanza Primaria | UYU 3,000 | UYU 7,500 | UYU 15,000 |
| Tributo Domiciliario | UYU 14,800 | UYU 14,800 | UYU 14,800 |
| Tarifa Saneamiento | UYU 7,204 | UYU 7,204 | UYU 7,204 |
| Total Annual | UYU 34,546 | UYU 68,730 | UYU 144,533 |
| Monthly Equivalent | UYU 2,879 | UYU 5,728 | UYU 12,044 |
| USD Monthly (@ 40:1) | USD 72 | USD 143 | USD 301 |
For the UYU 2,000,000 property, the Contribución Inmobiliaria calculation uses the reduced first bracket rate: (957,675 × 0.18% = UYU 1,724) plus (1,042,325 × 0.75% = UYU 7,818) totaling UYU 9,542 annually.
The UYU 5,000,000 property spans three tax brackets: first bracket UYU 2,394, second bracket UYU 10,774, and third bracket UYU 26,058, totaling UYU 39,226 for Contribución Inmobiliaria.
The UYU 10,000,000 property calculation involves five brackets, with the highest portion taxed at 1.65%, resulting in UYU 107,529 annual Contribución Inmobiliaria. The progression demonstrates how tax burden increases more than proportionally with property value due to the progressive rate structure.
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How do reassessments and indexation work in 2025?
Property values update annually through municipal decree, with extraordinary reassessments triggered by specific events.
The standard indexation process occurs every January when the Montevideo Intendencia issues decrees adjusting cadastral values based on the national inflation index (IPC) and local market conditions. For 2025, properties experienced approximately 7% value increases compared to 2024 levels, reflecting both inflation and real estate market appreciation.
Extraordinary reassessments occur when properties undergo significant changes including major construction or renovation projects, demolition and rebuilding, changes in land use classification, or subdivision of lots. Property owners must report these changes within 30 days of completion, triggering a new assessment within 60-90 days.
The reassessment process involves municipal inspectors evaluating construction quality, usable area, location factors, and current market conditions. Appeals of new assessments must be filed within 30 days of notification, with resolution typically taking 10-30 business days.
City-wide comprehensive reassessments occur every 3-5 years, involving systematic review of all properties within specific neighborhoods or zones. These reassessments can result in significant value changes, particularly in rapidly developing areas of Montevideo.
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How and where do I pay each tax, and what are the appeal and record update procedures?
Multiple payment channels exist for each tax, with specific procedures for appeals and record updates.
Contribución Inmobiliaria and Tributo Domiciliario payments can be made at major banks (BROU, Santander, Itaú), payment centers (Abitab, RedPagos), post offices (Correo Uruguayo), or online through the Intendencia's "Mi Gestión de Facturas" portal using your property's padrón number and account reference.
Impuesto de Enseñanza Primaria payments process through the same channels plus the DGI website, requiring your property's fiscal identification number and assessment notice. Online payments offer immediate confirmation and receipt download.
Tarifa de Saneamiento payments typically bundle with monthly water bills through OSE's payment network, including automatic bank debits, online portal payments, or at OSE service centers throughout Montevideo.
Assessment appeals require written submissions at Intendencia offices or through certified mail, including property documentation, assessment notices, and supporting evidence such as recent appraisals or comparable property sales. Response times average 10-30 business days with minor administrative fees of UYU 300-800.
Record updates after property sales require notarized transfer documents filed by the purchasing party's notary, with registry updates typically completing within 7 working days. The new owner receives updated tax bills automatically once transfer registration completes.
Verification of current tax status and payment history can be accessed online using property identification numbers, providing immediate confirmation of account status and outstanding balances.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Understanding Montevideo's property tax structure is essential for making informed real estate investment decisions in Uruguay's capital.
The four main taxes create a predictable cost structure that typically ranges from 1.5% to 3% of property value annually, with progressive rates favoring lower-value properties through reduced first-bracket taxation.
It's something we develop in our Uruguay property pack.
Sources
- Montevideo Municipal Government - Property Tax Calculation Guide
- GRO Advisory - Montevideo Property Tax 2025
- Montevideo.com.uy - Tax Exemption Lottery 2025
- Inmobiliaria Prado - Primary Education Tax Guide
- DGI Uruguay - Primary Education Tax Due Dates
- URSEA - OSE Tariff Adjustments 2025
- URSEA - OSE Tariff Report 2025
- Montevideo Municipality - Tax Payment Portal