Authored by the expert who managed and guided the team behind the Uruguay Property Pack
Yes, the analysis of Punta Del Este's property market is included in our pack
Property taxes in Punta Del Este are straightforward and relatively affordable compared to other luxury destinations.
Foreign buyers face the same tax rates as Uruguayan residents, with no discriminatory surcharges. The total annual ownership cost for a $500,000 apartment typically runs around $10,300, including property taxes, education taxes, and condominium fees.
If you want to go deeper, you can check our pack of documents related to the real estate market in Uruguay, based on reliable facts and data, not opinions or rumors.
Property taxes in Punta Del Este average 0.9% of purchase price annually, plus a 0.2% education tax.
Condominium fees often exceed property taxes, ranging from $1,860 to $12,000 yearly depending on building amenities.
| Apartment Value | Annual Property Tax | Annual Education Tax | Annual Condo Fees | Total Annual Cost |
|---|---|---|---|---|
| $100,000 | $900 | $200 | $1,860 | $2,960 |
| $250,000 | $2,250 | $500 | $2,400 | $5,150 |
| $500,000 | $4,500 | $1,000 | $4,800 | $10,300 |
| $1,000,000 | $9,000 | $2,000 | $7,200 | $18,200 |
What's the average annual property tax rate in Punta Del Este?
The average annual property tax rate in Punta Del Este is approximately 0.9% of the apartment's purchase price.
This rate comes from the ContribuciĆ³n Inmobiliaria, which ranges from 0.25% to 1.40% of the cadastral value. Since the cadastral value is typically lower than the market value, the effective rate averages around 0.9% of what you actually pay for the property.
The tax is calculated based on the rateable value determined by municipal authorities, not your purchase price. This system often works in favor of buyers, as the assessed value tends to be conservative compared to actual market transactions.
As of September 2025, this rate remains stable and competitive compared to other luxury coastal destinations in South America. Property owners receive annual tax bills that break down these calculations clearly.
How much does that tax rate represent in US dollars per $100,000 of apartment value?
For every $100,000 of apartment value, you pay approximately $900 annually in property tax.
This calculation is based on the 0.9% effective rate applied to market value. The amount is straightforward to budget for, as it scales proportionally with your property's worth.
Unlike some markets where tax rates vary dramatically by neighborhood, Punta Del Este maintains relatively consistent rates across different areas of the resort city. Oceanfront properties and inland apartments face similar tax treatment.
What's the minimum property tax you would pay for a small apartment worth around $100,000?
For a $100,000 apartment, the minimum annual property tax is approximately $900.
This represents the base ContribuciĆ³n Inmobiliaria calculated on the property's assessed value. Even small studio apartments or entry-level units face this minimum threshold.
The tax applies regardless of whether you use the apartment as a vacation home, rental property, or permanent residence. Payment schedules typically allow for monthly installments throughout the year.
It's something we develop in our Uruguay property pack.
How much tax would you pay per year on an apartment valued at $250,000?
An apartment valued at $250,000 would generate approximately $2,250 in annual property taxes.
This amount reflects the consistent 0.9% effective rate applied to mid-range properties in Punta Del Este. Properties in this price range typically include well-located one or two-bedroom apartments with decent amenities.
The tax burden remains manageable compared to rental income potential, which averages 4-6% annually for well-positioned properties. Many investors find this tax level acceptable given Punta Del Este's rental market strength during peak season.
Don't lose money on your property in Punta Del Este
100% of people who have lost money there have spent less than 1 hour researching the market. We have reviewed everything there is to know. Grab our guide now.
How much tax would you pay per year on an apartment valued at $500,000?
A $500,000 apartment generates approximately $4,500 in annual property taxes.
Properties at this level typically represent premium apartments with ocean views, modern amenities, or prime locations within Punta Del Este. The tax calculation remains proportional to value, maintaining the same 0.9% effective rate.
For investment properties in this range, the annual tax represents roughly one month's rental income during peak season. This makes the carrying cost reasonable for investors targeting the luxury vacation rental market.
How much tax would you pay per year on an apartment valued at $1,000,000?
An apartment valued at $1,000,000 would incur approximately $9,000 in annual property taxes.
These high-end properties typically feature luxury finishes, premium locations, and extensive amenities. Despite the higher absolute amount, the percentage remains consistent with lower-priced properties.
Luxury property owners often find this tax burden reasonable compared to similar destinations like Miami or the French Riviera, where rates can exceed 2-3% annually.
Are there additional municipal taxes or contributions on top of the base property tax, and how much are they on average?
Yes, there's an additional education tax (Impuesto de EnseƱanza Primaria) of approximately 0.2% of property value.
This education tax ranges from 0.15% to 0.30%, with most properties falling around the 0.2% average. For a $100,000 apartment, this adds roughly $200 annually to your tax bill.
Other minor municipal contributions may exist but are typically included within the main ContribuciĆ³n Inmobiliaria amount. These additional charges are minimal and don't significantly impact your overall tax burden.
The total combined rate (property tax plus education tax) averages 1.1% of purchase price annually, making budgeting straightforward for property owners.
How much are annual condominium or building fees, and how do they compare to the property tax amount?
Annual condominium fees range from $1,860 to $12,000 depending on building amenities and apartment size.
| Building Type | Monthly Fee Range | Annual Cost | Typical Apartment Size |
|---|---|---|---|
| Standard Building | $155-$200 | $1,860-$2,400 | Studio/1-2BR |
| Mid/High-rise with Amenities | $400 | $4,800 | Premium/Larger units |
| Luxury Buildings | $600-$1,000 | $7,200-$12,000 | Penthouses/Full service |
| Oceanfront Premium | $500-$800 | $6,000-$9,600 | 2-3BR with views |
| Basic Condos | $130-$180 | $1,560-$2,160 | Entry-level units |
For apartments in the $100,000-$250,000 range, annual condominium fees often exceed property tax amounts. Luxury buildings with extensive amenities can have condo fees as high or higher than annual property taxes.
It's something we develop in our Uruguay property pack.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Uruguay versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.
Do foreign buyers pay the same tax rates as Uruguayan residents, or are there surcharges?
Foreign buyers pay exactly the same tax rates as Uruguayan residents with no surcharges or discriminatory taxes.
Uruguay maintains a non-discriminatory policy toward foreign property owners, applying identical rates regardless of nationality or residency status. This includes both purchase taxes and ongoing ownership costs.
The country actively encourages foreign investment in real estate, and this equal treatment extends to all aspects of property ownership, from initial purchase through eventual sale.
This policy makes Uruguay stand out among Latin American countries, many of which impose higher rates or restrictions on foreign buyers.
Are there one-time taxes at the time of purchase, such as transfer tax or notary fees, and how much are they as a percentage?
One-time purchase costs total approximately 7-9% of the purchase price.
1. **Transfer Tax (ITP)**: 2% of cadastral value, which typically translates to 0.6-1% of actual purchase price2. **Notary Fees**: Around 3% (plus VAT), sometimes negotiable down to 1.5% plus VAT3. **Agent Fees**: Typically 3-6% depending on the transaction4. **Registration and Administrative Costs**: Additional 1-2% for various required procedures5. **Legal Fees**: 1-2% if using independent legal representationThe transfer tax calculation based on cadastral value rather than purchase price often results in savings, as assessed values tend to be lower than market prices.
These costs are standard across Uruguay and apply equally to foreign and domestic buyers, with no additional fees for non-residents.
How much is the capital gains tax if you sell the apartment later, expressed as a percentage of the profit?
Capital gains tax is 12% of the net profit when you sell the apartment.
The tax applies to the difference between your original purchase price (adjusted for inflation) and the sale price. Uruguay allows inflation adjustments to the original purchase price, which can significantly reduce the taxable gain.
This rate applies to both residents and non-residents, maintaining the country's consistent approach to equal tax treatment. The calculation considers holding period and inflation indices published by the Central Bank.
Many investors find this rate reasonable compared to other Latin American countries, where capital gains taxes can reach 15-35%.
It's something we develop in our Uruguay property pack.
On average, what would the total yearly cost of ownership (property tax plus municipal tax plus condo fees) amount to for a $500,000 apartment?
The total annual ownership cost for a $500,000 apartment is approximately $10,300.
| Cost Category | Annual Amount | Percentage of Property Value |
|---|---|---|
| Property Tax | $4,500 | 0.9% |
| Education Tax | $1,000 | 0.2% |
| Condominium Fees | $4,800 | 0.96% |
| **Total Annual Cost** | **$10,300** | **2.06%** |
| Optional Property Management | $2,400 | 0.48% |
This represents approximately 2.06% of the property's value annually, which is competitive for a luxury coastal destination. The breakdown shows that condominium fees represent nearly half of the total ownership cost.
For investment properties, this cost structure is manageable given Punta Del Este's rental yields, which typically range from 4-7% annually for well-positioned properties.
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.
Property taxes in Punta Del Este offer predictable costs for apartment owners, with rates remaining consistent regardless of buyer nationality.
The combination of reasonable tax rates and strong rental yields makes Punta Del Este an attractive option for real estate investors seeking exposure to the South American market.
Sources
- Guruguay - Property Taxes in Uruguay
- Living in Uruguay - Tax Amnesty Property Owners
- International Living - Cost of Living Uruguay
- The LatinVestor - Moving to Uruguay Buy Property
- Real Estate in Uruguay - Property Taxes Guide 2025
- La Cite Uruguay - Property Taxes What You Need to Know
- The LatinVestor - Punta Del Este Price Forecasts
- Airbtics - Annual Airbnb Revenue Punta Del Este