Authored by the expert who managed and guided the team behind the Uruguay Property Pack
Everything you need to know before buying real estate is included in our Uruguay Property Pack
Buying property in Uruguay comes with specific tax obligations that every investor needs to understand upfront. Property taxes in Uruguay include both one-time purchase costs and ongoing annual obligations that can significantly impact your investment returns.
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 buyers in Uruguay face a 2% transfer tax on fiscal value, 3.66% notary fees, and annual property taxes ranging from 0.15% to 0.30% of cadastral value.
Rental income is taxed at 12%, capital gains at 12%, and wealth taxes apply for assets exceeding $157,000 USD.
| Tax Type | Rate | Calculated On |
|---|---|---|
| Property Transfer Tax (ITP) | 2% | Fiscal value (30-40% of market price) |
| Notary Fees | 3.66% | Purchase price |
| Annual Property Tax | 0.15% - 0.30% | Cadastral value |
| Primary School Tax | Fixed amount | $40-$100 annually |
| Rental Income Tax | 12% | Net rental income |
| Capital Gains Tax | 12% | Net capital gain |
| Wealth Tax | 0.2%-1.5% | Net assets above $157,000 |
What is the typical purchase price range for properties in Uruguay?
Property prices in Uruguay vary significantly based on location and property type, with urban apartments averaging $160,000 to $200,000 as of September 2025.
A typical two-bedroom apartment in Montevideo or other urban areas costs around $160,000 to $200,000. Studio apartments start from approximately $95,000, while luxury penthouses and high-end homes can exceed $1 million.
Coastal properties in Punta del Este command premium prices, often 30% to 50% higher than comparable properties in Montevideo. Rural properties and farmland offer more affordable options, with prices varying based on size, location, and development potential.
It's something we develop in our Uruguay property pack.
How much is the property transfer tax and what does it cost in dollars?
The property transfer tax (ITP) in Uruguay is 2% of the property's fiscal value, not the actual purchase price.
The fiscal value is typically 30% to 40% of the actual market price. For a $200,000 property with a fiscal value of $60,000, you would pay approximately $1,200 in transfer tax.
This system benefits buyers since the tax is calculated on the lower fiscal assessment rather than the full purchase price. However, you need to obtain the official fiscal valuation to calculate the exact amount.
The transfer tax must be paid before the property deed can be registered in your name.
What are the notary fees and their percentage of the purchase price?
Standard notary fees in Uruguay are 3% of the purchase price plus 22% VAT, totaling 3.66% of the property's purchase price.
For a $200,000 property, notary fees would amount to $7,320. Some agencies offer discounted rates as low as 1.5% plus VAT, which could reduce costs to approximately $3,660.
Notary fees cover the legal work required to transfer property ownership, including document preparation, verification, and registration processes. These fees are negotiable, so shopping around different notaries can result in significant savings.
The notary handles all legal aspects of the transaction and ensures proper title transfer.
What are the registration fees and government stamp costs?
Registration fees and government stamps typically cost between $1,500 and $3,000 per property transaction.
| Fee Type | Rate/Cost | Description |
|---|---|---|
| Deed Registration Stamps | 0.55% of purchase price | Required for property deed registration |
| Registry Fees | $600-$800 | Property registry and tax certificates |
| Legal Certificates | $600-$1,300 | Bank administration and legal documents |
| Government Processing | Variable | Municipal and national processing fees |
| Title Search | $200-$400 | Property history verification |
What is the annual property tax rate and how much would it cost?
The annual property tax (Contribución Inmobiliaria) ranges from 0.15% to 0.30% of the cadastral value for residential urban properties.
Municipal rates vary, but Montevideo and most major cities apply rates within this range. For a property with a cadastral value of $60,000, annual property tax would be approximately $90 to $180.
Premium neighborhoods and luxury properties can face annual taxes of several thousand dollars. The cadastral value is determined by municipal assessments and may differ from both market and fiscal values.
Property tax calculations are based on the specific municipality where your property is located, with each jurisdiction setting its own rates within national guidelines.
Don't lose money on your property in Uruguay
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 often do you pay annual property tax and are there early payment discounts?
Annual property tax is typically paid once per year, with municipalities offering payment plan options and early payment discounts.
Most municipalities provide up to 10% discount for lump-sum annual payments made by specific deadlines. Payment plans allow you to spread the tax over multiple installments throughout the year.
The exact payment schedule and discount structure varies by municipality. Montevideo and other major cities usually offer the most flexible payment options.
Late payment penalties apply, so staying current with property tax obligations is essential to avoid additional costs and potential legal complications.
What is the primary school tax and how much does it add annually?
The primary school tax (Impuesto de Enseñanza Primaria) is a mandatory annual tax applied to all properties in Uruguay, both urban and rural.
This tax typically costs $40 to $100 per year for most residential properties. The amount is calculated based on the property's cadastral value, with rates set by the national government.
The primary school tax helps fund Uruguay's public education system and is separate from the municipal property tax. All property owners must pay this tax regardless of whether they have children or use public schools.
This tax is relatively small compared to other property-related costs but must be factored into annual ownership expenses.
How much are ongoing community or neighborhood fees?
Community fees depend on property type, with apartments and gated communities requiring monthly payments while standalone houses typically don't.
1. **Apartment buildings**: Monthly "gastos comunes" range from $70 to $250 per month2. **Gated communities**: Similar range, covering security, maintenance, and shared amenities3. **Luxury developments**: Can exceed $300 monthly for premium services4. **Standalone houses**: Generally no community fees, only municipal services5. **Condominiums**: Fees vary based on building size, amenities, and management qualityThese fees cover building maintenance, security services, garbage collection, common area utilities, and shared amenities like pools or gyms. The fees are paid directly to the building administrator or community management company.
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.
Are there wealth or net worth taxes for property owners?
Uruguay applies wealth taxes to individuals whose worldwide net assets exceed UYU 6,381,000 (approximately $157,000 USD as of September 2025).
Tax rates range from 0.2% to 0.7% for residents and 0.5% to 1.5% for non-residents, calculated only on net taxable holdings within Uruguay. Special rules and deductions apply for household units and certain property types.
The wealth tax threshold means many foreign property buyers will be subject to this tax, especially when combining property value with other assets. The tax is calculated annually and must be declared in your tax return.
Proper tax planning and understanding exemptions can help minimize wealth tax obligations while remaining compliant with Uruguayan tax law.
What is the rental income tax rate and how much goes to taxes?
Rental income from property in Uruguay is taxed at a flat rate of 12% under the IRPF (Personal Income Tax) system.
The tax is calculated on net rental income after allowable deductions for property maintenance, management fees, and other legitimate expenses. For example, $12,000 in annual gross rental income would result in approximately $1,440 in taxes.
Allowable deductions include property management fees, maintenance costs, insurance premiums, and depreciation. Keeping detailed records of all expenses is essential for accurate tax calculations.
The 12% rate applies to all rental income regardless of property type or rental duration, making tax planning straightforward for property investors.
What is the capital gains tax rate when selling property?
Capital gains tax in Uruguay is a flat 12% of the net capital gain when selling property.
The gain is calculated as the sale price minus the original purchase price minus eligible expenses like improvements, legal fees, and selling costs. All property types and holding durations are treated equally under this system.
For example, if you buy a property for $200,000, invest $50,000 in improvements, and sell for $350,000, your taxable gain would be $100,000, resulting in $12,000 in capital gains tax.
Unlike many countries, Uruguay doesn't offer reduced rates for long-term holdings, making the tax calculation straightforward regardless of how long you own the property.
How much do utilities add monthly and which are considered taxes?
Monthly utilities for typical apartments average $100 to $150, with larger homes requiring higher amounts.
| Utility | Monthly Cost | Tax Status |
|---|---|---|
| Electricity | $40-$60 | Utility fee, not tax |
| Water | $25-$40 | Utility fee, not tax |
| Waste Collection | $15-$25 | Municipal service fee |
| Internet | $35-$40 | Private service, not tax |
| Mobile Phone | $15 | Private service, not tax |
| Gas (if applicable) | $20-$30 | Utility fee, not tax |
Public waste collection is billed as part of municipal services and is mandatory for all properties. All other utilities are standard service fees rather than taxes, though they're required for comfortable living.
It's something we develop in our Uruguay property pack.
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 Uruguay's property tax structure is essential for making informed investment decisions in this stable South American market.
With proper planning and knowledge of all tax obligations, property investment in Uruguay can provide attractive returns while maintaining compliance with local regulations.
Sources
- The LatinVestor - Average House Price in Uruguay
- VisitWorld - Cost of Living in Uruguay
- La Cite Uruguay - What You Need to Know When Buying Property
- Real Estate in Uruguay - Transaction Costs
- Global Property Guide - Uruguay Taxes and Costs
- Real Estate in Uruguay - Step by Step Guide
- The LatinVestor - Moving to Uruguay Buy Property
- Farmland Uruguay - Fiscal Aspects of Investment
- Mondaq - Uruguay Property Taxes
- PwC Tax Summaries - Uruguay Individual Taxes