The full list of property taxes in Uruguay in 2025

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

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THE LATINVESTOR

A team specialized in real estate investing in LATAM countries

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in a foreign place, particularly in Uruguay. If you'd like to learn more about us, you can check our presentation page.

How this content was created 🔎📝

At The LatinVestor, we explore the Uruguayan real estate market every day. Our team doesn't just analyze data from a distance—we're actively engaging with local realtors, investors, and property managers in cities like Montevideo, Maldonado, and Punta del Este. This hands-on approach allows us to gain a deep understanding of the market from the inside out.

These observations are originally based on what we've learned through these conversations and our observations. But it was not enough. To back them up, we also needed to rely on trusted resources

We prioritize accuracy and authority. Trends lacking solid data or expert validation were excluded.

Trustworthiness is central to our work. Every source and citation is clearly listed, ensuring transparency. A writing AI-powered tool was used solely to refine readability and engagement.

To make the information accessible, our team designed custom infographics that clarify key points. We hope you will like them! All illustrations and media were created in-house and added manually.

What types of properties and owners qualify for ownership in Uruguay in 2025?

Uruguay maintains an open property ownership policy that allows both residents and non-residents to purchase all types of residential real estate without restrictions.

Foreign individuals and companies can own primary homes, second homes, vacation properties, urban apartments, houses, and rental investment properties with identical rights to Uruguayan citizens. The ownership structure applies equally whether you're buying for personal use or investment purposes.

Rural properties face two specific limitations: agricultural land exceeding 500 hectares must first be offered to the public institution I.N.C., and buyers of rural land must be named individuals or companies with clearly identified shareholders. These restrictions don't affect most residential property purchases in urban or suburban areas.

Corporate ownership is permitted for all property types, making Uruguay attractive for international investors who prefer to hold real estate through legal entities rather than personal ownership.

What are the complete list of property taxes and mandatory fees in Uruguay for 2025?

Uruguay property owners pay four main annual taxes plus several one-time fees at purchase or sale.

The annual recurring taxes include Contribución Inmobiliaria (municipal property tax), Impuesto de Enseñanza Primaria (Primary School Tax), Impuesto al Patrimonio (Wealth Tax for higher-value properties), and Tributos Adicionales Municipales (local municipal fees for services like lighting and sanitation).

One-time fees occur during property transactions: Impuesto a las Transmisiones Patrimoniales (ITP transfer tax), notary and registry costs, and ongoing Income Tax on Rental Properties for investors who rent their properties.

These taxes apply to all property types and owners, with rates varying by location and property value but the structure remaining consistent across Uruguay's 19 departments.

What are the exact 2025 tax rates and brackets for each annual property tax?

Tax Type	Rate Schedule (2025)	Applied Value
Contribución Inmobiliaria (Montevideo)	0.18% to 1.80% progressive brackets	Cadastral value
Contribución Inmobiliaria (Maldonado)	0.25% to 0.50% typical range	Cadastral value
Contribución Inmobiliaria (Rural)	0.7% typical rate	Cadastral value
Impuesto de Enseñanza Primaria	0.15% to 0.30%	Cadastral value
Wealth Tax (Individuals)	0.7% to 2.8% sliding scale	Above UYU 5,370,000 threshold
Wealth Tax (Companies)	1.5% flat rate	Inflation-adjusted purchase value

Montevideo uses the most progressive system with six brackets: UYU 1-957,675 at 0.18%, UYU 957,676-2,394,188 at 0.75%, UYU 2,394,189-4,788,369 at 1.00%, UYU 4,788,370-8,250,606 at 1.20%, UYU 8,250,607-16,501,215 at 1.65%, and over UYU 16,501,216 at 1.80%.

The Primary School Tax applies a median rate of 0.20% across most departments, while the Wealth Tax only affects properties above UYU 5,370,000 (approximately USD 130,000) with primary residences valued at 50% of cadastral value for this calculation.

How is the taxable property value determined and updated in Uruguay?

Uruguay uses cadastral (fiscal) value rather than current market value for calculating annual property taxes.

The cadastral value is set by municipal authorities and updated periodically every few years, but it doesn't automatically track market price changes. This system typically results in tax assessments based on values significantly below current market prices, especially in rapidly appreciating areas.

Each municipality publishes its own adjustment index or coefficient when updating cadastral values, with no nationwide standard percentage or automatic market adjustment mechanism. Property owners receive official notice when their cadastral value changes.

Market value only becomes relevant for transactional taxes like the transfer tax (ITP) during property sales, while annual recurring taxes continue using the lower cadastral assessment throughout the ownership period.

How do property tax rates differ between departments and what are 2025 rates for major locations?

Property tax rates vary significantly between Uruguay's 19 departments, with each intendencia setting its own brackets and rates.

Montevideo applies the highest and most progressive rates ranging from 0.18% to 1.80% across six income brackets, making it the most expensive department for property taxes. Maldonado, covering Punta del Este and coastal areas, typically charges 0.25% to 0.50% with less progressive structures.

Smaller departments like Rivera, Tacuarembó, or Cerro Largo generally apply flatter rates between 0.25% to 0.30% for most residential properties. Rural properties face different tax structures with national land tax rates around 0.7% regardless of department.

It's something we develop in our Uruguay property pack.

Each department also offers different payment incentives, exemptions, and surcharge policies, requiring property owners to check their specific departmental tax portal for current rates and policies.

What would I pay in 2025 taxes for a Montevideo apartment valued at UYU 2,500,000?

A UYU 2,500,000 apartment in Montevideo (approximately USD 64,000) would generate UYU 18,506 in total annual property taxes.

The Contribución Inmobiliaria calculation applies progressive brackets: UYU 1,724 on the first UYU 957,675 at 0.18%, UYU 10,724 on the next UYU 1,436,512 at 0.75%, and UYU 1,058 on the remaining UYU 105,812 at 1.00%, totaling UYU 13,506.

The Impuesto de Enseñanza Primaria adds UYU 5,000 at the standard 0.20% rate applied to the full cadastral value. Wealth Tax doesn't apply since the property value falls below the UYU 5,370,000 threshold.

This represents an effective annual tax rate of 0.74% of cadastral value, which property owners can pay in one lump sum or spread across three installments throughout the year.

What are the 2025 tax calculations for a Maldonado house and small rural property?

A UYU 6,000,000 house in Maldonado (approximately USD 154,000) would cost UYU 39,000 annually in property taxes.

The Contribución Inmobiliaria applies Maldonado's rate of 0.45% resulting in UYU 27,000, while the Primary School Tax adds UYU 12,000 at 0.20%. Wealth Tax may apply if total assets exceed the threshold, but for a primary residence, the property value counts at 50% for wealth tax calculations.

A UYU 1,500,000 rural parcel (approximately USD 38,500) faces simpler taxation with the Rural Property Tax at 0.7% equaling UYU 10,500 annually. Rural properties typically don't pay Primary School Tax and municipal taxes depend on specific location and usage.

These examples show rural properties often have lower total tax burdens despite higher percentage rates, while coastal properties in Maldonado fall between Montevideo's high rates and rural areas' simpler structure.

What is the 2025 payment schedule and where can I pay property taxes?

Uruguay property taxes follow annual payment cycles with flexible installment options varying by department.

Montevideo allows payment in one lump sum or three four-month installments, while Maldonado offers three payments due in February, May, and September. Most other departments follow similar three-installment systems aligned with seasonal cash flow patterns.

Payment options include online portals through each department's website, RedPagos and Abitab networks throughout Uruguay, major banks, and in-person at municipal offices. Online payment typically offers the most convenience and immediate confirmation.

Property owners receive annual tax bills with payment vouchers for each installment, and most departments send reminder notices before due dates to prevent late payment penalties.

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.

What discounts and penalties apply to property tax payments in 2025?

Uruguay departments offer significant early payment bonuses for property owners who pay annual taxes in advance.

Maldonado provides up to 10% discount for lump-sum payments made in January, while other departments typically offer 5-8% bonuses for advance payment. These discounts can result in substantial savings for property owners with higher tax bills.

Late payment penalties include 10% annual compensatory interest in Maldonado and similar rates in other departments. After missing three installment payments, departments typically cancel payment plans and reinstate the full annual amount plus accumulated penalties.

Multi-property owners may face surcharges in some departments, while prompt payment plan enrollment can provide additional benefits like extended payment periods without penalties.

What property tax exemptions and reductions are available in 2025?

Uruguay offers several property tax exemptions focused on primary residences and specific demographic groups.

1. **Primary Residence Wealth Tax Exemption**: Owner-occupied homes valued up to UYU 5,370,000 (USD 130,000) are exempt from wealth tax calculations2. **Senior Citizen Reductions**: Many departments offer partial property tax reductions for residents over 65 years old3. **Low-Value Property Exemptions**: Properties below certain thresholds may qualify for reduced rates or exemptions4. **Rural Producer Benefits**: Agricultural properties actively used for production may qualify for partial exemptions5. **Disabled Person Accommodations**: Properties modified for accessibility may receive tax adjustments

Each department administers these exemptions differently, with applications typically required annually or when circumstances change. Rural producer exemptions often require proof of agricultural activity and income levels.

It's something we develop in our Uruguay property pack.

Property owners should contact their departmental tax office to understand specific qualification requirements and application procedures for available exemptions.

What additional taxes apply when buying, selling, or renting property in 2025?

Property transactions in Uruguay trigger several one-time taxes and fees beyond annual property taxes.

The Transfer Tax (ITP) charges 2% of cadastral value to both buyer and seller, while notary and registry fees add 3-4% of purchase price. For a UYU 3,000,000 property sale, the ITP totals UYU 120,000 (UYU 60,000 each party) plus UYU 90,000-120,000 in notary costs.

Rental income faces different tax treatment: non-resident owners pay 10.5% flat tax on net rental income through IRNR, while residents include rental income in progressive personal income tax (IRPF) calculations with rates varying by total income level.

Total transaction costs typically range from 6-8% of property value, making Uruguay's transaction costs moderate compared to other Latin American countries but requiring careful budgeting for property investors and buyers.

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.

Sources

1. Real Estate in Uruguay - Who Can Buy Real Estate
2. Real Estate in Uruguay - Property Taxes Guide 2025
3. Guruguay - Property Taxes in Uruguay
4. Montevideo Government - Property Tax Calculation
5. La Cite Uruguay - Property Investment Opportunities 2025
6. Global Property Guide - Uruguay Taxes and Costs
7. Maldonado Government - Property Tax Information
8. Living in Uruguay - Maldonado Tax Information