Uruguay Property Tax Guide 2026

ITP — Property Transfer Tax (2%)

• Rate: 2% of the property value (sale price or cadastral value, whichever is higher)
• Paid by: The buyer is typically responsible for the ITP
• Taxable base: The higher of the sale price or the official cadastral value (valor catastral)
• Due at: Time of transfer (escrituración), paid through the notary public (escribano)
• The ITP applies to all real estate transfers including purchases, exchanges, and certain other transfers of title

Contribución Inmobiliaria — Annual Property Tax (0.3–1.5%)

• Rate: 0.3% to 1.5% of the cadastral value (valor catastral), depending on property type, location, and value
• Tax base: The official cadastral value determined by the Dirección General de Catastro, typically significantly below market value
• Payment: Annual, typically payable in installments (bi-monthly or quarterly)
• Differentiation: Urban properties generally have higher rates than rural properties
• Discounts may be available for early payment of the full annual amount

IPRF (Impuesto al Patrimonio) — Wealth Tax on Property

• Individuals: IPRF applies at progressive rates of 0.7-2.8% on net wealth exceeding approximately UYU 13 million, primarily on real estate holdings
• Companies: Corporate IPRF is 1.5-1.75% on net assets (including real estate)
• The IPRF is an annual wealth tax on property and certain other assets
• See the Wealth Tax Guide for detailed rates and calculations

Property Valuation for Tax Purposes

• Properties are valued at the official cadastral value (valor catastral) determined by the Dirección General de Catastro
• The cadastral value is periodically updated but generally remains significantly below market value (often 30-60% of market price)
• For ITP (transfer tax), the taxable base is the higher of the sale price or cadastral value
• For Contribución Inmobiliaria, the tax is based solely on cadastral value

FAQs

Who pays the ITP transfer tax in Uruguay?

The ITP is typically paid by the buyer in a real estate transaction. The payment is processed through the notary public (escribano) at the time of signing the deed (escritura). The rate is 2% of the higher of sale price or cadastral value.

How is property valued for Contribución Inmobiliaria?

The Contribución Inmobiliaria is based on the cadastral value (valor catastral) assigned by the Dirección General de Catastro. This value is typically much lower than market value, resulting in an effective rate well below the nominal 0.3-1.5% when calculated on market value.

Are foreign property owners subject to the same taxes?

Yes, foreign owners are subject to the same property taxes as residents. There are no additional surcharges for foreign ownership of real estate in Uruguay.

Disclaimer

This guide provides general information about property taxes in Uruguay for 2026. Rates and rules may vary by department (municipality) and may change. Always consult a qualified Uruguayan contador or escribano for specific guidance. InvestmentKit does not provide tax advice.