Uruguay's Specific Taxes in 2026: VAT, Wealth Tax and Property Costs Explained

Last reviewed: November 2026 · Reviewed by Stéphane Gombauld, tax expert, technologist and digital nomad

You already know how income tax works in Uruguay, but the bills that surprise newcomers are usually the other ones. This guide covers every specific tax you are likely to meet in 2026, what each one costs, and the legal ways to keep them low.

Uruguay specific taxes in 2026: the key figures

Is this guide for you?

Read on if you…

• plan to buy, inherit or sell property in Uruguay;
• hold significant assets in Uruguay and want to know whether wealth tax applies;
• run a business that sells goods or services and must charge VAT.

Probably not your case if you…

• only need income tax rules. See tax residency in Uruguay and the capital gains guide;
• keep all your assets outside Uruguay and only rent a flat there.

How does VAT work in Uruguay?

VAT, called IVA (Impuesto al Valor Agregado), is collected by the DGI, the national tax office. The basic rate is 22%, one of the highest in Latin America. A 10% minimum rate applies to basic food, medicines, hotel services and some health services. Exports of goods and many services provided to clients abroad are zero-rated.

Here's the catch for freelancers. Services you render from Uruguay to foreign clients are generally zero-rated, but only if they qualify as exports under the VAT decree. Local clients pay 22% on top of your fee.

Since 2018, foreign digital services such as streaming and app platforms charge Uruguayan VAT to local users. You will see it on your Netflix or Spotify bill.

Small businesses: IVA mínimo

Very small businesses (the Literal E category) do not charge regular VAT. They pay a fixed monthly amount called IVA mínimo instead, and are exempt from corporate income tax. The annual revenue ceiling is 305,000 UI. The UI (Unidad Indexada) is an inflation-indexed unit published daily by the national statistics institute.

Does Uruguay have a wealth tax?

Yes. The Impuesto al Patrimonio (IP) is an annual tax on net worth on 31 December. Good news: it is territorial. It only covers assets located in Uruguay, such as local property, local bank deposits and shares in Uruguayan companies. Foreign bank accounts and foreign shares are outside its scope.

Individuals

Individuals pay IP only above a tax-free threshold that is updated every year, about UYU 6 million per person and double for a couple filing jointly. Above it, the rate is progressive, from 0.1% to 0.4% in 2026.

Two details matter in practice:

1. Real estate is valued at its cadastral value, which is usually well below market value.
2. Debts are only deductible in limited cases, for example loans from Uruguayan banks.

Companies

Most Uruguayan companies pay IP at 1.5% of net equity, with banks at 2.8%. Companies can offset IP against part of their IRAE (corporate income tax) in some cases. Equity held in other Uruguayan companies that already pay IP is excluded, which avoids double counting.

What taxes apply when you buy or inherit property?

The transfer tax (ITP)

The Impuesto a las Transmisiones Patrimoniales (ITP) applies to every transfer of Uruguayan real estate. The buyer pays 2% and the seller pays 2%, both calculated on the cadastral value, not the sale price. On a property with a cadastral value of USD 150,000, each side pays about USD 3,000.

On top of ITP, budget for notary fees (escribano) of roughly 3% plus VAT, and an estate agent fee of about 3% plus VAT for each party. These are market practices, not taxes.

Inheritances and gifts

Uruguay has no separate inheritance tax. Instead, ITP applies when Uruguayan real estate passes on death or by gift. The rate ranges from 3% to 5%, depending on how closely related the heir is. Foreign assets passed to heirs are not caught.

Annual property taxes

Every property owner pays the Contribución Inmobiliaria, an annual municipal tax set by each of the 19 departments. Montevideo and Maldonado (Punta del Este) publish their own scales. Urban properties may also pay the Impuesto de Primaria, which funds public primary schools, except for owners' primary homes in some cases.

What about excise duties and vehicle tax?

IMESI

IMESI (Impuesto Específico Interno) is an excise tax on specific goods. It hits tobacco, alcoholic drinks, fuel, sugary drinks, cosmetics and vehicles. It is built into the shelf price, so you pay it without seeing it. Imported cars carry high IMESI rates, which is why cars cost noticeably more than in Europe or the US. Electric vehicles benefit from very low or zero IMESI.

Vehicle tax

Car owners pay the patente de rodados every year through SUCIVE, the national vehicle tax system shared by all departments. It is calculated on the official value of the vehicle and can be paid in instalments.

How can you legally pay less?

1. Keep investment assets outside Uruguay if wealth tax is a concern. IP is territorial, so foreign portfolios are not counted.
2. Use the cadastral value logic. ITP and IP rely on cadastral values, typically far below market prices. Check the cadastral value before you buy.
3. Register your business correctly. A freelancer with small revenue may qualify for Literal E or Monotributo, which simplifies VAT.
4. Document exports. If your clients are abroad, keep contracts and invoices proving the service is an export, so you charge 0% VAT.
5. Consider an electric vehicle. Lower IMESI and lower patente reduce the total cost.

Common mistakes (and what they cost)

• Assuming wealth tax covers your whole portfolio → you may restructure for nothing. Only Uruguayan assets count.
• Charging 22% VAT on export services → your foreign clients overpay, or you absorb the cost. Check the export rules first.
• Ignoring the seller's ITP when negotiating a sale → 2% of cadastral value disappears from your margin.
• Forgetting the Contribución Inmobiliaria → late payment surcharges and a blocked sale until the debt is cleared.
• Holding local deposits through a company without checking IP → the company pays 1.5% instead of the lower individual rates.

Frequently asked questions

Is there an inheritance tax in Uruguay?

There is no dedicated inheritance tax. When Uruguayan real estate is inherited, the transfer tax (ITP) applies at roughly 3% to 5% of cadastral value depending on the relationship, which the editor will confirm for 2026. Foreign assets and Uruguayan movable assets such as bank deposits pass to heirs without ITP.

Do foreigners pay wealth tax in Uruguay?

Yes, if they own assets located in Uruguay. Non-resident individuals pay the Impuesto al Patrimonio on their Uruguayan net worth above the threshold, just like residents. Assets held abroad are never counted. Property is valued at cadastral value, so many owners of a single flat stay below the taxable threshold.

What is the VAT rate in Uruguay in 2026?

The basic VAT rate is 22%. A minimum rate of 10% applies to basic foodstuffs, medicines, hotel accommodation and some health services. Exports of goods and qualifying services are zero-rated. Foreign digital platforms selling to Uruguayan consumers must charge Uruguayan VAT on their services.

Who pays the transfer tax when buying property?

Both sides do. The buyer pays 2% and the seller pays 2% of the cadastral value, not the agreed price. The notary handling the deed calculates and withholds the tax. Inheritances and gifts of Uruguayan real estate are also subject to ITP, at higher rates.

Is the wealth tax charged on foreign bank accounts?

No. The Impuesto al Patrimonio is territorial and only covers assets located in Uruguay. Foreign bank accounts, foreign shares and foreign property are excluded, whether you are a resident or not. Foreign investment income may still matter for income tax, which is a separate question covered in the capital gains guide.

How do I pay the annual property tax?

The Contribución Inmobiliaria is billed by the departmental government where the property is located, for example the Intendencia de Montevideo or Maldonado. You can pay online or at payment networks, usually in instalments, with a discount for paying the full year upfront.

Related guides

• Uruguay tax landscape overview
• Capital gains tax in Uruguay
• Uruguay tax residency rules
• Uruguay tax incentives for expats and digital nomads
• Specific taxes in Paraguay
• Specific taxes in Mexico
• All country tax guides

Sources

• Dirección General Impositiva (DGI) – Uruguay's tax authority
• IMPO – Official legislation database of Uruguay
• Ministry of Economy and Finance of Uruguay
• SUCIVE – National vehicle tax system
• PwC Worldwide Tax Summaries – Uruguay

This guide is general information, not personalised tax advice. See how we research and review.