Fiscal aspects of investment in Uruguay

For an international land investor it may be good to get some indication on fiscal aspects of the investment.

A landowner in Uruguay needs to pay several taxes including property tax (contribución rural), personal income tax on rental income and in most cases primary rural school tax (primaria).

Property tax is based on the taxable value of the property, which is determined by the local government, and the tax rate ranges from 0.5% to 1.5%. Personal income tax is levied on rental income and in most cases 12%. Additionally, the transfer of property may also be subject to transfer tax (Impuesto de Transferencia), which is based on the cadastral value of the property being transferred and ranges from 0.5% to 2%.

The inheritance tax in Uruguay is imposed on the transfer of property. The amount of inheritance tax depends on the value of the property being transferred and the rate is 3% of the cadastral value.

A wealth tax is applicable for landowners who own more than 2.000 hectares (patrimonio).

The exact amount of taxes will vary depending on the specific circumstances of each case, so it is advisable to consult with a tax professional for an accurate estimate or advice. Depending on the origin of the international landowner, domestic fiscal legislation is more than relevant and deserves further analysis. Upon request, we can introduce you to international tax advisors in Uruguay.

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