Buying property in Uruguay: the ITP and the other costs

Buying a house or apartment in Uruguay involves, beyond the price, one tax and a few costs worth being clear on from the start. The main one is the ITP. Here's how much it is, who pays it, and what else you'll spend.

What the ITP is

The ITP taxes the sale (and promises of sale) of real estate. Both parties pay it separately, each their portion:

The ITP rates, per the DGI:

«El 2% (dos por ciento) para el enajenante y el 2% (dos por ciento) para el adquirente, en los negocios a título oneroso. En los demás casos asciende al 4% (cuatro por ciento), excepto para los herederos y legatarios en línea recta ascendente o descendente con el causante, para los cuales la tasa ascenderá al 3% (tres por ciento).»

In English: 2% for the seller and 2% for the buyer, in onerous deals. In the other cases it rises to 4%, except for heirs and legatees in a direct ascending or descending line with the deceased, for whom the rate is 3%.

The escribano handles it

You don't go to the DGI yourself: a notary (escribano) takes part in the deal, and they withhold, pay the ITP and file the return.

And who processes it:

«El Escribano interviniente es agente de retención y percepción del ITP, quien abona el tributo percibido y presenta la declaración jurada correspondiente.»

In English: The intervening notary is the ITP's withholding and collection agent, who pays the collected tax and files the corresponding return.

What value is it computed on?

Note: the ITP is not computed on the price you paid, but on the real value set by the National Cadastre, updated by the price index. It's usually lower than the market price, so the tax is lower than you'd think.

Other costs when buying

Beyond the ITP there are other costs that aren't taxes but are part of the bill: the notary's fees, the registry costs (recording in the Registro) and, if the deal went through an agency, its commission. Always ask for a detailed quote before signing.

Can foreigners buy?

Yes. Uruguay generally places no restrictions on foreigners buying real estate, whether or not you live in the country; you pay the same taxes as a local. For tax residency, buying real estate can be one of the triggers — we cover it in our residency post.

At a glance

In short: buying property means a 2% ITP for you (on the cadastral value, not the price), handled by the escribano, plus fees and registry costs. Get a quote and verify the values with your notary and the DGI.