ITP in Uruguay: the tax on buying, selling or inheriting property

Every time a property changes hands in Uruguay — by sale, gift or inheritance — ITP appears: the Impuesto a las Transmisiones Patrimoniales (property transfer tax). It's worth understanding before you buy or inherit, because it sets what you pay beyond the price. Here it is, clearly and with figures.

What ITP taxes

ITP taxes the transfer of real estate and of rights over it (usufruct, bare ownership, use and dwelling). It applies both to onerous sales and to transfers by reason of death. It's paid by the transferor and the recipient, depending on the case.

Buying and selling: 2% each

On a sale the tax is split: the seller pays it and the buyer pays it too, each at the same rate.

Per DGI:

«El 2% (dos por ciento) para el enajenante y el 2% (dos por ciento) para el adquirente»

In English: 2% (two percent) for the transferor and 2% (two percent) for the acquirer

Inheriting: no inheritance tax, but ITP applies

Uruguay has no separate inheritance tax. What you pay when you receive a property on someone's death is ITP. For heirs and legatees in the direct line (parents, children) the rate is 3%; for other heirs it's 4%.

On inheritances, DGI specifies:

«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: heirs and legatees in the ascending or descending direct line with the deceased, for whom the rate will rise to 3% (three percent)

What value it's calculated on

ITP isn't calculated on the transaction price but on the property's real value set by the National Cadastral Directorate, updated by the change in the consumer price index (CPI). That cadastral value is usually lower than the market price. The detail is in Title 19:

At a glance

In short: ITP is the property-transfer tax — 2% each party on a sale, 3% for direct heirs — calculated on the cadastral value, not the price. There's no separate inheritance tax. The notary settles it during the deed; confirm the values with DGI.