Selling a property: the IRPF capital-gains tax
When you sell real estate, the gain pays IRPF: 12% on the capital gain. How it's computed, who withholds it, and the home exemption — with official sources.
Buying property has its tax (the ITP); selling it does too. If you sell a property and make a gain, that gain pays IRPF as a capital gain. The good news: it's not on the whole price, but on the gain, and your home may be exempt. Here's how it works.
How much: 12% on the gain
The rate is clear and set by the DGI:
Per the DGI, the tax is computed:
«aplicando la tasa del 12% (doce por ciento) al valor de la renta computable»
In English: applying the rate of 12% (twelve percent) to the value of the taxable income
DGI — IRPF capital gains on urban real estatehttps://www.gub.uy/direccion-general-impositiva/comunicacion/publicaciones/irpf-incrementos-patrimoniales-inmuebles-urbanosHow the gain is computed
The taxable income (the gain) is, broadly, the difference between the sale price (or the cadastral value, whichever is higher) and the sum of: the adjusted fiscal cost of what you paid when buying, the ITP you paid as seller, and documented improvements. For properties acquired before the 2007 reform there's also a notional (ficto) method. The cost adjustment uses coefficients the DGI publishes:
DGI — Real-estate adjustment coefficienthttps://www.gub.uy/direccion-general-impositiva/datos-y-estadisticas/datos/coeficiente-ajuste-inmueblesThe escribano withholds it
You don't go to the DGI yourself: just like with the ITP, the notary in the sale is the IRPF withholding agent for the gain, withholds it and remits it. We also cover this in our buying-a-property post.
Your home's exemption
Key point for those selling their home: the sale of the permanent home is exempt from IRPF if the value of the sold property doesn't exceed 1,200,000 UI and you reinvest the proceeds in another home (meeting the conditions). So selling your only house to buy another often generates no IRPF.
At a glance
| Question | Answer |
|---|---|
| What does it pay? | IRPF on the capital gain |
| How much? | 12% on the gain |
| Who withholds it? | The deal's escribano |
| My home? | Exempt up to 1,200,000 UI (reinvesting) |
In short: selling property at a gain pays IRPF at 12% on that gain (not on the price), the escribano withholds it, and your permanent home may be exempt up to 1,200,000 UI. Run the numbers with your notary or accountant before selling.