As an owner of Uruguayan real estate you will have to bear the following ongoing costs:

Property tax (Contribucion Inmobiliaria) - Individuals owning property in Uruguay are subject to a property tax, imposed by departmental governments. The tax rates vary depending on the department and there is a 100% surcharge for non-resident property owners. A tax for basic education is also levied on properties in Uruguay, operating on a sliding scale from 0.15% to 0.30% dependent on the property value.

Individual Net Worth Tax (Impuesto al Patrimonio, or IAP) - A non-resident is taxable at a flat rate of 2% of the property's net worth value that exceeds the prescribed tax-free amount. The tax-free amount is doubled for couples filing jointly.

Rental Income Tax - Capital income, including rental income, earned by individuals is subject to 12% tax. The taxable income is calculated by deducting municipal taxes, IAP (see above) and notary fees of the lease contract and administration costs from the gross rental income.

Property insurance - You should buy property insurance immediately after signing the boleto. Property insurance is inexpensive with the typical cost being about $9 per month.

Lettings and management charges - There are lots of rental and property management agencies to choose from in key Uruguayan tourist hotspots, and many estate agents will also offer a property management service, including cleaning and maintenance. They may also offer a tenant-finding service for you, at an extra charge.

Condo and utilities costs - For a building with amenities such as a pool, gym, jacuzzi, etc, monthly condo fees range from around UYP825 ($21) to about UYP3,300 ($85). The average is usually around UYP2,000 ($52) per month. Some utility bills such as the telephone, cable, and high-speed internet (if you choose to get that service) come every month. Other utility bills, like water, gas and electricity, come every two months.

Inheritance Tax

Tax rates vary depending on the kind of transfer involved. For transfer of properties to heirs (ascendants and descendants), the rate is 3%. For gratuitous transfers, the rate is 4%.