How do I know if I need to pay the wealth tax in Uruguay?
It’s a question that many people ask, and sometimes the answer isn´t so simple, so professional support may be required.
The Wealth Tax in Uruguay is a levy on the net worth of individuals, undivided inheritance, and legal entities.
This tax primarily applies to assets located or used in Uruguay.
That´s a key difference compared to other systems in the region, which typically tax assets both within the country and abroad.
Who pays the Wealth Tax in Uruguay?
The Wealth Tax applies to:
- Individuals and undivided inheritances who are residents in Uruguay.
- Legal entities: including corporations, limited liability companies, simplified stock companies, limited partnerships by shares, permanent establishments of non-resident entities, and other entities with legal personality.
- Those who choose to calculate the Tax on Income from Economic Activities (IRAE) based on work income earned outside of an employment relationship.
What is the taxable event for the Wealth Tax?
The taxable event is the existence of net assets, as of December 31 each year, exceeding the non-taxable threshold established by current regulations.
How is the Wealth Tax calculated for individuals and undivided inheritance?
The Wealth Tax is calculated based on the net value of assets, which is determined by subtracting debts from the total taxable assets. Deductible liabilities primarily include the annual average of debts with local banks.
There is a non-taxable threshold for Wealth tax. For the 2024 fiscal year (declared in 2025), it corresponds to UYU 6.381.000 Uruguayan pesos. Approximately USD 157.000.
There is an option to file this tax as a household unit, in which case the non-taxable threshold mentioned above is doubled.
A different non‑taxable threshold applies to agricultural assets.
Individuals and undivided inheritances pay the Wealth Tax at progressive rates that range between 0.2% and 0.7% for residents and between 0.5% and 1.5% for non‑residents. The regulations provide for the gradual and annual reduction of the mentioned rates — in certain cases — until they are unified at a rate of 0.10%.
Uruguayan regulations establish a closed list of debts that can be counted as liabilities: debts with banks, financial houses, saving and credit cooperatives, credit administrators, closed-end credit investment funds, and trusts (except guarantee trusts).
The assets of individuals, household units, and undivided inheritances are valued at market value. Assets include credits of any kind.
There are certain exceptions to asset valuation explained below:
Assets exempt from the Wealth Tax:
- Public debt in any form.
- Holdings in entities liable to the Wealth tax
- Holdings in finance entities dedicated exclusively to intermediary operations in securities and titles based abroad.
- Bank deposits of individuals (treated as part of household furnished and home furniture with special computation
- Accumulated balances in AFAPs.
Assets with special valuation:
- Urban and suburban real estate. These are calculated based on the cadastral value determined by the National Cadastre Directorate. For properties used as the mai residence, 50% of that value is considered. This amount cannot exceed the applicable non-taxable threshold.
- Urban and suburban properties rented as of December 31 will be valued at the lower of either the fiscal value of the property or 15 times the annual rental amount.
- Vehicles are valued based on the annual vehicle license fee multiplied by a factor of 25. Other maritime and air transport means will be valued by the taxpayer.
- Household belongings. This includes furniture from the main residence, as well as works of art, collections, documents, repositories, and books. Cash deposits in local banks are also treated as part of household belongings for tax calculation purposes. A rate of 10% will be applied to the taxable base up to twice the non-taxable threshold, and 20% to the amount exceeding twice the non-taxable threshold.
Declarations are submitted in the month of May for the previous year. Monthly payments of the Wealth Tax must be made as advanced payments according t the amounts and deadlines established annually by the Dirección General Impositiva.
How is the Wealth Tax calculated for Legal Entities?
For the purpose of calculating the tax payable by legal entities, the adjusted net equity is considered, which means deducting certain items from assets and liabilities in accordance with the applicable accounting standards.
Legal Entities will settle the Wealth Tax on the entirety of their fiscal net worth.
Unlike the Wealth Tax for individuals, legal entities are taxed at a flat rate of 1.5%. Some entities pay different rates—for example, banks and financial houses pay 2.8%, while entities that are residents, domiciled, established, or located in low or no‑tax jurisdictions, or that benefit from a special low‑tax regime, pay 3%.
Main taxable assets for companies are:
- Vehicles.
- Deposits in bank accounts at local banks.
- Accounts receivable from local companies.
Main deductible liabilities for companies are:
- Balances of debts contracted in the country with certain financial institutions.
- Debts from unpaid taxes.
- Debts with local suppliers.
Corporate entities (Sociedades Anónimas) may deduct from their Wealth Tax payment the amounts paid for the Corporate Control Tax (ICOSA), which for the 2025 fiscal year amounts to UYU 26,762.
The Wealth Tax paid may be offset by up to 1% with the IRAE paid in the same fiscal year.
Companies must make advance payments of the tax equal to 11% of the annual tax.
The annual Wealth Tax declaration for legal entities is calculated at balance sheet closing and filed in April along with the March advance payments.
Frequently asked questions:
Am I required to file a Wealth Tax return if I don’t have to pay the tax?
There is no obligation to file a Wealth Tax return if the valuation of net assets remains below the non‑taxable threshold for individuals.
Are children’s assets included in the household’s taxable assets?
Children’s assets are not included in the calculation of household Wealth Tax. Children must calculate and settle their tax individually. If they are minors, this must be done through their legal representative.
Who can constitute a household unit?
Spouses living together may constitute a household unit. They are jointly responsible for the payment of the tax. It is an option that must be exercised annually.
If the household unit option is not chosen, each spouse must declare their own assets and half of the jointly owned (marital) assets.
You can opt to be taxed as a household unit if the spouses live together as of December 31 of each year.
What happens when one of the spouses in the household unit dies?
The death of one of the spouses dissolves the household unit. The undivided inheritance of the deceased and the surviving spouse will be required to declare their respective net assets, provided they exceed the applicable non‑taxable threshold.
This article does not cover the Wealth Tax for the agricultural sector, which has a special treatment under Uruguayan regulations.
Our tax specialists have extensive experience advising on all aspects related to the Wealth Tax for both individuals and legal entities.
Schedule a consultation to assess your case.
