Uruguay Inheritance Tax: What You Pay When Inheriting

By Global Tax · October 7, 2026

Aerial view of the Punta del Este peninsula and its seafront homes

In short:

Uruguay has no inheritance tax. The old estate tax was abolished in 1974.
The only tax on inheriting is the transfer tax (ITP) on real estate: 3% for children, grandchildren or parents of the deceased, and 4% for everyone else, including the spouse.
It is calculated on the cadastral value, not the market price.
Cash, bank accounts, shares and other movable assets pay no tax when inherited, and an inheritance is not subject to income tax.

Contents

Is there an inheritance tax in Uruguay?
The ITP on inherited property
How it is calculated
Other taxes and costs
Heirs or assets abroad
FAQ

Anyone inheriting in Uruguay wants to know how much goes to the State. The short answer: there is no inheritance tax as in many countries, but there is a tax when real estate is inherited. This guide explains Uruguay’s inheritance-related taxes, how much the ITP is, how it is calculated and what happens with heirs or assets abroad. For the full process, see inheritance in Uruguay.

Is there an inheritance tax in Uruguay?

No. Uruguay had a progressive estate tax from 1893 until it was abolished in 1974. Since then there has been no general tax on inherited wealth. What remains is the transfer tax on real estate, which also applies to transfers on death.

The ITP on inherited real estate

Heir or legatee	ITP rate
Children and grandchildren	3%
Parents and grandparents	3%
Spouse or partner	4%
Siblings, nephews, nieces and other relatives	4%
Unrelated legatees	4%

Rates under Article 7 of Title 19 of the tax code. The spouse is not in the direct line, so pays 4%; half of the marital property already belongs to the spouse and is not inherited.

How the tax is calculated

Base: the property’s cadastral value set by the National Cadastre, updated for inflation. It is usually well below market value.
Each heir pays on the share received.
Example: two children inheriting an apartment with a cadastral value of UYU 3,000,000 pay 3%, UYU 90,000 in total.
Deadline: one year from the death; late payment brings fines and surcharges.

Other taxes and costs

Net wealth tax while the estate is undivided and, afterwards, for heirs whose Uruguayan assets exceed the threshold.
Property taxes owed by the deceased pass to the estate.
Income tax on a later sale of the inherited property, on the gain.
Probate costs: lawyer and notary fees, notices and registrations.

Cash, accounts, shares, vehicles and other movable assets pay no transfer tax, and receiving an inheritance is not taxable income.

Heirs or assets abroad

A foreigner’s real estate in Uruguay pays the same ITP and goes through a Uruguayan succession. Heirs living abroad may also owe tax in their own country: for example, the US estate tax for US persons, Spain’s inheritance tax for Spanish residents or Brazil’s ITCMD. Check both sides before accepting or selling.