Uruguay’s Housing Minister Steps Down Over Property Tax Irregularities

Uruguay’s Housing Minister Cecilia Cairo resigned on April 18, 2025, after admitting her home had stood for decades on an unregistered lot in Montevideo’s Pajas Blancas district.

Her resignation came just 48 days into President Yamandú Orsi’s new administration. Cairo, 61, acknowledged that she never registered four houses built over 30 years on a 1,500-square-meter property her father gave her.

She paid only the lower vacant land tax since 2002 and made just two payments—totaling 89 pesos—toward the Impuesto de Primaria, a school tax. She also failed to register any construction with the Banco de Previsión Social, as required by law.

The issue surfaced after a radio investigation revealed the irregularities. Cairo initially resisted stepping down, arguing she prioritized raising her three children over paperwork.

However, mounting pressure from opposition parties, who threatened a parliamentary inquiry, forced her hand. President Orsi accepted her resignation, stating the matter was resolved.

Cairo’s case triggered debate about accountability and tax compliance among public officials. Critics highlighted her previous legislative stance demanding strict tax compliance for state refinancing programs, contrasting with her own unpaid obligations.

The Frente Amplio coalition, back in power after five years in opposition, now faces scrutiny as it seeks to maintain credibility and enforce property laws. The vacant post leaves uncertainty in the Housing Ministry, with no successor named.

The affair underscores the business risks of informal property arrangements in Uruguay, where legal compliance remains a key concern for investors and developers. The story demonstrates that even high-ranking officials must navigate the same regulatory landscape as ordinary citizens.

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