Uruguay (UY)
South America's most progressive and stable country — Uruguay consistently ranks first in Latin America for democracy, press freedom, and quality of life.
Buying Property in Uruguay
The full buying process, transaction costs, mortgage, and legal requirements.
Uruguay is one of the most foreigner-friendly property markets in South America — there are no restrictions on foreign ownership of any type of real estate (land, apartments, houses, rural estancias). No special permits or residency status are required to buy property. The legal system is stable, title registration is clear, and the escribano (notary) system provides strong buyer protection. Property prices are denominated in USD. As of 2026, there are no restrictions or special taxes targeting foreign buyers. Montevideo's prime neighbourhoods (Pocitos, Punta Carretas, Carrasco) have seen sustained price growth. Punta del Este coastal properties attract international buyers, while Colonia del Sacramento and Maldonado offer more affordable options.
Rent vs. Buy
Rental yields in Montevideo are modest (3–5% gross), making buying financially neutral vs. renting over a 7–10 year horizon after transaction costs. Foreigners with the 11-year foreign income IRPF exemption (updated from 1 January 2026: threshold raised to USD 2 million of declared foreign assets) and stable USD income often prefer to buy for stability and potential capital gain. For stays under 5 years, renting avoids the 8–10% transaction cost. BHU (Banco Hipotecario) mortgages are available to residents with a BPS/income history, but accessing mortgage finance as a new expat without 2+ years of Uruguayan tax history is difficult — most foreign buyers purchase cash.
Buying Process — Step by Step
Property search
1–8 weeksSearch via InfoCasas, Gallito, or an established real estate agency (inmobiliaria). Engage a buyer's agent or independent lawyer in parallel. Do not rely on seller-side agents for legal advice.
Engage an independent escribano (notary)
1 weekHire your own escribano — do not use the seller's or agent's escribano. The escribano is the most important professional in the transaction: they conduct title searches, draft contracts, file taxes, and register the deed. Ask for recommendations from the expat community or your home country's embassy in Montevideo.
Pre-purchase due diligence (estudio de título)
1–3 weeksCommission a title search (estudio de título) covering the last 30 years — reveals encumbrances, mortgages, liens, and ownership history. Check property tax (Contribución Inmobiliaria) and municipal rates are current. Verify DGI fiscal status and any BPS debts of the seller. Confirm the cadastral value (valor catastral) as it determines the ITP transfer tax base.
Boleto de Promesa (preliminary contract)
1–2 weeksSigned preliminary sale agreement (promesa de compraventa) with the seller — typically 10% deposit (arras) paid at this point. Binding on both parties. Includes purchase price, payment terms, transfer conditions, and penalty clauses. Must be notarised by escribano. If the buyer withdraws, the deposit is forfeited; if the seller withdraws, they must return double the deposit.
Final escritura (deed transfer)
30–60 days after promesaTransfer of ownership formalised by escribano at final closing. Full payment made (typically by bank transfer or certified cheque). Both buyer and seller sign the escritura pública. The escribano calculates and files ITP transfer tax with DGI. Escribano submits to Registro de la Propiedad for inscription.
Registration at Registro de la Propiedad
15–30 daysEscribano registers the title deed with the Dirección General de Registros (DGR). Takes 15–30 days. Until registration is complete, buyer has beneficial ownership through the notarised escritura but not full legal protection for third-party purposes.
Post-purchase setup
1–2 weeksTransfer utility accounts (UTE, OSE, Metrogas) into your name. Register as property owner at the Intendencia (e.g., IMM in Montevideo) for annual Contribución Inmobiliaria property tax billing. Obtain homeowner's insurance (BSE or private). If investment property, register rental income with DGI.
Transaction Costs
| Cost Item | Amount | Notes |
|---|---|---|
| ITP — buyer's share (Impuesto a las Transmisiones Patrimoniales) | 2% of cadastral value (valor catastral) | The buyer pays 2% ITP; the seller also pays 2% ITP. The tax base is the official cadastral value set by the Dirección Nacional de Catastro — typically below market price. The escribano retains and transfers this to DGI. Must be paid within 30 days of the deed; receipt is required for registration. |
| ITP — seller's share (sometimes absorbed by buyer) | 2% of cadastral value (negotiated) | By default the seller pays their own 2% ITP. In practice buyers sometimes negotiate to absorb the seller's share, effectively paying 4% total. Always clarify in writing who pays which share. |
| Escribano fees (buyer) | 2–3% of property value | Escribano fee is negotiable. Most charge 2–3% for residential transactions. Covers all notarisation, title search (estudio de título), contract drafting, ITP filing, and registration work. Get the fee in writing before engagement. |
| Real estate agency commission | 3–6% of sale price | Typically paid by the seller, but practice varies. Confirm in writing at the start of the search. If you engage a buyer's agent separately, their fee is additional. |
| Registro de la Propiedad inscription fee | UYU 5,000–15,000 (flat fee) | Paid via escribano at transaction. Required for legal title. Exact fee depends on property value and transaction type. |
| DGI ITP filing | Included in escribano fee | Escribano handles DGI ITP filing as part of their service. No separate payment to DGI is required beyond the ITP itself. |
| Contribución Inmobiliaria (annual property tax — ongoing) | Approx. 0.25–1% of cadastral value/year | Paid annually to the Intendencia (municipality). Cadastral values are updated periodically. In Montevideo, Maldonado, and Canelones the rate schedules differ — check with the relevant Intendencia. |
| Patrimonio (net wealth tax — ongoing, if applicable) | 0.1–1.5% per year depending on resident/non-resident status | Residents: applies if Uruguayan net assets exceed approx. UYU 5 million (threshold adjusted annually). Rate 0.1–0.3% for residents on Uruguayan assets only. Non-residents: 0.7–1.5% on Uruguayan assets. Property is valued at cadastral value, not market value — reducing the effective burden. |
The Notary — Mandatory for All Purchases
The escribano (notary) in Uruguay plays a central and mandatory role in all property transactions. They conduct the title search (estudio de título — minimum 30 years), draft both the promesa (preliminary contract) and the escritura (final deed), witness signatures, calculate and file ITP transfer tax with DGI, and register the deed with the Dirección General de Registros. The escribano is the buyer's most important professional in a property transaction — choose one independently rather than relying on the seller's or agent's recommendation. Escribano fees: 2–3% of property value.
Mortgage
BHU (Banco Hipotecario del Uruguay) dominates the Uruguayan mortgage market (~80% market share) for residential property. Private banks (BROU, Santander Uruguay, Itaú Uruguay) also offer mortgages. Mortgages are denominated in UI (Unidades Indexadas — inflation-linked units) rather than UYU or USD. Maximum term: 20–25 years. As of 2026, mortgage interest rates are approximately 6–10% per annum for USD-denominated loans. Mortgages are difficult to access for new expats without 2+ years of Uruguayan income history; most foreign buyers purchase cash.
Residents: 20–30% down payment (banks lend up to 70–80% LTV). Non-residents: 30–50% down payment required, with LTV capped at 50–70%. Santander Uruguay has an explicit "Préstamo Hipotecario No Residente" product with up to 50% LTV for non-residents on shorter terms.
No legal restriction on foreigners obtaining mortgages in Uruguay. Practical barriers: BHU requires proof of Uruguayan income for 24+ months. Santander Uruguay is the most accessible lender for non-residents, with a published non-resident mortgage product. Most foreign buyers purchase with USD cash. Some use offshore financing or vendor financing (cuotas with seller). Banks require: passport, home-country tax returns apostilled and translated, bank statements (6–12 months), proof of income (employer letters or accountant certification), and may require a local guarantor.
Land Registry
Dirección General de Registros (DGR) — Uruguay's national land registry, accessible at portal.dgr.gub.uy. All real property must be inscribed to establish legal ownership. Registration is conducted by the escribano post-closing and takes 15–30 days. Prior to full registration, the buyer has an equitable interest through the notarised escritura but should not sell or mortgage the property until registration is confirmed. Title searches (certificados registrales) can be requested via the DGR portal.
Taxes
One-time transfer tax: ITP (Impuesto a las Transmisiones Patrimoniales) = 2% buyer + 2% seller of the cadastral value. Annual property taxes: Contribución Inmobiliaria (municipal rates, paid to Intendencia) — approximately 0.25–1% of cadastral value per year. Patrimonio (net wealth tax): applies if total Uruguayan net assets exceed the annual threshold (~UYU 5M for residents); rate 0.1–0.3% (residents) or 0.7–1.5% (non-residents). IRPF on rental income: 10.5% for natural person landlords. Capital gains on sale: IRPF at 12% of real gain for resident individuals; IRNR varies 7–25% for non-residents. From 1 January 2026: scope of taxable foreign-source capital gains expanded for Uruguayan tax residents (including immovable property abroad) — consult a contador.
Selling Property
Sellers pay 2% ITP on cadastral value, escribano fees (1–2%), and IRPF at 12% on real capital gain (natural persons). Non-resident sellers pay IRNR (rate varies, standard 12%). If seller is an SRL/SA company, IRAE 25% applies. Sales are typically completed in 30–60 days from accepting an offer. Real estate agents charge 3–6% commission (seller typically pays). Portals: InfoCasas and Gallito for listing.
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Property Buying
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