BUYING PROPERTY IN URUGUAY

A guide to property ownership, transaction procedures and acquisition costs for international buyers.

Uruguay offers a well-established legal framework for real estate ownership, with foreign buyers generally enjoying the same property rights as Uruguayan citizens. Residency is not required to purchase real estate, and property can be acquired by individuals or through corporate structures, subject to applicable regulations.

Real estate transactions are overseen by a licensed notary (escribano público), who verifies ownership, examines the property's legal status and prepares the necessary documentation.

KEY FACTS

Foreign ownershipPermitted without a general residency requirementPurchase currencyCommonly US dollarsLegal representationBuyer-appointed notary (escribano)Reservation depositTypically 10% of the purchase priceDue diligence periodCommonly 30–45 daysBuyer agency commission3% + 22% VATProperty transfer tax2% of the applicable cadastral tax value for the buyer

THE PURCHASE PROCESS

01 — Property Selection and Negotiation

Once a property has been selected, the buyer and seller negotiate the purchase price, payment terms, closing schedule and any relevant conditions.

02 — Reservation Agreement

A boleto de reserva is commonly signed to establish the principal terms of the transaction. The buyer typically deposits 10% of the agreed purchase price, held by the designated notary or under another agreed arrangement.

The agreement establishes the conditions under which the transaction proceeds and the consequences if either party fails to complete the purchase.

03 — Legal Due Diligence

The buyer's notary conducts a legal review of the property, including ownership history, registered encumbrances, outstanding obligations and relevant documentation.

For rural properties, land subdivisions or newly constructed residences, additional verification may be required regarding cadastral boundaries, permits, land use and applicable regulations.

04 — Final Deed and Payment

Once the legal review has been completed satisfactorily, the parties execute the final deed of sale (escritura de compraventa).

The outstanding purchase balance is paid according to the agreed terms, and the deed is subsequently registered with the appropriate Property Registry.

ACQUISITION COSTS

In addition to the agreed purchase price, buyers should account for the following expenses:

ExpenseTypical basisReal estate commission3% of purchase price + VATNotary feesCommonly approximately 3% + applicable taxes; confirm individual quotationProperty transfer tax (ITP)2% of the applicable cadastral tax valueRegistration and administrative expensesVariableBanking and transfer costsDepending on the financial institutions involved

The property transfer tax is not ordinarily calculated on the property's advertised or negotiated market price. Its taxable basis is determined under Uruguay's cadastral valuation rules.

PURCHASING FROM ABROAD

Foreign buyers may purchase property without obtaining Uruguayan residency.

Transactions can also be completed through a duly authorized representative using a power of attorney, provided the documentation meets the relevant legal formalities.

Buyers should anticipate identification requirements, verification of the source of funds and coordination with the financial institutions involved.

THE ROLE OF THE BUYER’S NOTARY

In Uruguay, the buyer generally appoints the notary responsible for examining the legal documentation and preparing the transaction.

The notary's responsibilities include reviewing the chain of title, verifying the property's legal and fiscal status, preparing contractual documentation and arranging registration of the completed purchase.

Engaging a notary early in the acquisition process is advisable, particularly for rural estates, properties involving multiple parcels or transactions structured through legal entities.

WORKING WITH CHRISTIE’S REAL ESTATE

Uruguay does not operate a comprehensive national Multiple Listing Service (MLS). Properties may be represented by several agencies, while certain estates and residences are marketed privately.

Christie’s International Real Estate Uruguay assists international buyers with property identification, market orientation, negotiations and coordination with the legal professionals involved in the acquisition.

For further information or assistance with a property search, please contact our team.

This guide provides general information and does not constitute legal or tax advice. Transaction conditions, taxes and professional fees should be confirmed with a qualified Uruguayan notary or legal adviser before entering into a purchase agreement.