How to buy a house in Uruguay as an expat

If you’re reading this, Uruguay is probably already on your radar, whether as a place to live, invest, or start something new. And sooner or later, the same question comes up: can foreigners buy property easily, or is it a complicated process?

The short answer is yes, and the process in Uruguay is surprisingly straightforward. It’s one of the few countries in the region where foreigners have the exact same property rights as locals.

That said, buying property in Uruguay won’t work exactly the same way it does back home. The legal process, taxes, and paperwork are different, and understanding them early on can save you a lot of stress later.

This guide covers the requirements, current market prices in 2026, taxes, the buying process step by step, and how payments work.

Requirements for foreigners looking to buy a house in Uruguay

Now let’s get into the details: the documents you’ll need, the key legal professional involved in the process, and the rights you actually have as a property owner.

Can foreigners buy property in Uruguay?

Yes, with no restrictions. You don’t need legal residency, tax residency, or any special visa. You also don’t have to be in the country while the purchase is being processed. All you need is a valid passport and proof of where the money you’re using comes from.

Uruguayan law fully protects the property rights of both foreigners and locals. You can buy houses, apartments, land, commercial spaces, or rural properties, as many as you want and wherever you want. The only limited exception applies to very large rural plots near borders or dams, which may require special approval in some cases. Otherwise, there are no restrictions.

Buying property in Uruguay gives you full ownership, not a temporary or limited right. You can sell, rent, mortgage, or pass it on freely, just like any local owner.

Required documents

On the buyer’s side, the paperwork is fairly straightforward. You’ll need a valid passport (or national ID if you’re from Mercosur), proof of where the funds for the purchase come from, and your personal details, including your residential address in your home country.

On the property side, the notary verifies the title to confirm ownership, checks for any debts or liens, and reviews the official plans and registry details to ensure everything is in order.

The notary

In Uruguay, the public notary is the central figure in any property transaction. It’s not quite the same as a notary in other countries, even if it’s similar. Their involvement is mandatory, and their role goes far beyond simply signing off on paperwork.

The buyer’s notary reviews the property’s legal history, flags any issues before you sign, handles the transaction taxes, and makes sure everything agreed with the seller is properly reflected in the contract. If there’s a problem with the title, they’re the one who catches it.

Their fees are typically around 3% plus VAT of the property price. It can catch people off guard, but it reflects the work of someone who is there to safeguard your interests in a legal system you may not know in detail.

You can buy without traveling to Uruguay

You can give a power of attorney to a trusted professional in Uruguay to handle the whole process for you, from signing the reservation to completing the deed. Viewings can be done virtually, and all payments and paperwork can be managed remotely. It’s common practice and fully legal.

That said, if you have the chance to visit the property in person before committing, do so. There are some things that no video can convey.

If you buy through a company

Both individuals and companies, whether local or foreign, can own property in Uruguay. Buying through a company can bring tax benefits in some cases, but it also adds setup and ongoing costs. A local tax advisor can help you decide if it’s worth it for your specific case.

How much does a house cost in Uruguay?

Uruguay has become one of the most expensive real estate markets in Latin America in terms of price per square meter, especially in Montevideo and Punta del Este. That said, prices vary widely depending on the area.

Montevideo

The capital accounts for around 80% of all real estate transactions in the country. In 2026, prices range from about $1,000 per square meter in outlying areas to over $4,400 per square meter in the most sought-after coastal neighborhoods.

Montevideo’s coastal areas like Pocitos, Punta Carretas, Malvín, Puerto Buceo, and Carrasco are the most expensive. A well-located two-bedroom in Pocitos costs around $150,000–200,000. More affordable options like Reducto range from $80,000 to $120,000, with average prices around $1,525 per square meter.

Cordón is popular with investors because it offers a strong location, good rental returns, and more affordable prices than the coastal areas. Neighborhoods like Aguada and Brazo Oriental are seeing some of the fastest growth in the market, around 14–16% year over year, making them attractive for medium-term investment.

Punta del Este and Maldonado

Punta del Este is a market of its own, driven by international buyers from Argentina, Brazil, Europe, and the US, which keeps prices high. In the Peninsula, prices reach around $5,000 per square meter, while luxury beachfront projects go from $7,000 to $10,000. Most purchases are between $200,000 and $400,000, with seasonal rental returns of up to 5–6% a year.

If you want the area without the highest price tag, La Barra and Manantiales offer options in the $3,500–4,000 per square meter range. José Ignacio goes beyond $5,500 per square meter for buyers looking for something more exclusive.

Options worth considering

Uruguay isn’t just Montevideo or Punta del Este. Colonia del Sacramento offers charm and lower prices, with countryside homes starting around $800 per square meter in areas like Carmelo. Canelones has grown recently, averaging about $2,688 per square meter thanks to Ciudad de la Costa. Piriápolis is another coastal option without Punta del Este prices.

Local wages relative to these prices

A useful way to understand the market is that Uruguay’s minimum wage as of January 2026 is about $606 a month. While average formal salaries are higher, there’s still a big gap compared to property prices. This highlights how much the market relies on foreign investment and mortgage financing.

Annual maintenance costs

Owning property in Uruguay comes with annual costs. The municipal property tax varies by location and cadastral value (about 0.25% to 0.95% in Montevideo), plus an additional yearly tax called Impuesto de Primaria. Together, they usually total around 0.5% to 1.5% of the cadastral value, which is typically below market price.

Taxes when buying a home in Uruguay

The good news is that Uruguay’s property tax system is straightforward and generally free of surprises, as long as you know it in advance. There are no hidden charges or unexpected fees that show up at the end of the process.

What you pay when you buy

The main tax is the ITP (Property Transfer Tax). The buyer pays 2% and the seller another 2%, based on the cadastral value. Since this value is usually below market price, the real cost is lower in practice.

This tax must be paid within 15 days of signing the contract; the notary handles the payment and transfers it directly to the DGI.

In addition to the ITP, the purchase involves the following additional costs:

• Buyer’s notary fees: 3% + VAT of the property value
• Real estate agency fees: 3% + VAT of the purchase price
• Stamp duty and registration fees: 0.5% of the property value
• Occupancy and connection fees (for new properties only): Between 2% and 4% of the property value

To give you a real example, on a $150,000 property, taxes, fees, and registration costs typically come to about $10,000–12,000. As a general rule, it’s wise to budget an extra 8–12% on top of the purchase price.

Exceptions worth knowing

Many new-build or off-plan projects fall under Uruguay’s “Promoted Housing Law” (Law 18.795). In the first sale of these properties, both buyer and seller may be exempt from the ITP. It’s a real saving worth keeping in mind when comparing options.

Annual taxes once you become a homeowner

After buying a property in Uruguay, there are a few ongoing annual costs and taxes you’ll need to keep in mind. The main ones are the municipal property tax (Contribución Inmobiliaria) and the Impuesto de Primaria, which we mentioned earlier. These are property-related taxes paid regularly, regardless of whether you live there full-time, use it seasonally, or hold it as an investment.

That said, if you decide to rent out the property when you’re not using it, you’ll also need to account for taxes on the rental income. The key difference here is whether or not you’re a tax resident in Uruguay.

If you’re a tax resident in Uruguay, rental income may be exempt as long as it stays below roughly $6,800 per year. Above that threshold, you’ll need to pay tax on the income.

If you’re not a tax resident in Uruguay, you’ll pay the IRNR, the non-resident income tax. In this case, a flat rate of 10.5% applies to the gross rental income, with no deductions allowed for expenses like maintenance, management fees, or repairs.

If you decide to sell the property at a later date

If you later sell the property at a profit, you’ll have to pay tax on the capital gain. In simple terms, this is calculated based on the difference between the purchase price and the sale price, with the relevant adjustments under Uruguayan tax rules.

The standard rate is 12% on the taxable gain. In practice, the notary involved in the transaction usually handles the withholding and payment of the tax, so you typically don’t have to deal with it separately.

For properties bought before July 1, 2007, there may be an alternative method based on a deemed income of 15% of the sale price or cadastral value. A 12% tax is then applied, resulting in an effective rate of about 1.8%. In some cases, this can be more advantageous, but it’s best to check with a local advisor.

Tax benefit for new residents in 2026

Uruguay also offers an attractive tax regime if you become a new tax resident. One of its main advantages is that it allows you to avoid paying tax in Uruguay on certain foreign-source income in the year you obtain tax residency and for the following 10 years. In practice, this can mean up to 11 years of tax benefits.

As of January 2026, under Budget Law 20.446, this regime remains in place. To qualify through a real estate investment, the required amount is set in Indexed Units and comes to around $2 million, so it’s important to check the updated figure when you start the process.

If you’re considering buying property in Uruguay and possibly becoming a tax resident, it’s best to go over your situation with a local tax advisor. That way, you can confirm whether you qualify, what benefits apply, and which option makes the most sense for you.

Steps for buying a house in Uruguay

One thing that often surprises foreign buyers is how quick the process is. From the reservation to getting the keys, it usually takes 30–60 days. If there are issues with the title review or bank financing is involved, it can go up to about 90 days.

Step 1: Search for a property

The main property portals in Uruguay are InfoCasas and MercadoLibre Inmuebles. There are also agencies that specialize in foreign buyers, especially in Punta del Este and Montevideo. If you can’t travel, many of them also offer virtual viewings.

That said, if you can visit in person before committing, do it. Getting a feel for the neighborhood, seeing the building, and talking to locals can tell you things no listing ever will.

Step 2: Verify the property’s legal status

This is the most important step and can’t be skipped. Before signing anything or paying any money, the notary checks the property’s history to confirm the seller is the legal owner and that there are no debts, liens, or mortgages. It’s always better to spot any issues early.

Step 3: Sign the reservation form

Once you’ve found the property, checked its legal status, and agreed on a price, the first formal step is the reservation agreement. It locks in the deal, setting the price, payment terms, and timeline for completion. You usually pay a 10% deposit (sometimes up to 20%). If either party backs out, that amount is forfeited or paid to the other side.

This is the riskiest part of the entire process. Do not sign the form or pay the deposit without having a complete title search.

Step 4: Process the payment

If you’re buying in cash, you’ll need to start the transfer from abroad early, since Uruguayan banks require proof of the source of funds and the process can take several business days. If you’re using local financing, the bank approval runs in parallel. In any case, don’t leave this step until the last minute.

Step 5: Deed execution

Signing the deed before the notary is when you officially become the owner. The taxes are paid at that point, and the property is registered in your name at the Land Registry. From there on, it’s yours.

How to buy a house in Uruguay?

Most foreign buyers pay with their own funds. Property transactions in Uruguay are typically done in US dollars, which is the market’s reference currency. Payments are made via international bank transfer.

Before making the transfer, check with the receiving bank in Uruguay, as they’ll ask for documentation proving the source of the funds. Uruguay has strict anti–money laundering regulations, so this can take time if you don’t plan ahead. The sooner you prepare it, the smoother it will go.

Mortgages for foreigners

Yes, but the requirements are stricter than for residents. The main banks in Uruguay (BHU, BROU, Santander, BBVA, HSBC, and Scotiabank) do offer mortgages, but they usually require tax residency, proof of income in Uruguay, and a higher down payment, typically around 30% to 40% of the property value.

HSBC offers a specific product for non-resident clients, financing up to 60% of the property value, mainly aimed at buyers from Argentina and Brazil. In 2026, interest rates range between 4.5% and 5.25% per year in Indexed Units, with terms of up to 25 or 30 years. With inflation around 3.1% year over year, conditions have been historically favorable.

Some developers even offer direct financing without going through a bank, especially for off-plan projects. And if you can take out a loan in your home country or release equity from another property, that can also work as an alternative.

Tips before buying a house in Uruguay

Buying property in Uruguay is usually fairly straightforward, but that doesn’t mean you should rush it or go through it without support. If you’re investing from abroad, a few practical details can make the difference between a smooth transaction and a confusing one.

Stay connected

When you’re buying remotely, staying available is more important than it seems. A call from the notary, an urgent document to review, or a decision that needs a quick response can come up at any time.

If you’re traveling to Uruguay to view properties, a good option is to use a Holafly Uruguay eSIM for a few days, which you can activate before you leave and start using as soon as you land, with unlimited data. If you already know you’ll be staying in Uruguay longer, Holafly’s monthly plans may be more convenient, since they provide continuous connectivity without expiry or repeated setup. This is especially useful if the buying process ends up taking weeks or even months.

In addition, Holafly’s Always On plans can be a more practical option, as they provide ongoing monthly connectivity without needing to set up a new plan every time you need internet access. This way, you can stay in touch with notaries, real estate agents, banks, and advisors without relying on public Wi-Fi or last-minute arrangements.

Have your own notary

Even if the transaction involves a notary linked to the agency or the seller, it’s wiser to have your own professional looking out for your interests. Your notary can review the title, check for any outstanding issues on the property, and flag anything that doesn’t add up in time. It’s a small cost compared to the problems it can help you avoid.

Get to know the area well before making a decision

Before buying, try to spend time in the neighbourhood. Visit it at different times of day and check the atmosphere, nearby services, and how it feels to walk around. In Montevideo especially, areas can vary a lot in both price and lifestyle, so it’s best not to rely only on photos or general advice.

Don’t make decisions under pressure

The Uruguayan property market is usually quite stable, so be wary if someone pressures you to sign immediately. Buying a home is a major decision and should never be rushed. Look at several options, talk to different agencies, and if possible, speak with people who have already bought in Uruguay. That kind of firsthand insight often highlights things you won’t find in listings.

Pay attention to red flags

There are certain red flags worth taking seriously: properties priced unusually low without a clear reason, sellers who hesitate to provide documentation, requests for cash payments or transfers outside banking channels, or anyone telling you not to worry too much about checking the details.

Also factor in future expenses

The purchase price isn’t the only cost to consider. There are other expenses that can come up afterward, like moving, renovations, setting up utilities, buying furniture, property management, and ongoing maintenance.

If you plan to rent the property out, include management fees and rental taxes in your calculations. If you’re not a tax resident in Uruguay, you’ll also need to account for the IRNR. This gives you a clearer picture of your real net return.

Consider renting before buying

If you’re still not sure which area you want to live in, how much time you’ll spend in Uruguay, or what type of property suits you best, renting for six months or a year can be a very smart move.

Frequently asked questions about buying a house in Uruguay

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Paula Henderson

Spanish-English Translator

Hi! I'm a Spanish-English translator working with Holafly, helping bring travel content to life for curious travelers. As a digital nomad with a passion for exploring, I'm always adding new spots to my bucket list. If you love to travel like me, stick around because you're in the right place to find inspiration for your next trip! ✈️🌍

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