Key points when buying a property in Uruguay

A foreign national can buy property in Uruguay without living in the country and without prior authorisation. There are no restrictions by nationality — not for houses, not for farmland, not for coastal property. What there are, are costs worth calculating in advance and one registration step that determines whether your purchase is actually protected. Here is the full process.

Tax data verified against the DGI. Rates and requirements can change: confirm with a notary before signing.

Who can buy?

Practically anyone. The only requirements are being of legal age and having the funds. You do not need to live in Uruguay or hold a Uruguayan ID: a non-resident foreign national simply needs a valid identity document, typically a passport.

Legal entities can also buy, whether local or foreign, for corporate use or as an investment vehicle.

This is one of the sharpest differences from other countries in the region, where buying in border or coastal areas requires special permits. In Uruguay it does not.

The costs almost nobody calculates properly

Property Transfer Tax (ITP)

On a sale for consideration the ITP is 2% for the seller and 2% for the buyer — 4% in total on the taxable base, split between the two parties.

An important operational detail: the intervening notary acts as withholding agent. They withhold the tax, pay it and file the corresponding return. It is not something you handle separately.

Fees and expenses

As a general rule, the buyer bears the expenses, taxes and notary fees of the purchase — and of the mortgage, if there is one — except those that by law fall to the seller. That includes notarial fees, registry charges and certificates.

And on the seller’s side

If you are selling urban property, on top of the 2% ITP there may be personal income tax (IRPF) on capital gains on the profit made. Worth factoring in when calculating the net proceeds of a sale.

Contáctanos para más información

The step that protects your purchase: registering the promise

This is the most important point in the whole process, and the one most often overlooked.

The promise of sale (promesa de compraventa) is the contract by which one party undertakes to transfer ownership and the other to acquire it, usually with payment in instalments. It is the standard instrument when the deal does not close outright in a single act.

And here is what is decisive: registering that promise with the Property Registry confers a real right in favour of the promissory buyer. Without registration you hold a contract between parties; with it you hold a position enforceable against third parties. The difference shows up precisely when something goes wrong — an attachment, another sale, an insolvency — which is exactly when it is too late to fix.

The steps in the process

Agreeing terms with the seller: price, payment structure, deadlines and what is included.
Title study. The notary verifies the chain of ownership, that there are no encumbrances, attachments or debts, and that the seller can actually sell.
Promise of sale, where payment is in instalments or conditions remain outstanding, together with its registration.
Deed of sale before a notary, with the ITP withheld by them.
Registration of the deed with the Property Registry, Real Estate Section.

The title study is not a formality

It is the stage where problems surface: unclosed successions leaving the property blocked, outstanding property tax, easements, discrepancies between what is built and what is registered. If the seller inherited the property and the succession is not finished, the sale cannot complete.

On payment methods

There are regulatory restrictions on cash payments in property transactions above certain amounts, and banks apply source-of-funds checks. If you are coming from abroad, work out well in advance how you will bring in and evidence the money: see how opening a bank account in Uruguay works, including for non-residents.

Buying personally or through a company

Both are possible. Buying through an SAS or another structure makes sense when there are several investors, when you want to separate assets, or when the property is part of a larger operation. For a family home, it usually adds cost and complexity without benefit. A decision to discuss with an adviser before signing, not after.

Buying does not grant residency, but it helps

Acquiring property does not automatically grant residency. They are separate procedures. That said, a property generating rental income can serve as proof of means of living in a legal residency application — the title deed alone, without income, is not enough.

Frequently asked questions

Can a foreign national buy a house in Uruguay?

Yes, with no restrictions by nationality and without needing to live in the country. A valid identity document such as a passport is enough.

How much tax is payable on purchase?

ITP is 2% for the buyer and 2% for the seller. The notary acts as withholding agent.

Do I need a Uruguayan ID to buy?

No. A non-resident can buy on presentation of their passport.

Why register the promise of sale?

Because registration confers a real right in favour of the promissory buyer, enforceable against third parties.

Does buying property give me residency?

Not automatically. They are separate procedures, although a property generating income can count as proof of means of living in a residency application.