Investment property: Uruguay

Updated 6 October 2026

Uruguay is the calmest jurisdiction in South America: a stable legal system, strong respect for private property and full equality of rights.

A foreigner buys real estate, including land, on exactly the same terms as a citizen, with no permits or restrictions. The main markets are Montevideo and the resort hub of Punta del Este, a traditional destination for Argentine and Brazilian capital. There is no golden visa tied to property, but residency in Uruguay is broadly accessible even without investment, and a substantial property purchase counts toward the country's tax residency criteria. The market is small and slow moving - this is a capital preservation story in a stable jurisdiction, not a speculative one.

We select the property around your goal, from an apartment in Montevideo to a house in Punta del Este, verify title and encumbrances through an escribano (the notary who runs the transaction in Uruguay), manage the purchase and help with the ownership structure. If the goal is relocation or a change of tax residency, we sequence the steps - transaction, residency permit, resident status - and run the processes in parallel with our locally licensed partners.

Taxes on purchase

When property is sold in Uruguay, both sides pay the property transfer tax: 2% the seller and 2% the buyer. The base is the property's cadastral value, indexed to inflation at the date of the deal, according to the Uruguayan tax authority. An owner who lives abroad and uses the Uruguayan property only occasionally pays property tax; on sale the seller pays tax on the gain.

How the purchase works

1. Choosing a property for your goal: a home, rental or investment.
2. A notary checks title, debts and encumbrances.
3. A purchase promise and deposit.
4. The main deed before a notary and payment of the transfer tax.
5. Registration of title and, if needed, letting.

What documents you need

A passport and source of funds documents for the bank and the notary; when buying through a company, its founding documents.

Tax residence through a purchase

Buying property in Uruguay can give tax residence. For that, properties bought on or after 1 July 2020 must be worth more than 3.5 million indexed units: at the 5 October 2026 value this is about 23.3 million pesos, or about $577,300 at that day's rate, rounded up. You must own them on 31 December and spend at least 60 days in the country in the calendar year, according to the Uruguayan tax authority. The indexed unit rises with prices, so the dollar threshold changes over time.

Tax residence and a residence permit are different things: the first determines where you pay taxes, the second gives the right to live in the country. We run both processes in parallel and calculate in advance how Uruguayan resident status will affect taxes in your previous country.

Costs on top of the price and rental income

Besides the property transfer tax, the buyer pays notary fees: the reference is 3% of the base plus VAT and contributions, about 4% in practice. If the property was found through an estate agency, its commission is usually 3% plus VAT. In total, budget 8-10% on top of the price.

Rental income and capital gains on a sale are taxed at 12% for both residents and non-residents, so we calculate the yield after tax.

Who gets refused

The bank and the notary will refuse the deal if the source of funds cannot be documented or if the buyer is under sanctions. We check whether a case involving Russian citizens can proceed before any documents are prepared.

Can a Russian citizen buy property in Uruguay

Yes. Uruguay does not restrict property purchases by nationality: a Russian citizen buys an apartment, house or land on the same terms as a Uruguayan, without a residence permit. The deal is run by a notary, who checks the property's history and the buyer's identity.

The bottleneck is money. The notary and the bank must check its origin, and a buyer on a sanctions list will be refused. Transfers from Russia go through with difficulty, so payment is prepared through an account in a third country with income and tax documents.

Apartment prices in Montevideo and Punta del Este

Prices are asking-price guides for 2026, rounded up. The capital's most expensive neighbourhoods are along the waterfront, and in the Punta del Este resort prices depend more on the season and proximity to the sea. Tax residence through a purchase requires a property above a threshold in indexed units - about $577,300 - so such purchases are usually made in expensive districts or as several properties.

Uruguayan banks rarely lend to non-residents, so most deals are paid from own funds. Prices are quoted in dollars, while taxes are based on the cadastral value in pesos, so the final tax amount is recalculated on the date of the deal.

Owner taxes: rent and sale

• Rent. A resident pays 12% income tax on rent, a non-resident 12% non-resident income tax.
• Sale. 12% on the actual gain. For properties bought before 1 July 2007 the gain may be taken as 15% of the sale price, making the tax 1.8% of the price.
• Annually. Municipal property tax, plus a wealth tax for owners who live abroad.

There is no double tax treaty between Russia and Uruguay, so a Russian tax resident declares rental and sale income in Russia and credits the Uruguayan tax under the general rules.

How to buy property in Uruguay remotely

In Uruguay the notary runs the whole deal: checks title over many years, debts and encumbrances, and prepares the promise of sale and the deed. A representative can sign them for the buyer under a power of attorney executed at a Uruguayan consulate or before a notary with an apostille and a sworn translation.

Buyers usually come in person when the purchase is tied to a residence permit or tax residence: residence through property requires at least 60 days in the country a year.

For the deal you prepare an international passport, source-of-funds documents - statements, contracts, income returns - and, if buying through a company, its constitutional documents and beneficial owner details. Foreign documents need an apostille and a Spanish translation, so they are ordered in advance while the property is being checked.

What we do

• Property shortlist for your investment goal
• Legal due diligence on the property
• End-to-end transaction support
• Ownership structuring (company, trust)
• Property management and letting

See also

Company formation · Business account · Personal account · Country taxes · All country programs

FAQ