Uruguay’s real estate market has always seen a steady influx of foreign buyers of property. A business-friendly country, Uruguay treats foreign and local investors equally; there are no limits to what foreign buyers may own and capital flows freely, both in local and global currencies.
Local and forelgn buyers are treated equally; there are no restrictions or impediments for foreign buyers of property.
Property may be purchased individually or through corporate vehicle, both local and foreign ones.
There are no limitations to what an overseas investor may purchase.
The purchase process is simple and straightforward, and the country’s property registry system is solid and reliable.
The purchase process requires the assistance by a conveyance attorney (an escribano), appointed by the buyer. The conveyance attorney’s role is to conduct the title search —to ensure that the buyer obtains a clean title—, draft and record the purchase documents, and act as the escrow agent in the purchase.
The buyer agrees on the purchase price of a property (directly or through a realtor).
A reservation contract is signed, committing both seller and buyer. A deposit is made, usually equal to 10% of the price. This deposit is hot handed over to the seller: it stays with the buyer-appointed conveyance attorney.
The title search is carried out. This usually takes 20 to 45 days.
Once the title search is completed, the closing takes place and the deed is recorded in the property registry.
Anual property taxes average 0.3 to 0.5% of property’s market value.
When renting a property, income tax on it equals 10.5% of gross rental income.
When selling property, capital gains taz equals 12% of the gain.
Commercial development is mainly found in Montevideo, followed by Punta del Este and the surrounding areas of Montevideo. Offices, retail space and logistics options abound.
The residential market is active in Montevideo and its surroundings, in Punta del Este, and in Colonia. There is widespread development of condominiums, single homes, gated communities, and several high—end projects such as Fendi Tower, Trump Tower and the Cipriani Residences.
The farmaland market is located throughout the whole country, with options in cattle, agriculture and timber investments, as well as lifestyle farms.
Andersen Tax & Legal is a full-service Law and Tax firm, providing all the required services for investors under a one-stop-shop concept.
Our firm has one of Uruguay’s most experienced real estate law practices, assisting buyers from all over the globe.
Our unique global footprint allows us to advise on the best ownership options considering the buyer’s home-country legislation: especially in tax and estate matters.
As active players in the real estate market, we’ll be able to introduce qualified realtors in each geographic area and market segment.
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