Countries › Uruguay › Guide › 11. Real estate and land › Real estate and land in Uruguay: who may own, how title is secured, transfer tax, cash limits and tax on rent, gains and wealth

Real estate and land in Uruguay: who may own, how title is secured, transfer tax, cash limits and tax on rent, gains and wealth

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Last verified: 2026-10-27 · Status: Stable

Foreigners may buy urban and coastal property in Uruguay on the same terms as Uruguayans: foreign investment needs no prior authorization or registration (Ley Nº 16.906 art. 2 and 3) and property is constitutionally protected. The one structural limit is rural land, which companies may hold only if all shares are nominative and owned by individuals, unless the Executive authorizes otherwise (Ley Nº 18.092). Title is transferred by notarial deed and becomes enforceable against third parties from presentation to the Property Registry (Ley Nº 16.871 art. 17 and 54); instalment purchase promises registered under Ley Nº 8.733 give the buyer a real right. The transfer tax (ITP) is 2 percent for the buyer and 2 percent for the seller on the cadastral value, capped at the price, and cash may cover only UI 200,000 or 5 percent of the price up to UI 450,000. Non residents pay IRNR at 12 percent on net rent and on real estate gains computed on a UI indexed cost, and individuals pay wealth tax (IP) on Uruguayan property above a threshold of UYU 6,653,000 for 2025; companies pay IP at 1.5 percent and entities in low or no tax jurisdictions at 3 percent.

USD figures use UYU 40.214 per US dollar, the BCU quotation for DLS. USA BILLETE on 26 October 2026; amounts in Unidades Indexadas (UI) use UYU 6.6792 per UI, the BCU quotation for 27 October 2026. Both were retrieved from the BCU quotations service on 27 October 2026. Ley Nº 19.210 art. 35 converts UI amounts at the quotation of the first day of each month, so the UYU limits move monthly. Conversions are for orientation only.

Key facts

Restriction on foreigners buying urban property	None; foreign investors treated as nationals, no prior authorization or registration Ley Nº 16.906 art. 2 and 3, as of 2026-10-27 · in force
Companies holding rural land	All capital in nominative shares or quotas owned by individuals, unless the Executive authorizes Ley Nº 18.092 art. 1, as of 2026-10-27 · in force
Transfer tax (ITP), buyer	2 %T.O. 2023 Title 19 art. 7, as of 2026-10-27 · in force
Transfer tax (ITP), seller	2 %T.O. 2023 Title 19 art. 7, as of 2026-10-27 · in force
Transfer tax base	Cadastral value updated by CPI, or the price if lower T.O. 2023 Title 19 art. 5, as of 2026-10-27 · in force
When a registered deed binds third parties	From presentation to the Registry Ley Nº 16.871 art. 54, as of 2026-10-27 · in force
Maximum cash payment in any transaction	UI 200,000, or 5% of the value up to UI 450,000 UILey Nº 19.210 art. 35 (Ley Nº 20.469), as of 2026-10-27 · in force
Tax on real estate gains, non resident	12 %T.O. 2023 Title 8 art. 18; Title 7 art. 29, as of 2026-10-27 · in force
Tax on net rent, non resident	12 %T.O. 2023 Title 8 art. 18; Title 7 art. 16, as of 2026-10-27 · in force
Wealth tax non taxable minimum, individuals, 2025	6653000 UYUDecreto Nº 334/025 art. 2, as of 2026-10-27 · in force
Wealth tax rate, companies	1.5 %T.O. 2023 Title 14 art. 53 D, as of 2026-10-27 · in force
Wealth tax rate, low or no tax jurisdiction entities	3 %T.O. 2023 Title 14 art. 53 E, as of 2026-10-27 · in force
Wealth tax rate, individuals (general scale, 2024 DGI table)	0.10 %T.O. 2023 Title 14 art. 53 A, as of 2024-12-31 · in force

The rule

1. Foreign investors receive the same admission and treatment as Uruguayan investors, and investments are admitted without prior authorization or registration. There is no nationality based restriction or permit for a foreign individual or company buying urban, suburban or coastal property, and the Constitution protects property as an inviolable right, with expropriation only by law for public necessity or utility and against fair compensation paid in advance.
Cost to do it: No government filing or approval fee to qualify as a foreign buyer; the costs are those of the transaction itself (ITP, notarial and registry costs).
Example: A foreign individual buys an apartment in Montevideo for UYU 10,053,500 through the same notarial deed a Uruguayan buyer would use, with no foreign investment approval. / The same purchase is US$250,000 at the BCU rate of 26 October 2026.Ley Nº 16.906 (Investment Promotion and Protection); Constitución de la República, Ley Nº 16.906 art. 2 and art. 3; Constitution art. 32, 1998-01-07 official text · verified 2026-10-27

2. Rural land and agricultural operations may be owned by individuals, partnerships under Ley Nº 16.060, agrarian companies and associations, agrarian cooperatives, rural development societies and public bodies. A company may own rural land only if its entire capital is represented by nominative shares or quotas owned wholly by individuals; sociedades anónimas and partnerships limited by shares qualify on the same condition. The Executive may, on application, authorize other company types and also branches of non resident entities, trusts and investment funds when the number of shareholders or the nature of the business prevents ownership exclusively by individuals; the authorization lists the specific properties and must be requested again whenever the holding area grows or the properties change. Rural land used for activities outside the agrarian definition of Ley Nº 17.777 art. 3 is excluded.
Cost to do it: The law sets no fee for the Executive authorization; the cost is the time and professional work of the application, which this page does not quantify.
Example: A foreign agribusiness group buying a farm through a Uruguayan S.A. owned by its foreign parent company does not meet the individual ownership test and needs Executive authorization naming the farm before it can hold title. / The same applies whatever the price, for example a farm of US$5,000,000 (UYU 201,070,000): size does not change the test.Ley Nº 18.092 (rural land ownership by companies), as reworded by Ley Nº 18.172 art. 349, Art. 1 to art. 3, 2007-01-07 official text · verified 2026-10-27

3. Deeds that create, transfer, modify or extinguish ownership, usufruct, surface rights, servitudes, mortgages and other real rights over real estate are recorded in the Real Estate Section of the Property Registry, along with registered instalment purchase promises, condominium regulations, court claims and attachments over real estate. Registered acts are enforceable against third parties from the moment of presentation to the Registry, and priority follows the order of presentation. Between the parties, the transfer takes effect on actual or constructive delivery (tradición).
Cost to do it: Registry fees and notarial fees apply; this page does not state them because they were not verified in this session.
Example: If a seller signs two sales of the same unit, the buyer whose deed is presented to the Registry first prevails against the other. / For a US$250,000 unit, presenting the deed for registration on signing is what protects the buyer against a later attachment or sale.Ley Nº 16.871 (Public Registries), Art. 17 and art. 54, 1997-09-28 official text · verified 2026-10-27

4. An instalment purchase promise (promesa de enajenación de inmuebles a plazos), in which the price is paid in successive instalments, must be granted in a public or private instrument, with private instruments in three counterparts certified by a notary. Once registered, it gives the buyer a real right against any later sale or encumbrance and, when the price is paid and obligations met, an action to demand transfer and delivery. The buyer may also demand transfer after paying at least 50 percent of the price, or after improvements worth 40 percent, by granting a first mortgage for the balance. If the property is mortgaged, the seller needs the lender's prior consent to promise it.
Cost to do it: The promise is itself subject to ITP (see the transfer tax rule); the later deed made in performance of a promise that paid ITP is exempt.
Example: A buyer of an off plan unit paying UYU 5,026,750 in instalments registers the promise so that a later mortgage granted by the developer cannot defeat the buyer's right. / On a US$250,000 unit, once US$125,000 (50 percent) is paid the buyer can demand the deed by mortgaging the property for the balance.Ley Nº 8.733 (instalment sale promises), Art. 1 to art. 3, art. 15, art. 16 and art. 30, 1931-06-17 official text · verified 2026-10-27

5. The transfer tax (Impuesto a las Trasmisiones Patrimoniales, ITP) applies to sales of Uruguayan real estate and of usufruct, bare ownership, use and habitation rights, to purchase promises and their assignment, to assignments of inheritance rights, to adverse possession judgments and to transfers on death. The seller pays 2 percent and the buyer 2 percent; other taxpayers pay 4 percent, except heirs and legatees in direct line, who pay 3 percent. The base is the cadastral value (valor real) set by the Dirección Nacional de Catastro, updated by consumer prices, but if that exceeds the agreed price the price is the base. For 2025 the cadastral value is the 2024 value times 1.0425, and ITP, IP and the primary school tax are computed on the average of the cadastral values of the last two years. Everyone taking part and the professionals involved are jointly liable, and the Registry will not record a taxed deed without proof of payment. A deed performing a promise that already paid ITP is exempt.
Cost to do it: 2 percent of the cadastral value (or of the price if lower) for the buyer and another 2 percent for the seller.
Example: Unit sold for UYU 10,053,500 with an averaged cadastral value of UYU 4,000,000 (hypothetical figure): the buyer pays ITP of UYU 80,000 and the seller UYU 80,000. / On a US$250,000 price the buyer's ITP is about US$1,989 and the seller's another US$1,989, because the tax follows the cadastral value, not the price.Texto Ordenado 2023 (Decreto Nº 101/024), Title 19 ITP (from Ley Nº 16.107 and Ley Nº 16.320); Decreto Nº 334/025, Title 19 art. 1, 3, 5, 7, 8 A and 20; Decreto Nº 334/025 art. 1, 2024-04-04 official text · verified 2026-10-27

6. Cash (Uruguayan or foreign notes and coins) may be used in any transaction only up to UI 200,000, or up to 5 percent of the total value if that amount does not exceed UI 450,000; the balance must be paid by other means such as bank transfer or cheque. UI amounts convert at the quotation of the first day of each month. For income tax, when a real estate transfer exceeds UI 1,000,000 the seller may deduct the acquisition cost only if that purchase was paid in compliance with this rule.
Cost to do it: No direct cost; paying through a bank may carry bank charges.
Example: On a UYU 10,053,500 purchase, cash may cover at most UI 200,000, about UYU 1,335,840, since 5 percent of the price (UYU 502,675) is lower; the remaining UYU 8,717,660 or more must go through the banking system. / On a US$250,000 purchase, about US$33,218 may be paid in cash; the price exceeds UI 1,000,000 (about US$166,091), so paying the rest outside the rule would also cost the buyer the cost deduction when reselling.Ley Nº 19.210 (Financial Inclusion), art. 35 as reworded by Ley Nº 20.469 of 19 March 2026; T.O. 2023 Title 7 art. 29, Ley Nº 19.210 art. 35; T.O. 2023 Title 7 art. 29, 2026-03-19 official text · verified 2026-10-27 · changed: Art. 35 was reworded by Ley Nº 20.469 of 19 March 2026, which sets the current UI 200,000 and 5 percent up to UI 450,000 cash limits.

7. Non residents without a permanent establishment pay IRNR on Uruguayan source income. Rent and real estate gains are computed under the IRPF rules: net rent is gross rent less property manager commission, professional fees for contracts and their VAT, Contribución Inmobiliaria and the primary school tax (IEP); the gain on a sale or purchase promise is the price (never below the cadastral value) less the acquisition cost indexed by the UI and less the seller's ITP, with documented improvements added. For non rural property bought before 1 July 2007 the seller may instead declare 15 percent of the price as income. The rate on these items is 12 percent. Entities in low or no tax jurisdictions must use the real gain method and pay 25 percent on income other than dividends.
Cost to do it: 12 percent of net rent and of the UI indexed gain; 25 percent for entities in low or no tax jurisdictions.
Example: Rent of UYU 723,852 a year less deductions of UYU 66,193 (hypothetical commission and property taxes) leaves UYU 657,659, so IRNR is UYU 78,919. On a later sale at UYU 10,053,500 of a unit bought for UYU 6,000,000 whose UI indexed cost is UYU 7,800,000 (hypothetical 30 percent UI rise), plus seller ITP of UYU 80,000, the gain is UYU 2,173,500 and IRNR UYU 260,820. / Rent of US$1,500 a month, US$18,000 a year, bears IRNR of about US$1,962. On the sale, IRNR is about US$6,486; because cost is indexed in UI, not in dollars, a gain measured in dollars and the taxable gain in pesos can differ widely.T.O. 2023 (Decreto Nº 101/024), Title 8 IRNR and Title 7 IRPF (from Ley Nº 18.083), Title 8 art. 9, 13, 16 and 18; Title 7 art. 15, 16 and 29, 2024-04-04 official text · verified 2026-10-27 · changed: Ley Nº 20.446 of 16 December 2025, art. 651 and 656, added to Title 7 art. 29 rules for real estate abroad held by residents (cost in the currency of investment, optional 15 percent of price) and for property acquired through assignment of best bidder rights.

8. Wealth tax (Impuesto al Patrimonio, IP) is levied yearly on assets located or used economically in Uruguay. Individuals value real estate at the cadastral value, rented property at 15 times the annual rent capped at the cadastral value, and deduct 50 percent of the home they live in up to the threshold. Individuals pay only on wealth above the non taxable minimum, UYU 6,653,000 for 2025 (double for a family unit); under the statutory reductions the general individual rate has fallen to 0.10 percent, and DGI publishes a separate higher scale for non resident individuals who do not pay IRNR (0.70 to 1.50 percent in its 2024 table). Companies and foreign legal entities with Uruguayan assets pay 1.5 percent, entities in low or no tax jurisdictions without a permanent establishment pay 3 percent.
Cost to do it: 0.10 percent above UYU 6,653,000 for resident individuals (2025); 1.5 percent for companies; 3 percent for low or no tax jurisdiction entities.
Example: A company owning a property with a cadastral value of UYU 4,000,000 (hypothetical) and no deductible liabilities pays IP of UYU 60,000 a year at 1.5 percent; a low or no tax jurisdiction entity would pay UYU 120,000 at 3 percent. / That is about US$1,492 a year for a company and US$2,984 for an entity in a low or no tax jurisdiction; the individual threshold of UYU 6,653,000 is about US$165,440.T.O. 2023 (Decreto Nº 101/024), Title 14 IP; Decreto Nº 334/025, Title 14 art. 4, 6, 11, 53 and 57; Decreto Nº 334/025 art. 2, 2025-12-30 official text · verified 2026-10-27

Tax	When	Rate	Base
ITP, buyer	Purchase or purchase promise	2%	Cadastral value or price, whichever is lower
ITP, seller	Sale or purchase promise	2%	Cadastral value or price, whichever is lower
ITP, heirs in direct line	Transfer on death	3%	Cadastral value
IRNR on rent	Each year	12%	Net rent after allowed deductions
IRNR on gains	On sale	12%	Price less UI indexed cost and seller ITP
IP, resident individual	Each year (31 December)	0.10%	Wealth above UYU 6,653,000 (2025)
IP, company or foreign legal entity	Each year	1.5%	Uruguayan assets less allowed liabilities
IP, low or no tax jurisdiction entity	Each year	3%	Uruguayan assets

Main recurring and transaction taxes on Uruguayan real estate held by a non resident (sources: T.O. 2023 Titles 8, 14 and 19; Decreto Nº 334/025; DGI IP rate table 2024)

From	To	Rate
1	6,381,000	0.70%
6,381,000	12,762,000	1.10%
12,762,000	25,524,000	1.40%
25,524,000		1.50%

DGI table of IP rates for 2024 applying only to non resident individuals and undivided estates who do not pay IRNR, as published (amounts in UYU; family units use double bands)

Worked example

Buying a Montevideo apartment, October 2026: a non resident individual pays US$250,000 (UYU 10,053,500). With an averaged cadastral value of UYU 4,000,000 (hypothetical), the buyer's ITP is UYU 80,000 (US$1,989) and the seller's the same. Cash may cover at most UI 200,000, about UYU 1,335,840 (US$33,218); the rest goes by bank transfer, which also keeps the buyer's future cost deduction because the price exceeds UI 1,000,000.
Renting it out: rent of US$1,500 a month (UYU 723,852 a year) less UYU 66,193 of deductible commission and property taxes (hypothetical) leaves UYU 657,659; IRNR at 12 percent is UYU 78,919 (US$1,962) a year.
Selling later: if the owner sells at UYU 10,053,500 a unit that cost UYU 6,000,000 (US$149,202 at today's rate), and the UI rose 30 percent in the meantime (hypothetical), the indexed cost is UYU 7,800,000; adding the seller's ITP of UYU 80,000 gives a gain of UYU 2,173,500 and IRNR of UYU 260,820 (US$6,486).

Step by step

Decide how to hold: directly as an individual, through a Uruguayan company, or through a foreign entity. Holding through a company means IP at 1.5 percent; a low or no tax jurisdiction entity pays 3 percent IP and 25 percent IRNR. For rural land, check Ley Nº 18.092 first.
Instruct a Uruguayan notary (escribano) to obtain title studies, registry certificates on the property and the seller, the cadastral value from the Dirección Nacional de Catastro and certificates of paid departmental taxes.
If paying in instalments or buying off plan, sign a purchase promise under Ley Nº 8.733 and have it registered at once; ITP is paid on the promise, and the final deed is then exempt.
Arrange payment through the banking system for everything above UI 200,000 (or 5 percent of the price up to UI 450,000), and keep the bank evidence for a future sale.
Sign the deed, pay ITP and have the notary present the deed to the Property Registry immediately: priority runs from presentation.
After closing, register with DGI as needed for IP (annual, on 31 December holdings) and, if renting, for IRNR on rent; keep Contribución Inmobiliaria and IEP receipts, which reduce taxable rent.

Common traps

A company owned by another company cannot hold rural land without Executive authorization naming each property (Ley Nº 18.092 art. 1); buying more land later needs a new authorization.
ITP is charged on the cadastral value, so a low declared price does not reduce it below the updated cadastral value unless the price itself is lower; and for income tax the sale price can never be taken below the cadastral value (T.O. 2023 Title 7 art. 29).
Paying more than the cash limit means the seller later loses the acquisition cost deduction on resale of a property above UI 1,000,000, so the whole price could be taxed as gain (Title 7 art. 29 and Ley Nº 19.210 art. 35).
Gains are measured in pesos with UI indexation, not in dollars: a property bought and sold in dollars at the same price can show a taxable peso gain or loss depending on how the peso moved against inflation.
An unregistered deed or promise is not enforceable against third parties; a later attachment or second sale presented first wins (Ley Nº 16.871 art. 54).
A non resident individual who has no Uruguayan taxable income faces DGI's higher IP scale for non residents who do not pay IRNR, not the 0.10 percent general rate.
Everyone who takes part in a taxed transfer, including the professionals, is jointly liable for ITP (T.O. 2023 Title 19 art. 3), and the Registry refuses the deed without proof of payment.

Sources

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