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Condominiums in Uruguay: horizontal property, common expenses, assembly majorities and use restrictions

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

Flats in Uruguay are held under horizontal property: exclusive ownership of the unit plus an inseparable share of the common parts, proportional to value (Ley Nº 10.751 art. 2 to 4). Unpaid common expenses approved by the assembly are an enforceable title with 12 percent annual interest and a four year prescription (Decreto Ley Nº 14.560 art. 14); fire and lift insurance is mandatory. Improvements need two thirds of owners holding three quarters of the value, with lower thresholds since 2026 for large public housing estates, and misuse of a unit can be fined up to 20 percent of its value.

USD figures use UYU 40.21 per US dollar, the BCU quotation for DLS. USA BILLETE on 27 October 2026; amounts in Unidades Indexadas (UI) use UYU 6.6792 per UI, the BCU quotation for 27 October 2026; amounts in Unidades Reajustables (UR) use UYU 1,940.77, the UR for September 2026 published by IMPO (the latest published on 27 October 2026); the BPC is UYU 6,864 for 2026 (Decreto Nº 11/026). All were retrieved on 27 October 2026. Conversions are for orientation only.

Key facts

Interest on unpaid common expenses	12 % per yearDecreto Ley Nº 14.560 art. 14, as of 2026-10-27 · in force
Prescription of common expense debts	4 yearsDecreto Ley Nº 14.560 art. 14, as of 2026-10-27 · in force
Majority for improvements to common parts	Two thirds of owners holding three quarters of the value Ley Nº 10.751 art. 12, as of 2026-10-27 · in force
Court fine for misuse of a unit	0.5 to 20 % of unit valueLey Nº 10.751 art. 10, as of 2026-10-27 · in force

The rule

1. Floors and flats of a building, and units of a single storey house, that are independent with access to the street directly or through a common passage may belong to different owners under the horizontal property regime. Each owner has exclusive ownership of its unit and co ownership of common parts (land, foundations, structure, roof, stairs, lifts, general installations), which can never cease to be common. Rights in common parts are proportional to the unit's value and cannot be transferred, charged or attached separately from the unit.
Cost to do it: No fee in the law; the condominium bylaws are a notarial deed.
Example: A buyer of a flat acquires with it a share of the land and common parts. / There is no separate title to common parts to negotiate.Ley Nº 10.751 (horizontal property), Art. 1 to art. 4, 1946-06-25 official text · verified 2026-10-27

2. Each owner contributes to the necessary costs of administration, maintenance and repair of common parts and to the mandatory fire and lift insurance, in proportion to the unit's value unless agreed otherwise. The common expenses account approved by the assembly is an enforceable title; the debt is updated under Decreto Ley Nº 14.500, bears 12 percent annual interest without capitalisation, and prescribes in four years. These rules are public order and override contrary bylaws.
Cost to do it: Common expenses and insurance by value share.
Example: UYU 50,000 of unpaid common expenses accrues UYU 6,000 interest a year, plus updating. / About US$149 a year on about US$1,243 owed.Ley Nº 10.751 art. 5 and 20; Decreto Ley Nº 14.560 art. 14 (wording by Ley Nº 19.604 art. 1), Ley Nº 10.751 art. 5 and 20; DL 14.560 art. 14, 2018-03-21 official text · verified 2026-10-27

3. Bylaws (reglamento de copropiedad) agreed by owners or promise buyers, made in a public deed and registered, bind successors. Without bylaws, the building is run by an administrator elected for one year and the owners' assembly, which needs a majority representing three quarters of the Catastro value of the building, or after one hour a simple majority of those present. Improvements and changes to common parts or to the building's look need two thirds of all owners representing three quarters of the value; for public or state financed housing estates of 100 units or more, a second call can decide with two thirds of those present holding over 50 percent of the value, and a third call, with ten days' notice, with two thirds of those present holding over 10 percent.
Cost to do it: Notarial deed and registration for the bylaws.
Example: Adding a pool on the roof terrace needs two thirds of owners holding three quarters of the building value. / Investors buying many units in one building can influence assemblies in proportion to value.Ley Nº 10.751 art. 12 (wording by Ley Nº 20.446 art. 438), art. 16, 18 and 19, Art. 12, 16, 18 and 19, 2025-12-16 official text · verified 2026-10-27 · changed: Ley Nº 20.446 art. 438 (16 December 2025, in force 1 January 2026) reworded Ley Nº 10.751 art. 12, adding second and third call majorities for publicly produced or state financed housing estates of 100 units or more.

4. Owners may not use units for purposes other than those agreed, disturb others, set up workshops or businesses in residential buildings, or store dangerous materials, and the same bans bind tenants. A judge may fine breaches between 0.5 and 20 percent of the unit's Catastro value; repeated breaches can lead to court measures and even removal of occupants.
Cost to do it: Fines from 0.5% to 20% of the unit value.
Example: For a unit valued by Catastro at UYU 6,000,000, the fine range is UYU 30,000 to UYU 1,200,000. / About US$746 to US$29,843.Ley Nº 10.751 art. 9, 10 (wording by Decreto Ley Nº 14.560 art. 1) and 11, Art. 9 to art. 11, 1976-08-19 official text · verified 2026-10-27

5. Each unit may be mortgaged separately; a mortgage on a unit to be built on land in co ownership charges the share in the land and then the unit, without new registration. Transfers and mortgages of units cannot be deeded or registered without the municipal declaration that the building meets the law and ordinances and that it is insured against fire. Existing buildings can be brought into the regime under Decreto Ley Nº 14.261.
Cost to do it: Municipal habilitation and fire insurance before any deed.
Example: A deed for a flat in a building without the municipal horizontal property declaration cannot be registered. / Check the declaration and insurance before signing.Ley Nº 10.751 art. 14 (Ley Nº 12.358 art. 9) and art. 30; Decreto Ley Nº 14.261, Art. 14 and art. 30, 1957-01-03 official text · verified 2026-10-27

Decision	Majority
Ordinary decisions	Majority of owners holding 3/4 of value; after one hour, simple majority of those present
Improvements, changes to common parts or look	2/3 of all owners holding 3/4 of value
Same, estates of 100+ public or state financed units, 2nd call	2/3 of present holding over 50% of value
Same, 3rd call (10 days' notice)	2/3 of present holding over 10% of value
Old building: demolish, sell or rebuild	Absolute majority holding over half the value

Assembly majorities (Ley Nº 10.751)

Worked example

A foreign investor buys a flat and finds UYU 50,000 of unpaid common expenses: the account approved by the assembly is an enforceable title, so ask the administrator for a clearance before closing.

Step by step

Obtain the registered bylaws and recent assembly minutes.
Ask the administrator for a statement of common expenses and pending works.
Confirm the municipal horizontal property declaration and fire insurance.
Budget common expenses in the yield calculation.

Common traps

Common expense debts are enforceable quickly and carry 12 percent interest.
Short term or commercial use may breach the bylaws and expose the owner to fines up to 20 percent of value.
Without the municipal declaration and insurance the deed cannot be registered.

Sources

← Rural leases in Uruguay: written and registered contracts, free terms up to 30 or 45 years and rent withholdingZoning, subdivision and building permits in Uruguay: land categories, cessions, value capture and planning fines →