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Expropriation in Uruguay: public utility by law, prior fair compensation, objection deadlines and urgent occupation

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

Uruguay's Constitution allows expropriation only for public necessity or utility declared by law, with fair and prior compensation and damages for the length of the procedure, including currency effects (art. 32). Owners get eight days to object to the designated land and five day appeal windows (Ley Nº 3.958 art. 16 as worded by Decreto Ley Nº 10.247); in urgent cases a judge orders possession after a deposit and vacation within fifteen days, without appeal. Planning instruments and colonization are declared grounds of public utility, and the transfer to the State is exempt from ITP.

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

Compensation standard	Fair and prior compensation, plus damages for delay including currency changes Constitution art. 32, as of 2026-10-27 · in force
Days to vacate after deposit in urgent expropriation	15 daysLey Nº 3.958 art. 42 (DL 10.247), as of 2026-10-27 · in force
Expropriation registration lapses after	5 yearsLey Nº 16.871 art. 79, as of 2026-10-27 · in force

The rule

1. Property is an inviolable right subject to laws enacted for reasons of general interest. No one may be deprived of property except in cases of public necessity or utility established by law, always receiving fair and prior compensation from the National Treasury. Owners are compensated for damage caused by the length of the expropriation procedure, whether or not it is completed, including that arising from changes in the value of money.
Cost to do it: Compensation is paid by the State; the owner's costs are legal and valuation advice.
Example: If an expropriation is declared and then abandoned after years, the owner can claim damages for the delay, including inflation effects. / Foreign investors also have treaty protections; see the investment arbitration page.Constitución de la República, Art. 32, 1967-02-02 official text · verified 2026-10-27

2. In each expropriation the authority prepares a file with a plan of the land or buildings and the owners. The plan is exhibited for eight days with notice to known owners and edicts in the Diario Oficial (in Montevideo) or a major newspaper (in the departments); owners must disclose within eight days anyone holding real or personal rights they granted over the property. Owners then have eight days to object to the designation, but not to the legal declaration of public utility; the authority decides, with appeal to the Executive within five days and then to the Court of Appeals within five days, which rules within twenty days.
Cost to do it: Legal representation during short objection windows.
Example: An owner notified of a road widening has eight days to object to the strip designated. / Short deadlines: keep a local representative able to receive notices.Ley Nº 3.958 (expropriations) art. 15 and 16 as worded by Decreto Ley Nº 10.247 art. 1 and 2 (later amended), Ley Nº 3.958 art. 15 and art. 16, 1942-10-15 official text · verified 2026-10-27

3. If urgent occupation is declared by decree, the judge orders possession after a deposit set at the judge's discretion: the hearing is fixed within 48 hours to take place within nine days; for buildings or business premises the judge inspects and appoints a single expert who reports within five days; the judge sets the deposit within three days and orders vacation within fifteen days, with no appeal. The owner may withdraw the amount offered pending the final compensation, which bears legal interest from occupation.
Cost to do it: Deposit set by the judge; final compensation later.
Example: In an urgent case a warehouse owner can be ordered out fifteen days after the deposit is made. / Plan for business interruption risk on property near planned public works.Ley Nº 3.958 art. 42 as worded by Decreto Ley Nº 10.247 art. 3, Ley Nº 3.958 art. 42, 1942-10-15 official text · verified 2026-10-27

4. Expropriation is declared of public utility for property needed to implement territorial planning instruments (networks, roads, open spaces, public facilities and other listed cases), and for land to form or complete colonies of the Instituto Nacional de Colonización, which only the State may exercise.
Cost to do it: As in any expropriation.
Example: Land earmarked in a departmental plan for a new avenue can be expropriated by the department. / Check planning instruments for designations affecting the property.Ley Nº 18.308 art. 62; Ley Nº 11.029 art. 37 and 38, Ley Nº 18.308 art. 62; Ley Nº 11.029 art. 37 and 38, 2008-06-18 official text · verified 2026-10-27

5. Expropriation registrations lapse after five years in the Property Registry, sales by expropriation to the State are exempt from ITP, and where an expropriation leaves a single horizontal property unit in a building, the expropriating body converts it to ordinary property with a remaining plan registered at Catastro.
Cost to do it: No ITP on the expropriation transfer.
Example: An expropriation entry registered in 2022 lapses in 2027 unless re registered. / A lapsed entry reduces the cloud on title.Ley Nº 16.871 art. 79; T.O. 2023 Title 19 art. 8 E; Ley Nº 3.958 art. 15 G (added by Ley Nº 20.446 art. 325), Ley Nº 16.871 art. 79; Title 19 art. 8 E; Ley Nº 3.958 art. 15 G, 2025-12-16 official text · verified 2026-10-27 · changed: Ley Nº 20.446 art. 325 (in force 1 January 2026) added literal G to Ley Nº 3.958 art. 15 on converting a sole remaining horizontal property unit into ordinary property.

Step	Time limit
Hearing fixed	Within 48 hours of filing
Hearing held	Within 9 days of filing
Expert report (buildings, businesses)	5 days
Deposit amount set	Within 3 days after hearing
Vacation after deposit	15 days, no appeal

Urgent occupation timeline (Ley Nº 3.958 art. 42, Decreto Ley Nº 10.247 art. 3)

Worked example

A logistics company's yard is designated for a road widening: it has eight days to object to the plan, can appeal to the Executive and the Court of Appeals in five day windows, and in an urgent case may withdraw the deposited sum while compensation is fixed.

Step by step

Monitor departmental and national plans for designations.
On notice, appoint counsel immediately given eight and five day windows.
Document the property's value and business losses for compensation and delay damages.

Common traps

Objection windows are very short.
Urgent occupation orders cannot be appealed.
The body of Ley Nº 3.958 is consolidated on IMPO only with notes; check later amendments to art. 15 and 16 with counsel.

Sources

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