Countries › Uruguay › Guide › 11. Real estate and land › Residential and commercial leases in Uruguay: Decreto Ley Nº 14.219, the no guarantee regime of Ley Nº 19.889, terms, deposits and eviction

Residential and commercial leases in Uruguay: Decreto Ley Nº 14.219, the no guarantee regime of Ley Nº 19.889, terms, deposits and eviction

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

Urban leases in Uruguay follow Decreto Ley Nº 14.219: rent in pesos updated yearly by the official coefficient, minimum terms of two years for housing and five for commerce, and deposits capped at five or ten months of rent. Housing leases with no guarantee at all can opt into Ley Nº 19.889, which allows dollar or UI rent, free terms and an eviction for non payment in six business days plus five for removal. Leases bind a buyer only if registered, and landlords must be current on rent tax to sue on an ordinary lease.

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

Minimum term, housing leases (Decreto Ley Nº 14.219)	2 yearsDecreto Ley Nº 14.219 art. 3, as of 2026-10-27 · in force
Minimum term, commercial and industrial leases	5 yearsDecreto Ley Nº 14.219 art. 3, as of 2026-10-27 · in force
Maximum deposit, housing	5 months of rentDecreto Ley Nº 14.219 art. 38, as of 2026-10-27 · in force
Maximum deposit, other uses	10 months of rentDecreto Ley Nº 14.219 art. 38, as of 2026-10-27 · in force
Maximum lease term	30 yearsCódigo Civil art. 1782, as of 2026-10-27 · in force
Rent adjustment coefficient (CRA), September 2026	1.0455 Decreto Nº 229/026, as of 2026-09-01 · in force
Eviction term for bad payer, no guarantee regime	6 business daysLey Nº 19.889 art. 439, as of 2026-10-27 · in force

The rule

1. Leases and sub leases of urban and suburban property for housing, commerce, industry or other uses are governed by Decreto Ley Nº 14.219 and the Civil Code. The State guarantees free contracting of rents for buildings whose municipal approval started after 1974; that guarantee was extended for twenty years by Ley Nº 16.462 and for a further twenty years by Ley Nº 18.996.
Cost to do it: No fee; contract drafting by a notary or lawyer.
Example: A lease of a flat in a building approved in 1990 is under free contracting of the rent. / Rent levels are set by the market for modern stock.Decreto Ley Nº 14.219 art. 1 and 2; Ley Nº 16.462 art. 118; Ley Nº 18.996 art. 236, Art. 1 and art. 2, 2012-11-07 official text · verified 2026-10-27

2. Under Decreto Ley Nº 14.219, rent is agreed in national currency for the whole term, with possible stepped increases for twelve month periods; without steps, rent is updated every twelve months by the official rent adjustment coefficient. Housing and other non commercial leases have a minimum term of two years and industrial and commercial leases five years; a shorter agreed term benefits only the tenant. At expiry, a non commercial tenant has a one year extension, after which the landlord may seek eviction with a one year term; after the commercial minimum, eviction is with a one year term.
Cost to do it: The rent adjustment coefficient (CRA) published monthly, 1.0455 for September 2026.
Example: A UYU 40,000 rent updated with the September 2026 CRA of 1.0455 becomes UYU 41,820. / About US$1,040 a month.Decreto Ley Nº 14.219 art. 3 (wording by Decreto Ley Nº 15.484), art. 4 and art. 5, Art. 3, 4 and 5, 1983-11-17 official text · verified 2026-10-27

3. Deposits under Decreto Ley Nº 14.219 cannot exceed five months of rent for housing or ten months for other uses; they are to be lodged with the Banco Hipotecario del Uruguay within fifteen days of the contract, unless a personal guarantee is given. Breach exposes the landlord to a fine of one to five times the deposit withheld.
Cost to do it: Deposit cap: 5 months (housing), 10 months (other uses).
Example: For a UYU 40,000 housing rent, the deposit cap is UYU 200,000. / About US$4,974.Decreto Ley Nº 14.219, Art. 38, 1974-07-04 official text · verified 2026-10-27

4. Housing leases can instead be placed under the no guarantee regime of Ley Nº 19.889 if all conditions are met: housing use, no guarantee of any kind, written contract stating term and price, and an express choice of the regime. The parties then freely agree the term (up to the Civil Code maximum of 30 years, with automatic renewal unless notice is given 30 days before expiry), the price in pesos, foreign currency, UR or UI, the adjustment (CPI by default for pesos) and inspection rights; no more than one month may be demanded in advance. The lease binds buyers of the property only if registered.
Cost to do it: Registration fee if the lease is registered.
Example: A US$1,000 monthly lease of a flat with no guarantee and an express clause opting into Ley Nº 19.889 is valid in dollars. / Foreign landlords can index in dollars or UI under this regime.Ley Nº 19.889 (Ley de Urgente Consideración) art. 421 to 425; Código Civil art. 1782, Art. 421, 422 and 423, 2020-07-09 official text · verified 2026-10-27

5. Under the no guarantee regime, a tenant who fails to pay within three business days of a payment demand (or on automatic default if agreed) is in default; the eviction runs as a monitory process with a six business day term and an eviction order executed within five business days, extendable once by up to five business days for force majeure. Expiry evictions give thirty days. The tenant can end a bad payer case once by depositing the debt plus 60 percent. Justices of the Peace of the place are competent, and a landlord who simulates the absence of guarantees faces a fine of one to five months' rent.
Cost to do it: Demand costs capped at 20 percent of the amount demanded.
Example: With UYU 80,000 unpaid, the tenant can stop the case by depositing UYU 128,000. / About US$3,183.Ley Nº 19.889 art. 426, 430, 437 to 445, 454 (wording by Ley Nº 19.924 art. 767) and 459, Art. 426 to 459, 2020-12-18 official text · verified 2026-10-27

6. Landlords suing on an ordinary lease must prove that the rent IRPF is paid, except in evictions under the no guarantee regime.
Cost to do it: Rent tax compliance.
Example: See the rental income tax page. / See the rental income tax page.T.O. 2023 Title 7, Title 7 art. 17, 2024-04-04 official text · verified 2026-10-27

Point	Decreto Ley Nº 14.219	Ley Nº 19.889 no guarantee
Use	Housing, commerce, industry	Housing only
Guarantee	Deposit up to 5 or 10 months, or personal guarantee	None allowed
Currency	National currency, CRA adjustment	Pesos, foreign currency, UR or UI
Minimum term	2 years housing, 5 years commercial	Free (max 30 years)
Bad payer eviction	Under Decreto Ley Nº 14.219 procedure	6 business days plus 5 for removal

Two lease regimes compared

Worked example

A foreign company leases an office in Montevideo for five years: Decreto Ley Nº 14.219 applies, the deposit cap is ten months and the landlord cannot end the lease before five years.
A foreign individual lets a flat with no guarantee in US dollars under Ley Nº 19.889, registers the lease and relies on the fast eviction route if rent stops.

Step by step

Choose the regime and write it into the contract.
For Decreto Ley Nº 14.219 leases, lodge deposits as the law requires.
Register the lease if it must bind a future buyer.
Diarise CRA updates and the 30 day renewal notice under Ley Nº 19.889.

Common traps

Any guarantee, even informal, takes the lease out of the fast regime and back to Decreto Ley Nº 14.219.
Commercial tenants have a five year minimum regardless of a shorter agreed term.
Unregistered leases do not bind a buyer.
Simulating no guarantee costs one to five months' rent in fines.

Sources

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