Real estate

A passport can be used, but sellers require the buyer to have a Uruguayan non-resident bank account to make the payment.

The legal assistance and counsel of a Uruguayan notary is obligatory and required.

a) Process stages (between 30 and 60 days for cash)
  1. Signing the reservation agreement (optional)
    • Preliminary document establishing the price, a deposit (usually 10% held in custody by the notary), property information (registration number, area, boundaries, and plans), and transaction conditions (price, payment method, terms, guarantees, and penalties).
  2. Priority reservation
    • A legal act that guarantees the buyer’s right to acquire a property, preventing the seller from transferring, taxing, or assigning it to third parties for a specified period (30-day registration protection).
  3. Title search
    • Verification of ownership, debts, pending seizures, interdictions, and irregularities.
  4. Purchase agreement (for properties under construction or with pending documentation)
  5. Signing the public deed of sale
  6. Registration in the Property Registry
  7. Issuance and delivery of the Title Deed to the new owner
b) Costs of purchase
  • Real estate agent fees: 3% plus VAT (22%): 3.66%
  • Notary fees (FONASA and IRPF): 3% plus VAT: 3.66%
  • Registrations, Certificates, and Records: USD 300 to 800 (depending on the property).
  • Notarial Pension Fund
  • Property Transfer Tax (ITP): 2% of the assessed value (set by the National Cadastre Office).
c) Costs of sale
  • Real estate agent fees: 3% plus VAT (22%): 3.66%
  • Property Transfer Tax (ITP): 2% of the assessed value.
  • Personal Income Tax (IRPF): 12% on the difference between the purchase and sale prices.
d) Required documentation (seller)
  • Property title: Proves ownership of the property.
  • Plans approved by the Municipality: Any unauthorized modifications must be legalized.
  • Cadastral certificate: With current urban classification.
  • Property tax receipts and other taxes: Demonstrate that there are no outstanding debts.
  • Tax compliance report from the Municipality
  • Valid national identity card.
  • Proof of voting in national elections (last three elections).
  • Legal Entity: Additional documentation depending on the type of business entity.
e) Required documentation (buyer)
  • Valid passport or Uruguayan ID card.
  • Proof of voting in national elections (last three elections) (if applicable).
  • Legal Entity: Additional documentation depending on the type of business entity.
g) Role of the Uruguayan notary
  • It is mandatory to hire a Uruguayan notary to handle the necessary paperwork and procedures for legally and securely purchasing a property.
  • Review title deeds to verify ownership of the property for the past 30 years.
  • Request and analyze certificates from various agencies (Property Registry, DGI, BPS, National Cadastre Directorate, etc.).
  • Verify that the property has no debts, mortgages, liens, encumbrances, or other irregularities.
  • Draft the reservation agreement, the purchase agreement, and the final deed.
  • Register the deed with the Property Registry.
  • Act as a withholding agent for the corresponding taxes (ITP and IRPF).
  • The buyer has the right to choose their notary.
  • The buyer is responsible for the notary’s fees, unless otherwise agreed.
h) Differences between notaries and attorneys

A