Renting & Buying Property in Uruguay 2026

Lease Terms (Contrato de Arrendamiento)

Standard leases in Montevideo run for 12 or 24 months. The rent is denominated in US dollars and paid monthly in USD (or in UYU at the prevailing BCU exchange rate on the payment date — this must be specified in the contract). Annual rent adjustments are typically indexed to the official wage inflation index (Índice de Variación de los Salarios, IVS) published by INE, not CPI.

A security deposit (depósito de garantía) of two months' rent is standard and must be held in a regulated bank account or with the inmobiliaria. It is returned within 30 days of lease end, minus documented deductions for damages. Normal wear and tear cannot be deducted.

Utility bills (electricity, water, fibre, sometimes municipal levies) are often **on top** of advertised dollar rent—budget spikes where bundled contracts push utilities toward **30–50 %** of the headline rent in inefficient buildings.

Some leases include a strict clause that you cannot break the contract early without paying the balance of rent for the full term—read this before signing. Alternatively landlords negotiate **one to two months**’ gross rent as exit compensation— whichever wording appears in *your* contrato governs. Whether annual property tax (Contribución Inmobiliaria) is paid by the landlord or passed through to the tenant is negotiable; if the contract assigns it to you, factor it into total housing cost.

Guarantor Requirements

Uruguayan landlords almost universally require one of three forms of guarantee before signing a lease. Understanding which option applies to you is critical, as this is the most common obstacle for new arrivals.

FGA: State Rental Guarantee Fund

The FGA (Fondo de Garantía de Alquileres) is administered by the Agencia Nacional de Vivienda (ANV) and is designed to facilitate access to housing for people who cannot provide a property-owner guarantor. For the tenant, the cost is approximately 5 % of the total annual rent (paid upfront at the time of lease signing). For example, on a $700/month apartment, the FGA contribution would be approximately $420 (5 % × $700 × 12 months).

The FGA covers up to three months of unpaid rent and any documented damages above the deposit. Landlords who participate must accept the FGA as a valid guarantee — this is increasingly standard in Montevideo, though some private landlords still insist on a personal property-owner guarantor.

To apply for the FGA, the tenant must present: a cédula de identidad (Uruguayan ID) or passport, a lease agreement draft, and proof of income or bank statements demonstrating ability to pay. Applications can be submitted online through the ANV website or in person at ANV offices.

Typical Rental Costs Summary

The table below shows the one-time upfront costs when renting a typical $700/month apartment through an agency with FGA guarantee. These are in addition to the monthly rent.

Step 1: Reservation (Boleto de Reserva)

Once a buyer and seller agree on a price, the buyer signs a reservation agreement (boleto de reserva or promesa de compraventa) and pays a reservation deposit, typically 5–10 % of the purchase price. This deposit is held by the notary and is legally binding: if the buyer withdraws without cause, the deposit is forfeited; if the seller withdraws, they must return double the amount.

The reservation agreement must specify the agreed price (in USD), the property details (padrón number from the Catastro Nacional), the final transfer date, and the responsibility for outstanding taxes and fees.

Step 2: Title Search (Estudio de Títulos)

The buyer's notary performs a 30-year title search at the Registro de la Propiedad to verify that the property has a clear chain of title — no liens, unpaid mortgages, easements, or competing claims. This search typically takes 2–4 weeks.

The buyer should also check with the DGI (tax authority) to confirm that all Contribución Inmobiliaria (annual property tax) payments are current. Outstanding property tax balances transfer to the new owner.

Step 3: Autorización from BPS

Before closing, the seller must obtain a certificate from the BPS (Banco de Previsión Social — the social security authority) confirming that no outstanding social security debts are attached to the property. This certificate (autorización del BPS) is required for all property transfers.

The seller is also required to obtain a DGI tax clearance certificate (certificado del DGI) if the property has been rented out during their ownership, confirming that all IRPF obligations on rental income have been met.

Step 4: Escritura (Notarial Deed)

The escritura is the formal notarial deed that transfers ownership. Both buyer and seller (or their authorised representatives through a power of attorney) must appear before the notary. The deed is registered at the Registro de la Propiedad, at which point the buyer becomes the legal owner.

The notary's fees for drafting and registering the escritura are typically 3 % of the transaction value (including IVA), split between buyer and seller by convention (though this is negotiable). Property transfer in Uruguay requires a notary — there is no alternative.

New Construction vs. Existing Stock

Uruguay's Law 18,795 (Ley de Vivienda Promovida) grants significant tax exemptions to developers and buyers of government-approved new housing projects ('vivienda promovida'). Buyers of qualifying new construction receive: exemption from ITP (no 3 % transfer tax), exemption from Contribución Inmobiliaria for up to 10 years, and a reduced IRPF rate (10.5 % flat, vs. up to 36 % for non-qualifying property) on rental income if the unit is rented out.

These incentives make new construction — particularly studio and one-bedroom apartments in the $90,000–$150,000 range — a popular investment vehicle for both Uruguayan residents and foreign buyers. The trade-off is a higher initial purchase price per m² compared to comparable existing stock.

Contribución Inmobiliaria

The Contribución Inmobiliaria is an annual property tax levied by the Intendencia de Montevideo (city government) on urban properties and by the departmental governments on rural properties. The tax base is the cadastral value (valor catastral), which is periodically assessed by the Catastro Nacional and is typically 40–70 % of the market value.

For a $150,000 apartment with a cadastral value of, say, $70,000 (UYU ~2.87 million), the annual Contribución Inmobiliaria in Montevideo would be approximately UYU 7,000–14,000 ($170–$340). Payments can be made annually or semi-annually at the Intendencia or via BPS-authorised payment channels.

ITP: Transfer Tax

The Impuesto a las Transmisiones Patrimoniales (ITP) applies to every property sale in Uruguay. The rate is 3 % of the cadastral value, paid by the buyer, and 3 % of the cadastral value, paid by the seller — for a combined effective rate of 6 % of cadastral value on the transaction.

Because cadastral values are often significantly below market value, the effective ITP rate relative to the purchase price is typically 1.5–3 %. For example, on a $150,000 apartment with a cadastral value of $70,000, the buyer's ITP bill would be $2,100 (3 % of $70,000). Note that for vivienda promovida properties, the buyer's ITP is waived entirely.

IRPF on Rental Income

Landlords who rent out property in Uruguay must declare and pay IRPF (Impuesto a la Renta de las Personas Físicas — personal income tax) on rental income. Uruguayan tax residents pay at the progressive scale (from 10.5 % up to 36 % depending on total income); non-residents pay IRNR (Impuesto a la Renta de los No Residentes) at a flat 10.5 % rate.

For most foreign landlords renting out a single apartment, the effective IRPF/IRNR burden is manageable: 10.5 % on gross rental income, with a deductible credit for Contribución Inmobiliaria paid. The tenant is typically required to withhold the IRNR and remit it directly to the DGI if the landlord is a non-resident.