Buying real estate in Uruguay?

We've created a guide to help you avoid pitfalls, save time, and make the best long-term investment possible.

How to buy land in Uruguay (guide)

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Authored by the expert who managed and guided the team behind the Uruguay Property Pack

buying property foreigner Uruguay

Everything you need to know before buying real estate is included in our Uruguay Property Pack

Uruguay offers foreigners exceptional opportunities to purchase land with minimal restrictions and strong legal protections. As we reach mid-2025, international buyers enjoy nearly the same rights as locals when purchasing rural, coastal, or urban land in this stable South American country.

If you want to go deeper, you can check our pack of documents related to the real estate market in Uruguay, based on reliable facts and data, not opinions or rumors.

How this content was created 🔎📝

At TheLatinvestor, we explore the Uruguayan real estate market every day. Our team doesn't just analyze data from a distance—we're actively engaging with local realtors, investors, and property managers in cities like Montevideo, Punta del Este, and Colonia del Sacramento. This hands-on approach allows us to gain a deep understanding of the market from the inside out.

These observations are originally based on what we've learned through these conversations and our observations. But it was not enough. To back them up, we also needed to rely on trusted resources

We prioritize accuracy and authority. Trends lacking solid data or expert validation were excluded.

Trustworthiness is central to our work. Every source and citation is clearly listed, ensuring transparency. A writing AI-powered tool was used solely to refine readability and engagement.

To make the information accessible, our team designed custom infographics that clarify key points. We hope you will like them! All illustrations and media were created in-house and added manually.

What types of land can foreigners legally buy in Uruguay, and are there any restrictions on ownership?

Foreigners in Uruguay enjoy nearly unrestricted rights to buy land, whether urban, coastal, or rural.

There are no special requirements or additional taxes for international buyers—the process is identical to what locals experience. You can purchase apartments, houses, beachfront land, commercial properties, and agricultural land without facing discriminatory policies.

However, there are specific rules for agricultural land that you must understand. Rural and farmland must be purchased in the name of an individual (physical person) or a company with named partners and shareholders who are also individuals. Companies where the controlling shareholder is a foreign government or sovereign fund are prohibited from owning agricultural land, except in rare cases with special government approval.

For large rural properties, any sale of rural property over 500 hectares must first be offered to the Instituto Nacional de ColonizaciĂłn (INC), a government body, which may purchase it at the same price.

As of June 2025, these restrictions remain the only limitations on foreign land ownership in Uruguay.

Where in Uruguay do foreigners most commonly buy land, and what are the most popular regions for investment?

Foreign investors concentrate their land purchases in several key regions that offer distinct advantages.

Punta del Este and its surroundings represent the most popular destination, often called the "Saint-Tropez of South America." This region attracts buyers seeking luxury properties, beachfront land, and strong tourism-driven returns. Suburbs like La Barra, Manantiales, and José Ignacio are especially favored for their lifestyle appeal and investment potential.

Montevideo, the capital, offers urban living with modern amenities and a stable rental market. Neighborhoods like Pocitos, Carrasco, and Punta Carretas are top choices for foreigners seeking metropolitan properties.

Colonia del Sacramento draws investors interested in its UNESCO World Heritage status, colonial charm, and proximity to Buenos Aires, making it attractive for both tourism and residential development.

For agricultural investments, regions like Tacuarembó, Durazno, Río Negro, Colonia, Soriano, San José, Salto, and Paysandú are hotspots due to their fertile soil and competitive farmland prices. Rocha is increasingly popular for pristine beaches and eco-tourism potential, making it ideal for land banking and development projects.

What are the typical reasons foreigners buy land in Uruguay—farming, residential use, speculation, or development?

Foreigners purchase land in Uruguay for four primary reasons, each reflecting different investment strategies and lifestyle goals.

Farming and agriculture represent a major draw, as Uruguay is a global leader in beef, soy, and dairy exports. The country's stable climate, fertile soil, and established agricultural infrastructure make farmland a strong long-term investment for those seeking exposure to commodity markets and agricultural production.

Residential use attracts many foreigners seeking vacation homes, retirement properties, or second residences. Uruguay's political stability, favorable climate, and proximity to major South American cities make it an attractive destination for lifestyle purchases.

Speculation and investment motivation stems from Uruguay's stable economy, strong legal protections, and low corruption levels. International investors view Uruguayan land as a safe haven for capital preservation and long-term appreciation, particularly given the country's consistent property rights enforcement.

Development opportunities draw buyers interested in subdivision projects, eco-tourism ventures, or commercial development, especially in coastal and emerging regions where infrastructure development and tourism growth create value-added opportunities.

What is the average price per hectare or per square meter for rural vs. coastal vs. urban land in Uruguay?

Land prices in Uruguay vary significantly based on location, quality, and intended use as of mid-2025.

Land Category Price Range Location Examples
National Average Farmland $4,000-$5,000 per hectare General agricultural regions
Premium Cropland $8,000-$14,000 per hectare Colonia and Soriano provinces
Northern Cattle Land $2,500-$5,000 per hectare Northern regions
Timberland with Trees $4,500-$5,000 per hectare Forestry regions
Bare Timberland $3,000-$3,500 per hectare Potential forestry areas
Basic Coastal Land $1 per square meter Remote Rocha areas
Premium Coastal Land $4 per square meter ($16,000+ per acre) La Paloma, La Pedrera
Montevideo Residential $2,000-$6,000 per square meter Various city neighborhoods

What are the exact steps to buy land in Uruguay, from first contact to final ownership transfer?

The land purchase process in Uruguay follows a structured sequence that typically takes 30-60 days to complete.

First, you find a property by working with a local real estate agent or searching online platforms. Once you identify a suitable property, you make an offer and sign a reservation agreement called "Boleto de Reserva," paying a 10% deposit to secure the property.

Next comes the due diligence phase, where a notary ("escribano") checks the property's legal status, ownership history, and any encumbrances or liens. This step is crucial for ensuring clear title and identifying any potential legal issues.

You then sign the purchase contract and finalize the sale with a public deed ("Escritura PĂşblica") before a notary. During this step, you pay the remaining balance of the purchase price.

Finally, the notary registers the deed with the National Directorate of Cadastre and the Property Registry, officially transferring ownership to your name. It's something we develop in our Uruguay property pack.

The entire process is transparent and well-regulated, providing strong legal protections for foreign buyers.

Can I buy land in Uruguay without being physically present, and if so, how does remote purchasing work?

You do not need to be physically present in Uruguay to buy land, making it convenient for international investors.

Remote purchasing works through a notarized power of attorney system. You can authorize a trusted representative—typically a lawyer, real estate agent, or notary—to sign documents and complete transactions on your behalf.

The power of attorney must be notarized in your home country and then authenticated through your country's diplomatic channels (consulate or embassy). This document gives your representative the legal authority to act in your name throughout the entire purchase process.

Your representative can handle property searches, negotiations, due diligence, contract signing, and final registration. You maintain control over major decisions while delegating the physical presence requirements to your authorized agent.

This system allows you to complete land purchases entirely from abroad, though some buyers prefer to visit Uruguay at least once to view properties in person before making final decisions.

What documents and identification are required for a foreigner to legally purchase land in Uruguay?

The documentation requirements for foreign land purchases in Uruguay are straightforward and similar to those in most developed countries.

You need a valid passport or national ID (for citizens of certain countries) as your primary identification document. Proof of funds is required by banks for wire transfers, demonstrating the legitimate source of your purchase money.

You must provide personal details and your address in your home country for legal and tax purposes. A tax identification number (RUT) is required for tax purposes, which you can obtain through Uruguay's tax authority (DGI) either in person or through a representative.

If purchasing remotely, you need a notarized power of attorney authorizing your representative to act on your behalf. Some banks may request additional documentation for large wire transfers, including bank statements or proof of income.

The documentation process is designed to comply with international anti-money laundering standards while remaining accessible to legitimate foreign buyers.

Are there taxes, legal fees, registration costs, or other mandatory expenses when buying land in Uruguay?

Purchasing land in Uruguay involves several mandatory fees and taxes that typically total 8-10% of the property value.

Fee Type Cost Description
Notary Fees 3% + VAT Legal documentation and deed preparation
Real Estate Agent Fees 3-4% + VAT Typically paid by buyer
Property Transfer Tax (ITP) 2% of cadastral value Government transfer tax
Registration Fees 0.5-1% of property value Official property registry
Other Costs $1,500-$2,000 Certification, wire transfers, legal documents
Ongoing Property Tax Varies by value Annual municipal tax
Utilities Connection Varies Electricity, water, internet setup

Can foreigners pay cash for land, or are there any reporting or banking requirements to be aware of?

You can pay the deposit (up to $10,000) in cash, but the remainder must be transferred via bank wire transfer.

Any cash transaction over $10,000 must be declared to comply with Uruguay's anti-money laundering regulations. Banks require proof of the source of funds for large transfers, typically including bank statements, proof of income, or documentation showing the legitimate origin of the money.

Most property purchases involve significant bank wire transfers from your home country to Uruguay. Banks will scrutinize large transfers and may request additional documentation to verify the funds' legitimacy.

The banking system in Uruguay is well-developed and accustomed to international real estate transactions. It's something we develop in our Uruguay property pack.

These requirements are standard international banking practices designed to prevent money laundering while facilitating legitimate real estate investments.

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Are mortgages or financing options available to foreigners buying land in Uruguay, and what are the usual terms and interest rates?

Financing options for foreigners buying land in Uruguay exist but come with specific requirements and higher costs than in developed markets.

Local mortgages are available but typically require residency and a Uruguayan bank account. Interest rates are considerably higher than in developed countries, recently around 12%, with down payments usually requiring 20-30% of the property value.

International mortgages represent an alternative, with some foreign banks and specialized lenders offering mortgages for property in Uruguay. These options may provide more favorable terms for qualified borrowers with strong credit histories in their home countries.

Seller financing is occasionally available, especially for larger or unique properties where owners are willing to provide financing directly to buyers. This option can offer more flexible terms but requires careful legal documentation.

Most foreign buyers choose to pay cash due to the complexity and cost of financing options, making Uruguay particularly attractive to investors with available capital.

Is buying land in Uruguay a path toward temporary residency, permanent residency, or citizenship?

Buying land does not automatically grant residency, but it can be part of Uruguay's residency-by-investment program.

Uruguay offers a residency-by-investment program requiring a minimum real estate investment of $200,000. This investment can include land purchases, making property acquisition a viable path toward legal residency.

Residency provides significant benefits, including visa-free travel within Mercosur countries, access to Uruguay's healthcare and education systems, and the ability to establish tax residency in Uruguay.

Permanent residency becomes possible after maintaining temporary residency for several years, typically 3-5 years depending on your circumstances and compliance with residency requirements.

Citizenship is available after 3-5 years of permanent residency, subject to language requirements, clean criminal record, and other standard naturalization criteria. Uruguay allows dual citizenship, so you typically don't need to renounce your original nationality.

What are the most common mistakes foreigners make when buying land in Uruguay, and how can they be avoided?

Foreign buyers often make several preventable mistakes that can cost thousands of dollars or create legal complications.

1. **Skipping due diligence** - Always verify property titles, encumbrances, and legal status through a qualified notary, even if the seller seems trustworthy2. **Ignoring local regulations** - Research zoning laws, subdivision requirements, and environmental regulations, especially for rural and coastal land3. **Underestimating total costs** - Budget for all taxes, fees, and ongoing expenses, not just the purchase price4. **Not hiring local experts** - Work with reputable real estate agents, lawyers, and notaries who understand local market conditions5. **Assuming residency is automatic** - Understand that owning property does not guarantee residency; you must apply separately through proper channels

The most expensive mistakes involve purchasing land without proper title verification or buying in areas with unclear zoning restrictions. It's something we develop in our Uruguay property pack.

Working with experienced local professionals and conducting thorough research before committing to any purchase will help you avoid these common pitfalls.

infographics rental yields citiesUruguay

We did some research and made this infographic to help you quickly compare rental yields of the major cities in Uruguay versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.

Conclusion

This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.

Sources

  1. TheLatinvestor - Uruguay Real Estate for Foreigners
  2. Van Bevern - Buying Property in Uruguay
  3. Real Estate in Uruguay - Who Can Buy
  4. Library of Congress - Uruguay Agricultural Land Law
  5. Gateway to South America - Farmland Restrictions
  6. Guruguay - Buying Property Guide
  7. Mondaq - How to Buy Real Estate
  8. Farmland Uruguay - Land Values 2022
  9. Escritorio Arrospide - Field Prices Uruguay 2024
  10. Global Property Guide - Uruguay Square Meter Prices