Authored by the expert who managed and guided the team behind the Uruguay Property Pack
Yes, the analysis of Montevideo's property market is included in our pack
You want to buy a property in Montevideo and rent it out, but you are not sure where to start or what the real numbers look like.
We constantly update this blog post to reflect the latest data and market shifts, so the information you read here is as fresh as possible.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Montevideo.
Insights
- Montevideo gross rental yields average around 6% citywide in 2026, but peripheral neighborhoods like Manga and Casabo can reach 10% to 13% while coastal areas sit closer to 5%.
- Non-resident property owners in Montevideo pay a flat 12% tax on rental income under Uruguay's IRNR system, often withheld at source by a property manager.
- Short-term rentals in Montevideo achieve around 61% to 67% average annual occupancy, with nightly rates averaging 55 to 61 USD depending on the data source.
- Furnished rentals represent less than 15% of long-term listings in Montevideo, meaning unfurnished properties dominate the market for traditional leases.
- Well-priced long-term rentals in Montevideo typically find tenants within 25 to 30 days, while overpriced units can sit vacant for 45 to 90 days or longer.
- Uruguay's Law 20.352 now regulates short-term tourist accommodations, requiring registration and unique IDs for platforms like Airbnb starting in 2026.
- Building common expenses in Montevideo apartments can range from 3,000 to 12,000 UYU per month, making them a major swing factor in net yield calculations.
- About 91% of Airbnb guests in Montevideo are international visitors, with Brazilian travelers representing the largest group.
- Premium coastal neighborhoods like Carrasco, Punta Carretas, and Pocitos command 2-bedroom rents of 45,000 to 55,000 UYU per month in early 2026.
Can I legally rent out a property in Montevideo as a foreigner right now?
Can a foreigner own-and-rent a residential property in Montevideo in 2026?
As of early 2026, Uruguay treats foreign property investors exactly like local citizens, meaning you can legally buy and rent out residential property in Montevideo without special permits or nationality-based restrictions.
The most common ownership structure for foreigners holding rental property in Montevideo is direct personal ownership registered through a licensed escribano (notary) at the Dirección General de Registros, which provides clear title and full legal protection.
The main practical challenge foreigners face is not legal permission but operational compliance, including setting up proper tax withholding, obtaining a rental guarantee for tenants, and managing the property remotely if you do not live in Uruguay.
If you're not a local, you might want to read our guide to foreign property ownership in Montevideo.
Do I need residency to rent out in Montevideo right now?
No, you do not need to be a resident to rent out property in Montevideo, and most foreign owners operate through a local property manager who handles tenant relations and tax compliance on their behalf.
You will need to be "known" to Uruguay's tax system, which typically means either registering for a RUT number or having your property manager withhold the 12% IRNR tax at source before remitting your net rental income.
A local bank account is not strictly required, but it simplifies rent collection significantly, and major banks like BROU and Itaú offer non-resident account options with proper documentation.
Managing a rental in Montevideo entirely from abroad is practically feasible if you hire a reliable inmobiliaria to handle showings, maintenance, contracts, and tax reporting.
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What rental strategy makes the most money in Montevideo in 2026?
Is long-term renting more profitable than short-term in Montevideo in 2026?
As of early 2026, short-term rentals in Montevideo can generate higher gross revenue, but long-term rentals often deliver better net reliability for remote owners who want lower management headaches.
A well-managed short-term rental in a good Montevideo location might gross 13,000 to 14,000 USD per year (around 520,000 to 560,000 UYU or 12,000 to 13,000 EUR), while a comparable long-term rental might gross 9,000 to 11,000 USD annually (360,000 to 440,000 UYU or 8,300 to 10,100 EUR), though the short-term option comes with higher costs and effort.
Properties in coastal neighborhoods like Pocitos, Punta Carretas, and Ciudad Vieja tend to favor short-term renting because they attract tourists and business travelers willing to pay premium nightly rates during peak season.
What's the average gross rental yield in Montevideo in 2026?
As of early 2026, the average gross rental yield for residential properties in Montevideo is approximately 6%, based on the city-wide median from recent market studies.
Most residential properties in Montevideo fall within a realistic gross yield range of 5% to 13%, with coastal premium neighborhoods at the lower end and peripheral working-class areas at the higher end.
Studios and smaller one-bedroom apartments typically achieve the highest gross rental yield in Montevideo because their lower purchase prices relative to monthly rents create a better yield ratio than larger family units.
By the way, we have much more granular data about rental yields in our property pack about Montevideo.
What's the realistic net rental yield after costs in Montevideo in 2026?
As of early 2026, a realistic average net rental yield for long-term rentals in Montevideo is around 3.5% to 4.5% in stable central and coastal areas, rising to 5.5% to 8% in higher-yielding peripheral neighborhoods.
Most landlords in Montevideo actually experience net yields in the range of 3% to 7%, depending on their property location, management efficiency, and how well they control vacancy and maintenance costs.
The three main cost categories that reduce gross yield to net yield specifically in Montevideo are the 12% IRNR tax on rental income for non-residents, building common expenses (gastos comunes) that can reach 12,000 UYU per month in amenity-rich buildings, and the rental guarantee insurance premium that many property managers pass through to owners.
You might want to check our latest analysis about gross and net rental yields in Montevideo.
What monthly rent can I get in Montevideo in 2026?
As of early 2026, typical monthly rents in Montevideo are approximately 24,000 UYU (600 USD or 550 EUR) for a studio, 30,000 UYU (750 USD or 690 EUR) for a 1-bedroom apartment, and 41,000 UYU (1,025 USD or 940 EUR) for a 2-bedroom apartment.
A realistic entry-level monthly rent for a decent studio in Montevideo ranges from 18,000 to 23,000 UYU (450 to 575 USD or 415 to 530 EUR), with the lower end in neighborhoods like Cordón or Centro and the higher end in Pocitos or Buceo.
A typical mid-range 1-bedroom apartment in Montevideo rents for 28,000 to 35,000 UYU (700 to 875 USD or 645 to 805 EUR), depending on building quality, amenities, and proximity to the Rambla.
A typical 2-bedroom apartment in Montevideo commands 38,000 to 55,000 UYU (950 to 1,375 USD or 875 to 1,265 EUR) per month, with the upper range concentrated in premium coastal neighborhoods like Carrasco and Punta Carretas.
If you want to know more about this topic, you can read our guide about rents and rental incomes in Montevideo.
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.
What are the real numbers I should budget for renting out in Montevideo in 2026?
What's the total "all-in" monthly cost to hold a rental in Montevideo in 2026?
As of early 2026, the total "all-in" monthly cost to hold and maintain a typical rental property in Montevideo is approximately 6,500 to 18,000 UYU (165 to 450 USD or 150 to 415 EUR), excluding any mortgage payments.
Most standard rental properties in Montevideo fall within a realistic monthly holding cost range of 5,000 to 20,000 UYU (125 to 500 USD or 115 to 460 EUR), with the wide spread driven mainly by building type and common expense levels.
The single largest contributor to monthly holding costs in Montevideo is typically the building common expenses (gastos comunes), which can range from 3,000 to 12,000 UYU per month depending on whether the building has elevators, security, pools, or other amenities.
You want to go into more details? Check our list of property taxes and fees you have to pay when buying a property in Montevideo.
What's the typical vacancy rate in Montevideo in 2026?
As of early 2026, the typical vacancy rate for well-priced rental properties in Montevideo is approximately 8%, meaning landlords should expect roughly one month of vacancy per year on average.
Landlords in Montevideo should realistically budget for 1 month of vacancy per year for correctly-priced properties in high-demand areas, or 2 to 3 months per year if the unit is overpriced or in a weaker micro-location.
The main factor that causes vacancy rates to be higher or lower in different Montevideo neighborhoods is proximity to key demand drivers like universities, major transit hubs, the Rambla, and employment centers in the city center and coastal strip.
The highest tenant turnover and vacancy in Montevideo typically occurs in February and March, after the summer season ends and many short-term contracts expire, creating a brief window of higher supply before the university and work year picks up again.
We have a whole part covering the best rental strategies in our pack about buying a property in Montevideo.
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Where do rentals perform best in Montevideo in 2026?
Which neighborhoods have the highest long-term demand in Montevideo in 2026?
As of early 2026, the three neighborhoods with the highest overall long-term rental demand in Montevideo are Pocitos, Cordón, and Punta Carretas, which consistently show the fastest absorption of new listings and the deepest tenant pools.
Families looking for long-term rentals in Montevideo tend to concentrate in Punta Gorda, Carrasco, Malvín, and Punta Carretas, where they find larger apartments, quieter streets, proximity to international schools, and easy access to parks and beaches.
Students generate the strongest long-term rental demand in Cordón, Centro, Tres Cruces, and Parque Rodó, neighborhoods that sit near the Universidad de la República campus and offer affordable units with good bus connectivity.
Expats and international professionals searching for long-term rentals in Montevideo gravitate toward Pocitos, Punta Carretas, Buceo, and Carrasco, where they find coastal lifestyle, modern buildings, English-friendly services, and proximity to embassies and multinational offices.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Montevideo.
Which neighborhoods have the best yield in Montevideo in 2026?
As of early 2026, the three neighborhoods with the best rental yield in Montevideo are Manga (around 13% gross yield), Casabó (around 12%), and Las Acacias (around 11.5%), all located in the city's peripheral zones.
The top-yielding neighborhoods in Montevideo offer gross rental yields in the range of 10% to 13%, significantly higher than the 5% to 6% typical in premium coastal areas.
The main characteristic that allows these neighborhoods to achieve higher yields is their lower property purchase prices relative to monthly rents, since working-class tenants still pay market rates for housing while property values remain a fraction of coastal equivalents.
We cover a lot of neighborhoods and provide a lot of updated data in our pack about real estate in Montevideo.
Where do tenants pay the highest rents in Montevideo in 2026?
As of early 2026, the three neighborhoods where tenants pay the highest rents in Montevideo are Carrasco, Punta Carretas, and Pocitos, with 2-bedroom apartments reaching 45,000 to 55,000 UYU per month (1,125 to 1,375 USD or 1,035 to 1,265 EUR).
A standard apartment in these premium Montevideo neighborhoods typically rents for 35,000 to 60,000 UYU per month (875 to 1,500 USD or 805 to 1,380 EUR), depending on size, floor level, and building amenities.
The main characteristic that makes these neighborhoods command the highest rents in Montevideo is their direct access to the Rambla waterfront promenade, combined with established security, mature landscaping, walkable retail, and proximity to Uruguay's best restaurants and private schools.
Tenants who rent in Carrasco, Punta Carretas, and Pocitos are typically high-income professionals, embassy staff, executives at multinational companies, wealthy Argentine families, and well-funded retirees or digital nomads seeking premium coastal living.
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Uruguay. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
What do tenants actually want in Montevideo in 2026?
What features increase rent the most in Montevideo in 2026?
As of early 2026, the three property features that increase monthly rent the most in Montevideo are a garage or parking space (essential in congested coastal neighborhoods), a balcony or terrace with Rambla or river views, and a portero (doorman) or 24-hour security system.
A dedicated garage space in high-demand Montevideo neighborhoods like Pocitos or Punta Carretas can add a rent premium of 10% to 15%, since street parking is extremely difficult and tenant demand for secure parking far exceeds supply.
One commonly overrated feature that landlords invest in but tenants do not pay much extra for in Montevideo is high-end kitchen appliances, since most tenants prioritize location, security, and outdoor space over stainless steel refrigerators or fancy ovens.
One affordable upgrade that provides a strong return on investment for Montevideo landlords is installing split-unit air conditioning in the main living area and bedroom, as Uruguay's humid summers make cooling a genuine comfort priority for tenants.
Do furnished rentals rent faster in Montevideo in 2026?
As of early 2026, furnished apartments in Montevideo typically rent 1 to 2 weeks faster than unfurnished ones in high-turnover areas like Cordón, Pocitos, and Punta Carretas, especially when targeting expats, students, or short-term corporate tenants.
Furnished apartments in Montevideo can command a rent premium of 15% to 25% over unfurnished equivalents, though unfurnished units dominate the long-term market (over 85% of listings) because most local tenants own their own furniture.
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How regulated is long-term renting in Montevideo right now?
Can I freely set rent prices in Montevideo right now?
Landlords in Montevideo have substantial freedom to set the initial rent price by mutual agreement with the tenant, and there is no government-mandated starting rent cap for new leases.
Rent increases during a tenancy in Montevideo are typically tied to inflation-linked adjustment mechanisms, commonly using the IPC (Consumer Price Index) or official rent coefficients published by the Ministry of Economy, which means increases are structured rather than arbitrary but not strictly "capped" by a fixed percentage.
What's the standard lease length in Montevideo right now?
The most common lease length for residential rentals in Montevideo is 12 to 24 months, though parties can negotiate different durations by mutual agreement within the framework of Uruguay's Urban Leasing Law.
Security deposits in Montevideo are commonly equivalent to 1 to 2 months' rent, though many landlords require a rental guarantee (garantía) through an insurance company or bank guarantee rather than a traditional cash deposit, which can require 5 to 6 months' rent held by a bank.
The deposit or guarantee funds in Montevideo are returned at the end of the tenancy once the property is inspected and any damages or unpaid rent are settled, with the landlord required to provide an accounting and return surplus funds within a reasonable timeframe specified in the contract.
We made this infographic to show you how property prices in Uruguay compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
How does short-term renting really work in Montevideo in 2026?
Is Airbnb legal in Montevideo right now?
Airbnb-style short-term rentals are legal in Montevideo, and Uruguay enacted Law 20.352 in 2024 to create a formal regulatory framework for tourist accommodation in residential properties.
Under the new framework, short-term rental operators in Montevideo will need to register with the Ministry of Tourism and display a unique identification number on their listings, though the full implementation details are still being rolled out in early 2026.
As of early 2026, there is no universal annual night limit on short-term rentals in Montevideo at the national level, though individual building regulations (reglamentos de copropiedad) may restrict or prohibit tourist lettings.
Operating an unregistered or non-compliant short-term rental in Montevideo can result in fines and potential delisting from platforms, though enforcement is still evolving as the Ministry of Tourism develops its compliance mechanisms.
By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in Montevideo.
What's the average short-term occupancy in Montevideo in 2026?
As of early 2026, the average annual occupancy rate for short-term rentals in Montevideo is approximately 61% to 67%, meaning a typical listing is booked for roughly 220 to 245 nights per year.
Most short-term rentals in Montevideo experience a realistic occupancy range of 48% to 75%, with well-located and highly-rated properties at the top and poorly-optimized listings at the bottom.
The highest occupancy rates for short-term rentals in Montevideo occur during the summer months from December through March, when domestic and international tourists flock to the city and nearby beaches.
The lowest occupancy rates in Montevideo typically happen during the winter months from May through August, when tourist demand drops significantly and only business travelers and long-stay digital nomads sustain booking volumes.
Finally, please note that you can find much more granular data about this topic in our property pack about Montevideo.
What's the average nightly rate in Montevideo in 2026?
As of early 2026, the average nightly rate for short-term rentals in Montevideo is approximately 55 to 61 USD (2,200 to 2,440 UYU or 51 to 56 EUR), depending on the data source and sample methodology.
Most short-term rental listings in Montevideo fall within a realistic nightly rate range of 39 to 120 USD (1,560 to 4,800 UYU or 36 to 110 EUR), with budget listings at the low end and premium properties in Carrasco or Pocitos at the high end.
The typical nightly rate difference between peak season and off-season in Montevideo is around 40% to 60%, meaning a property charging 70 USD per night in January might drop to 45 USD per night in June.
Is short-term rental supply saturated in Montevideo in 2026?
As of early 2026, the short-term rental market in Montevideo is competitive but not fully saturated, with roughly 2,500 to 4,200 active listings supporting a 61% to 67% average occupancy rate that indicates healthy demand absorption.
The current trend in active short-term rental listings in Montevideo shows moderate growth, with inventory increasing by approximately 20% to 28% year-over-year as new hosts enter the market.
The most oversaturated neighborhoods for short-term rentals in Montevideo are Pocitos and Ciudad Vieja, where the high concentration of listings creates intense competition and puts downward pressure on occupancy for mediocre properties.
Neighborhoods in Montevideo that still have room for new short-term rental supply include Buceo, Malvín, and Punta Gorda, where growing tourist interest and lower listing density offer opportunities for well-positioned new entrants.
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What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Montevideo, we always rely on the strongest methodology we can … and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source | Why it's authoritative | How we used it |
|---|---|---|
| Instituto Nacional de Estadística (INE) | Uruguay's official statistics agency with primary rental market data. | We used INE's IAI rental series to anchor baseline rent levels and market activity. We treated this as ground truth rather than relying solely on portal asking prices. |
| IMPO - Decreto Ley 14.219 | Official consolidated laws and decrees for Uruguay. | We used IMPO to ground the long-term leasing framework and legal requirements. We referenced it to explain what landlords can and cannot do under Uruguayan law. |
| InfoCasas Yield Report | Major local property portal with transparent methodology. | We used InfoCasas to name specific neighborhoods with higher or lower yields. We built realistic neighborhood-level yield ranges and then adjusted for costs. |
| AirDNA | Widely-used, methodology-driven short-term rental data provider. | We used AirDNA to estimate short-term occupancy and nightly rates for Montevideo. We sanity-checked whether STR income can realistically beat long-term renting. |
| DGI (Dirección General Impositiva) | Uruguay's tax authority explaining non-resident taxation. | We used DGI guidance to estimate withholding and compliance paths for foreign owners. We clarified how the 12% IRNR tax works in practice. |
| U.S. State Department Investment Climate Statement | Credible external government source on foreign investment treatment. | We used this to support the point that foreigners face no discrimination in Uruguay. We cross-checked when local sources discuss equal treatment. |
| Intendencia de Montevideo | Official city guide to municipal property taxes. | We used this to ensure owner holding-cost budgeting includes local property taxes. We justified a monthly tax reserve line in cost estimates. |
| IMPO - Ley 20.352 | Official text of Uruguay's short-term rental framework. | We used this to explain what makes a rental "tourist accommodation" legally. We outlined compliance steps for Airbnb operators in 2026. |
| Airbtics | Data-driven short-term rental analytics platform. | We used Airbtics to cross-validate AirDNA occupancy and revenue figures. We triangulated seasonal patterns and guest origin data for Montevideo. |
| Global Property Guide | International property data aggregator with Uruguay coverage. | We used this to verify rent price trends and landlord-tenant law summaries. We cross-referenced their data against local Uruguayan sources. |
We have made this infographic to give you a quick and clear snapshot of the property market in Uruguay. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
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