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
When you buy residential property in Montevideo as a foreigner, you will pay additional costs beyond the purchase price, including government taxes, notary fees, and potentially real estate agent commissions.
These extra costs in Montevideo typically range from 8% to 12% of the property price, though they can be lower or higher depending on your specific situation.
We constantly update this blog post with the latest tax rates, fee structures, and regulations so you always have accurate information for your Montevideo property purchase.
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.
Overall, how much extra should I budget on top of the purchase price in Montevideo in 2026?
How much are total buyer closing costs in Montevideo in 2026?
As of early 2026, most foreign buyers purchasing residential property in Montevideo should budget approximately 8% to 12% extra on top of the agreed purchase price, which on a USD 200,000 apartment would mean roughly USD 16,000 to USD 24,000 (about EUR 15,000 to EUR 22,500) in additional costs.
The minimum extra budget possible for closing costs in Montevideo is around 4% to 6% of the purchase price (USD 8,000 to USD 12,000 or EUR 7,500 to EUR 11,250 on a USD 200,000 property), but this only applies if you find the property without an agent or the seller covers the buyer-side commission entirely.
The maximum extra budget buyers should realistically plan for in Montevideo reaches 12% to 16% of the purchase price (USD 24,000 to USD 32,000 or EUR 22,500 to EUR 30,000 on a USD 200,000 property), particularly when buying a new-build property with additional handover costs and paying both agent and notary fees at standard rates.
The main factors that determine whether your Montevideo closing costs fall at the low end or high end include whether you pay a buyer-side agent commission, whether your property is new construction or resale, and how successfully you negotiate notary fees on larger transactions.
What's the usual total % of fees and taxes over the purchase price in Montevideo?
The usual total percentage of fees and taxes over the purchase price in Montevideo falls between 8% and 12% for most foreign individual buyers completing a standard residential transaction.
The realistic low-to-high percentage range that covers most standard Montevideo property transactions runs from about 4% (bare minimum with no agent commission) up to 16% (new-build with all standard fees and extra handover costs).
Of that total percentage in Montevideo, roughly 2% to 3% goes to government taxes (mainly the Property Transfer Tax calculated on cadastral value), while the larger portion of 5% to 10% typically goes to professional service fees including the notary, real estate agent, and associated VAT charges.
By the way, you will find much more detailed data in our property pack covering the real estate market in Montevideo.
What costs are always mandatory when buying in Montevideo in 2026?
As of early 2026, the mandatory costs when buying property in Montevideo include the Property Transfer Tax (ITP) at 2% for the buyer, notary or escribano fees for conveyancing and registration, registry filing and certificate fees, and 22% VAT on all professional services.
Beyond mandatory costs, optional but highly recommended expenses for Montevideo property buyers include an independent building inspection (especially for older apartments in coastal areas like Pocitos or Punta Carretas where salt air causes moisture issues), expanded title searches, and sworn translator services if you do not read Spanish comfortably.
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What taxes do I pay when buying a property in Montevideo in 2026?
What is the property transfer tax rate in Montevideo in 2026?
As of early 2026, the property transfer tax (Impuesto a las Transmisiones Patrimoniales or ITP) in Montevideo is 2% for the buyer and 2% for the seller, calculated on the Catastro's "valor real" (cadastral value) rather than the negotiated market price.
There are no extra transfer taxes specifically for foreigners buying property in Montevideo, as Uruguay's ITP rules apply the same rate based on transaction type regardless of the buyer's nationality or residency status.
Buyers generally do not pay VAT on the purchase price of resale residential properties in Montevideo, though VAT can appear in new-build or developer transactions through construction-related mechanisms, and you will always pay 22% VAT on professional services like notary and agent fees.
Uruguay does not have a single "stamp duty" concept, but Montevideo property buyers pay registry-related charges including timbres and filing fees when the notary processes the minuta digital to register the transfer, and these costs appear as line items at closing.
Are there tax exemptions or reduced rates for first-time buyers in Montevideo?
Uruguay does not offer a specific tax exemption or reduced ITP rate for first-time buyers at the time of purchase in Montevideo, as the standard 2% buyer-side rate applies regardless of whether this is your first property.
If you buy property through a company instead of as an individual in Montevideo, the ITP mechanism still applies based on cadastral value, but your ongoing tax obligations and eventual sale taxation may differ, so professional tax advice is essential for this structure.
The main tax difference between buying a new-build versus a resale property in Montevideo is not the ITP rate but how VAT-related items can appear in developer transactions, particularly in promoted housing (vivienda promovida) projects under Ley 18.795 where handover costs and tax treatments may be structured differently.
Where first-time or primary residence relief does exist in Uruguay is primarily on the sale side, where sellers of their main home may qualify for capital gains tax exemptions if they meet specific conditions including property value thresholds and reinvestment requirements.
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.
Which professional fees will I pay as a buyer in Montevideo in 2026?
How much does a notary or conveyancing lawyer cost in Montevideo in 2026?
As of early 2026, notary (escribano) fees in Montevideo typically run around 3% of the purchase price plus 22% VAT, which works out to approximately 3.66% total, meaning on a USD 200,000 property you would pay roughly USD 7,300 (about EUR 6,850 or UYU 310,000).
Notary fees in Montevideo are generally charged as a percentage of the property price rather than a flat rate, though the percentage may be negotiable on higher-value properties and the calculation can reference the higher of the purchase price or cadastral value in some scenarios.
Translation and interpreter services for foreign buyers in Montevideo typically cost between USD 150 and USD 600 (EUR 140 to EUR 560 or UYU 6,400 to UYU 25,500) depending on document volume and whether you need in-person interpretation at the signing.
A tax advisor is not mandatory for buying in Montevideo but is highly recommended if you are a non-resident, buying through a company, or planning to rent the property, with consultation fees typically ranging from USD 300 to USD 1,000 (EUR 280 to EUR 940 or UYU 12,800 to UYU 42,500).
We have a whole part dedicated to these topics in our our real estate pack about Montevideo.
What's the typical real estate agent fee in Montevideo in 2026?
As of early 2026, the typical real estate agent fee in Montevideo is 3% of the purchase price plus 22% VAT, totaling approximately 3.66%, which means on a USD 200,000 property the commission would be around USD 7,300 (about EUR 6,850 or UYU 310,000).
In Montevideo, it is common for both the buyer and seller to pay their own agent commission according to the official arancel structure, though in practice this is negotiable and some sellers will cover the buyer's side to close a deal faster.
The realistic low-to-high range for agent fees in Montevideo runs from 0% (if you find the property directly or negotiate for the seller to cover it) up to the full 3.66% including VAT, with room to negotiate especially on properties that have been listed for a long time.
How much do legal checks cost (title, liens, permits) in Montevideo?
Legal checks including title search, liens verification, and permits review in Montevideo are often bundled into notary disbursements and typically cost between USD 300 and USD 1,000 (EUR 280 to EUR 940 or UYU 12,800 to UYU 42,500), with higher costs if issues like irregular building permits or old additions need investigation.
Property valuation fees in Montevideo, if you need one for mortgage purposes or personal reassurance, typically range from USD 250 to USD 700 (EUR 235 to EUR 660 or UYU 10,600 to UYU 29,800), with more complex houses or unique properties at the higher end.
The most critical legal check that should never be skipped in Montevideo is verifying the property's cadastral status and confirming there are no outstanding municipal debts (like unpaid Contribución Inmobiliaria), which your notary can check through the Catastro system and Montevideo's tax portal.
Buying a property with hidden issues is something we mention in our list of risks and pitfalls people face when buying real estate in Montevideo.
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What hidden or surprise costs should I watch for in Montevideo right now?
What are the most common unexpected fees buyers discover in Montevideo?
The most common unexpected fees buyers discover in Montevideo include the "+IVA" shock when professional quotes turn out to be 22% higher than the base price, underestimated building expenses (gastos comunes) in apartments, extra notary disbursements for certificates and registrations, and handover or connection costs in newer developments.
Yes, there are unpaid property taxes or debts a buyer could inherit in Montevideo because municipal charges like the Contribución Inmobiliaria attach to the property itself, which is why your notary must confirm the property is current on all payments before closing.
Scams with fake listings or fake fees do occur in Montevideo as they do everywhere, and the best defense is to never pay reservation money to an unverified party, always work through a licensed notary, and ensure all payments go through traceable channels.
The fees usually not disclosed upfront by sellers or agents in Montevideo include VAT on professional services, the full scope of notary disbursements, and any outstanding building-level debts or extraordinary expenses in apartment buildings.
In our property pack covering the property buying process in Montevideo, we go into details so you can avoid these pitfalls.
Are there extra fees if the property has a tenant in Montevideo?
Extra fees when buying a tenanted property in Montevideo typically include legal costs for drafting assignment or termination documents, which can add USD 200 to USD 800 (EUR 185 to EUR 750 or UYU 8,500 to UYU 34,000) depending on complexity and negotiation required.
When you purchase a tenanted property in Montevideo, you inherit the existing lease agreement and must honor its terms, including the rent amount, duration, and any tenant protections under Uruguayan rental law.
Terminating an existing lease immediately after purchase in Montevideo is generally not possible unless the lease has a specific clause allowing it, the tenant agrees voluntarily, or you can demonstrate a legally valid reason under Uruguayan tenancy regulations.
A sitting tenant in Montevideo typically reduces the pool of interested buyers (since owner-occupiers are excluded), which can give you negotiating leverage on price but may also mean accepting a property that cannot be delivered vacant when you want it.
If you want to optimize your rental strategy, you can read our complete guide on how to buy and rent out in Montevideo.
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.
Which fees are negotiable, and who really pays what in Montevideo?
Which closing costs are negotiable in Montevideo right now?
The closing costs that are negotiable in Montevideo include the real estate agent commission (especially if you bring the deal yourself or the property has been listed for a long time), notary fees (particularly on higher-value properties), and who covers small administrative items at closing.
The closing costs that are fixed by law or regulation and cannot be negotiated in Montevideo include the Property Transfer Tax (ITP) rate of 2%, the 22% VAT on professional services, and the mandatory registry filing steps required to properly transfer and record ownership.
The typical discount buyers can realistically achieve on negotiable fees in Montevideo ranges from 0.5% to 1.5% of the property price when successfully negotiating down agent commissions or notary fees, with the best results on properties priced above USD 300,000 or those that have sat on the market.
Can I ask the seller to cover some closing costs in Montevideo?
Asking the seller to cover some closing costs is common practice in Montevideo, and motivated sellers or those with properties listed for extended periods are often willing to negotiate on buyer-side expenses to close the deal.
The specific closing costs sellers are most commonly willing to cover in Montevideo include part or all of the buyer-side agent commission, costs to deliver the property free of municipal debts, and specific building-level charges identified during due diligence.
Sellers in Montevideo are more likely to accept covering closing costs when the property has been on the market for several months, when there are few competing offers, or when they need to sell quickly due to personal circumstances.
Is price bargaining common in Montevideo in 2026?
As of early 2026, price bargaining is normal and expected when buying residential property in Montevideo, with most sellers building in some negotiation room when they set their asking price.
Buyers in Montevideo typically negotiate between 3% and 8% below the asking price in most normal resale transactions, though well-priced listings in high-demand neighborhoods like Pocitos or Carrasco may only move 0% to 3%, while properties needing renovation or sitting on the market can see discounts of 8% to 12% or more.
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What monthly, quarterly or annual costs will I pay as an owner in Montevideo?
What's the realistic monthly owner budget in Montevideo right now?
The realistic monthly owner budget in Montevideo for a typical apartment ranges from USD 150 to USD 600 (EUR 140 to EUR 560 or UYU 6,400 to UYU 25,500), while houses typically cost USD 120 to USD 450 per month (EUR 110 to EUR 420 or UYU 5,100 to UYU 19,100).
The main recurring expense categories in Montevideo include utilities (electricity, water, internet), gastos comunes or HOA fees for apartments, and for houses, ongoing maintenance costs for gardens, roofs, exterior upkeep, and security.
The realistic low-to-high range for monthly owner costs in Montevideo depends heavily on property type, with smaller apartments in modest buildings at the low end (around USD 150 or EUR 140) and large apartments with 24/7 concierge, pools, and multiple elevators reaching the high end (USD 600 or EUR 560 and above).
The monthly cost that tends to vary the most in Montevideo is the gastos comunes in apartment buildings, which can range from almost nothing in small buildings with few amenities to USD 300 or more in luxury buildings in Punta Carretas or Puerto del Buceo with extensive services and facilities.
You can see how this budget affect your gross and rental yields in Montevideo here.
What is the annual property tax amount in Montevideo in 2026?
As of early 2026, the annual property tax (Contribución Inmobiliaria) in Montevideo typically ranges from about 0.2% to 1.0% of the property's market value, though the exact amount depends on the cadastral value (valor real) assigned to your specific property.
The realistic low-to-high range for annual property taxes in Montevideo runs from around USD 400 to USD 3,000 (EUR 375 to EUR 2,800 or UYU 17,000 to UYU 128,000), with lower effective rates often applying to higher-priced properties where cadastral values have not kept pace with market prices.
Montevideo's property tax is calculated based on the Catastro's "valor real" (cadastral value) of the property, which is often significantly lower than the actual market price, and the tax is paid annually or in installments throughout the year.
Exemptions or reductions to property tax in Montevideo may be available in specific cases, and your notary can pull the exact property tax history for your target property before you commit to purchasing.
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.
If I rent it out, what extra taxes and fees apply in Montevideo in 2026?
What tax rate applies to rental income in Montevideo in 2026?
As of early 2026, non-resident property owners earning rental income from Montevideo real estate pay the IRNR (Impuesto a las Rentas de los No Residentes) at a rate of 10.5% on lease income.
Whether landlords can deduct expenses from rental income taxes in Montevideo depends on residency status and how the rental is structured, so this is an area where a tax advisor can help you understand the rules that apply to your specific situation.
The realistic effective tax rate after any applicable deductions for typical non-resident landlords in Montevideo generally remains close to the 10.5% IRNR rate, though residents fall under the different IRPF system with its own deduction rules and rate bands.
Foreign property owners in Montevideo do pay a different rental income tax rate than residents: non-residents pay the 10.5% IRNR flat rate, while Uruguayan tax residents are subject to the progressive IRPF personal income tax system instead.
Do I pay tax on short-term rentals in Montevideo in 2026?
As of early 2026, short-term rental income in Montevideo is subject to taxation, and if you are a non-resident the 10.5% IRNR rate applies, though short-term rentals may involve additional platform compliance requirements and potentially different indirect tax handling depending on how services are packaged.
Short-term rental income in Montevideo can be taxed differently than long-term rental income in practice because of the way services are bundled (such as cleaning, utilities, or amenities), so if you plan to do short-term rentals seriously, budgeting for professional advice and compliance from the start is wise.
If you want to optimize your rental strategy, you can read our complete guide on how to buy and rent out in Montevideo.
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If I sell later, what taxes and fees will I pay in Montevideo in 2026?
What's the total cost of selling as a % of price in Montevideo in 2026?
As of early 2026, the total cost of selling residential property in Montevideo typically ranges from 6% to 10% of the sale price, depending on your agent commission arrangement and whether capital gains tax applies.
The realistic low-to-high percentage range for total selling costs in Montevideo runs from about 5% (minimal agent fees and exemption from capital gains) up to 15% or more if you pay full agent commission, seller-side ITP, notary costs, and capital gains tax on a profitable sale.
The specific cost categories that typically make up total selling expenses in Montevideo include real estate agent commission (often 3% plus VAT), seller-side Property Transfer Tax (2% on cadastral value), notary and registry fees, and potentially capital gains tax on the profit.
The single largest cost when selling property in Montevideo is usually the real estate agent commission at around 3.66% including VAT, though capital gains tax at 12% of the profit can exceed this on properties that have appreciated significantly.
What capital gains tax applies when selling in Montevideo in 2026?
As of early 2026, the capital gains tax rate on selling urban property in Montevideo is 12%, applied to the computed gain using a calculation method that depends on whether you purchased the property before or after July 1, 2007.
Exemptions to capital gains tax in Montevideo include the sale of your primary residence if you meet specific conditions, including property value thresholds measured in Unidades Indexadas (UI) and requirements to reinvest a percentage of the proceeds within a certain timeframe.
Foreigners do not pay a higher capital gains rate than Uruguayan residents when selling property in Montevideo; the 12% rate applies based on the transaction and tax status, and the notary typically acts as the withholding agent to ensure the tax is collected.
Capital gains in Montevideo are calculated differently depending on when you bought: for properties purchased after July 1, 2007, you can use the actual purchase price adjusted for improvements, while properties purchased before that date use a "ficto" (notional) method based on cadastral values.
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.
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 |
|---|---|---|
| Uruguay Tax Authority (DGI) - ITP Guide | Official government source for Uruguay's property transfer tax rules. | We used it to confirm the exact 2% buyer and 2% seller ITP rates. We also verified that the tax base is the cadastral "valor real" rather than market price. |
| DGI - Capital Gains (IRPF) Guide | Official source for property sale taxation in Uruguay. | We used it to confirm the 12% capital gains rate and the two calculation methods. We also sourced the primary residence exemption conditions from this publication. |
| Montevideo City Government - Contribución Inmobiliaria | Official Montevideo portal for the city's annual property tax. | We used it to explain what the tax is, who pays it, and when payments are due. We also used it to frame realistic ongoing owner costs specific to Montevideo. |
| IMPO - IRNR Decree 149/007 | Uruguay's official publication source for laws and decrees. | We used it to source the 10.5% non-resident rental income tax rate. We also used it to distinguish between resident and non-resident taxation frameworks. |
| DGI - VAT 22% Rate Guide | Official government source explaining Uruguay's standard VAT rate. | We used it to anchor the 22% VAT that applies to professional services like agents and notaries. We also explained why quotes often show "+ IVA" as an add-on. |
| Asociación de Escribanos del Uruguay (AEU) | Professional body for notaries in Uruguay. | We used it to ground the common 3% notary fee and understand how fees are computed. We also used it to justify the 3% plus VAT as standard market expectation. |
| Cámara Inmobiliaria del Uruguay (CIU) - Official Arancel | Industry chamber's published commission schedule followed by many agencies. | We used it to confirm the 3% commission structure typically charged to each side. We also explained who usually pays and what can be negotiated in practice. |
| National Cadastre (DNC) Portal | Official portal where property records and cadastral values are accessed. | We used it as the reference for verifying the cadastral value that drives ITP calculations. We recommended it as a practical due-diligence step before budgeting. |
| Government Portal - Property Registry Procedure | Official procedure page for real estate registration in Uruguay. | We used it to justify why registration and filing costs appear in closing budgets. We explained that these steps create small but mandatory fees beyond taxes. |
| PwC Worldwide Tax Summaries - Uruguay | Widely used, quality-controlled tax reference updated regularly. | We used it to cross-check the 22% VAT rate and verify our understanding of Uruguay's tax framework. We used it as a secondary source to avoid relying on any single local page. |
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