Authored by the expert who managed and guided the team behind the Uruguay Property Pack
Everything you need to know before buying real estate is included in our Uruguay Property Pack
Uruguay currently offers a more stable and accessible property investment environment than Argentina, with unrestricted foreign ownership and straightforward legal processes.
Argentina has become more appealing due to recent reforms and promising economic recovery, but still carries higher volatility risks compared to Uruguay's consistent market performance.
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.
Uruguay provides greater stability with 3-5% annual price growth and straightforward foreign ownership, while Argentina offers higher potential returns but with increased market volatility.
Both countries allow foreign property ownership, but Uruguay has no restrictions whatsoever, whereas Argentina may review rural land purchases in border areas.
| Factor | Uruguay | Argentina |
|---|---|---|
| Foreign Ownership | No restrictions on any property type | Urban properties unrestricted, rural may face review |
| Market Stability | High - consistent 3-5% annual growth | Moderate - recovering but volatile |
| Average Property Prices | $2,038-$4,000 per sqm | 20-25% below 2019 peaks, recovering |
| Rental Yields | 5.37-6.54% gross yields | 5-10% depending on location/type |
| Political Stability | Very high - low corruption | Moderate - recent improvements |
| Transaction Costs | 7-11% total | 10-11% total |
| Currency Controls | USD-based market, minimal restrictions | Recently liberalized (April 2025) |
What is your budget for purchasing property?
Your budget will significantly determine which country offers better opportunities for your specific price range.
In Uruguay, property prices in Montevideo range from $2,038 to $4,000 per square meter as of September 2025. Premium beachfront properties in Punta del Este can exceed $5,000 per square meter, while more affordable options in secondary cities start around $1,500 per square meter.
Argentina presents different price dynamics, with Buenos Aires properties currently trading 20-25% below their 2019 USD peaks. Prime neighborhoods like Palermo and Recoleta range from $2,500 to $4,500 per square meter, while emerging areas offer opportunities from $1,800 per square meter.
For budgets under $150,000, Argentina may offer more square footage in desirable neighborhoods. For budgets above $300,000, Uruguay provides more stable value preservation and growth potential.
It's something we develop in our Uruguay property pack.
What type of property are you interested in?
Both countries accommodate different property types, but Uruguay offers more flexibility for foreign investors.
Uruguay allows foreigners to purchase any property type without restrictions: residential apartments, houses, commercial buildings, agricultural land, beachfront properties, and industrial facilities. You can buy anywhere in the country regardless of location, size, or value.
Argentina permits foreign ownership of urban and suburban residential properties with minimal restrictions. However, rural land ownership faces occasional administrative review, particularly in border zones or areas of strategic national interest.
For apartment investments, both countries offer strong opportunities. Buenos Aires has a larger rental market with over 3 million residents, while Montevideo provides higher rental yields averaging 5.37-6.54%. For vacation rentals, Uruguay's Punta del Este and Argentina's Mar del Plata both deliver strong seasonal returns.
Commercial real estate opportunities exist in both markets, but Uruguay's stable political environment makes it more predictable for long-term commercial investments.
What is the current real estate market like in Uruguay and Argentina?
Uruguay's real estate market demonstrates consistent stability with steady annual price growth of 3-5% and moderate inflation affecting property values.
The Uruguayan market benefits from robust demand driven by both domestic buyers and international investors. Montevideo and Punta del Este remain the top investment destinations, with transaction volumes increasing 15% year-over-year in 2025. The market operates primarily in USD, providing currency stability for foreign investors.
Argentina's property market is in a recovery phase following recent economic reforms. Buenos Aires property prices are recovering but remain 20-25% below 2019 USD peaks, creating potential value appreciation opportunities. Premium neighborhoods show annual growth of 8-12%, with strong transaction activity driven by government tax incentives.
Market liquidity differs significantly between countries. Uruguay maintains consistent buyer interest throughout the year, while Argentina experiences more seasonal fluctuations tied to economic policy announcements and political developments.
As of September 2025, Uruguay offers more predictable market conditions, while Argentina presents higher potential returns with correspondingly higher risks.
What are the property taxes and associated costs in both countries?
| Cost Type | Uruguay | Argentina |
|---|---|---|
| Transfer Tax | 2% of property value | 1.5% of property value |
| Stamp Duty | Included in notary fees | 2-4% of property value |
| Notary/Legal Fees | 3% of property value | 2-3% of property value |
| Real Estate Agent | 3-4% of property value | 2-3% of property value |
| Annual Property Tax | 0.15-0.3% of cadastral value | 1.2-1.5% of property value |
| Wealth Tax (Non-residents) | None | 0.25-0.75% annually |
| Total Transaction Cost | 7-11% | 10-11% |
Don't lose money on your property in Uruguay
100% of people who have lost money there have spent less than 1 hour researching the market. We have reviewed everything there is to know. Grab our guide now.
What is the average return on investment for properties in each country?
Uruguay delivers typical ROI of 5-7% annually, bolstered by rising property values and strong demand for tourist rentals.
Montevideo properties generate gross rental yields averaging 5.37-6.54%, with additional value appreciation of 3-5% annually. Punta del Este vacation rentals can achieve yields up to 8% during peak tourist seasons from December to March.
Argentina offers long-term rental yields ranging 5-8%, though oversupply in certain areas pressures returns. Short-term vacation rentals deliver higher returns, up to 7-10% in established tourist areas like Buenos Aires and Bariloche. The potential for exceptional value appreciation exists in recovering neighborhoods.
Currency considerations significantly impact returns. Uruguay's USD-based market eliminates currency risk for international investors, while Argentina's peso depreciation can either enhance or diminish returns depending on your base currency and timing.
For conservative investors prioritizing stable returns, Uruguay provides more predictable performance. Risk-tolerant investors may find Argentina's recovery potential more attractive despite higher volatility.
Are there any restrictions on foreign ownership of property in Uruguay and Argentina?
Uruguay imposes no restrictions whatsoever on foreign property ownership, making it one of the most accessible markets in Latin America.
Foreign nationals can purchase any property type in Uruguay without requiring residency, minimum investment thresholds, or government approval. You can buy houses, apartments, land, commercial properties, beachfront estates, or agricultural land anywhere in the country. Remote purchases are permitted, and you don't need to visit Uruguay to complete transactions.
Argentina allows foreigners to buy urban and suburban properties with minimal restrictions. However, rural land ownership by non-residents may face administrative review, particularly in border zones or areas considered strategically important. Recent reforms have streamlined foreign business registration and purchase procedures.
Both countries permit foreigners to obtain mortgages, though qualification requirements and interest rates vary. Uruguay typically offers more favorable lending terms for foreign buyers.
Neither country requires property owners to obtain residency, but both offer residency pathways for property investors who choose to pursue them.
What are the long-term economic projections for Uruguay and Argentina?
Uruguay maintains stable economic fundamentals with forecast GDP growth of 3-4% for 2024-2025, supported by consistent pro-investment policies and low corruption levels.
The Uruguayan economy benefits from diversified sectors including agriculture, tourism, and financial services. Inflation remains moderate at around 6-8% annually, and the country maintains strong fiscal discipline. The stable political environment supports long-term economic planning and foreign investment confidence.
Argentina shows promising economic recovery under new government reforms, with inflation dropping dramatically from 25.5% to 4.2% by September 2025. Forecast GDP growth reaches 5% for 2025, driven by liberalized currency controls and pro-business policies. However, the economy remains sensitive to political cycles and external economic shocks.
Long-term demographic trends favor both countries. Uruguay attracts increasing numbers of expats and retirees, supporting residential demand. Argentina's large domestic market and natural resources provide economic resilience, though political stability concerns persist.
For property investors, Uruguay offers more predictable long-term economic conditions, while Argentina presents higher growth potential with corresponding political and economic risks.
How is the rental market in both countries, and what are the rental yields?
Uruguay's rental market benefits from strong expat demand and tourism, delivering consistent yields of 5-7% in prime locations.
Montevideo attracts significant rental demand from expats, diplomatic personnel, and business professionals. The city's rental market operates primarily in USD, eliminating currency risk for foreign property owners. Short-term vacation rentals in coastal areas like Punta del Este thrive during summer months, with rates reaching $200-400 per night for quality properties.
Argentina's Buenos Aires rental market offers short-term rental yields up to 10% in tourist zones like Palermo and San Telmo. Long-term residential rentals yield 5-8%, though oversupply in certain neighborhoods affects sustained returns. The recent growth in remote work and digital nomadism has increased demand for furnished short-term rentals.
Rental regulations differ significantly. Uruguay maintains tenant-friendly but balanced rental laws with predictable lease terms. Argentina's rental laws have undergone recent changes, with new regulations potentially affecting long-term rental yields.
Seasonal demand patterns favor Uruguay for consistent year-round rentals, while Argentina shows stronger seasonal peaks during specific tourist periods.
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 specific legal requirements for purchasing property as a foreigner in each country?
Uruguay requires minimal legal procedures for foreign property purchases, with straightforward documentation and no residency requirements.
The Uruguayan purchase process involves:
- Obtaining a Uruguayan tax identification number (RUT)
- Hiring a licensed notary public to handle the transaction
- Conducting property title verification and legal due diligence
- Signing the purchase agreement (boleto de compraventa)
- Completing the final deed (escritura) transfer at the notary office
Argentina requires similar documentation but involves additional bureaucratic steps. The process includes obtaining a tax identification number (CUIT/CUIL), conducting more extensive title searches, and potentially facing longer approval times for certain property types. Legal representation is mandatory for both countries, but Argentina's process typically takes 60-90 days compared to Uruguay's 30-45 days.
Both countries require proof of funds origin for anti-money laundering compliance. Uruguay accepts international bank transfers with standard documentation, while Argentina has recently simplified its currency control procedures following April 2025 reforms.
Property registration fees and timeframes differ, with Uruguay offering more streamlined processes and shorter completion times.
How easy is it to transfer funds from your home country to Uruguay or Argentina?
Uruguay maintains minimal restrictions on international fund transfers, with property prices quoted in USD facilitating smooth transactions.
Uruguayan banks readily accept international wire transfers for property purchases. Major international banks like Citibank, Santander, and HSBC operate in Uruguay, simplifying fund transfers for their existing customers. The USD-based property market eliminates currency conversion complexities and exchange rate risks during transfer timing.
Argentina has significantly eased foreign exchange controls following April 2025 reforms, eliminating most repatriation limits and allowing official market USD transfers. This represents a major improvement from previous restrictions that required complex parallel market transactions.
Transfer timeframes typically range 3-5 business days for Uruguay and 5-10 business days for Argentina. Documentation requirements include proof of property purchase, source of funds verification, and standard anti-money laundering compliance.
Banking fees vary but generally range 0.5-1.5% of transfer amount plus fixed charges. Uruguay's established USD banking system often provides more competitive rates for large property purchase transfers.
It's something we develop in our Uruguay property pack.
What is the political stability like in Uruguay and Argentina?
Uruguay ranks among Latin America's most politically stable countries, with consistent pro-investment policies and low corruption levels.
Uruguay maintains a strong democratic tradition with peaceful power transitions and broad political consensus on economic fundamentals. The country scores highly on international governance indices, with Transparency International ranking it as the least corrupt country in Latin America. Property rights receive strong legal protection, and foreign investment policies remain consistent across different political administrations.
Argentina shows improved political stability under recent reforms, but the country remains more susceptible to policy changes affecting real estate markets. Recent government changes have brought pro-business policies and currency liberalization, creating optimism among investors. However, Argentina's history of economic policy reversals creates ongoing uncertainty for long-term planning.
Political risk assessment for property investors shows Uruguay offering more predictable conditions with minimal policy reversal risk. Argentina presents improving but still elevated political risks that could affect property values, rental regulations, and currency policies.
Both countries maintain stable legal systems protecting property rights, but Uruguay's consistent application provides greater confidence for foreign investors planning long-term property holdings.
How do the quality of life, healthcare, and general living conditions compare in each country?
Uruguay offers consistently high quality of life with excellent healthcare, safety, and favorable climate attracting expats and retirees.
Uruguay provides universal healthcare coverage with both public and private options. The country maintains low crime rates, political stability, and liberal immigration policies making it popular with international residents. Climate remains temperate year-round, and the coastline offers excellent recreational opportunities. Education standards are high, and English proficiency is growing in urban areas.
Argentina offers world-class culture, education, and healthcare in major cities, but economic volatility and occasional political disruption impact overall stability. Buenos Aires rivals European capitals for cultural offerings, dining, and nightlife. Healthcare in Buenos Aires and tourist centers meets international standards, though rural regions may lag behind urban facilities.
Cost of living comparisons show Uruguay as more expensive for daily expenses but offering greater price stability. Argentina provides lower absolute costs but with higher inflation volatility affecting budgeting predictability.
Infrastructure quality varies, with Uruguay maintaining more consistent standards nationwide. Argentina offers superior infrastructure in major cities but greater variation in secondary locations.
For retirees and remote workers prioritizing stability, Uruguay provides more predictable living conditions. Argentina appeals to those seeking vibrant urban culture and lower absolute living costs.
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.
Uruguay emerges as the more stable choice for property investment, offering unrestricted foreign ownership, USD-based transactions, and consistent 5-7% returns with minimal political risk.
Argentina presents compelling opportunities for risk-tolerant investors seeking higher potential returns, but requires careful monitoring of political and economic developments that could affect property values and rental yields.
It's something we develop in our Uruguay property pack.
Sources
- Buenos Aires Property Market Analysis
- Argentina Property Investment Guide
- Moving to Uruguay Property Guide
- Uruguay Property Investment Opportunities 2025
- Argentina Legal and Regulatory Developments
- Best Countries for Real Estate Investment 2025
- Montevideo Property Market
- Uruguay Property Price History
- Argentina Property Market Outlook 2025
- Uruguay Property Taxes and Costs