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Everything you need to know before buying real estate is included in our Uruguay Property Pack
Buying property in Uruguay requires different budget allocations depending on location, property type, and your specific needs.
Property prices in Uruguay vary significantly between coastal resort towns like Punta del Este ($4,000 per square meter) and interior regions where prices can be up to 50% lower, making budget planning crucial for potential buyers.
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Property costs in Uruguay range from $1,800 per square meter in interior regions to $4,000 per square meter in premium coastal areas like Punta del Este.
Total investment should include 8-11% in transaction costs, annual property taxes of 0.3-0.6%, and monthly maintenance costs of $1-2 per square meter.
| Location/Type | Price per sqm (USD) | Transaction Costs | Annual Property Tax | Monthly Maintenance |
|---|---|---|---|---|
| Montevideo Apartment | $3,500 | 8-11% of price | 0.3-0.6% of value | $1-2 per sqm |
| Punta del Este | $4,000 | 8-11% of price | 0.3-0.6% of value | $2 per sqm |
| Interior Regions | $1,800-2,000 | 8-11% of price | 0.3-0.6% of value | $1 per sqm |
| Houses (Montevideo) | $2,200 | 8-11% of price | 0.3-0.6% of value | $1-2 per sqm |
| Rural Land | Much lower | 8-11% of price | 0.3-0.6% of value | Minimal |
What is the average cost of property in Uruguay?
Property prices in Uruguay average $3,500 per square meter for apartments in Montevideo and $4,000 per square meter in Punta del Este as of September 2025.
Interior regions offer significantly better value with prices ranging from $1,800 to $2,000 per square meter in towns like Colonia and Maldonado. Rural properties can cost up to 50% less than coastal areas, making them attractive for budget-conscious buyers.
Houses in Montevideo have a median price of approximately $2,200 per square meter, while Maldonado homes average around $2,800 per square meter. These prices reflect the current market conditions and can vary based on specific neighborhoods and property conditions.
New construction properties typically command premium prices compared to older buildings, while fixer-uppers offer opportunities for buyers willing to invest in renovations. The price difference between new and older properties can range from 20% to 40% depending on the location and condition.
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Which property types should you consider in Uruguay?
Apartments represent the most popular choice for foreign buyers, especially in Montevideo and coastal areas like Punta del Este.
Houses offer more space and privacy but require higher maintenance costs and typically cost 20-30% more per square meter than apartments in similar locations. Single-family homes are particularly popular in suburban areas of Montevideo and resort towns.
Land purchases appeal to buyers planning custom construction or long-term investment strategies. Raw land costs significantly less than developed properties but requires additional expenses for utilities, permits, and construction.
Rural properties including farms and countryside estates provide the best value per square meter and appeal to buyers seeking agricultural opportunities or weekend retreats. These properties often include larger land parcels at fraction of urban prices.
How does location affect your budget in Uruguay?
| Location | Average Price per sqm | Property Type Focus | Investment Appeal |
|---|---|---|---|
| Montevideo | $3,500 (apartments) | Urban apartments, condos | Rental income, capital growth |
| Punta del Este | $4,000 | Luxury condos, beachfront | Tourism rental, prestige |
| Colonia | $1,800-2,000 | Historic properties, houses | Tourism, affordable entry |
| Maldonado | $2,000-2,800 | Mixed residential | Balanced growth potential |
| Interior/Rural | $900-1,500 | Farms, countryside homes | Agricultural, lifestyle |
| La Barra | $3,500-4,500 | Luxury beach houses | High-end tourism rental |
| José Ignacio | $4,500-6,000 | Ultra-luxury properties | Exclusive investment |
What property size fits your budget in Uruguay?
A 50 square meter apartment in Montevideo costs approximately $175,000, while a 100 square meter unit requires around $350,000.
Smaller apartments between 40-60 square meters offer the most affordable entry point for first-time buyers or investors seeking rental income properties. These units typically appeal to young professionals and tourists in short-term rental markets.
Medium-sized properties ranging from 80-120 square meters suit families and provide better resale potential. These properties balance affordability with space requirements and tend to appreciate more consistently over time.
Large properties exceeding 150 square meters target luxury buyers and command premium prices per square meter. These properties often feature better locations, amenities, and finishes but require substantially higher maintenance costs.
Land purchases typically start from 1,000 square meters for residential development, with rural properties offering much larger parcels at lower per-square-meter costs.
Should you buy in the city or rural areas?
City properties in Montevideo and coastal towns cost 50-100% more than rural alternatives but offer better rental income potential and infrastructure access.
Urban areas provide immediate access to amenities, healthcare, education, and employment opportunities. Montevideo properties generate average rental yields of 4-6% annually, making them attractive for income-focused investors.
Rural properties offer significant cost savings with prices often 50% below urban equivalents. These properties appeal to buyers seeking larger spaces, agricultural opportunities, or weekend retreats from city life.
Rural areas require additional budget allocation for infrastructure improvements, transportation costs, and limited access to services. Internet connectivity and utility access may require substantial upfront investments.
Resale liquidity differs significantly between urban and rural markets, with city properties typically selling within 6-12 months compared to 18-36 months for rural properties.
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How does property condition affect pricing in Uruguay?
New construction properties cost 20-40% more than older buildings but require minimal immediate renovation expenses.
Newly built apartments and houses feature modern amenities, energy-efficient systems, and contemporary designs that appeal to buyers seeking move-in ready options. These properties typically include warranties and require lower maintenance costs during the first 5-10 years.
Fixer-upper properties offer substantial savings but require renovation budgets ranging from $300 to $800 per square meter depending on the scope of work needed. These properties appeal to buyers with construction experience or those seeking customization opportunities.
Well-maintained older properties provide middle-ground options with moderate renovation needs and prices typically 10-25% below new construction. These properties often feature unique architectural details and established neighborhoods.
Properties requiring major structural work or system replacements should factor additional costs of $500-1,000 per square meter for comprehensive renovations including plumbing, electrical, and structural improvements.
What is the current exchange rate impact on your budget?
As of September 2025, one US dollar equals approximately 39 Uruguayan pesos, affecting the purchasing power of foreign buyers.
Exchange rate fluctuations can impact property costs by 10-20% over short periods, making timing crucial for international buyers. The peso has shown relative stability against the dollar but remains subject to regional economic factors.
Foreign buyers should budget for currency conversion fees ranging from 1-3% of the transaction value when transferring funds internationally. Banks and specialized currency services offer different rates and fee structures.
Property prices in Uruguay are often quoted in US dollars for foreign buyers, reducing exchange rate risk during the purchase process but not eliminating currency considerations for ongoing expenses.
Local expenses including property taxes, maintenance, and utilities are typically paid in pesos, creating ongoing currency exposure for foreign property owners. Monthly currency conversion costs should be factored into long-term budget planning.
What taxes and legal fees should you budget for?
| Cost Category | Percentage of Property Price | Approximate USD (on $300k property) | When Paid |
|---|---|---|---|
| Real Estate Agent Commission | 3-6% | $9,000-18,000 | At closing |
| Notary Fees | 1-2% | $3,000-6,000 | At closing |
| Registration and Transfer Tax | 2-3% | $6,000-9,000 | At closing |
| Legal Fees | 1-2% | $3,000-6,000 | During process |
| Property Inspection | 0.1-0.3% | $300-900 | Before closing |
| Bank/Mortgage Fees | 1-2% | $3,000-6,000 | At closing |
| Total Transaction Costs | 8-11% | $24,000-33,000 | Various stages |
What are the ongoing maintenance costs in Uruguay?
Monthly maintenance costs range from $1 to $2 per square meter for apartments and houses in Uruguay.
Apartment buildings typically charge monthly fees covering common area maintenance, security, building insurance, and utilities for shared spaces. These fees range from $50 to $150 monthly for average-sized units in Montevideo.
Houses require individual maintenance budgets covering garden care, pool maintenance, security systems, and general upkeep. Annual maintenance costs typically equal 1-2% of the property value for well-maintained buildings.
Coastal properties face higher maintenance costs due to salt air exposure requiring more frequent painting, window replacement, and HVAC system servicing. Budget an additional 20-30% for beachfront properties compared to inland locations.
It's something we develop in our Uruguay property pack.
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.
How much are annual property taxes in Uruguay?
Annual property taxes in Uruguay range from 0.3% to 0.6% of the assessed property value, depending on location and property type.
Contribución Inmobiliaria represents the primary property tax paid to municipal governments, calculated based on official property assessments that may differ from market values. Urban properties typically face higher tax rates than rural properties.
Impuesto de Enseñanza Primaria adds an additional education tax ranging from 0.1% to 0.2% of assessed value. This tax funds public education and applies to all property types throughout Uruguay.
Luxury properties exceeding certain value thresholds face additional wealth taxes that can increase total annual tax burden to 1% or more of assessed value. These taxes primarily affect high-value coastal properties and urban luxury apartments.
Property tax payments are typically made quarterly or annually, with discounts available for early payment in many municipalities. Foreign owners face the same tax obligations as Uruguayan citizens.
Should you budget for renovation costs in Uruguay?
Renovation costs in Uruguay range from $300 to $800 per square meter depending on the scope and quality of improvements desired.
Basic renovations including painting, flooring replacement, and fixture updates typically cost $300-400 per square meter. These improvements can significantly enhance property value and rental appeal without major structural changes.
Comprehensive renovations involving kitchen and bathroom remodeling, electrical updates, and plumbing improvements range from $500-650 per square meter. These projects often require 3-6 months completion time and proper permits.
Luxury renovations featuring high-end finishes, smart home technology, and premium appliances can exceed $800 per square meter. These improvements target upscale rental markets and premium resale positioning.
Structural modifications including room additions, balcony enclosures, and major layout changes require additional engineering costs and permits that can add 20-30% to base renovation expenses.
What financing options are available for property purchases?
Foreign buyers can access mortgages in Uruguay with interest rates ranging from 6% to 10% and loan-to-value ratios of 50-70%.
Down payment requirements for foreigners typically range from 30% to 50% of the property value, significantly higher than domestic buyer requirements. Banks require extensive documentation including income verification, credit history, and legal residency status.
Local banks including Banco República, Santander Uruguay, and Itaú offer mortgage products to qualified foreign buyers. Processing times typically range from 60-90 days with application fees of 1-2% of the loan amount.
Alternative financing through developer financing or private lenders may offer more flexible terms but typically at higher interest rates ranging from 8-12%. These options appeal to buyers who cannot qualify for traditional bank mortgages.
Cash purchases remain the most common method for foreign buyers, eliminating financing costs and complications while potentially providing negotiating advantages with sellers seeking quick closings.
It's something we develop in our Uruguay property pack.
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.
Property costs in Uruguay vary dramatically by location, with coastal areas commanding premium prices while interior regions offer substantial savings for budget-conscious buyers.
Successful property investment in Uruguay requires careful budget planning that includes not only purchase price but also transaction costs, ongoing taxes, and maintenance expenses that can add 10-15% annually to ownership costs.