Summary
Yes, if you want a steady income rather than a high one: a Montevideo flat let on a long lease earns about 6.1% gross on asking prices (median of the city's barrios, INGAR, September 2026) and around 4% net once you take off costs and the 10.5% rental tax advance.
Foreigners can buy and rent out with the same rights as Uruguayans, and you don't need residency. A non-resident pays IRNR at 12% of the taxable rent, collected as a 10.5% advance on the gross rent, either by the agency or by you after registering with the DGI.
A long lease beats Airbnb for most owners. A Pocitos 1-bedroom let at the Montevideo average of UYU 29,368 a month nets about UYU 261,000 a year (about USD 6,510), or 3.7%, while the same flat on Airbnb with a manager loses money at AirROI's average revenue.
Set aside 20% to 30% of the rent for costs. The landlord pays property taxes (often UYU 16,000 to UYU 40,000 a year on a USD 200,000 flat, our estimate), repairs, and the building fees whenever the flat is empty. We estimate vacancy at 4% to 6% for a normal Montevideo flat, not the 3% to 5% often quoted.
Count the entry and exit costs: about 9.5% to buy with an agency and about 5% to sell. Over five years with an agency, flat dollar prices leave you with only about USD 3,500 on a USD 178,000 flat, while prices rising 3% a year leave about USD 30,500. Borrowing at 6.95% (Santander, investment loan for non-residents) to earn 3% to 4% net loses money.
The best yields are in central Montevideo: Ciudad Vieja about 7.0% gross, Centro and Cordón 6.2%, against 5.1% in Punta Carretas and Parque Rodó. The highest rents are in Carrasco, where the average apartment asks UYU 78,485 a month.
Most tenants want an unfurnished flat (80% to 90%, our estimate) and a clean rental guarantee. A garage adds about UYU 3,000 to UYU 6,000 a month, and the CGN guarantee costs the landlord a 3% commission.
There is no rent control on a new lease. Renewals follow the INE coefficient, 4.55% for leases turning a year old in September 2026, and leases under the no-guarantee regime of Law 19.889 follow whatever the contract says.
In Punta del Este, an annual lease nets only about 2.5% to 3.6% after tax, so a coastal flat bought only to rent out rarely pays.
Short-term renting is legal under Law 20.352 (seasonal leases of up to 120 days), but the Ministry of Tourism register is still not confirmed in force. In Montevideo, AirROI's average listing is booked 44% of the time at UYU 2,936 a night, and listings grew 32% in a year.
Our advice: buy a flat that works as a long-term rental, in a central barrio with low building fees, aim for at least 6% gross on the price you actually pay, plan to hold five years or more, and treat Airbnb as a bonus, not the plan.
Can I legally rent out a property in Uruguay as a foreigner right now?
Can a foreigner own and rent out a home in Uruguay?
Yes. Foreigners can buy and rent out homes in Uruguay with the same rights as Uruguayans, with no quota and no special permit for residential property.
Most foreign landlords buy in their own name. Some use a Uruguayan company (sociedad anónima) when they own several units, but a company that holds property has extra registration and reporting duties, so for one or two flats your own name is usually simpler.
The hard part is not ownership but tax and use: paying the rental tax, following the lease rules, and, for short stays, Law 20.352 and your building's rules.
Do I need residency to rent out?
No. You can own a rental and collect the rent without living in Uruguay, and many foreign owners do exactly that.
A non-resident pays IRNR at 12% of the taxable rental income, computed like the resident IRPF. In practice, 10.5% of the gross rent is withheld or paid in advance each month. If an agency (inmobiliaria) manages the lease, it withholds and pays the tax; if you rent out directly, you register with the DGI for a tax number and pay the advances yourself. The small-landlord exemption some residents get is not open to non-residents. Because you pay IRNR, the higher wealth-tax rates for non-residents (0.7% to 1.5%) don't apply to you.
A rental won't get you a residence permit either: there's no golden visa. Property above UI 3.5 million (about USD 580,000) plus 60 days a year in Uruguay can still make you a tax resident, but since Law 20.446 (January 2026), the 11-year tax holiday for newcomers needs more than 183 days a year or property above UI 12.5 million (about USD 2.1 million). More in our article on buying property and residency in Uruguay.
A local bank account is not legally required, but it makes collecting rent and paying building fees and property taxes much easier.
Running a rental from abroad works, but in practice you need a local agency or administrator for viewings, the tenant's guarantee, repairs and the yearly paperwork.
Which rental strategy makes the most money in Uruguay?
Is long-term renting more profitable than short-term?
For most owners, yes. A long lease in Montevideo brings less on paper than a good summer in Punta del Este, but it costs far less to run and is much more predictable.
Take a 45 m² 1-bedroom in Pocitos (about USD 178,000 at INGAR's asking price of USD 3,956 per m²). Let long term at the Montevideo average of UYU 29,368 a month (Gallito, August 2026), it nets about UYU 261,000 a year (about USD 6,510, or EUR 5,800), or 3.7%, after one empty month, property taxes, repairs and the 10.5% tax advance.
The same flat on Airbnb, at AirROI's average revenue for a Montevideo 1-bedroom (UYU 313,000 a year) and with a manager, loses about UYU 22,500 a year. Even open every night at AirROI's average rate and occupancy, it nets only UYU 47,900 with a manager, or UYU 140,700 (2.0%) if you host it yourself.
Short-term only wins for flats that beat the average by a wide margin: to reach 4% net hosting it yourself, our model needs about UYU 682,000 a year (about USD 17,000), more than twice AirROI's average. It can also make sense if you want to use the place yourself part of the year. We go through the full Airbnb model in our article on whether an Airbnb pays in Uruguay.
What's the average gross rental yield?
In Montevideo, the median gross yield across barrios is 6.1% on asking prices and asking rents (INGAR, September 2026). In Punta del Este, an annual lease gives about 4% to 5.5% gross (Caetano Inmobiliaria, July 2026).
Within Montevideo, yields run from about 5.1% in Punta Carretas and Parque Rodó to 7.0% in Ciudad Vieja. The rule is simple: the pricier the barrio per m², the lower the yield.
Studios and small 1-bedrooms usually yield the most, because rents don't fall as fast as prices when the flat gets smaller, and students, young workers and couples all look for them.
What's the realistic net rental yield after costs?
About 4% in Montevideo, after costs and tax. By barrio, our estimate goes from about 3.3% in Punta Carretas and Parque Rodó to 4.7% in Ciudad Vieja. In Punta del Este, an annual lease nets about 2.5% to 3.6%.
A net figure without tax is wrong in Uruguay: the 10.5% tax advance on gross rent alone takes about half a point to three-quarters of a point off a 5% to 7% gross yield.
The other costs that eat the gap between gross and net are vacancy (budget one month a year), the municipal contribución inmobiliaria and the national Impuesto de Primaria (0.15% to 0.30% of the cadastral value), insurance, repairs and, if you use one, the agency, at about 8% to 12% of the rent collected (our estimate). Ordinary building fees (gastos comunes) are usually paid by the tenant, but you pay them whenever the flat is empty.
What monthly rent can I get?
New listings in Montevideo ask on average UYU 23,329 for a studio (about USD 580 or EUR 520), UYU 29,368 for a 1-bedroom (about USD 730 or EUR 655) and UYU 40,065 for a 2-bedroom (about USD 1,000 or EUR 890) (Inmuebles Data–Gallito, August 2026). The official average signed lease for the whole of Uruguay is lower, UYU 22,413, because it mixes old leases and cheaper towns (INE, August 2026).
Most studios ask UYU 19,000 to UYU 30,000 a month (about USD 475 to USD 750, or EUR 420 to EUR 665), with the cheap end in Centro, Cordón, Aguada and La Blanqueada and the top end in new buildings in Pocitos, Punta Carretas and Buceo (our estimate).
Most 1-bedrooms ask UYU 24,000 to UYU 35,000 (about USD 600 to USD 875, or EUR 535 to EUR 780). The median goes from UYU 24,900 in Centro to UYU 34,500 in Punta Carretas and UYU 38,250 in Carrasco (Cambio Uruguay, October 2026).
Most 2-bedrooms ask UYU 30,000 to UYU 50,000 (about USD 750 to USD 1,250, or EUR 665 to EUR 1,110): about UYU 30,000 in Centro, UYU 40,000 in Pocitos and Malvín, and UYU 50,000 in Carrasco. These are asking rents, without building fees.
Starting a Rental in Uruguay
What should I budget to hold a rental in Uruguay?
What's the total "all-in" monthly cost to hold a rental?
While the flat is let, a landlord typically pays about UYU 3,000 to UYU 6,500 a month (about USD 75 to USD 160, or EUR 67 to EUR 145) for property taxes, insurance and a repair reserve on a normal Montevideo flat (our estimate). Add the agency fee if you use one.
Property taxes alone often come to UYU 16,000 to UYU 40,000 a year (about USD 400 to USD 1,000) on a USD 200,000 flat, because the contribución inmobiliaria and the Impuesto de Primaria are based on the cadastral value, not on what you paid. Basic home insurance costs about UYU 5,088 to UYU 7,482 a year (BBVA / MAPFRE).
The cost that changes everything when the flat is empty is the building fees: UYU 3,000 to UYU 6,000 a month for a 2-bedroom in a basic building, UYU 6,000 to UYU 12,000 with a part-time doorman and UYU 12,000 to UYU 25,000 (about USD 300 to USD 625) with full service and amenities (INGAR, 2026). They also decide how easy the flat is to let, because tenants compare rent plus fees.
The simple rule: set aside 20% to 30% of the gross rent for vacancy, repairs, administration, insurance and surprises, before tax. On a UYU 29,368 rent, that is about UYU 5,900 to UYU 8,800 a month.
What's the typical vacancy rate?
No official figure exists. Our estimate is 4% to 6% for a normal, well-priced Montevideo flat, or roughly two to three weeks empty a year, and 6% to 10% nationally.
A prudent landlord budgets one empty month a year (about 8% of the annual rent), for the gap between tenants, repainting and small repairs.
Vacancy is lowest near jobs, universities and the main bus lines: Pocitos, Punta Carretas, Cordón, Parque Rodó and Buceo can be closer to 3% to 5%. Old, overpriced or high-fee flats sit much longer.
February to April is the busiest time to find a tenant, after the summer holidays and at the start of the university year. December and January are the quietest months for long leases in Montevideo.
Is a Montevideo buy-to-let worth it once you count every cost?
It's a modest, steady investment, not a high-yield one. Here is our model for the same 45 m² 1-bedroom in Pocitos, let long term at the Montevideo average rent:
| Per year | Self-managed | With an agency |
|---|---|---|
| Asking price (45 m² at USD 3,956/m², INGAR) | USD 178,000 | USD 178,000 |
| Rent, 12 months at UYU 29,368 | UYU 352,400 (USD 8,790) | UYU 352,400 (USD 8,790) |
| One empty month | −UYU 29,400 | −UYU 29,400 |
| Tax advance (10.5% of rent collected) | −UYU 33,900 | −UYU 33,900 |
| Property taxes | −UYU 18,000 | −UYU 18,000 |
| Repairs and upkeep | −UYU 10,000 | −UYU 10,000 |
| Agency (8% of rent collected) | none | −UYU 25,800 |
| Net | UYU 261,100 (USD 6,510) | UYU 235,300 (USD 5,870) |
| Net yield on the asking price | 3.7% | 3.3% |
| Net yield including 9.5% purchase costs | 3.3% | 3.0% |
A cheaper barrio does better: the same flat in Cordón (USD 3,228/m², so about USD 145,000) at the barrio's median rent of UYU 27,000 grosses 5.6% and nets about 4.1% self-managed, or 3.7% with an agency.
Then add the entry and exit costs. Buying costs about 6% without an agency and 9.5% with one (transfer tax, notary and agency), and selling about 5% with an agency, so a round trip takes 13% to 15% of the price. With a net yield of 3% to 4%, the purchase costs alone take one and a half to three years of rent to earn back.
Over five years, with an agency on both sides and a managed lease, our model gives:
- Dollar prices flat: about USD 3,500 in total on a USD 178,000 flat, so close to nothing.
- Dollar prices up 3% a year (the low end of our +3% to +6% estimate): about USD 30,500, or roughly 3% a year on the USD 194,900 you put in.
Both figures are before any capital-gains tax (12% of the taxable gain). Keep in mind that rents are paid in pesos and prices are set in dollars: the peso has been stable at about 40.1 to 40.3 per dollar since August 2026, but a weaker peso would cut your dollar yield.
Don't borrow to buy a rental. Santander's investment loan for non-residents costs 6.95% in dollars (rate of 7 August 2026), well above a 3% to 4% net yield, and BTG Pactual, the other bank with a line for non-residents, doesn't allow you to rent out the mortgaged property. Most foreign buyers pay cash. Our article on getting a mortgage in Uruguay covers the banks.
What makes it worth it: buy below the asking price (sale prices are about 8% under asking in Montevideo, our estimate), pick a building with low fees, aim for at least 6% gross, and plan to hold five years or more.
70+pagesWhere do rentals perform best in Uruguay?
Which neighborhoods have the highest long-term demand?
Pocitos, Punta Carretas and Cordón in Montevideo have the broadest demand, with Parque Rodó, Buceo, Malvín, La Blanqueada and Tres Cruces close behind.
Families look in Carrasco, Malvín, Punta Gorda, Parque Batlle and Ciudad de la Costa, for bigger homes, parking, schools and calmer streets.
Students and young workers concentrate in Cordón, Centro, Tres Cruces, Parque Rodó and La Blanqueada, near the universities and the main bus lines.
Expats prefer Pocitos, Punta Carretas, Carrasco, Ciudad Vieja and Buceo for the Rambla, walkable streets and international schools, but locals still make up most tenants.
Which neighborhoods have the best yield?
Ciudad Vieja (about 7.0% gross), Centro and Cordón (about 6.2% each) and Buceo (5.6%) lead Montevideo, against a city median of 6.1% (INGAR, September 2026). The prime coastal barrios yield less: Carrasco 5.5%, Malvín 5.4%, Pocitos 5.3%, Punta Carretas and Parque Rodó 5.1%.
After tax and costs, that is about 4.1% to 4.7% net in the top three and 3.3% to 3.6% in the prime barrios (our estimate).
The reason is price: asking prices are USD 2,157 per m² in Ciudad Vieja, USD 3,026 in Centro and USD 3,228 in Cordón, against USD 3,956 in Pocitos and USD 4,370 in Carrasco, roughly 20% to 50% less, while rents fall much less. Very high yields in outer barrios usually mean slow resale or weaker tenants. We compare the areas in our article on the best areas to invest in property in Uruguay.
Where do tenants pay the highest rents?
Carrasco, Golf, Puerto Buceo and Punta Carretas. In August 2026, the average apartment asked UYU 78,485 in Carrasco, UYU 77,038 in Golf, UYU 66,942 in Puerto Buceo and UYU 49,915 in Punta Carretas, against UYU 40,653 in Pocitos (Inmuebles Data–Gallito).
Those averages mix all sizes, so big flats push them up. For a normal 2-bedroom, the median asks UYU 42,000 in Punta Carretas and UYU 50,000 in Carrasco (about USD 1,050 and USD 1,250, or EUR 935 and EUR 1,110) (Cambio Uruguay, October 2026).
Tenants pay for the Rambla, newer buildings, a garage, security and good schools nearby. They are mostly executives, higher-income local families, diplomats and expats.
High rents don't mean high returns: these are also the barrios with the lowest yields.
What do tenants actually want in Uruguay?
What features increase rent the most?
A garage, a balcony, air conditioning, security or a doorman, and being near the sea or the Rambla.
In Montevideo, our estimates are UYU 3,000 to UYU 6,000 a month more for a garage, UYU 2,000 to UYU 5,000 for a balcony, UYU 1,000 to UYU 3,000 for air conditioning, UYU 2,000 to UYU 5,000 for security and UYU 4,000 to UYU 10,000 for sea proximity. That is about USD 25 to USD 250, or EUR 22 to EUR 220, depending on the feature.
A doorman is a trade-off: tenants like it, but it pushes building fees to UYU 6,000 to UYU 25,000 a month, and tenants look at rent plus fees.
What's overrated: luxury kitchens and high-end appliances in average barrios. What pays back: paint and damp repair, a kitchen or bathroom refresh, air conditioning, a space for a washing machine and good photos.
Do furnished rentals rent faster?
Only in a few areas. We estimate 80% to 90% of long-term tenants in Montevideo want an unfurnished flat, so furniture is a niche, not a default.
Where furnished demand exists, mostly Pocitos, Punta Carretas, Ciudad Vieja and Parque Rodó, a furnished flat can ask UYU 4,000 to UYU 10,000 more a month (about USD 100 to USD 250, or EUR 89 to EUR 220), from expats, company tenants and people between two homes. Punta del Este is the opposite: most year-round tenants there want a furnished flat.
No portal publishes how much faster furnished flats let. A well-priced flat in Montevideo usually finds a tenant in 25 to 40 days either way (our estimate), and price matters more than furniture.
70+pagesHow regulated is long-term renting in Uruguay right now?
Can I freely set rent prices?
Yes for a new lease: there is no rent cap or price control on the starting rent.
During a standard lease, the rent goes up once a year by the INE adjustment coefficient, which follows inflation: 4.27% for leases turning a year old in August 2026 and 4.55% in September 2026, with inflation at 4.68%. On a UYU 30,000 rent renewing in September, that is UYU 1,365 more.
Leases signed under the no-guarantee regime of Law 19.889 (LUC) are different: the rent can be set in pesos, dollars, UI or UR and moves the way the contract says.
One thing to know as a landlord: new asking rents in Montevideo were 3.91% lower in August 2026 than a year earlier (Inmuebles Data–Gallito), so price a new lease from current listings, not from last year's rent plus the coefficient.
What's the standard lease length?
Most residential leases run for one or two years, with the rent adjusted once a year. Under the no-guarantee regime of Law 19.889, the term is whatever landlord and tenant agree.
Uruguay doesn't rely much on cash deposits. The tenant brings a guarantee instead: ANDA, the state CGN guarantee (which costs the landlord a 3% commission on the rent), a deposit in UI at the BHU, private rent-default insurance or a property guarantee. A tenant with a clean guarantee often beats one offering more rent without one.
Under Law 19.889 without a guarantee, if the tenant stops paying, the law gives 6 business days to leave once the court has ruled, but the whole process takes longer, and no reliable figure exists for the full time to evict.
At the end of the lease, the guarantee is released once the flat is handed back and checked. Write the inspection and the deadline into the contract.
How does short-term renting really work in Uruguay?
Is Airbnb legal in Uruguay right now?
Yes. Short-term rentals are legal and are framed by Law 20.352 of September 2024, which regulates tourist accommodation in private homes instead of banning it.
The law treats a tourist lease of up to 120 days as a seasonal lease, with a 15-day eviction deadline if a guest stays on. It also says hosts must file a sworn declaration in a Ministry of Tourism register and show the number in every listing.
That register is not running yet: the ministry presented its draft regulation in November 2025, the government said it would not apply in the 2025-26 summer, and in October 2026 its entry into force was still not confirmed. Treat registration as coming, not optional.
There is no national cap on nights and no owner-occupancy rule. The real limits are your building's rules (reglamento de copropiedad) and tax: the rental tax applies to summer lets too. If you ignore the framework, you risk fines, losing the right to advertise once the register runs, and trouble with the DGI.
What's the average short-term occupancy?
AirROI puts Uruguay's average at 35% of available nights. Montevideo is steadier, at 44% over the 12 months to September 2026, about 160 booked nights a year. Punta del Este averages 34.6%.
Strong hosts in Montevideo reach about 55% to 65% (our estimate), thanks to reviews, good photos, fast replies and seasonal pricing.
The peak on the coast is December to February, with January far ahead, plus Carnaval and Easter week (Semana de Turismo): Punta del Este occupancy rises to 50.6% from December to February. Montevideo moves less, from 40.8% in June 2026 to 55.6% in February 2026.
The quiet months are May to August, when the beach towns empty and only Montevideo keeps business and long-stay guests.
What's the average nightly rate?
In Montevideo, AirROI's average is UYU 2,936 a night (about USD 73, or EUR 65): UYU 2,706 for a 1-bedroom and UYU 3,837 for a 2-bedroom. In Punta del Este, it is USD 192 a night (about UYU 7,700, or EUR 170).
The range is wide: from about UYU 2,700 for a plain Montevideo 1-bedroom to USD 403 a night on average in La Barra and USD 394 in José Ignacio, where most listings are houses with pools that book less than 30% of the year.
In Punta del Este, the December to February average is USD 221 against USD 192 for the year; the best houses go much higher in the first half of January. In Montevideo, rates actually rise a little in winter, to about UYU 3,200.
Is short-term rental supply saturated?
It is getting crowded in Montevideo. AirROI counts 2,487 listings there, 32% more than a year earlier, against 2,807 in Punta del Este, up only 5.6%, plus 245 in José Ignacio, 191 in La Barra and 90 in Manantiales.
The busiest areas are Pocitos, Punta Carretas, Ciudad Vieja, Centro and Cordón in Montevideo, and the Península, Playa Brava, Playa Mansa, La Barra and José Ignacio around Punta del Este.
Less crowded options include Carrasco for larger Montevideo homes, Parque Batlle for practical city stays, Piriápolis for cheaper coastal stays, and La Paloma and La Pedrera, where good management is still rare.
Our methodology
This article estimates whether buying a property to rent out in Uruguay pays: the rules for foreign landlords, rents, gross and net yields, holding costs, a full buy-to-let model with purchase and sale costs, the best areas, and how short-term renting compares in Montevideo and Punta del Este.
For official figures, we used INE (average signed lease, August 2026; rent adjustment coefficient, August and September 2026; inflation, September 2026). For the market, we used asking prices and yields from INGAR (September 2026), asking rents from Inmuebles Data–Gallito (August 2026) and Cambio Uruguay (October 2026), InfoCasas barrio guides, Caetano Inmobiliaria (July 2026) for Punta del Este yields, and AirROI only for short-term rentals. Net yields and the five-year scenarios are our own model built on those figures.
For the rules, we used the DGI for IRPF, IRNR and the 10.5% advance, IMPO for Law 20.352 (seasonal and tourist leases) and Law 19.889 (leases without a guarantee), the CGN and ANDA for rental guarantees, the Ministry of Tourism for the draft register, the DGI and RSM Uruguay (2026) for the tax-residence criteria, and the DGI for the 2026 tax-holiday rules under Law 20.446.
We checked these figures in October 2026. Peso amounts are converted at about 40.1 pesos per US dollar and 45 pesos per euro (BCU, October 2026). Property is priced in dollars, while long-term rents and running costs in Montevideo are paid in pesos, so a dollar yield also moves with the exchange rate.
The limits: portal prices and rents are asking figures, not signed deals; INGAR's yields are estimates on asking prices; vacancy, days to let, amenity premiums, management fees and property-tax amounts are our own estimates; AirROI averages mix full-time and part-time listings; and the Airbnb register rules may change once the ministry publishes its final decree.
Key sources used for this analysis include INGAR, September 2026 report, INE rental market, August 2026, INE rent coefficient (datosUruguay), El País / Inmuebles Data, Cambio Uruguay, AirROI Montevideo, AirROI Punta del Este, DGI, annual and seasonal rents, IMPO, Law 20.352, IMPO, Law 19.889, Caetano Inmobiliaria, Forvis Mazars and RSM Uruguay.
