CLOSE X

Register - if you don't have an account

Yes! Sign me up for Global Property Guide's fortnightly email newsletter.


Login - for registered users

Forgot Password?
Explore destinations
continent map couldn't be loaded Pacific Europe & Russia North America Latin America Asia Africa Middle East Caribbean

 


Financial Overview

Directory

Property Search

Global Statistics

Regional Statistics






Dec 17, 2013

Total transaction costs are moderate in Uruguay


How high are realtors´ and lawyers´ fees in Uruguay? What about other property purchase costs?

Transaction Costs

Who Pays?
Notary Fee 3% buyer
Registration Tax 1% buyer
Real Estate Transfer Tax 2%
2%
buyer
seller
Real Estate Agent’s Fee 3%
3%
buyer
seller
Costs paid by buyer 9%
Costs paid by seller 5%
ROUNDTRIP TRANSACTION COSTS 14%
See Footnotes
Source: Global Property Guide

How difficult is the property purchase process in Uruguay?

Except for areas considered part of the national security domain, there are no restrictions on the ownership of private property or the establishment of any business. Corruption is not a serious problem in Uruguay.

Before the sale, four different non-encumbrance certificates must be presented as guarantee to the buyer. The first one from the "Banco de Provision Social" ascertains that the owner is free of any social security debt. The others are acquired at the Real Estate Office, the "Registro de Actos Personales", and the Municipality. There must be no transaction without these certificates. This process ensures that there is no pending mortgage, lien, or any other encumbrance on the property.

Transfer of title is executed before a public notary. In order for the transfer of property to occur, it must be registered in the appropriate area where the property is located. A notary is very important in the transaction as the deed will be rendered invalid without it.

Value Added Tax (VAT) does not apply to the transfer of real property

Loans are generally 30 years, and the government establishes maximum interest rates. The Mortgage Bank of Uruguay (Banco Hipotecario del Uruguay) is the only mortgage bank in Uruguay and the principal intermediary of medium and long-term funds for housing in the country.

The whole process of registering a property can be completed in around 66 days.



Footnotes to Transaction Costs Table


The round trip transaction costs include all costs of buying and then re-selling a property - lawyers´ fees, notaries´ fees, registration fees, taxes, agents´ fees, etc.

Notary Fee
Notary fees are around 3% of the property value. The notary fees are regulated by the Asociación de Escribanos del Uruguay, or Uruguayan Notary Association, and they set the official notary fees. Some notaries might charge less than the official rates.

Registration Tax
Registration tax is around 1% of the property value.

Real Estate Transfer Tax (Impuesto a las trasmisiones patrimoniales)
Real estate transfer tax is around 4% of the property value. The buyer and seller each pay 2% of the real estate transfer tax.






Comments

#1 CLOVIS PRUDENT | April 14, 2010

Answering #3 PAUL ABRAHAMI
If you are interested in Uruguay = small farm acrage at very reasonable prices + 65% lower cost of living of Montevideo, try looking up ci092350@yahoo.com

Login or Register to submit a comment!

In order to promote open and spam-free conversations, Global Property Guide moderates commetns on all articles. You can expect that your comment will be published within 24 hours.



Uruguay Report Q4 2013 - Situacioninmobiliaria
Compare Countries



Free Newsletter

Fortnightly updates from the global property arena directly to your inbox.


Email Address:





Connect to professional advice in Uruguay



PROPERTY RECOMMENDATIONS

 
Download free Global Property Guide reports

Our Newsletter

 
Fortnightly updates from the global property arena directly to your inbox.

Manage subscriptions
Chinese property buyers and Asian buyers, there is great property for high net worth Chinese buyers on Juwai.com

Which parts of the world are most attractive for property investment today?

Click here to download our FREE Property Recommendations Reports!

Close Me