Uruguay: Guide to Buying Costs and Procedures
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Total transaction costs are moderate in Uruguay
Transaction Costs |
||
| Who Pays? | ||
| Notary's Fee | 3.00% | buyer |
| Registration Tax | 1.00% | buyer |
| Real Estate Transfer Tax | 2.00% 2.00% |
buyer seller |
| Estate Agent's Fees | 3.00% 3.00% |
buyer seller |
| Costs paid by buyer | 9.00% | |
| Costs paid by seller | 5.00% | |
| ROUNDTRIP TRANSACTION COSTS | 14.00% | |
| See Footnotes Source: Global Property Guide |
||
How high are realtors' and lawyers' fees in Uruguay? What about other property purchase costs?
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.
Uruguay - more data and information
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Your Comments
posted by M. Young | 2007-08-16
Teacher, USA
As an Uruguayan who just retired and is planning to return part of the year to live in Montevideo I am surprised about the cost of buying property....(9% of the cost) even if you don't need a mortgage because you'll pay cash. Here, only the buyer pays comission. That sounds like too much!
posted by Leonard Sklar | 2007-08-18
Professional, USA
What are the names of the 4 non-encumbrances certificates that must be presented as a huarantee for a buyer before a sale? 1. Banco de Provision SociaL 2. Registro de Actos Personales 3. ? 4. ?
posted by paul abrahami | 2007-09-13
investor, US
i am trying to find uruguay's real estate developers direct websites, or real estate for sale offered by owners, i cant find any such sites? i do not want to deal with real estate brokers. please email me of developers and owners direct for sale sites. sincerely,