REAL ESTATE IN PUNTA DEL ESTE > Frequently Asked Questions

There are no restrictions in this. Any foreigner can buy a property in Uruguay

Are there any taxes for buying properties in Punta del Este?

Both Buyers and sellers pay a tax called ITP (tax on patrimonial transmission) that is 4% of the fiscal value (this value is usually lower than the actual commercial value) The percentage is divided in equal parts for both parties: seller 2% buyer 2%.

Who pays for the real estate commission?

The real estate commissions are payed by the part that receives the service, buyer or seller. In both cases, the amount is calculated as a percentage of the selling price determined by ADIPE (Real Estate Association of Punta del Este) which is 4% tax included
The cost of the buying agent includes searching for the property, negotiating the terms and conditions of the deal, handing all the needed documentation to the public notary assigned by the buyer.
The cost of the selling agent include an appraisal of the property, the publication of the property in different mediums to maximize the potential buyers, preparing all the documentation necessary for the deal, organizing the closing deal and the supervision of the property transition.

What would my expenses be for buying a property?

In Uruguay it is the buyers responsibility to pay the closing fees including the public notary’s fees, registering costs, Tax on the property transmission (50%). If you use a real estate agent to find the property and/ or negotiate the deal you will also need to pay for the real estate commission.

What are the notarial expenses?

The notary fees vary depending on the deal.
The final title deal in buying/selling a property usually have a fee of 3% plus VAT. And in the reservation contract they usually have a fee of 1.5% plus VAT.

How do I register the property transmission?

The transmission of the property will be established in the REGISTRO DE LA PROPIEDAD. Real Estate section. This registry is done by the notary and its cost is included in his/ her fee.

What are the main steps in the buying-selling process in Uruguay?

The buying process can generally be divided in these steps: Finding the property you want or finding the potential buyer for your property, negotiating the terms and signing the Reservation contract were the buyer assigns the notary in charge of studying the documentation. Preparing the closing and looking for the properties history, then the closing, registry of the deal and finally the transfer of the property.

What is a “reservation contract”?

In Uruguay most of the real estate deals last a between a couple of weeks and many months. There are many reazons for this. First of all any deal requires the recopilation of many documents that need to be updated and checked. As a result of this there has been established a preivous agreement between the buyer and the seller. This reservation contract describes all the conditions of the future deal, and a list of all the necesary documentation the buyer needs to give and the corresponding fees in the case the deal is broken. 

What is the procedure for closing?

The clossing is usually done in the notorial office, the real estate agents office, or a financial institution. The signed agreement is presented for the public registry , where the real transfer of property rights take place.

If the idea of the property is for CASA HABITACION?? You will need to pay a 2% annual tax on the property called. Real Estate contribution. And then the fees that go with the property like for example: phone, electricity, water, and in the cas of apartments, the monthly expenses.