INVESTMENTS in URUGUAY

Purchase and Sale of Urban and Rural Real Estate in Uruguay

This section is intended for foreign and domestic clients; in many cases there may be some differences in purchase and sale transactions between the investors' countries of origin and Uruguay.

Below, we describe the main points, the mechanism and the procedures that govern in Uruguay when acquiring property (urban or rural).

In Uruguay, the client who buys or sells a property must pay a sales commission of 3% of the total value of the investment plus VAT (Value Added Tax).

Investments in Uruguay are made in US Dollars.

The payment of taxes and commissions is made in Uruguay.

The method of payment and the place of payment are subject to each deal.

After reviewing the property in person or through a tour (a prior coordination of 4 or 5 days is requested to arrange the tour of the properties, without exception) or, failing that, a virtual tour.

The steps to follow when investing in Uruguay.

1. The investor must have a bank account in Uruguay in US dollars.

Note: At the request of the BCU (Central Bank of Uruguay), banks require the client to prove the origin of the funds, this being one of the many requirements they request for opening accounts; the requirements for opening bank accounts depend on each banking institution.

1. After the agreement on the price of the property, the investor must sign a reservation contract, with a deposit of 10% of the total value of the investment; this amount will be held in custody by the notary in the name of the buyer.

Note: The approximate period for the review of the documents and the issuance of certificates is 45 to 60 days, depending on the normal operation of the General Directorate of Registries.

1. The buyer must hire a notary to proceed with the drafting of the reservation contract, the review of the property's documentation and, finally, to proceed with the deed of the acquired asset.

Said notary fees must be paid by the buyer, as agreed between the parties.

The expenses related to the stamps and the expenses related to the review of the documentation are also borne by the buyer.

1. Payment for the property is made by bank transfer; no cash payments are made.

Some payments may also be accepted by Bill of Exchange or Check, depending on the amounts, and if they are payments of taxes, fees and/or commissions.

1. The payment of the sales commission must be paid at the time of signing the deed or upon taking possession of the property, without exception.