Buying real estate in Uruguay as a foreigner is not difficult at all, as there are no restrictions or special requirements for foreigners to own property in Uruguay. You can buy any kind of property in your own name, or through a company or corporation. You do not need to be a resident or have a tax identification number in Uruguay. However, you do need to comply with some legal and financial procedures. Here are the important steps:
- Finding a property that suits your needs and preferences. Most foreigners use the services of a experienced real estate agent, who knows the property market inside out, will assist in negociations and advice on practical matters and offers also after sale services. The real estate agent will charge you a commission a 3% of the agreed sales price. Most customers initially search online and once their choices are narrowed down, arrange for visiting different locations in person. The estate agent uruguayproperty.com is one of the long established real estate companies with top ratings. They offer a variety of real estate options in Uruguay, especially in and around Punta del Este and within radius of around 100 km, covering the whole county of Maldonado.
- Negotiating the price and terms of the sale through your chosen estate agent. You can make an offer verbally or in writing, and you usually need to pay a deposit or reservation fee of 10 % of the purchasing price to secure the property.
- Hiring a public notary, who will verify the legal status of the property, prepare the deed of sale, and register the transfer of title. Your experienced estate agent can usually recommend a suitable public notary for your particular circumstances and requirements. The notary will also charge you 3% of the agreed property value. You are free to choose your own notary or use the one recommended by your agent.
- Obtaining four certificates that prove that the property is free of any debts, liens, or encumbrances. These certificates are issued by different entities and cost about 1% of the property value. They are:
- A certificate from the Banco de Previsión Social (Social Security Bank) that confirms that the seller has no social security debts.
- A certificate from the Real Estate Office that confirms that the property has no mortgages, liens, or other encumbrances.
- A certificate from the Registro de Actos Personales (Personal Acts Registry) that confirms that the seller has no personal debts or lawsuits that could affect the property.
- A certificate from the Municipality that confirms that the seller has paid all municipal taxes and fees related to the property.
- Paying a real estate transfer tax of 2% of the much low cataster value. This tax is paid at the time of signing the deed of sale before the notary. Hence a buyer has therefore a total cost of about 8,5% of the agreed purchase price. The seller’s cost are about 5.5 % since he does not need to engage a public notary if all property documents are in order and up to date.
- Signing the deed of sale before the notary and paying the remaining balance of the purchase price. The payment can be made in cash, by bank transfer, by check, or by other means agreed upon by both parties. The notary will then register the deed of sale in the appropriate area where the property is located and issue you a copy of it.
- Ask uruguayproperty.com for the special tax incentives that exist for investors in real estate.
The whole process of buying a property in Uruguay can take about two months on average, depending on how quickly you find a property, negotiate a deal, and complete all the paperwork. Time to enjoy your novel lifestyle with your new property in Uruguay!!