PURCHASE OF PROPERTY
Uruguayan citizens and foreigners are treated equally when aquiring real estate in Uruguay. There is no restriction on the amount of foreign capital that may be transferred in and out of Uruguay and no restriction on the amount dedicated to investment in real estate. The purchase process is simple and tightly regulated by law.
Uruguay has been granted the qualification of “investment grade” by companies such as Duff &Phelps and IBCA. This indicates that Uruguay is considered a country free of risk for investment.
Real Estate
Real Estate, with the exception of farms, can be purchased by any person or entity, national or foreign. The law is different for the purchase of farms. Any entity may purchase farms but there must be full disclosure of the ownership. According to the new Uruguayan law, the purchase of farms and rural property can only be done by individuals or legal entities with registered shares (non-bearer). These companies with registered shares are those in which the name of the owner of each share is identified
The purchase is made before a notary public. The costs are about 9% of the value of the property, which includes all taxes, commissions and professional title fees.
Buyer’s Closing Costs:
4 % real estate commission w/tax
4 % notary’s services
1 % tax on transfer of property
9 % Approx. Total
Seller’s Closing Costs:
4 % real estate commission w/tax
1 % tax on transfer of property
5 % Approx. Total
The first step is for the buyer and seller to agree on a price for the property. This involves the usual back and forth negotiation until a price is agreed.
The next step in the process is to draft Reservation Papers (boleto de reserva) for the sale of the property to be purchased. This document establishes what’s being purchased/sold, the price, commissions, terms, timing, who signs the deed, etc. The Reservation Paper stipulate a 10% penalty on the purchase price, for cancelling the transaction without legal cause. Once this document is signed, the Escribano (Notary), which represents the buyer begins the research/verification process. If the sale is complicated, the seller may have a lawyer involved. The Escribano acts as a Title Insurance company/Attorney checking that all the documents are in order.
 
 
 
 
Uruguayan Tax System
Income tax applies to both residents (regardless of nationality) and also for non-residents (Uruguayan or foreign) which generate income (from labor or capital) within the country. Any money entering the country and that of income derived from capital or work (or retirement or pension) generated outside of Uruguay does not incur a tax
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Documents Required to Process Legal Residency.
The process and requirements are fully explained on the following page maintained by the Uruguayan Embassy in Washington, DC. The document is in Spanish and English.
http://www.uruwashi.org/Consular.htm#Information_about_permanent_residence_in_Uruguay
 
Applicants must bring:
-Birth certificate
-Marriage certificate (if applicable)
- Police certificate from the country where they have resided the past 5 years.
-Verification of entry into Uruguay. Entry/departure card (issued by immigration when entering the national territory) or photocopy of the passport showing the country entry stamp.
-Verification of income
Birth certificates, marriage certificate and the police certification, need to be legalized in the Uruguayan Embassy or Consulate located in the country where the document is issued.
With all of these documents in hand and with a certified translation, the process of applying for residency in Uruguay can begin. Your birth is registered in the section entitled "Alien Registration" of the Civil Registry..
It is also necessary to have a physical examination in Uruguay which consists of a blood and urine,test, an electrocardiogram,and a dental examination. Women also require a mammogram and PAP test.
 
With these documents, plus a notarized certificate of proof of monthly income of over U.S. $ 500 (U.S. $) , the office of Migration of the Ministry of Interior, will issue an identity card for one year and the application for permanent residency will continue.
The process takes from 8 months to a year. Once permanent residency is approved, an identity card is issued that is valid for 10 years.
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Note: The notarized certificate of income may not be necessary for the case of persons who enter the country with work contracts, or people married to citizens of Uruguay, religious persons, students, etc.