Buying an Apartment in 2026: Buenos Aires or Montevideo?

INGAR · · Analysis

Buying an Apartment in 2026: Buenos Aires or Montevideo?

The short answer: headline gross yields are running neck and neck right now — 5.89% in CABA (the City of Buenos Aires) per Zonaprop's June 2026 data, and 6.0% in Montevideo per the July INGAR Index. That 0.11-point gap is not a reason to pick one city over the other, not least because the two figures are built on different methodologies.

An Argentine investor needs to look well past the yield quoted in a listing. What actually moves the needle: how the owner is taxed, which neighborhood the unit sits in, what the purchase costs, whether financing is available, what currency the rent is collected in, how each country handles foreign exchange, and how long the property will be held.

In some cases CABA wins on financing terms and on a lighter income-tax burden for residential rentals. Montevideo can be the better fit for buyers who want legal and currency diversification, or who find a Vivienda Promovida unit (Uruguay's tax-incentivized housing program) with benefits still running. The answer comes down to the specific deal.

The numbers, dated and sourced

Gross rental yield

Buenos Aires (CABA), June 2026Montevideo, July 2026
Benchmark gross yield5.89% per year6.0% per year
Years of gross rent to recover the purchase price17.016.7
What the indicator measuresA model one-bedroom apartment of 50 m²Median across apartment segments by neighborhood
Benchmark asking priceUSD 2,467/m², CABA averageUSD 2,486/m², apartment indicator
Benchmark rent$860,106 per month for a one-bedroomTypically in Uruguayan pesos, varying by neighborhood and unit type
Published net figureThe source publishes no standard net figure that is directly comparable3.9% estimated, before factoring in Vivienda Promovida
Highest-yielding neighborhoods citedLugano 10.5% · Nueva Pompeya and La Boca 8.0% · Villa Riachuelo 7.8%Cerro 11.6% · Belvedere 11.3% · Aires Puros 11.0% · Colón 10.9%
Lowest-yielding neighborhoods citedPuerto Madero 3.4% · Palermo 4.7% · Belgrano and Núñez 4.8%Larrañaga 4.4% · Villa Biarritz and Parque Rodó 4.9% · Pocitos 5.1%

Sources: Zonaprop — CABA rental yields, Zonaprop — sale prices, La Nación Propiedades and the INGAR Index.

Treat those two headline figures as a way to gauge the order of magnitude, not as proof that one city beats the other by eleven hundredths of a point. Zonaprop divides annual rent by the price of a model apartment. INGAR starts from median asking prices and median rents by neighborhood and unit type, then takes the median across the published segments.

Gross and net are also two different animals. Montevideo's 3.9% is an estimate derived from the 6.0% gross figure minus a standard 35.16% deduction covering property management, income tax, maintenance, vacancy and owner-side levies. It excludes purchase costs and assumes a deal structured under the ordinary tax regime.

The Buenos Aires indicator has climbed a long way from its 2.3% floor in 2020. As of June 2026, it took 17 years of gross rent to recoup the purchase price — 5.8% less time than a year earlier. That does not mean every apartment improved to the same degree; the spread between neighborhoods remains enormous.

There is no contemporaneous Uruguayan series built on an equivalent methodology, so nobody can say with precision that Montevideo "yielded twice as much" in 2020 or 2021. What can be said is that the gap with CABA was considerably wider then than it is now.

Price per square meter

The two cities' headline figures sit close together, but they do not describe the same statistical universe.

IndicatorBuenos AiresMontevideo
Published headline valueUSD 2,467/m²USD 2,486/m²
Measure usedAverage CABA asking priceMedian apartment indicator
DateJune 2026July 2026
SourceZonapropINGAR Index

Within Montevideo, the spread from neighborhood to neighborhood is wide:

Rough profileNeighborhoods and apartment asking prices
Waterfront and high endGolf USD 4,070 · Puerto Buceo USD 3,932 · Villa Biarritz USD 3,895 · Punta Carretas USD 3,802 · Carrasco USD 3,794
EstablishedPocitos USD 3,548 · Malvín USD 3,369 · Buceo USD 3,172 · Parque Batlle USD 2,993
CentralLa Blanqueada USD 2,932 · Cordón USD 2,855 · Tres Cruces USD 2,778 · Centro USD 2,734
Lowest entry pointLa Comercial USD 2,267 · Ciudad Vieja USD 2,152 · Goes USD 2,115 · Reducto USD 1,865

These are median asking prices from the INGAR Index, not recorded closing prices.

Comparing price per square meter alone is a good way to make a bad decision. A citywide average should not be pitted against one specific neighborhood in another city, and two units at the same price can differ sharply in common charges, achievable rent, condition and resale prospects.

Nor can you infer liquidity from price. Measuring it would mean comparing equivalent units on days on market, discounts off asking, transaction counts and depth of demand. The sources used here do not yet support a like-for-like measurement across the two cities.

Taxes: what changed in 2026

Argentine law changed in meaningful ways, which means any comparison written before 2026 needs updating.

Income tax on rental income

Buenos AiresMontevideo
National regime (Argentina or Uruguay)Ganancias (Argentina's income tax) exemption for certain leases used as a primary residenceIRNR (Uruguay's income tax on non-residents) paid by the owner
Rate or general treatmentExempt if the statutory conditions are metStandard withholding of 10.5% on gross rent, with an alternative election depending on the regime
Who qualifies for the Argentine exemptionIndividuals and undivided estatesNot applicable
Required use of the propertyThe tenant's sole, permanent family residenceFor Vivienda Promovida benefits: permanent housing and a minimum 12-month lease
Vivienda PromovidaNot applicableIncome-tax relief of 100% or 60%, depending on zone and conditions
When the benefit startsIncome accrued from 1/1/2026 onwardThe fiscal year construction was completed, plus the nine that follow

The Argentine exemption does not cover every lease. The owner must be an individual or an undivided estate, and the property must be used exclusively as the tenant's sole, permanent family residence. Short-term rentals and any other use fall outside it. The implementing rules are in Decreto 406/2026.

In Uruguay, the 10.5% withholding on gross rent is the usual benchmark for a non-resident owner who elects that mechanism as a final settlement. The general regime allows another way of computing tax on assessable income. Have a Uruguayan accountant confirm which treatment applies.

##### What to check on a Vivienda Promovida unit

A building carrying the incentive designation does not mean the buyer gets a fresh ten years of tax relief.

Before signing a reservation, ask for:

  • The project's promotional declaration.
  • Confirmation that the specific unit is covered by that declaration.
  • The construction completion date.
  • The zone and the applicable exemption percentage.
  • How much of the benefit window is left.
  • The required use and minimum lease term.

Income-tax relief can be 100% in the zones or under the conditions the rules provide for, and 60% for all other incentivized leases. For Impuesto al Patrimonio (Uruguay's net wealth tax), the exemption covers the fiscal year construction wrapped up plus the nine that follow — but across those nine later years the unit must have been rented out for at least six months each.

The text in force is available at article 12 of Decreto 355/011.

##### Can the Argentine exemption reach rent earned in Uruguay?

An Argentine tax resident must report income from a Uruguayan apartment as foreign-source income. The new Argentine primary-residence exemption, however, contains no explicit territorial limit. The exemption on sales, by contrast, specifically refers to properties located in Argentina.

As of August 1, 2026, we have found no specific public guidance from ARCA (Argentina's tax authority) settling how a property located in Uruguay is treated. So it would be wrong to state flatly that this income is either taxable or exempt in Argentina. The position needs to be validated with an Argentine accountant based on the lease, the property's use and the owner's circumstances.

Wealth taxes

Buenos AiresMontevideo
Tax that matters to an Argentine residentBienes Personales (Argentina's personal assets tax) on worldwide assetsBienes Personales in Argentina plus possible Impuesto al Patrimonio in Uruguay
Argentine rate schedule, 2025 tax year0.50% to 1.00%, a fixed amount plus a marginal rateNot applicable
Argentine tax-free threshold, 2025$384,728,044.57Not applicable
Legislated path aheadTop rate of 0.75% for 2026 and a single 0.25% rate for 2027Governed by Uruguayan law
Argentine surcharge on foreign-held assetsRepealed as of the 2023 tax yearNot applicable
Vivienda PromovidaDoes not affect Bienes PersonalesCan exempt the Uruguayan Impuesto al Patrimonio for the applicable period

If you are an Argentine tax resident, both a CABA property and a Montevideo one fall, in principle, within the worldwide base for Bienes Personales. That does not automatically mean you owe tax on each: the threshold, valuation rules, exemptions and your individual situation all come into play.

It is also worth checking whether the taxpayer opted into the Régimen Especial de Ingreso del Impuesto sobre los Bienes Personales — REIBP, a prepayment scheme — since that election may have settled the liability for several years in advance.

In Uruguay, a non-resident individual's Impuesto al Patrimonio depends on the assessed value, the applicable threshold and the relevant rate bracket. The 0.10% figure does not, by itself, describe the whole schedule. Those who do not pay IRNR can face special rates of 0.70% to 1.50%. The rates published by DGI (Uruguay's tax authority) are available here.

The Argentina–Uruguay agreement allows taxes paid in one country to be credited in the other, within limits. The credit cannot exceed the local tax attributable to the same asset or income. If there is no local tax to apply it against, it does not work as a refund. Argentina–Uruguay agreement, article 11.

Transaction taxes and closing costs

Buenos AiresMontevideo
Sale by an individualNational exemption for transactions covered by article 99, from 1/1/2026IRNR on assessable gain
Territorial scope of the Argentine exemptionProperties located in ArgentinaDoes not extend to Uruguayan properties
Transfer taxSellos (stamp duty), varying by jurisdiction, use and valueITP (property transfer tax) on both buyer and seller
Uruguayan ITPNot applicable2% from each side, on the updated Catastro assessed value
BrokerageVaries by transactionTypically 3% + VAT from each side when an agency is involved
Notary fees on purchaseDepends on jurisdiction and transactionBenchmark scale of 3% + VAT, plus certificates, levies and disbursements
FurnishingsNot a purchase-tax itemSame — budget for it separately
Occupancy or utility hookup chargePer contractOnly if the project's contract provides for it

In Argentina, the exemption on sale proceeds applies to individuals and undivided estates, for transactions covered by article 99, and to properties located in the country. It should not be stretched to companies, developers or habitual dealing. The ITI transfer tax had already been repealed back in 2024.

In CABA, Sellos depends on value and use. For 2026 there is an exemption for a sole, permanent residence up to the applicable cap, and a 2.7% rate for a second or subsequent home within that threshold; above it, the general 3.5% rate can apply. On an investment purchase, run the numbers with your notary against the actual deal. Colegio de Escribanos de CABA.

In Uruguay, ITP is calculated on the updated assessed value set by Catastro (the national land registry), not on the sale price. A sale can also trigger IRNR on the capital gain, computed on either an actual or a deemed basis as applicable. For an Argentine resident there may also be Argentine tax on the foreign-source gain, subject to the credit cap in the bilateral agreement.

##### What to budget for in Montevideo

No single percentage fits every transaction. In a brokered purchase, a first-pass estimate should break out:

  • Broker commission, where applicable: typically 3% + VAT.
  • Notary fees: benchmark scale of 3% + VAT + Caja Notarial contribution (≈4.23% effective).
  • ITP: 2% of the updated Catastro assessed value.
  • Certificates, stamps, levies and other disbursements.
  • Furnishings, if the unit is delivered empty.
  • Occupancy or hookup charge, only if the contract calls for it.

On a standard resale, buyer costs typically land somewhere between 7.5% and 9% of the price, though the final figure hinges on ITP and the notary's quote. On new construction, a contractual charge plus furnishings can push total outlay into the 10% to 15% range. That second range is an investment budget, not a statutory closing rate.

The full breakdown is in USD 250,000 doesn't buy you USD 250,000.

Currency, exchange controls and liquidity

What currency rent is paid in

In Montevideo, long-term residential leases are normally denominated in Uruguayan pesos. The escalation mechanism depends on the legal regime and on what the contract sets out; it may use IPC (the consumer price index), URA (a wage-linked adjustment unit) or another accepted reference.

Foreign currency shows up often in short-term rentals and in part of the seasonal market. It can also be used in leases governed by regimes that permit it, but it is not the dominant practice for permanent housing in Montevideo.

Sale prices, on the other hand, are typically quoted and agreed in dollars. So the capital and the eventual exit price are usually denominated in that currency, even when the monthly rent is not.

Exchange-control rules in force

ArgentinaUruguay
Individuals' access to the official FX marketNo monthly cap since April 2025Unrestricted
General cross-market restriction on individualsRemoved in the April 2025 reformNot applicable
CompaniesAccessing FX to build offshore assets generally requires prior BCRA approval, with limited exceptionsNo prior FX authorization
International transfersSubject to applicable FX and banking rulesNo prior FX authorization; subject to bank compliance and source-of-funds checks
Purchases by foreignersPermitted, with documentation and tax requirementsPermitted on generally equal terms
Sovereign ratingDepends on the agency and the dateInvestment grade

Argentina's April 2025 reform lifted the USD 200 monthly cap for individuals and the general cross-market restriction between the official FX market and securities-based operations. Rules for companies remain tighter. BCRA Comunicación A 8226.

Uruguay maintains free movement of capital, subject to anti-money-laundering controls, beneficial-owner identification and proof of the source of funds. That makes moving money in and out straightforward, but it is no guarantee that a property will sell quickly or at the price you had in mind.

An investment-grade rating tells you something about sovereign risk. It is no substitute for analyzing the building, the neighborhood, the tenant or how liquid the unit itself is.

Free capital movement is not real-estate liquidity

A property can sit in a country with no exchange controls and still take months to sell. Comparing exit liquidity between CABA and Montevideo would mean looking at:

  • How many buyers exist for that unit type.
  • Days on market.
  • The gap between asking price and closing price.
  • Number of closed transactions.
  • The building's condition and the level of common charges.
  • How easily the next buyer can obtain financing.

Available sources do not publish all of that on a common methodology. This article therefore does not crown a general liquidity winner. That assessment has to happen at the level of the individual unit and micro-location.

Mortgages: compare investment to investment

Argentine lenders generally advertise longer terms and higher loan-to-value ratios for residents. But the headline rates usually apply to owner-occupied primary residences, which is not the same product as a buy-to-rent purchase.

CABA, Argentine residentMontevideo, non-resident Argentine
The use you should be comparingSecond home or investmentSecond home or investment
Published loan-to-valueUp to 50-80%, depending on bank, borrower profile and use50% at Santander; up to 60% on HSBC's non-resident line
TermUp to 20-30 years depending on the bankUp to 15 years
CurrencyUVA (an inflation-indexed unit)UI (Uruguay's inflation-indexed unit) or dollars
Sample 2026 rateBanco Nación: 12% + UVA for a second homeSantander: 5.72% in UI or 6.95% in dollars, plus VAT on interest
Other costsInsurance and origination feesVAT on interest and regulatory levies; origination fees
Watch out forDon't model an investment using the primary-residence rateConfirm the loan product allows the unit to be rented out

Banco Nación publishes different terms for primary residences and second homes. Santander Argentina likewise adjusts the loan-to-value by intended use. Run the comparison using the product that actually accepts an investment property.

In Uruguay, Santander publishes an investment-and-rental line that can reach 50% financing over 15 years. Among other conditions, it requires the applicant to already own a property above a minimum value and the rent to be deposited into a designated account. Santander Uruguay product sheet.

HSBC used to offer a Premier line for non-residents from Argentina and Brazil, with up to 60% financing, 15-year terms and rates from 5.75% plus VAT in dollars; that entity is in the process of rebranding as Banco BTG Pactual Uruguay S.A. (per the BCU's bank registry) and its rate sheet could not be reconfirmed as of 8/5/2026, so these terms must be verified with the new issuer before relying on them. The public documentation frames it for a home or vacation property; if the plan is to rent it out, get written confirmation that this use is allowed. HSBC Uruguay product sheet.

For an Argentine resident who qualifies, CABA may offer an edge on term and loan-to-value. That does not mean it is always cheaper: second-home rates run well above the promotional primary-residence offers, and UVA-denominated principal is indexed to inflation.

Where each market stands

In March 2026, Uruguay's INE (national statistics institute) recorded 4,773 new sale registrations, up 39.07% from February and 32.25% above March 2025. Montevideo accounted for 35.51% of them; Maldonado, 19.44%; and Canelones, 12.65%.

April brought 4,633 registrations, 3.01% below March and 15.85% above April of the prior year. That month's departmental shares were 35.40% for Montevideo, 16.71% for Maldonado and 11.40% for Canelones. The data points to a strong level of activity, though one unusually high month should not be spun into a claim of a "permanent record." INE, March 2026 and INE, April 2026.

Brokers quoted in the Argentine press through 2026 described more selective demand from Argentina, tied to the recovery of the local market, the return of mortgage lending and the narrower yield gap. No official public series broken out by nationality exists to measure exactly how much that share has shifted.

INGAR's practical read: Argentine buyers should no longer size up Uruguay on the premise of a much fatter gross yield. The decision now tends to hinge on diversification, time horizon, location and tax structure.

Which city fits which buyer

Buenos Aires may work for you if…

  • You already know the market at the neighborhood, building and block level.
  • You can manage the property yourself or through a manager you trust.
  • You qualify for a loan that permits a second home or an investment purchase.
  • The lease will meet the primary-residence requirements of the Argentine exemption.
  • You find a neighborhood where the relationship between rent, price and resale demand justifies the unit's risks.
  • Your assets and income are already concentrated in Argentina and diversifying jurisdictions isn't a goal.

Montevideo may work for you if…

  • You want part of your capital sitting in a second jurisdiction.
  • Your capital is declared and you can document its origin for the bank and the notary.
  • Your time horizon is long enough to absorb purchase and sale costs.
  • You find an incentivized unit with an attractive exemption percentage and a meaningful benefit window left.
  • You value Uruguay's current regime of free capital movement.
  • You prefer an investment managed locally, with the sale price typically denominated in dollars.
  • You want exposure to Montevideo's coastal or central neighborhoods at yields that match your profile.

If you don't know Montevideo block by block, unit selection and local management become part of the return. Two apartments a few blocks apart can differ substantially in common charges, rental demand and ease of resale.

When to wait, or look at a different asset

Real estate may be the wrong tool if you need the money back in under three years, have no cushion for a vacancy, or are stacking a gross yield against a net, liquid financial return.

It's also worth pumping the brakes on any promise of 7% net that doesn't show:

  • The actual purchase price.
  • Closing costs and furnishings.
  • Rent you can realistically collect.
  • Expected vacancy.
  • Management and maintenance.
  • Taxes in both countries.
  • Common charges borne by the owner.
  • Liquidity and the cost of exiting.

A 7% net return can turn up in specific high-yield segments, but it does not describe a standard, liquid, well-located unit in either city.

The comparison that actually helps: neighborhood by neighborhood

The percentages below come from asking-price indicators, not from a controlled sample of identical properties. Use them to shortlist areas worth studying, not to buy without inspecting the unit.

ProfileBuenos AiresMontevideoWhat it means
Premium waterfront or riversidePuerto Madero 3.4%Punta Carretas 5.4% · Villa Biarritz 4.9%The cited indicators favor Montevideo, but compare quality and total cost
Established upscaleBelgrano and Núñez 4.8% · Palermo 4.7%Pocitos 5.1% · Malvín 5.3% · Buceo 5.6%Yields are close, with differences driven by the building and common charges
CentralBalvanera 7.3% · San Cristóbal 7.1%Tres Cruces 6.6% · La Blanqueada 6.1% · Cordón 5.9% · Centro 5.8%CABA posts strong numbers across several central neighborhoods
Outlying or entry-levelLugano 10.5% · Nueva Pompeya 8.0%Cerro 11.6% · Belvedere 11.3% · Reducto 7.3%High gross yields call for a close look at stock, management and resale prospects

At the premium end, the published numbers show a real gap between Puerto Madero and several coastal Montevideo neighborhoods. The percentage alone isn't enough: you still have to work out taxes, common charges, maintenance and the actual closing price.

In the higher-yield segments, a gross rate says nothing about arrears, vacancy or liquidity either. Those have to be verified building by building and micro-zone by micro-zone. Small samples can also produce eye-catching rates; INGAR's methodology requires at least 30 observations before a segment is published and excludes any that fall short of that bar.

Frequently asked questions

Buenos Aires or Montevideo — where should you invest in 2026?

Headline gross yields are essentially level: 5.89% in CABA and 6.0% in Montevideo. CABA can offer better financing terms to certain residents and an income-tax exemption for leases that qualify as primary residences. Montevideo may fit better within a strategy of legal and currency diversification, or when a unit still carries attractive tax benefits. The answer depends on the neighborhood, the property and the buyer's tax position.

What does a rental in Montevideo yield?

The July 2026 INGAR Index puts the median at 6.0% gross and 3.9% net before purchase costs. Tres Cruces comes in at 6.6% gross; Pocitos, at 5.1%. Some thinner-stock segments show higher yields, but they warrant extra scrutiny on management and liquidity.

What does a rental in Buenos Aires yield?

Zonaprop reported 5.89% gross in June 2026 for a model one-bedroom apartment of 50 m². The neighborhood figures cited range from 3.4% in Puerto Madero to 10.5% in Lugano. That source publishes no net calculation directly comparable to INGAR's.

Are Buenos Aires yields rising or falling?

The indicator has recovered from its 2020 lows. In June 2026 it took 17 years of gross rent to match the purchase price, 5.8% less than a year earlier. There was a slight month-over-month wobble, but the annual level remains above recent years.

Is rent in Montevideo collected in dollars?

As a rule, permanent residential leases are set in Uruguayan pesos with the escalation provided for in the contract and the applicable regime. Foreign currency is more common in short-term or seasonal rentals. Sale prices, though, are usually quoted and paid in dollars.

Do I pay taxes in both countries?

An Argentine tax resident must report a Uruguayan property and work through Bienes Personales and foreign-source income. Uruguay may apply IRNR and Impuesto al Patrimonio. The bilateral agreement allows limited credits for taxes paid in the other country. Whether the new Argentine primary-residence exemption can reach a property located in Uruguay has, as of this writing, no specific official guidance; review it with an Argentine accountant.

Has Argentine interest in Uruguay cooled?

Some brokers described more selective Argentine demand during 2026. There is no public sales statistic broken out by nationality to quantify it. In parallel, the Uruguayan market posted strong year-over-year activity in March and April.

How much do I need to invest in Montevideo?

It depends on the unit type and the neighborhood. With USD 250,000 on hand and an 8% closing-cost budget, you could look at properties around USD 231,000. Set aside 15% instead — for closing, possible contractual charges and furnishings — and the target price drops to roughly USD 217,000. Break the budget out line by line before you make an offer.

How INGAR approaches this

We publish the INGAR Index monthly, with asking prices, median rents and estimated yields by Montevideo neighborhood and unit type.

Gross yield is calculated as annual rent divided by asking price. For the standard net figure we apply a 35.16% deduction against gross rent: 12.4% management, 10.06% income tax, 5% maintenance, 4.2% vacancy and 3.5% owner-side levies and costs.

That net figure does not automatically account for Vivienda Promovida. If a unit carries a full exemption still in force, the result can improve by roughly 0.60 points on a 6% gross yield. With a 60% exemption, the estimated effect is smaller, closer to 0.36 points. Either way, confirm the remaining benefit period and the unit's conditions.

We apply the same methodology to every published segment. That lets us show where Montevideo is genuinely competitive — and also where a CABA neighborhood offers a better rent-to-price relationship.

Keep reading

Sources

Information verified as of August 1, 2026. Yields are calculated from asking prices and do not represent closed transactions or guaranteed returns. Tax treatment depends on residence, ownership, the property's use and the regimes elected. Before signing a reservation, obtain accounting and notarial advice in both countries.

Neighborhood data

Price per m², median rent and yield, with the full monthly series from the INGAR Index:

See all neighborhoods

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