Breaking a Lease Early in Uruguay (2026): How to Get Out and Hand Off Your Contract

Moving out doesn't end your lease

You can leave a rental before the lease runs out, but moving out isn't enough to terminate it. Your exit has to rest on something concrete: a clause in the contract, an agreement with the landlord, a legally valid cause, or a substitute tenant whom the landlord accepts and who is written in properly.

Hand over the keys without settling what ends, as of when, and which obligations remain open, and the dispute simply arrives later: rent that keeps accruing, a guarantee nobody canceled, a penalty no one had bothered to calculate.

So the first question isn't what leaving costs. It's which exit route your contract allows. If you're still unsure which legal regime governs your lease, start with Uruguay's rental law or, if you signed without a guarantee, with the LUC regime.

The short answer

Work through these four possibilities:

1. The contract allows early termination. You follow the notice period, the penalty and whatever else was agreed.
2. The landlord agrees to a mutual exit. You both sign a document setting the termination date, the handover and the outstanding accounts.
3. There's a breach or a legal or contractual cause. It may justify terminating the lease, but whether it applies and how you invoke it depend on the specifics.
4. Someone else takes your place. That can be structured as an assignment, as termination followed by a brand-new lease, or as another agreed arrangement. Finding a replacement and handing over the keys does not do it.

In everyday conversation, people call all of these "rescisión." Legally, they aren't interchangeable: you may be looking at a termination agreement, at the exercise of a clause, at termination for breach, or at an assignment. The distinction matters when the final document gets drafted.

Is there a general right to leave whenever you want?

For contracts still within their term, there is no general rule letting a tenant terminate unilaterally, at any moment, with no consequences.

Nor is there a standard statutory penalty of one, two or three months' rent. Neither the LUC (the 2020 omnibus reform law, Ley 19.889) nor Decreto-Ley 14.219 sets a universal penalty for every voluntary early exit.

If your contract does include an early-termination clause, read the whole thing. It may require:

• notice a certain number of days in advance;
• a minimum period of occupancy;
• payment of a penalty;
• being current on rent, building fees and utilities;
• formal handover of the property and the keys.

If there's no clause, the exit can still be negotiated. What doesn't help is presenting your move as a done deal.

A reasonable opening message might read:

"I need to hand over the property on [date]. The contract doesn't clearly provide for an early exit. I'd like to propose that we agree to the termination in writing, coordinate showings to find a replacement, and settle the handover date, any outstanding payments and the cancellation of the guarantee."

It doesn't force the landlord to say yes, but it opens a concrete negotiation and leaves a record of what you offered.

What it can cost

That depends on the contract and on the deal you reach. To do the math, break the pieces apart:

Item	What to check
Rent through the effective termination date	Agreed date and handover receipt
Notice period	Required timing and method of notification
Penalty	The clause's exact formula, if there is one
Building fees and utilities	Period of occupancy and pending statements
Damage attributable to the tenant	Inventory, walk-through records and cause of the damage
Brokerage services	Service requested, authorization given and price disclosed

Example: on a $30.000 lease requiring sixty days' notice plus a penalty of one month's rent, the contractual tab could reach $90.000, on top of any unpaid utilities or fees. If the contract sets no penalty, a two-month fine does not materialize out of custom.

That doesn't mean walking away from a lease can't trigger a claim. The landlord could allege breach and damages. But whether that debt exists, and how much it is, isn't settled by applying an invented rate: it comes down to the contract, how the relationship actually ended, and what consequences can be proven.

As for what can be deducted at the end, we go into detail in what they can take out of your security deposit.

Assigning a lease isn't the same as finding a replacement

An assignment swaps out the person holding the tenant's position. The contract carries on, but the incoming tenant becomes a party in place of the outgoing one.

For contracts under the LUC's no-guarantee rental regime, article 425 lays down two rules:

• the tenant cannot assign the lease without the landlord's written consent;
• if the assignment goes through, the new tenant steps into the previous tenant's position.

Which is why a text from the landlord saying "fine by me" may not be enough if no assignment is ever signed and nobody pins down the exact date on which the outgoing tenant is replaced.

A properly documented assignment should settle, at minimum:

• who's leaving and who's coming in;
• the effective date of the change;
• the landlord's written acceptance;
• the status of payments;
• how the existing guarantee is handled;
• the new tenant's guarantee;
• the condition of the property;
• whether the outgoing tenant and their guarantors are released.

Don't assume the guarantee travels with the contract. A friend who acted as a personal guarantor, ANDA (a large Uruguayan member cooperative that issues rental guarantees), the Servicio de Garantía de Alquileres (the government-run rental guarantee program) or an insurer may each demand their own approval and paperwork.

Outside the LUC, the rule is different

Articles 424 and 425 belong exclusively to the LUC chapter on rentals without a guarantee. They shouldn't be presented as though they governed every lease in the country.

Under the general rule of the Código Civil (Uruguay's civil code), article 1791 opens by stating that the tenant has no right to assign the lease. So outside a special regime or a statutory exception, any substitution has to be built on a proper agreement. Often the practical solution is to terminate the old contract and sign a new one, not to "transfer" anything.

Assigning and subletting are two different things

In an assignment, the original tenant gives up their position and someone else takes it. In a sublet, the original tenant remains on the hook to the landlord and lets a third party use all or part of the property.

There's a legal distinction here that tends to get explained badly:

Regime	Rule on subletting
LUC, no guarantee	The right to sublet in whole or in part must be stated in writing
General rule of the Código Civil	Subletting is allowed for the same use and within the term, unless the contract expressly forbids it

Article 424 of the LUC adds that if the tenant collects more for the sublet than they pay the landlord, the landlord may raise their rent up to that amount. It also provides that the subtenant's right ends when the subletting tenant's right ends.

So the line "if the contract says nothing, I can sublet" can be right under the general rule of the Código Civil and wrong under the LUC. Identify the regime before you answer.

If your lease falls under the LUC, can you be evicted early?

Article 426 of the LUC provides that no eviction action may be brought during the contract term, except on three grounds:

• chronic nonpayment;
• expropriation of the property;
• a building in dangerous disrepair, assessed by a court with an inspection and an expert report.

For a building in disrepair, the statute caps the eviction period at forty-five days and the removal period at fifteen.

In practical terms, within that regime, selling the property or simply preferring a different tenant doesn't on its own appear among the grounds for eviction during the term.

Note that the provision concerns the eviction action under the LUC regime. It shouldn't be stretched into a broader claim about any action, any breach, or any contract outside that regime.

What happens when the lease expires

Not every contract rolls over the same way.

The extension under Decreto-Ley 14.219

Article 4 grants a one-year extension when the contract term ends, provided the parties don't sign a new contract. It kicks in simply because the property wasn't handed back, and it doesn't apply to industrial or commercial uses.

But that rule doesn't cover every home just because someone cites Decreto-Ley 14.219. Its article 102 excludes buildings constructed after June 2, 1968 from much of the regime. Before claiming that one-year extension exists, confirm the contract falls within scope.

Where article 5 applies and the extension runs out, the landlord can start eviction proceedings on the timeline that provision sets.

The extension under the LUC

Article 422 provides that the contract renews for periods equal to the original term if, within the thirty days before expiration, neither party notifies the other that it wants out. The extension is subject to the maximum duration the statute itself refers to.

This has nothing to do with whether the tenant forgot to hand over the keys. It follows from both parties' silence inside that thirty-day window.

Continuation under the Código Civil

Article 1790 says that if the tenant stays on past expiration, there's no implied renewal: the concluded lease simply continues, on the same terms, until the landlord asks for the property back. The statute adds that the landlord may ask at any time.

The same article protects third parties who provided security: personal guarantees, pledges or mortgages they granted do not extend to obligations arising from the continuation of the expired lease.

That is not the same as saying anyone once labeled a "guarantor" walks away free with no review needed. You have to check the nature of the guarantee, the signed text, the applicable regime, and whether there were later renewals or ratifications.

Handing over the keys: the evidence that fixes the date

Keys should go to someone authorized to receive them, in exchange for a written record stating:

• the property;
• date and time;
• number of keys;
• occupancy status;
• meter readings, where applicable;
• any pending claims;
• signature or identification of the person receiving them.

If the handover is part of an early termination, the key receipt shouldn't sit on its own. It has to line up with the document ending the contract or with the guarantee provider's procedure.

Dropping an envelope at an office, leaving the keys with the building's doorman or couriering them over without acceptance may not prove the termination you were counting on.

What if the landlord refuses to take them?

Don't hold on to the keys indefinitely, and don't assume a text message covers you. There is a route for formally tendering and depositing the keys with a court, documenting that you made the return available and completing the handover through a formal channel.

This isn't a matter of "leaving them at the courthouse." It requires a court filing and professional advice. Whether it stops rent and other obligations from accruing depends on the tender, the deposit and the contractual situation all being legally effective.

For contracts with ANDA, its current rules also lay out a specific procedure for when the term has ended and the landlord refuses to take the keys or can't be located: formal notice by certified telegram, followed by an oblación action within the prescribed window. Don't substitute a homemade fix for that procedure.

Want your exit sorted before you move? Send us the contract, the date you want to hand over the property and the type of guarantee you have. We'll tell you what we can handle and whether the case calls for legal counsel; the scope and fees are put in writing before we start. Message us on WhatsApp.

The guarantee doesn't cancel itself

Ending the contract, handing over the property and releasing the guarantee are related steps, but they aren't the same step. If you're weighing options for your next rental, see which rental guarantee makes sense.

Servicio de Garantía de Alquileres

The CGN (Uruguay's national accounting office, which administers the program) has specific procedures for termination. Under its standard process, the keys are turned in to the Servicio and the property must be empty and clean. For a termination before the end of the term, it may require the relevant clause or the landlord's consent, depending on the case.

Use the procedure currently in force and keep your proof of filing. Notifying only the brokerage isn't enough if the Servicio requires something else.

ANDA

ANDA requires that termination be reported and documented through its own process. Its current guidance says that for an agreed termination, the parties must appear at a branch office. Its rules also set short deadlines for the landlord or property manager to report the handover and any damage.

The practical takeaway is simple: ask for written confirmation that ANDA has recorded the termination. Don't rely on a promise that "they'll let them know."

Insurance

Every policy sets its own documentation, coverage period, cancellation terms and possible adjustments. There's no single legal procedure that applies to all insurers. Read the specific policy conditions and ask for written confirmation of the cancellation date.

A rental guarantee policy is not a deposit. Paying a premium doesn't, by itself, entitle you to get the money back.

What happens to the security deposit

Article 38 of Decreto-Ley 14.219 sets the rules for deposits and the five-month cap for residential rentals. Since Ley 18.795, those deposits are denominated in UI (Unidades Indexadas, Uruguay's inflation-indexed accounting unit) and may be held at the BHU (the state mortgage bank) or other authorized financial institutions.

Withdrawing a deposit from the BHU requires the other party's express authorization. If there's no agreement, the bank's own paperwork points you to the courts.

The refund can be reduced by rent, utilities, building fees or damage properly charged to the tenant. An early-exit penalty doesn't spring from the deposit: it needs its own contractual or legal basis.

Never sign a withdrawal authorization that leaves blank who receives the money or how much is being released. If there's a shortfall, it should be documented.

Brokerage fees

The fact that the tenant found the incoming candidate doesn't by itself settle whether a fee is owed. The right questions are what service was commissioned, who authorized it, what price was disclosed and what work was actually performed.

Ley 17.250 requires that any offer of services clearly state its description, the price including taxes, and the payment terms. Asking for that in writing before the work starts protects everyone involved.

What changes under Ley 20.380

Ley 20.380 was enacted in September 2024 and regulates the real-estate profession itself — it is not a rental statute. Among other things, it:

• ties professional practice to registration with the Registro Nacional;
• recognizes licensed agents' right to charge fees;
• requires that the brokerage relationship be documented;
• bars fee claims when the agent isn't licensed or wasn't authorized by the client.

It's not accurate to say the law simply "isn't in force" because implementing regulations are missing. It's a published law and part of the legal framework.

What was still outstanding, according to the most recent official communication we could locate from the MEC (the Ministry of Education and Culture), dated April 9, 2026, was the rollout of the central pieces: the implementing decree, the commission, the register and the public lookup tool. As of July 27, 2026, we found no later implementing decree on IMPO (the government's official gazette and legal database) that would have activated licensing.

Given that transition, Ley 20.380 shouldn't be used as a reflex answer for whether any given fee today is valid or invalid. For a specific transaction, what still matters most is the authorization, the service commissioned, the price disclosed up front and the documentation on hand.

An orderly exit, step by step

1. Read the whole contract. Look for the term, early termination, assignment, subletting, the guarantee and how notice must be given.
2. Set a workable date. Factor in the notice period and the time the cancellations will take.
3. Put your proposal in writing. If there's no clause, ask for a termination agreement.
4. Don't promise the place to a replacement. First confirm what instrument the landlord will accept and what the guarantee provider requires.
5. Ask for a full statement. Rent, fees, penalty, brokerage fees and any damage should be itemized separately.
6. Sign the exit document. It should state the date, any outstanding obligations and how the guarantees are handled.
7. Do a final walk-through record. Photos, meter readings, inventory and keys.
8. Complete the institutional cancellation. CGN, ANDA, the insurer or the bank, as applicable.
9. Keep every receipt. Contract, agreement, key receipt, walk-through record, invoices and confirmation of cancellation.

The physical move is just one of those steps.

Common mistakes

"The LUC lets me leave whenever I want"

It doesn't. The LUC creates neither a general unilateral right to terminate early nor a standard penalty. Check the contract or negotiate an agreement.

"If I find another tenant, I'm off the hook"

Not automatically. Under the LUC, an assignment requires the landlord's written consent. Outside that regime, the Código Civil gives the tenant no general right to assign.

"If the contract doesn't forbid subletting, I can sublet"

It depends. That's the general rule under article 1791 of the Código Civil. Under the LUC regime, the right has to be stated in writing.

"I handed over the keys, so everything's finished"

An accepted, documented handover is key evidence, but it has to connect to the termination of the contract and the cancellation of the guarantee.

"If I leave early, I automatically lose the deposit"

No. The deposit covers the obligations it secures; it isn't an automatic fine. A penalty needs its own basis.

"Ley 20.380 doesn't exist until it's regulated"

No. The law was published. What was pending was the operational rollout of the register and licensing. Those are two different claims.

Frequently asked questions

Can I terminate a lease before it expires?

Yes, if there's an applicable clause, an agreement with the landlord or a valid cause. You can also arrange for a substitute tenant, but it has to be documented.

Does the law set a two-month penalty?

There's no universal two-month penalty. Check what was agreed and what the actual consequences of terminating are.

Can I assign my lease to a friend?

Under the LUC you need the landlord's written consent. Under other regimes, don't assume you have a right to assign: the Código Civil starts from the opposite premise.

Is assigning the same as subletting?

No. In an assignment, someone else takes over your contractual position. In a sublet, you remain the tenant as far as the landlord is concerned.

Can I sublet if the contract says nothing?

It depends on the regime. Under the general rule of the Código Civil, yes, as long as it isn't expressly forbidden and you respect the use and the term. Under the LUC, the right has to be in writing.

What if the landlord won't take the keys?

Document the tender and immediately get advice on depositing the keys with a court or on your guarantee provider's specific procedure. Don't abandon them and don't assume the contract has ended.

Does a personal guarantee survive after the lease expires?

Article 1790 provides that security granted by third parties does not extend to obligations arising from the continuation of an expired lease. You still need to check whether there was a renewal, a ratification or another agreement.

Does the guarantee end the day I move out?

Not necessarily. CGN, ANDA, insurers and deposits each have different procedures. You need written proof of closure or release.

The bottom line

Leaving before the end of the term takes more than a moving date: it takes a contractual or legal route out, an accepted handover, and a guarantee that's been properly closed.

There's no standard statutory penalty. An assignment doesn't happen just because you found a replacement. And the rules on subletting shift with the regime: the LUC requires written authorization, while the Código Civil starts from the premise that you can sublet unless it was forbidden.

Before you move a single box, get five things in writing: when the contract ends, what's still owed, who takes the keys, what happens to the guarantee, and who is released.

This article provides general information and is not a substitute for legal advice on a specific contract.

Sources

• Ley 19.889 — rentals without a guarantee, articles 422, 424, 425 and 426 (IMPO)
• Código Civil — articles 1790 and 1791 (IMPO)
• Decreto-Ley 14.219 — articles 4, 5, 38 and 102 (IMPO)
• Ley 18.795 — article 25, deposits in UI (IMPO)
• Ley 17.250 — article 20, disclosure in offers of services (IMPO)
• Ley 20.380 — real-estate professionals (IMPO)
• BHU — rental guarantee and withdrawal requirements
• CGN — termination under the Servicio de Garantía de Alquileres
• ANDA — rental guarantee rules

Sources consulted July 27, 2026.

Related articles

• Uruguay's rental law (2026): your rights and your contract
• Renting without a guarantee in Uruguay (2026): the LUC regime
• What can be deducted from your rental deposit, and how to get it back
• Rent increases in Uruguay (2026): how they're calculated