USD 250,000 Doesn't Buy You a USD 250,000 Apartment: The Real Cost of Buying in Montevideo
INGAR · · Analysis
Short answer: with USD 250,000 in hand, the maximum price you can pay for the property itself depends on what kind of purchase you're making.
| Scenario | Approximate maximum price |
|---|---|
| A single resale unit, with no occupancy charges and no furnishing | USD 228,250 |
| Two new units outside the incentive program, with 2.5% occupancy charges and USD 8,000 in furnishings | USD 215,765 |
| Two new units under the incentive-housing program whose first sale is exempt from transfer tax | USD 218,100 |
These figures are planning examples, not quotes. They assume the buyer pays a broker's commission, a benchmark notary fee, an assessed cadastral value equal to 60% of the price, and USD 1,000 in documentary costs. Before you put down a deposit, swap every assumption for the actual numbers on the actual unit.
The gap between the price and the full USD 250,000 is made up of costs you normally have to cover out of pocket: commission, notary work, taxes, certificates and — on new construction — occupancy charges. And if you plan to hand the unit over furnished, that budget has to sit outside the price too.
In the two-new-units example, a yield advertised as 6.09% gross on the price drops to 5.28% once you measure it against every dollar you actually put in. The estimated net comes to 3.42%. With the incentive-housing benefits in force and all their conditions met, the same example lands close to 4% net.
The investment can still make perfect sense. What matters is running these numbers before you sign anything.
Who this example is built for
To keep nationality and tax residency from getting tangled up, the math here assumes an individual who:
- is a tax resident of Argentina;
- is not a tax resident of Uruguay;
- buys in their own name;
- uses no bank financing;
- puts the units on the long-term rental market.
Buy through a company, hold Uruguayan tax residency, take on debt, or aim the property at short-term rentals, and some of the taxes and costs change.
Why you should start from the capital you have
The listing price is not the total cost of entry. Pour nearly all your capital into the price and you can find yourself short of cash for the deed, the taxes, or getting the unit rent-ready.
So the question worth asking as an investor isn't only "what does this property cost?" — it's also "what price can I pay without blowing through the capital I have?"
Every assumption below is spelled out separately so you can check the math yourself. In the end, the documents that govern are the cadastral certificate, the notary's written estimate, the brokerage agreement and the developer's cost sheet.
What it costs to buy in Montevideo
| Item | Benchmark | Basis and caveats |
|---|---|---|
| Broker's commission | Market practice: 3% + VAT = 3.66% | Applies where the brokerage agreement calls for it. It is neither a tax nor a legally mandated fee. |
| Notary fees | Benchmark schedule: 3% + VAT | The basis depends on the transaction. As a rule, the price is compared against the updated assessed value; occupancy charges are added where applicable. |
| Buyer's ITP (property transfer tax) | 2% | Levied on the updated assessed value set by Catastro (the national cadastre); if that value exceeds the price in the deed, the price governs. May be waived on the first sale of an incentive-program home. |
| Certificates, registration, stamp duties and other costs | Variable | Depend on how many property records, documents and filings the deal requires. |
| Occupancy charges and utility hookups | Set by contract | Show up mainly in new construction. There is no single legal percentage. |
| Furnishing and rent-ready costs | Per quote | Depends on the rental strategy and on what the unit already includes. |
Sources: DGI (Uruguay's tax authority) — Property Transfer Tax, Title 19 of the 2023 Consolidated Tax Code, Asociación de Escribanos del Uruguay (the national notaries' association) and Cámara Inmobiliaria Uruguaya (the Uruguayan real-estate chamber).
Broker's commission: customary is not the same as compulsory
In the Uruguayan market, buyers customarily pay 3% plus VAT for brokerage, which works out to 3.66% of the price. That amount has to come from the signed agreement and from the terms disclosed before you put money down.
On some projects the developer absorbs the buyer's commission. On others the buyer pays it. Your cost sheet shouldn't assume either one.
How the ITP is calculated
In an arm's-length sale, the buyer pays 2% ITP on the assessed value set by Catastro and indexed to the consumer price index. If that indexed value comes out above the price stated in the deed, the taxable base is capped at the price.
Which is why you can't just apply 2% to the sale price and call it done. Nor can you assume the ITP always equals some fixed share of the price.
An example: if a unit sells for USD 100,000 and its updated assessed value is the equivalent of USD 60,000, the buyer's ITP would run roughly USD 1,200. But that 60% is an assumption; the real figure has to come from the cadastral record for that specific property.
Incentive housing can change your purchase costs too
The first transfer of a home built under the incentive-housing program can be exempt from ITP for both buyer and seller, provided it happens within the statutory window.
Decreto 355/011 sets that window at no more than nine fiscal years after the year in which construction was completed.
That makes it essential to check the specific unit. The fact that a building was developed under the program does not, on its own, prove that every benefit is still live on the day you buy.
Notary fees and documentary costs
The benchmark schedule for a purchase and sale is 3% plus VAT on the applicable base. Among other rules, the Asociación de Escribanos provides that occupancy charges and similar items must be added to the price when calculating the fee.
There are also special treatments:
- if the price includes real-estate VAT, that tax is backed out to determine the base;
- a preliminary sale agreement and the final deed can generate credits between fees;
- certain transactions carry specific reductions or minimums.
A generic cost sheet is fine for earmarking capital, but it's no substitute for a written estimate from the notary the buyer chooses.
Occupancy charges: there is no single legal percentage
New construction can come with occupancy charges, utility hookups, building commissioning costs and other items the developer builds into the deal.
Listings and projects quote all sorts of percentages, but there is no across-the-board 2%, 3% or 5% rate. The number that counts is the one written into the paperwork for your transaction.
On top of that, the Asociación de Escribanos treats occupancy charges as part of the base for the notary fee where they apply.
Ask for the following before you put down a deposit:
- the percentage or amount;
- the calculation base;
- the payment date;
- what's covered;
- whether it can be financed;
- what happens if you walk away or the project runs late.
Furnishing: it depends on your rental model
Not every rental unit needs a full set of furniture. There's real demand for unfurnished apartments on annual leases, while corporate and short-term rentals usually call for a heavier fit-out.
Before you pencil in USD 3,000, USD 6,000 or any other figure, settle on:
- the lease type;
- the target tenant;
- which appliances are already included;
- heating and air conditioning;
- window coverings and light fixtures;
- furniture;
- dishes and linens, if applicable.
The examples in this piece set aside USD 4,000 per unit as a planning assumption. That is not a guaranteed market price.
What USD 250,000 actually buys: three scenarios
Scenario 1: a single resale unit
Assumptions:
- one unit only;
- no occupancy charges;
- no furnishing;
- buyer's commission: 3.66%;
- notary fee: 4.23% (3% + VAT + the Notarial Fund contribution);
- ITP equal to 1.2% of the price, since the assessed value is assumed at 60%;
- USD 1,000 for certificates, registration, stamp duties and other costs.
On those assumptions, the maximum price lands at roughly USD 228,250.
Treat that as a reference point for a straightforward resale purchase. If the ITP comes in lower, if there's no buyer's commission, or if the documentary costs shift, so does the price you can afford.
Scenario 2: two new units outside the incentive program
Assumptions:
- one one-bedroom and one studio;
- combined price: USD 215,765;
- assessed value estimated at 60% of the price;
- occupancy charges: 2.5%;
- furnishing: USD 4,000 per unit;
- notary fee calculated on price plus occupancy charges;
- USD 1,000 in certificates, registration, stamp duties and other costs;
- no financing.
| Item | Amount USD |
|---|---|
| Price of the two units | 215,765 |
| Broker's commission, where applicable (3.66%) | 7,897 |
| Benchmark notary fee on price plus occupancy charges | 9,355 |
| Buyer's ITP, with assessed value assumed at 60% | 2,589 |
| Certificates, registration, stamp duties and other costs —assumed— | 1,000 |
| Occupancy charges —assumed at 2.5%— | 5,394 |
| Initial furnishing —2 × USD 4,000— | 8,000 |
| TOTAL COST OF ENTRY IN THIS EXAMPLE | 250,000 |
| Premium over the price of the units | 15.9% |
The extra dollar is a rounding artifact.
Scenario 3: two new units under the incentive-housing program
If the units qualify for the first-sale ITP exemption and all other assumptions hold, the combined price you can afford rises to roughly USD 218,100.
| Item | Amount USD |
|---|---|
| Price of the two units | 218,108 |
| Broker's commission, where applicable | 7,983 |
| Benchmark notary fee on price plus occupancy charges | 9,457 |
| Buyer's ITP | 0 |
| Certificates, registration, stamp duties and other costs —assumed— | 1,000 |
| Occupancy charges —assumed at 2.5%— | 5,453 |
| Initial furnishing | 8,000 |
| TOTAL COST OF ENTRY IN THIS EXAMPLE | 250,000 |
| Premium over the price of the units | 14.6% |
The exemption has to be confirmed unit by unit. Don't take it for granted based on the age of the building or a vague reference to Ley 18.795.
If you want to hold cash back
In the two-new-unit scenarios, holding back USD 5,000–8,000 brings the price you can afford down to roughly:
| Scenario | USD 5,000 held back | USD 8,000 held back |
|---|---|---|
| Units outside the incentive program | USD 211,200 | USD 208,600 |
| First sale under the program, ITP exempt | USD 213,500 | USD 210,800 |
That reserve isn't a purchase cost. It's liquidity you keep on hand for vacancy, repairs, budget overruns or first-year expenses.
What "total cost of entry" means
It helps to think in four layers:
| Layer | Covers |
|---|---|
| Price | The agreed amount for the property |
| Closing | Commission, notary, ITP where applicable and documentary costs |
| Entry | Closing plus occupancy charges and hookups |
| Rent-ready | Entry plus the furnishing your rental strategy calls for |
In this piece, "total cost of entry in this example" runs all the way through rent-ready.
It does not include:
- a cash reserve;
- banking or wire-transfer fees;
- exchange-rate spreads;
- travel;
- mortgage debt;
- Argentine tax advice;
- recurring taxes down the road;
- the future cost of selling.
What this does to your returns
Take a portfolio with:
- a one-bedroom rented at USD 620 a month;
- a studio rented at USD 480;
- combined contract rent: USD 13,200 a year.
The net figures follow the methodology of the Índice INGAR, which deducts 35.16% of gross rent for property management, income tax, maintenance, vacancy and owner's taxes.
Purchase outside the incentive program
| Metric | Result |
|---|---|
| Combined price | USD 215,765 |
| Total cost of entry | USD 250,000 |
| Gross yield on price | 6.09% |
| Gross yield on capital deployed | 5.28% |
| Estimated annual net rent | USD 8,559 |
| Net yield on capital deployed | 3.42% |
Changing the denominator knocks roughly 0.81 percentage points off the gross return.
Purchase under the program with benefits in force
In the Índice INGAR's general model, income tax accounts for 10.06% of contract rent, because it's calculated after assumed vacancy. If the rental income is fully exempt, that deduction disappears.
| Metric | Result |
|---|---|
| Combined price | USD 218,108 |
| Total cost of entry | USD 250,000 |
| Gross yield on price | 6.02% |
| Gross yield on capital deployed | 5.28% |
| Estimated annual net rent with exemption | USD 9,887 |
| Net yield on capital deployed | 3.95% |
Incentive housing adds roughly 0.53 points of net return in this model. The result lands near 4% — not because the rent is any higher, but because the modeled tax drops out and, on an eligible first sale, so does the ITP at entry.
Exempting the rental income means checking the term, the percentage and the conditions. For the benefits under Decreto 129/020, the lease has to be for permanent housing and the contract has to run at least 12 months.
Across the central and coastal neighborhoods covered here, net yields don't reach 6%. If someone pitches you 6% or 7% net, ask for the full arithmetic: price, rent, vacancy, management, taxes, maintenance, common charges and cost of entry.
Where to buy: Índice INGAR data for July 2026
The table below reproduces a selection from the Índice INGAR, updated August 1, 2026.
| Neighborhood | USD/m² | Gross yield | Estimated net yield |
|---|---|---|---|
| Tres Cruces | 2,778 | 6.6% | 4.3% |
| La Blanqueada | 2,932 | 6.1% | 3.9% |
| Cordón | 2,855 | 5.9% | 3.8% |
| Parque Batlle | 2,993 | 5.9% | 3.9% |
| Centro | 2,734 | 5.8% | 3.8% |
| Ciudad Vieja | 2,152 | 6.9% | 4.5% |
| La Comercial | 2,267 | 6.7% | 4.4% |
| Goes | 2,115 | 6.5% | 4.2% |
| Brazo Oriental | 2,095 | 6.4% | 4.1% |
| Malvín | 3,369 | 5.3% | 3.4% |
| Buceo | 3,172 | 5.6% | 3.6% |
| Pocitos | 3,548 | 5.1% | 3.3% |
| Punta Carretas | 3,802 | 5.4% | 3.5% |
| Parque Rodó | 3,715 | 4.9% | 3.2% |
| Carrasco | 3,794 | 5.9% | 3.9% |
| Montevideo published median | — | 6.0% | 3.9% |
The methodology uses asking prices, not closing prices. Gross yield comes from rent per square meter against sale price per square meter within the same segment. The net figure applies a modeled 35.16% deduction.
The series began in March 2026 and publishes only those segments that clear its sample-size and stability checks. So treat the data as a market reference, not a guarantee that any given unit in a neighborhood will deliver that return.
The spread within Montevideo shows just how much the neighborhood and the specific property can move the outcome. Comparing Montevideo with Buenos Aires calls for matching periods, unit types and methodologies.
Two small units or one larger one
| Two small units | One larger unit | |
|---|---|---|
| Typical layout | A studio plus a one-bedroom | Two bedrooms |
| Example neighborhoods | Cordón, Tres Cruces, La Blanqueada | Pocitos, Punta Carretas |
| Benchmark neighborhood gross yield | 5.9%–6.6% | 5.1%–5.4% |
| Vacancy exposure | If one sits empty, the other keeps generating rent | A vacancy wipes out all the rent |
| Purchase costs | Several certificates, filings and fees repeat per unit | Fewer filings per property |
| Percentage components | Depend on the combined price and on each agreement | Depend on the price and the agreement |
| Management | Two leases and two units | One lease and one unit |
| Resale | Two tickets that can be sold separately | A single exit transaction |
| Furnishing and maintenance | Two kitchens, two bathrooms, two sets of appliances | Just one unit |
Which way to go depends on what you're after. Two units spread out vacancy risk and let you sell piecemeal, but they multiply leases, per-property costs and maintenance headaches. One larger unit simplifies management, though it concentrates both the rent and the exit.
Without data, no one can claim that one layout is bound to appreciate faster or trade more easily. Judging that means looking at closed sales, days on market, competing supply, condition and ticket size.
What the concentration in Cordón actually tells you
According to ANV report No. 50 (May 2026), 79.7% of the country's incentive-housing sales filings are concentrated in Montevideo. Within the department, Cordón accounts for 26.4% and tops 5,500 filings.
That works out to roughly 21.0% of the national total — not 27%.
The concentration is a good reason to look closely at:
- projects under construction;
- delivery dates;
- the share of studios;
- common charges;
- comparable rents;
- observed vacancy;
- what sets the unit apart.
It doesn't prove on its own that rents are headed down. It's a supply signal that has to be read alongside demand and rental data.
More on this in incentive housing: the tax benefits and studio versus two-bedroom for investors.
What to ask for before you put down a deposit
- A cost-of-entry sheet, breaking out price, commission, notary, ITP, certificates, occupancy charges and furnishing as separate lines.
- A written estimate from the notary, covering fees, VAT, certificates, stamp duties, registration and any additional filings.
- The cadastral certificate and updated assessed value, so you can calculate the ITP off the real property record.
- Contract language on occupancy charges, with the percentage, the base, what's covered and the payment date.
- Actual common charges or the building's budget, making clear whether this is a finished unit or a developer's estimate.
- Projected Contribución Inmobiliaria (municipal property tax), Impuesto de Enseñanza Primaria (a school-funding property levy), insurance and maintenance for the unit.
- Rental comparables, with source, date, floor area and layout. Closed leases can be presented anonymized; listings have to be labeled as asking prices.
- Incentive-housing paperwork, including the program declaration, which unit it covers, which taxes are exempt, the percentage, the conditions and the expiration date.
- Management and tenant-placement fees, plus the procedure for late payment or a tenant moving out.
- An exit scenario, with estimated commission, taxes and costs on a future sale.
If a number isn't available yet, flag it as pending. What matters is not quietly filling the gap with a generic figure.
How to move money from Argentina
Since April 14, 2025, individuals resident in Argentina have had unrestricted access to the foreign-exchange market to buy foreign currency in cash or for deposit, provided the transaction is debited from a local bank account. The bank has to verify that the buyer's income or assets are consistent with the transaction.
The treatment differs for companies and other residents:
- legal entities need prior approval from the BCRA (Argentina's central bank) to access the FX market for the purpose of acquiring foreign assets;
- except where the rules provide otherwise, anyone who is not a resident individual has to observe 90-day cross-restrictions covering certain transactions in securities, crypto assets or foreign assets;
- the Argentine bank may request additional documentation to classify and process the transfer.
Sources: BCRA — Foreign Exchange and External Sector Regulations and Comunicación A 8226.
Source of funds in Uruguay
The brokerage, the notary and the financial institutions all carry due-diligence obligations. Articles 13 through 16 of Ley 19.574 name real-estate agencies and notaries among the reporting parties in property transactions.
Depending on the buyer's profile and where the money came from, you may be asked for:
- tax returns;
- pay stubs or income certifications;
- financial statements;
- sale contracts for other assets;
- account statements;
- corporate documents;
- identification of the ultimate beneficial owner;
- a traceable record of the transfers.
Having complete documentation cuts down on follow-up questions, but it doesn't guarantee automatic approval. Every bank and reporting party runs its own assessment.
It's also not true that every purchase requires a personal Uruguayan bank account. The workable payment route depends on the receiving bank, the notary, the seller and the payment terms you agree to.
Nail down that route before a deposit or a preliminary agreement locks you in.
Your Argentine tax obligations don't go away
Buying in Uruguay does not, by itself, change your Argentine tax residency.
For someone who remains an Argentine tax resident:
- property located in Uruguay may fall within the wealth base subject to Bienes Personales (Argentina's personal assets tax);
- rental income earned in Uruguay may count as foreign-source income;
- the ultimate treatment depends on your overall asset position, available deductions, comparable taxes paid abroad and the rules in force for each period.
ARCA (Argentina's tax authority) explains that Argentine residents are taxed on income earned both inside and outside Argentina, and that Bienes Personales reaches assets held abroad depending on the case. Sources: ARCA — Income Tax, ARCA — Bienes Personales and Ley 23.966, article 20.
These taxes are no part of the Uruguayan closing costs, but they can absolutely eat into your overall return. Worth reviewing with an Argentine accountant before you settle on ownership and structure.
Frequently asked questions
Beyond the price, what does it cost to buy property in Uruguay?
On a straightforward resale, closing costs can run somewhere around 8%–10%, though it depends on the ITP, the commission, the notary's estimate and the documentary costs. On new construction, add occupancy charges and, where relevant, furnishing.
With USD 250,000, what price range can I buy in?
In the examples here, around USD 228,250 for an unfurnished resale unit; USD 215,765 for two new, furnished units outside the incentive program; or USD 218,100 if the first sale under the program is ITP-exempt.
What value is the ITP calculated on?
On the Catastro assessed value indexed to the consumer price index. If that indexed value exceeds the price in the deed, the price governs. The buyer's rate is 2%. The first sale of an incentive-program home can be exempt if it meets the deadline and the conditions.
What kind of return can I expect in Montevideo?
The July 2026 Índice INGAR publishes a median of 6.0% gross and an estimated 3.9% net on asking prices. In this article's example, the net on total capital deployed is 3.42% without benefits and roughly 3.95% with a full rental-income exemption.
Am I better off with two small units or one large one?
Two units spread vacancy risk and can be sold separately, but they mean more management and several per-property costs. A single unit simplifies administration, though it concentrates the rent. The right answer depends on the unit, the neighborhood and what you're trying to achieve.
Are occupancy charges negotiable?
Depends on the developer and the contract. There's no general legal percentage. Even where the amount can be negotiated, it has to be locked down in writing before you put money down.
Can I buy remotely without traveling to Uruguay?
You can act through a properly drafted power of attorney. The form, the signing in Argentina, the apostille and any filing with a Uruguayan notary all need to be coordinated with that notary in advance. Buying does not require Uruguayan citizenship or residency.
Do I need a Uruguayan bank account?
Not necessarily, in every deal. What you do need is a payment route the receiving bank, the notary and the seller all accept, together with source-of-funds documentation. Settle that before you sign.
How we approach this analysis at INGAR
In our investment analyses, we break out separately:
- price;
- closing costs;
- occupancy charges;
- rent-ready costs;
- gross rent;
- operating assumptions;
- estimated net return.
The point is to let you compare units on a consistent basis. When a number depends on the notary, the developer, Catastro or a tax certificate, we mark it pending until the document is in hand.
Índice INGAR figures are estimates based on asking prices. They are not rent guarantees, and they don't replace an analysis of the specific unit.
Keep reading
- What taxes an Argentine owner pays on an apartment in Uruguay
- Mortgages for non-resident buyers in Uruguay
- Buenos Aires or Montevideo: where should you buy in 2026?
- The costs involved in buying a property
- Rental yields in Montevideo by neighborhood
- Studio versus two-bedroom for investors
- Step by step: how to buy an apartment in Uruguay
Sources
- DGI — Property Transfer Tax
- IMPO — Title 19 of the 2023 Consolidated Tax Code, ITP
- DGI — Taxation of rentals owned by non-residents
- IMPO — Decreto 149/007, article 33
- Asociación de Escribanos del Uruguay — Real estate
- Asociación de Escribanos del Uruguay — Official notary fee schedule
- Cámara Inmobiliaria Uruguaya — The sales process
- IMPO — Ley 18.795 on incentive housing
- IMPO — Decreto 355/011
- IMPO — Decreto 129/020
- ANV — Incentive-housing price report, January 2026
- Índice INGAR — July 2026
- Índice INGAR — methodology
- IMPO — Ley 19.574 on anti-money-laundering
- BCRA — Foreign Exchange and External Sector Regulations
- BCRA — Comunicación A 8226
- ARCA — Income Tax
- ARCA — Bienes Personales
- Argentina — Ley 23.966, as amended
Information reviewed as of August 1, 2026. Commission percentages reflect customary market practice and can vary by agreement. Notary fees are subject to the official schedule, the rules applicable to the transaction and the professional's own estimate. The occupancy charges, furnishing budgets, assessed values and documentary costs used in the examples are planning assumptions. None of this replaces notarial, accounting, tax or banking advice.