Rental Law in Uruguay 2026: Rights and Contracts
In Uruguay, not all rental contracts are governed by the same rules. The applicable regime determines things that matter a great deal: the term, the rent adjustment, the currency, the guarantee and the eviction timelines.
For housing, the key fact is the date on which the building permit authorisation process was started. As a general rule, homes whose process began before 2 June 1968 fall under Decree-Law 14.219; later ones are under a free-contracting regime, although some provisions of the 14.219 remain applicable under its Article 102. Throughout the rest of this guide we shorten this to "building permit".
There is also the special no-guarantee rental regime created by the Urgent Consideration Law (LUC).
Since 1 January 2026 there has been another significant change: leases for industry, commerce and any use other than a primary residence moved to free contracting regardless of the building permit date.
INGAR is a real estate agency and does not provide legal advice or assistance in disputes between landlords and tenants. For specific situations, consult a lawyer, a notary, or the bodies listed in this guide.
If you are putting together your rental application, you can also read our requirements for renting in Montevideo and the comparison of rental guarantees in Uruguay.
Which regime applies to your rental?
The main sets of rules that coexist today are:
| Regime | Main application |
|---|---|
| Decree-Law 14.219 | Especially homes with a building permit dated before 02/06/1968, plus certain provisions that continue to apply under art. 102 |
| Free contracting | Homes with a permit dated after 02/06/1968 and, since 01/01/2026, industry, commerce and all other non-residential uses |
| LUC, Law 19.889 | Special regime for certain no-guarantee rentals of a primary residence |
| Civil Code | General rules that apply directly or as a supplement, depending on the contract |
This matters because a clause that is perfectly valid under free contracting may not be under the 14.219.
Where Decree-Law 14.219 applies, its mandatory provisions are public order legislation: a contractual clause cannot cut back the rights the law grants the tenant.
Minimum term and statutory extension
Housing under Decree-Law 14.219
For a primary residence, the minimum legal term is 2 years.
Some situations are excluded from that protective regime. Article 28 covers, among others, certain seasonal rentals in tourist areas of up to 120 days, contracts whose initial price exceeds 70 UR, and cases where the tenant's household exceeds certain income levels.
The Civil Code also sets a general maximum of 30 years for leases.
When the contract ends, a tenant of a primary residence covered by the 14.219 has a one-year statutory extension, provided the good-payer benefit applies. No new contract is needed for it to operate.
During that extension the contract conditions continue and the landlord cannot seek eviction simply because the term expired. Once it ends they can, and the legal period for a good payer to vacate is 1 year.
So under this regime a contract originally signed for two years can allow a considerably longer stay.
Housing under free contracting
If the home's building permit is dated after 2 June 1968, as a general rule the contract falls under free contracting.
The two-year minimum term, the annual extension and the 14.219 adjustment system should not be transferred to it automatically.
The term and the conditions agreed in the contract therefore carry particular weight.
Once the contract expires, the Ministry of Economy and Finance distinguishes two situations: if the landlord starts eviction proceedings within 30 days of expiry, the period to vacate is 6 months; if they file after those 30 days, the period is 1 year.
Industry, commerce and other uses
Since 1 January 2026, leases for industry, commerce or any use other than a primary residence are under free contracting regardless of the building permit date, under Law 20.446.
For that reason the old five-year minimum term for commercial premises should no longer be presented as a rule in force.
How the rent is adjusted
The mechanism depends on the regime.
Under Decree-Law 14.219
Where the statutory adjustment applies, two figures are compared:
- the variation of the CPI over the relevant twelve months;
- the variation of the URA over the same period.
The lower of the two is used.
The URA is calculated from the Reajustable Unit (UR), and the Executive Branch periodically publishes the adjustment coefficient.
For example, contracts that adjusted in January 2026 had a published coefficient of 1.0365, a total increase of 3.65%. For homes covered by this regime that increase is not applied all at once, but gradually, in four-month stages: one third during the first, two thirds during the second and 100% during the third (Law 15.799, art. 16). On a rent of $25,000 that works out at roughly $25,304 during the first stage, $25,608 during the second and $25,913 during the third.
Up-to-date values are published at IMPO – UR, URA and CRA values, and the step-by-step calculation is in our guide to rent increases in Uruguay.
The 14.219 also allows the parties to agree stepped increases for twelve-month periods. If one of those increases exceeds the legal coefficient, Article 3 sets out a mechanism by which the tenant can opt to move to the statutory adjustment system.
That option can be exercised once only during the contractual period and must be communicated by registered telegram within 15 calendar days of the publication of the relevant coefficient.
Under the other regimes
Under free contracting, the mechanism depends essentially on what the contract says.
Under the LUC's no-guarantee regime the parties can also agree it freely. If there is no express clause and the rent is set in national currency, the law provides for an annual CPI adjustment.
Rental guarantees
For the sums or security deposits covered by Article 38 of Decree-Law 14.219, the cap is:
| Use | Guarantee |
|---|---|
| Primary residence | Up to 5 months' rent |
| Commerce, industry and other uses | Up to 10 months' rent, without prejudice to the new arrangements allowed since 2026 |
For non-residential leases, Law 20.446 additionally enabled guarantees such as a bank surety or guarantee and certain insurance policies, including ones for fixed amounts in pesos or foreign currency.
The guarantees commonly used in Uruguay include ANDA, CGN, a cash deposit, a personal guarantor and rental insurance. You can compare them by cost and requirements with the rental guarantee calculator, and if you are arriving in the country without a local track record, in renting in Uruguay as a foreigner with no local history.
Where a deposit covered by Article 38 is used, it must be constituted within 15 days of signing. Those deposits are currently expressed in Unidades Indexadas (UI), and we cover who may hold them in who can hold your security deposit.
Article 40 also allows, under certain conditions, a personal surety to be replaced by a security deposit.
To compare the requirements, costs and mechanics of each system, see our guide to rental guarantees in Uruguay. And if you took out rental insurance, see how long you keep paying it if you move out.
What should the contract set out?
A written contract is a requirement for using the LUC's no-guarantee regime. Decree-Law 14.219 also provides, in its Article 109, that urban leases covered by that regime must be made in writing. Under free contracting, putting it in writing remains especially important in order to evidence the term and the other agreed conditions.
At a minimum, these points should be clear:
| Item | What it should specify |
|---|---|
| Parties | Details of the landlord and the tenant |
| Property | Address, unit, land registry number and extras such as a garage or storage room |
| Intended use | Housing, commercial, office or other |
| Price | Amount, currency and payment date. For a benchmark, see the median rents by neighbourhood in the INGAR Index |
| Adjustment | Index or mechanism used, and how often |
| Term | Start, expiry and any renewal |
| Guarantee | Type, amount and conditions |
| Expenses | What each party pays |
| Inventory | Condition of the property, preferably with photographs |
| Early termination | Notice period and any penalties |
| Repairs | What the landlord and the tenant are each responsible for |
In a condominium it is also worth reading the co-ownership bylaws. We cover that in our guide to horizontal property in Uruguay.
Clauses that deserve a closer look
A clause being signed does not mean it can override a mandatory provision of the applicable regime.
| Clause | What to check |
|---|---|
| "The contract runs for 12 months" | Under the 14.219 this may conflict with the 24-month legal minimum for a primary residence. Under free contracting or the LUC it can be valid |
| "The adjustment will be the higher of CPI and URA" | Under the 14.219's statutory system it is the lower, without prejudice to the stepped-increase arrangement the law itself allows |
| "The adjustment will be semi-annual" | Under the 14.219 both the statutory adjustment and the permitted stepped increases run over 12-month periods |
| "The tenant waives the statutory extension" | A mandatory protection of the 14.219 cannot be waived in advance |
| "Rent will be paid in US dollars" | Under the 14.219 the restrictions of art. 76 apply; other regimes allow more freedom |
| "On default the landlord may evict directly" | Eviction requires court proceedings |
| "The landlord may enter at any time" | A reasonable right of inspection is not the same as authorising indiscriminate entry |
The first question to ask about any doubtful clause is always the same: which regime governs this contract.
Renting in US dollars
Under Decree-Law 14.219, as a general rule the price must be expressed and paid in national currency.
If a foreign-currency reference is used, Article 76 provides for its conversion into pesos at the selling rate of the day before the contract is entered into, with the exceptions set out in the rule itself.
It is important not to confuse this with the exchange rate on the day each month's rent is paid.
Under the LUC's no-guarantee regime, by contrast, the parties may set the price in pesos, foreign currency, UR or UI.
Repairs, maintenance and common charges
The Civil Code allocates responsibility between landlord and tenant according to the origin and type of the damage.
| Type | Generally falls to | Examples |
|---|---|---|
| Necessary repairs | Landlord | Structural leaks, pipework, general installations |
| Locative repairs or damage attributable to use | Tenant | Damage caused by the tenant or their dependents |
| Improvements | As agreed | Air conditioning, refurbishments, additional fittings |
The tenant is not liable for deterioration caused by the passage of time, legitimate use, force majeure or defects inherent to the property.
Article 77 of Decree-Law 14.219 places on the tenant the payment of utilities, common charges and other services ancillary to the lease, and expressly excludes costs arising from repairs or improvements made to the property.
In practice that means ordinary common charges generally fall to the tenant, and extraordinary ones — major building works or repairs — to the landlord. Even so, it is worth looking at the specific item being charged and at what the applicable regime and the contract say, rather than at the label on the statement.
You can see the detail in our guide to common charges in Uruguay.
If the landlord fails to meet significant maintenance or service obligations, it is not advisable for the tenant to unilaterally decide to stop paying the rent.
Under the 14.219 there are judicial mechanisms to have the breach verified, to have its correction ordered and, in the cases provided for, to obtain a court-ordered rent reduction. To use them the tenant must be up to date with their own obligations.
Faced with a significant problem, it is worth documenting the condition of the property, giving formal notice by a verifiable means and obtaining legal advice.
Privacy, inspections and use of the property
Once possession has been handed over, the landlord must respect the tenant's use of the property.
Inspections or viewings are best regulated expressly in the contract, with a reasonable arrangement for coordination and prior notice.
Under the LUC's no-guarantee regime, the law allows the parties to expressly agree the landlord's right to inspect the property on the terms agreed.
The tenant, for their part, must use the property for the agreed purpose, keep it in proper condition and make no structural alterations without authorisation.
Early termination
Neither Decree-Law 14.219 nor the LUC gives the tenant, as a general rule, an automatic right to end the contract unilaterally before it expires simply because they want to move.
That is why it matters that the contract sets out what happens if the tenant needs to leave early: how much notice they must give and whether there is any penalty.
In the market it is common to find clauses with 60- or 90-day notice periods and, in some cases, penalties during the initial part of the contract. What actually governs is whatever was agreed, within the limits of the applicable regime.
If the contract does not regulate early exit, the situation can be considerably more complicated. We go into it in breaking a lease early in Uruguay and assigning the contract.
Eviction: how it works
The landlord cannot take the property back by their own hand, changing locks or forcing the tenant out. Eviction is a court process.
The procedure and the period depend on the regime and on the ground invoked.
Under Decree-Law 14.219
The grounds covered by the rules include expiry of the term, non-payment, certain situations of landlord's necessity, demolition or reconstruction, a ruinous building, use other than the agreed one, and situations involving subletting or damage to the property.
Some of the periods set by law are:
| Situation | Legal period to vacate |
|---|---|
| Good payer, after the statutory extension | 1 year |
| Landlord's necessity | 1 year |
| Demolition or reconstruction | 1 year |
| Bad payer | 20 days |
| Precarious occupant | 15 days |
| Seasonal tourist rental covered by the rule | 15 days |
| Abandonment | 60 days |
| Ruinous building under art. 26.5 | Up to 180 days, as the judge determines |
These are legal periods to vacate, not the full duration of a court file.
Notifications, defences, evidence, appeals and the court's workload can all make the actual process take longer.
Bad payer
To start an eviction for non-payment there must be a formal demand for payment.
Under the 14.219, Article 51 allows the case to be closed if, within the period for raising defences, the tenant deposits the amount owed plus 40% towards interest, taxes and costs.
That benefit can be used once only.
The LUC's no-guarantee rental regime
Law 19.889 created in 2020 an alternative regime for leases of a primary residence.
For it to apply, it is not enough that the landlord asks for no guarantee. Article 421 requires, cumulatively, that:
- the property has the intended use set out in the rule;
- no guarantee exists in the landlord's favour;
- the contract is in writing;
- it expressly states the term and the price;
- the parties expressly declare their intention to submit to that regime.
Its main differences from the 14.219 are:
| Item | Decree-Law 14.219 | LUC without guarantee |
|---|---|---|
| Guarantee | Up to 5 months for housing | Cannot exist |
| Minimum term | 2 years for a primary residence | No legal minimum |
| Price | Specific statutory regime | Can be agreed in pesos, foreign currency, UR or UI |
| Adjustment | CRA where applicable | As agreed; in certain cases, CPI if no other mechanism was agreed |
| Extension | 1 year for a good payer | Renews for a period equal to the agreed one unless prior notice to the contrary is given |
| Good-payer eviction | 1 year after the statutory extension | 30 days |
The flexibility of the LUC regime comes with considerably shorter periods for recovering the property. We look at it in detail in renting without a guarantee in Uruguay: how the LUC regime works.
What happens if the property is sold?
The sale of the property does not allow you to state automatically that the new owner must always respect the original term.
Article 1792 of the Civil Code provides that the buyer must honour the lease for the agreed term when the contract is recorded in a public deed or in a duly registered private document, subject to the exceptions set out by law.
Under the LUC's no-guarantee regime, the contract is likewise enforceable against the buyer from the moment it is registered.
So when a rented property is sold, both the regime and the registration of the contract have to be checked.
Can I sublet?
This too depends on the regime.
Under Decree-Law 14.219, the right to sublet in whole or in part must be recorded in writing.
Where the Civil Code's general rule applies directly, Article 1791 allows subletting for the same use and within the term provided the contract did not expressly prohibit it.
Under the LUC's no-guarantee regime, the right to sublet must also be expressly recorded in writing.
What happens to the guarantee when the contract ends?
When the tenancy ends and the property is returned in the agreed condition, allowing for normal wear and tear, the guarantee must be released or returned according to the arrangement used.
Where there is a deposit constituted under the relevant statutory regime, it does not accrue interest; its value is preserved through UI indexation.
If there is damage or debt and the parties do not agree, the landlord cannot simply appropriate the deposit unilaterally. Releasing it may require both parties' consent or a court order.
A signed inventory with photographs is particularly useful in establishing the condition in which the property was received and returned. On what can and cannot be deducted, see what can be deducted from your rental deposit.
Agency fees
In Uruguay there is no general state tariff setting what an agency must charge for brokering a rental.
The Cámara Inmobiliaria Uruguaya (CIU) publishes a trade-association fee schedule used as a professional reference.
For free-contracting leases of certain lengths, the usual reference in the schedule is:
| Party | Reference fee |
|---|---|
| Tenant | 1 month's rent + VAT |
| Landlord | 1 month's rent + VAT |
The schedule contemplates certain discounts and different rules depending on the length of the contract.
For short-term rentals of up to five months, the CIU reference is 8% of the contract amount + VAT from each party.
The CIU schedule also provides for fees on renewals. As it is a trade-association reference and not a state tariff, what is actually charged to the client has to be assessed against the agency's involvement, the authorisation given and what was agreed and disclosed. Law 20.380 recognises the real estate operator's right to charge fees and, at the same time, prohibits them from claiming fees when they are not licensed or do not have the client's authorisation.
Nor should this be confused with the administration commission payable by the tenant regulated by Article 108 of Decree-Law 14.219, which has its own rules and limits. The full breakdown is in rental agency commission in Uruguay.
Before you sign
More important than memorising a statute is correctly identifying the contract you are signing.
Check in particular the applicable regime, term, adjustment, guarantee, currency, expenses, inventory, maintenance and the conditions for any early termination.
If the contract falls under the LUC regime, it must say so expressly.
It is also worth keeping payment receipts, relevant communications and photographs of the condition of the property. In a dispute, that documentation can matter as much as the contract itself.
Two reads that save trouble before you get to signing: how to spot a misleading property listing and being asked for a deposit before viewing: is it a scam?. And once you are renting, check whether you qualify for the rental tax credit on IRPF.
Where can I turn if there's a dispute?
In Montevideo there are free legal guidance services on housing matters run jointly by the Municipality and the Law School of the Universidad de la República.
The Public Defender's Office can assist those who meet its access conditions, and the Rental Guarantee System of the Comptroller General (CGN) handles matters relating to contracts guaranteed through that system.
Rental disputes are heard by the competent courts.
Rental matters are exempt from the mandatory prior conciliation generally required by Article 294 of the Code of Civil Procedure. That does not prevent the parties from negotiating or voluntarily using mediation.
Sources
- IMPO — Decree-Law 14.219, updated version
- IMPO — Law 20.446, article 689
- IMPO — Law 15.799, article 16 (four-month staging of the adjustment for housing)
- IMPO — Law 19.889, articles 421 et seq.
- IMPO — Law 20.380 (real estate operators and fees)
- IMPO — Code of Civil Procedure, article 294
- IMPO — Civil Code, article 1792
- IMPO — UR, URA and Rental Adjustment Coefficient values
- Ministry of Economy and Finance — Tenant rights and obligations
- Ministry of Economy and Finance — Time to hand over the property once the contract expires
- Ministry of Economy and Finance — How the guarantee file is adjusted (official worked example of the four-month calculation)
- Cámara Inmobiliaria Uruguaya — Rental process
This guide is for informational purposes only and does not constitute legal advice. For specific situations, consult a lawyer or notary specialising in rental law.
About to rent, or to put your property up for rent? Compare guarantees with the rental guarantee calculator, browse the available properties or message us on WhatsApp.
Related Articles
- Requirements for Renting in Montevideo (2026): Application File, Guarantees and Costs
- Rental Guarantees in Uruguay (2026): ANDA, BHU, Insurance Company or Deposit
- Renting Without a Guarantee in Uruguay (2026): How the LUC Regime Works
- Rent Increases in Uruguay (2026): How to Calculate Them Under Your Contract
- Breaking a Lease Early in Uruguay (2026): How to Leave and Assign the Contract
- Rental Agency Commission: What You Pay, Who Sets It and When It Is Charged
- What Can Be Deducted from Your Rental Deposit in Uruguay (2026)
- Common Charges (2026): What They Include, How They Are Calculated and What to Ask
- Horizontal Property in Uruguay: Rights and Duties of Co-Owners
