Buying land and developing it for resale is a lucrative and fast way to earn money. Yet, remember that to avoid the associated pitfalls, a functional strategy is a must. You need to know the ins and outs of local laws and trends that affect the land market. To be sure you’ll hit the mark, first analyze it and your goals carefully. Recommendations from professionals with experience and knowledge in this field are also not a bad idea.
The Uruguayan land market might be a draw for you if you are interested in buying land for farming or development purposes in a jurisdiction, where taxes are low, bureaucracy is simple, and becoming a resident doesn’t require you to perform a feat. Uruguay boasts clear and attractive tax laws for foreign investors. To obtain residency in Uruguay, you will certainly have to follow certain procedures but these are straightforward and reasonable. Another perk of buying land in Uruguay is that the local land market is drawing more and more global investors.
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The advantages and opportunities that come with buying a land plot in Uruguay are promising:
- As a land investor in Uruguay, you’ll get access to fertile and diverse lands, with a mild climate and low risk of natural disasters.
- You’ll enjoy an opportunity to participate in a growing yet stable economy with a free transparent market.
- The possibility to obtain a residence permit and eventually citizenship by investing in land will be yours.
- With a democratic government in combination with a low level of corruption and violence in Uruguay, your property rights will be reliably protected.
Below, we will throw some light on the difficulties that foreigners may encounter when they want to buy land in Uruguay. We will also provide some tips on how to deal with these difficulties and make the procedure smoother so that you won’t have to move mountains to overcome any potential hurdles.
One of the main challenges you’ll encounter is finding the land that would be a perfect match for your needs. Diverse and competitive, the Uruguayan land market offers land plots of all types and sizes.
Rural land: Used for agricultural or livestock purposes, rural land varies in size, quality, location, and price. How much you’ll eventually pay depends on the soil, water, infrastructure, and accessibility of your land plot. Rural land is a good purchase option for foreigners who want to invest and farm in Uruguay.
Urban land: In Uruguay, you will find land plots for sale in urban or suburban areas. Feel free to use them for residential or commercial purposes.
Coastal land: Sitting near beaches, hills, or islands, coastal land parcels are oftentimes used for residential or recreational purposes. Interested investors acquire them to build cottages, resorts, or even hotels.
To find the right land plot for your needs and budget, simply follow these steps:
- Do your research and compare different options. For the above purpose, use the available online resources that publish information and listings of various land types for sale in Uruguay. It makes sense to read reviews and testimonials from other buyers who bought land in Uruguay and learn from their experiences.
- Hire a professional real estate agent who speaks your language, knows the market, and will seamlessly guide you through the procedure. Again, the Internet may be your best friend and savior. Alternatively, referrals from your network or previous clients are another good source of information.
- Visit the land plot in person and inspect its condition, location, and potential. Check the land’s legal status and title deed and make sure that there are no liens, encumbrances, or disputes over it.
The purchase price and terms are not fixed or uniform when you buy land in Uruguay. They depend on the characteristics and location of your land plot, market supply and demand, the seller’s expectations, as well as economic and tax conditions in the country. To reach an agreement that suits both parties, the buyer and the seller, or their representatives, should negotiate both the price and the of the deal.
Here’s what you should do to achieve success:
- Have a clear budget and a realistic valuation of the land. You should know how much you can afford and how much the land is worth. Don’t forget to consider the costs and fees involved. Depending on a particular situation, these may include agent’s commissions, lawyers and notary’s fees, transfer tax, and stamp duty.
- Your willingness to compromise and listen to the other party’s needs helps so always be courteous, clearly communicating your expectations to avoid misinterpretations.
- To properly draft the contract, hire a professional lawyer or consultant to assist you. It is best when any of these speaks your language, knows the law, and duly protects your rights and interests.
In Uruguay, land purchase and registration can take several weeks or months. Ultimately, it all depends on the case complexity and the availability of the parties involved. The procedure per se is a multistage process consisting of several steps:
- signing a preliminary contract or reservation agreement
- paying a deposit or down payment
- obtaining a RUT or tax identification number
- getting a certificate of good standing (certificado de buena conducta)
- receiving a certificate of health (certificado de salud)
- obtaining a certificate of integration and social participation (certificado de integración y participación social)
- signing a final contract (deed of sale)
- paying the balance of the purchase price
- paying any related taxes and fees.
You want to invest in a profitable asset, right? To make sure you don’t end up with a plot that nobody wants, consult a local expert who can analyze the listings with you. At International Wealth, we have partners who can do exactly this as they are professionals with rich experience in land sales and development in Uruguay. Together, we will help you find the best land plot to buy as well as a reliable and competent developer!