There are a few extremely important concepts a northerner has to learn if you own or are going to purchase real property here. My wife and I are no experts on this matter. We’re neither lawyers or escribanos, nor do we have experience with hundreds of properties all over the country. But we have had a few very important learning experiences that you should know. If someone reading this posts is aware of others, please comment and we’ll adjust the post and credit you.
The two that we have had experience with are inheritance laws and what we would call in english, squatters rights. This post deals with the former.
Inheritance laws in Uruguay apply to all real property, whether you’re a resident here or not. Real property is for all intents and purposes, real estate. If the property is in the name of a person, Uruguayan law applies. If you own property, or even more important, if you intend to purchase property, and you have children, discuss this with an attorney or an accountant, before you close the property. You can make any changes you want to the ownership afterwards, but you’ll pay taxes twice and they are significant as a % of the purchase. The key issue we’re aware of is that upon death of a parent, children automatically inherit 50% of that parent’s real property. In the most common case, when property is owned jointly by the husband and wife, the children will inherit 25% of the total property value, automatically. Should the surviving parent resist, the courts will hold to this strictly. Whatever is owned that isn’t lived in, as in permanent residence, the courts will liquidate upon petition of the child or children. The exception to liquidation is the equivalent of a northerner’s principal residence. They wont throw the surviving parent out in the cold, so to speak. But if that parent decides to sell the property, eg. to downsize, 25% comes off the top of the sale for the ninos. If you need more detail, speak with an attorney.
