Succession and Uruguayan Real Property

The threshold question: which law governs

In a cross-border estate the first question is never what the will says, but which legal system decides the succession. For immovable property many states traditionally connect to the place where the land lies.

Within the EU the Succession Regulation harmonises that connection and lets EU citizens choose the law of their nationality. Uruguay is not bound by that regulation. A choice of law valid under European rules does not automatically take effect there.

Forced heirship in Uruguay

Uruguayan civil law provides for forced heirship: certain relatives, in particular descendants and in some circumstances ascendants, are entitled to a statutorily protected share. Testamentary freedom is limited accordingly.

So anyone planning a distribution that departs from the statutory order, for instance in favour of one child or a foundation, needs it checked whether and how far that holds for a Uruguayan property at all.

The second will, and the mistake in it

The usual route is an additional will executed in Uruguay covering only the assets there. It shortens administration considerably, because no foreign will has to be translated, legalised and recognised.

The mistake that recurs: the new will contains a general revocation clause and unintentionally cancels the European one, or the reverse. Both instruments must be coordinated and each expressly limited to its own estate.

Why structure belongs decided before the purchase

Buying in your own name or through a company changes succession fundamentally: in the first case you leave a property, in the second you leave shares. Those are different assets with different connecting factors.

Since rural land in Uruguay may in any case only be held by natural persons or by companies whose shares are nominative and held by natural persons, structure and succession interlock here and belong decided together.

What we do here, and what we do not

This article is for information purposes only and does not constitute investment, legal or tax advice. AegisTierra does not provide legal or tax advice; it coordinates vetted local specialists.