Real Estate in Chile
A secure destination for your next investment:
Appreciation and stability for your assets.
Turn Your Capital into a Secure and Profitable Asset in Chile
Advantages of acquiring property in Chile
Accessible Process for Foreigners
In Chile, foreigners have the same property rights as local citizens. There are no restrictions, visa requirements, or residency mandates for purchasing real estate, and there is also no mandatory minimum investment amount, allowing you to acquire properties according to your budget and goals. Purchases can be made remotely via a notarized power of attorney, allowing a representative to act on your behalf.
Competitive Taxation
Capital gains on real estate are tax-exempt up to 8,000 UF. In addition, the annual property tax ranges from 0% to 1.2%, depending on the type and value of the property, and foreign investors with income generated outside of Chile may be exempt from taxation for up to 3 years. However, rental and other local income are taxed at 27% on the gross amount.
Solid Investment in a Consolidated Market
More affordable than Mexico, Panama, and Costa Rica, Chile has an average price per square meter of USD 2,500, offering a consolidated real estate market with low volatility. Furthermore, the average rental yield is 4.7% per year, making it a compelling option for investors seeking stability and wealth preservation.
The Most Stable Economy in South America
If you are looking for a country with a reliable and transparent economic environment for investment, Chile is a great option. As the most developed economy in South America, it holds the 21st position among the freest economies in the world and has the 2nd lowest corruption index in Latin America (32nd out of 180 countries). This means greater legal security, predictability, and a stable landscape for those looking to grow their wealth without surprises.
Quality of Life and Modern Infrastructure
Leading South America in human development, safety, and infrastructure, Chile offers organized cities and efficient services. With a homicide rate of 6.3 per 100,000 inhabitants, it is among the safest countries in the region. Whether for living or investing, you will have a stable and well-structured environment for your assets.
A Plan B Close to Brazil
From the Atacama Desert to the glaciers of Patagonia, you will find an incredible diversity of landscapes. Furthermore, its proximity to Brazil allows for easy and frequent travel, with direct flights departing from São Paulo and Rio de Janeiro, making it an excellent option for a second home or for vacation rental investments.
What You Need to Know Before Buying Your Property?
Taxes and Fees Involved
Value Added Tax - VAT
Description
Generally not applicable, except for frequent sellers, commercial real estate transactions, and sales made by developers of new properties.
Value
19% of the property value.
Who pays
Buyer.
Stamp duty
Description
If the purchase involves financing through a loan, there is a stamp duty.
Value
0.066% to 0.8%, depending on the nature and term of the document.
Who pays
Buyer.
Property tax
Description
Annual tax on the value of assets owned.
Amount
1.4% of the property value for urban properties and 1% for rural properties.
Who pays
Owner.
Rental income tax
Description
Tax on rental income generated by the property.
Amount
Progressive 0-35% for individuals and 25%-27% for companies.
Who pays
Owner.
Capital gains tax
Description
Tax on the profit made from the sale of a property.
Amount
Residents: Individuals may be exempt for sales up to 8,000 UF (≈ USD 343,476), with progressive taxation of up to 35%. Companies pay 27% as ordinary income. Non-residents: Flat tax of 35% on capital gains.
Who pays
Seller.
Registration fee
Description
Registration fee for property transfer at the Land Registry.
Amount
Property transfer registration fee at the Land Registry, 0.2% to 0.3% of the property value.
Who pays
Buyer.
Notary fee
Description
The fee for notary services in processing the property transfer.
Amount
Approximately 0.1% of the property value, with a maximum fee of CLP 128,000.
Who pays
Buyer.
One of the best real estate markets in South America is waiting for you!
Required Documents
For the buyer:
- Proof of identity – Valid passport or identification document.
- RUT or RUN Number – Foreigners need a RUT (Rol Único Tributário), while citizens and residents use the RUN (Rol Único Nacional). We can handle the application for this number for you.
- Proof of Funds – Some sellers or banks may require proof that the funds for the purchase are legal and available.
For the property and the transaction:
- Title Search – Verification of the property's legal status and any potential liens or pending issues.
- Drafting the Purchase and Sale Agreement – Document formalizing the terms of the transaction.
- Negotiation – Defining values, deadlines, and payment terms.
- Property Registration – Official recording to ensure legal ownership.
- Chilean bank account (recommended) – While not mandatory, having a local bank account can facilitate fund transfers and property tax payments.
Step-by-Step Guide to Buying Your Property in Chile
- Obtain a RUT (Rol Único Tributário) – Mandatory tax document for the purchase.
- Property Selection and Negotiation – Find your desired property and negotiate the terms of the purchase.
- Deposit Agreement – Formalize the commitment with an initial contract.
- Perform Due Diligence – Legal verification to ensure the property is free of liens.
- Property Registration – The deed is recorded at the local land registry office.
- Closing the Sale – Funds are released to the seller, and the buyer takes possession of the property.
Is a Property in Chile Right for Me?
We Recommend Acquiring Property in Chile For:
- Those seeking international diversification: If you want to expand your investments outside of Brazil, Chile offers legal security and an accessible process for foreigners.
- Those intending to generate rental income: Regions such as Santiago, Viña del Mar, and Valparaíso have a constant demand for properties, ensuring stable profitability in the rental market.
- Those who want to invest in a modern and well-structured country: Chile has advanced infrastructure, efficient services, and one of the best development indices in South America.
- Those seeking opportunities in the agricultural and wine sectors: The country is a benchmark in agricultural and wine production, offering fertile land and profitable opportunities for those looking to invest in the sector.
We Do Not Recommend Acquiring Property in Chile For:
- Those looking for very low-priced properties: Chile has a mature market with higher average prices compared to other countries in the region, such as Paraguay.
- People who prefer markets with low rental taxes: In Chile, rental income is taxed at 35%, which may impact the profitability for those seeking higher net returns.
- Those looking for destinations with a very low cost of living: Chile has a strong economy and modern infrastructure, but this is reflected in a higher cost of living compared to other Latin American countries, such as Paraguay and Colombia.
Who Will Assist You
Many people want to invest in real estate but don't know where to start. Here at Settee, our partner expert Claudio Barrientos can help you through Domus Inver.
He has over 5 years of experience guiding people looking to build wealth strategically through real estate investment in Chile and Argentina, having structured operations worth over USD 100 million.
It’s not just about buying an apartment: it’s about analyzing your financial capacity, designing a strategy, and executing it well. Investing successfully isn't a matter of luck; it's a matter of method.
If you want to understand your current situation for investing and which strategy you can follow, get in touch with us and let’s analyze it with real numbers on the table.
Frequently Asked Questions (FAQ)
Yes! Any foreigner can purchase property in Chile without needing a residency permit. Foreign investors have the same rights as local citizens, with no restrictions or disadvantages.
No, Chile does not offer citizenship directly through investment. However, foreigners can apply for residency through investment, such as purchasing property. After obtaining permanent residency and meeting specific requirements, including a certain number of years of residency, they may apply for citizenship.
To obtain an Investor Visa in Chile, foreigners must submit a detailed investment plan to the Chilean government demonstrating how the investment benefits the country's economy. This can include investing in Chilean real estate. The process involves obtaining temporary residency, which can potentially lead to permanent residency and citizenship. The Investment Visa makes it possible to reside in Chile through investment.
Yes! Foreigners can apply for mortgage loans in Chile, as local banks offer financing to both residents and non-residents.
The down payment typically ranges between 10% and 30% of the property value, depending on factors such as location, property type, and the applicant's credit history. The Chilean banking sector is well-structured, and with proper planning, it is possible to secure favorable terms for financing your property in the country.
Yes, Chile imposes an inheritance and gift tax. Rates range from 1% to 25%, depending on the value of the inheritance and the degree of kinship between the deceased and the heir.
While not mandatory, working with a consultant makes the process safer and more efficient. An expert can help draft the Purchase and Sale Agreement, ensure all documents are in compliance, and conduct a Title Search to avoid legal issues. Additionally, a consultant assists with the correct payment of taxes and fees, and provides guidance on the permits and approvals required for property registration.
We can issue an invoice for the service. Please send us your preferred billing address.