How to buy land in Chile (guide)

Authored by the expert who managed and guided the team behind the Chile Property Pack

Everything you need to know before buying real estate is included in our Chile Property Pack

Who is the author of this content?

THELATINVESTOR

A team specialized in real estate investing in Latin American countries (Chile, Mexico, Brazil, Colombia, etc.).

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in a foreign place, particularly in Chile. If you'd like to learn more about us, you can check our presentation page.

How this content was created 🔎📝

At TheLatinvestor, we explore the Chilean real estate market every day. Our team doesn't just analyze data from a distance—we're actively engaging with local realtors, investors, and property managers in cities like Santiago, Valparaíso, and Concepción. This hands-on approach allows us to gain a deep understanding of the market from the inside out.

These observations are originally based on what we've learned through these conversations and our observations. But it was not enough. To back them up, we also needed to rely on trusted resources

We prioritize accuracy and authority. Trends lacking solid data or expert validation were excluded.

Trustworthiness is central to our work. Every source and citation is clearly listed, ensuring transparency. A writing AI-powered tool was used solely to refine readability and engagement.

To make the information accessible, our team designed custom infographics that clarify key points. We hope you will like them! All illustrations and media were created in-house and added manually.

What types of land can foreigners legally buy in Chile, and are there any restrictions based on location or land use?

Foreigners enjoy nearly identical property rights to Chilean citizens and can purchase residential, commercial, agricultural, and rural land throughout most of the country.

The primary restrictions focus on strategic locations near borders and coastlines. Foreigners cannot buy land within 10 kilometers of national borders with Argentina, Bolivia, or Peru, or within 5 kilometers of the Chilean coast without obtaining special government permission. These restrictions require approval from the Undersecretariat of the Navy for coastal properties and presidential decrees for border areas.

Nationals from Chile's neighboring countries (Argentina, Bolivia, Peru) face additional restrictions and cannot acquire border zone land without a presidential decree. Indigenous territories and protected environmental areas may have extra regulatory requirements or be completely off-limits for foreign purchase.

Public lands near borders, coasts, or in protected areas are generally restricted to Chilean citizens only. However, the vast majority of private land throughout Chile remains fully accessible to foreign buyers without special permits.

It's something we develop in our Chile property pack.

Is there a path to residency or citizenship if you buy land in Chile, or does land ownership not affect immigration status?

Land ownership in Chile does not automatically grant residency or citizenship rights to foreign buyers.

While property ownership can demonstrate financial ties to Chile and potentially support a residency application, it is not a standalone qualification for immigration status. Simply purchasing land or real estate does not create a direct pathway to Chilean residency.

Chile does offer an investor visa program, but it requires substantial investment in productive enterprises rather than passive real estate purchases. The investor visa typically requires investments of $500,000 or more in businesses that create jobs or contribute to economic development. Buying land for personal use, vacation homes, or rental income does not qualify for this visa category.

Foreign buyers seeking residency must apply through other visa categories such as work visas, retirement visas, or family reunification. After obtaining temporary residency through these channels, individuals can apply for permanent residency and eventually Chilean citizenship after five years of continuous residence, provided they meet language and integration requirements.

Which regions or areas in Chile are the most popular among foreigners for buying land, and why?

Santiago metropolitan region attracts the highest foreign investment due to its economic importance and strong property appreciation potential.

The capital region, particularly upscale neighborhoods like Las Condes, Vitacura, and Providencia, offers the strongest rental yields and resale values. As Chile's economic and cultural center, Santiago provides the best infrastructure, healthcare, education, and employment opportunities, making it ideal for both investment and residence.

Valparaíso and Viña del Mar along the central coast appeal to foreign buyers seeking coastal lifestyle properties. These historic port cities offer cultural attractions, tourist appeal, and growing real estate markets while remaining more affordable than Santiago.

Southern Chile regions including Puerto Varas, Pucón, and Valdivia attract foreigners interested in natural beauty, lake districts, and growing expat communities. These areas are popular for vacation homes, eco-tourism investments, and agricultural ventures due to their pristine landscapes and lower property costs.

Chile's renowned wine regions, particularly Maipo Valley and Colchagua Valley, draw foreign investors interested in vineyard ownership and wine tourism. These areas combine agricultural investment potential with lifestyle appeal and tourism revenue opportunities.

What's the step-by-step process for buying land in Chile as a foreigner from start to finish?

The land purchase process in Chile follows a systematic approach that typically takes 4-8 weeks to complete.

Step	Action Required	Timeline
1. Obtain RUT	Apply for Chilean tax identification number with local address	1-2 weeks
2. Define Purpose	Clarify intended use (residential, agricultural, commercial, tourism)	Initial planning
3. Legal Representation	Hire qualified Chilean lawyer for due diligence and contracts	1 week
4. Property Search	Use local agents, online platforms, and property listings	2-12 weeks
5. Due Diligence	Verify title, legal status, encumbrances, water rights, restrictions	2-3 weeks
6. Preliminary Agreement	Sign initial contract outlining terms and conditions	1 week
7. Final Contract	Notarize sales contract and arrange fund transfers	1 week
8. Registration	Register property at local Conservador de Bienes Raíces	1-2 weeks
9. Payment	Complete all taxes, notary fees, and legal expenses	Final week

What documents are required for a foreigner to legally purchase land in Chile, and which ones must be translated or notarized?

Foreign land buyers must provide specific documentation to complete a legal purchase in Chile.

Essential documents include a valid passport or government-issued identification proving identity and nationality. The RUT (Rol Único Tributario) tax identification number is mandatory for all financial transactions and property purchases in Chile. Proof of funds documentation is required for bank transfers and anti-money laundering compliance.

If purchasing remotely, a Power of Attorney document allows a Chilean legal representative to act on your behalf throughout the transaction process. The property's title deed and comprehensive land study must be obtained to verify current ownership status and legal compliance.

All documents in foreign languages must be translated into Spanish by certified translators and notarized according to Chilean legal requirements. This includes passports, proof of funds, and any international legal documents. The translation and notarization process typically adds 1-2 weeks to the purchase timeline and costs approximately $200-500 depending on document complexity.

It's something we develop in our Chile property pack.

Can you buy land in Chile remotely without being physically present in the country, and how does that work in practice?

Yes, foreigners can successfully purchase Chilean land without visiting the country through remote legal representation.

The remote purchase process requires establishing a Power of Attorney with a qualified Chilean lawyer who becomes your legal representative. This attorney handles all aspects of the transaction including obtaining your RUT tax ID, conducting property searches, performing due diligence, signing contracts, and registering the property in your name.

Modern technology facilitates remote transactions through virtual property tours, digital document sharing, online contract reviews, and secure international fund transfers. Your legal representative coordinates with real estate agents, notaries, and government offices to complete all required steps without your physical presence.

The Power of Attorney document must be prepared in your home country, translated into Spanish, and authenticated through your local Chilean consulate. This typically costs $300-800 and takes 2-3 weeks to complete. Your attorney then has full legal authority to represent your interests throughout the purchase process.

Remote purchases typically take 6-10 weeks compared to 4-8 weeks for in-person transactions, but offer the convenience of completing the entire process from your home country.

What are the most common mistakes or legal pitfalls foreigners face when trying to buy land in Chile?

Insufficient due diligence represents the most significant risk for foreign land buyers in Chile.

Many buyers fail to properly verify land titles, water rights, or local zoning regulations before purchase. This can lead to ownership disputes, inability to develop the land as intended, or discovering encumbrances that limit property use. Professional legal representation should always conduct comprehensive title searches and regulatory compliance reviews.

Ignoring location-specific restrictions causes serious legal problems for unprepared buyers. Purchasing land within 10 kilometers of borders or 5 kilometers of coastlines without obtaining proper government permissions can result in forced sales or legal challenges. Environmental restrictions near protected areas or indigenous territories also create unexpected limitations.

Underestimating total acquisition costs catches many foreign buyers unprepared financially. Beyond the purchase price, buyers must budget for property taxes, notary fees (1-1.5%), legal fees (1%), registration costs, and potential broker commissions (2-3%). These additional expenses typically total 5-8% of the purchase price.

Overlooking water rights verification can severely impact agricultural or development plans. Chilean water rights are separate from land ownership and must be specifically transferred or verified during purchase. Rural properties may lack adequate water access for intended uses.

What are the typical uses foreigners have for the land they purchase—residential, agricultural, investment, or something else?

Foreign land buyers in Chile pursue diverse investment strategies ranging from lifestyle to commercial opportunities.

1. **Residential purposes** dominate foreign purchases, including vacation homes in scenic locations like southern lake districts, retirement properties in temperate central regions, and primary residences near Santiago or coastal cities.2. **Agricultural investments** attract foreigners interested in farming, vineyard development, forestry, and livestock operations. Chile's diverse climate zones support various agricultural activities from wine production to fruit exports.3. **Investment and development** strategies include land banking for future appreciation, subdivision for residential development, and commercial property development in growing urban areas.4. **Tourism and hospitality** ventures encompass eco-tourism lodges, vacation rentals, guest houses, and adventure tourism facilities taking advantage of Chile's natural attractions.5. **Mixed-use projects** combine residential, agricultural, and tourism elements, such as working farms with guest accommodations or residential developments with recreational amenities.

The choice depends on individual goals, budget, location preferences, and local regulations. Many foreign buyers start with residential purposes and later expand into commercial or agricultural uses as they gain market knowledge.

We did some research and made this infographic to help you quickly compare rental yields of the major cities in Chile versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.

What are the average prices per hectare or square meter in different parts of Chile for raw or rural land?

Chilean land prices vary dramatically by location, with urban areas commanding premium prices compared to rural regions.

Santiago metropolitan area averages approximately 403,000 CLP per square meter (about $450 USD), translating to roughly 4.03 billion CLP per hectare (about $4.5 million USD) for prime urban locations. Specific neighborhoods within Santiago show significant variation, with upscale areas like Las Condes and Vitacura commanding higher prices.

Rural land throughout Chile averages about 25 million CLP per hectare (approximately $28,000 USD), though regional differences create substantial price ranges. Northern mining regions and areas near major cities typically exceed this average, while remote southern locations often fall below it.

Agricultural land prices depend heavily on productivity and water access. Highly productive farmland with irrigation rights ranges from $12,000 to $17,000 per hectare, significantly lower than comparable agricultural land in New Zealand or the United States. Wine-growing regions command premium prices due to tourism and export potential.

Regional examples include properties in Temuco averaging $207,105, Coínco at $37,279, and Melipilla at $126,964, though these figures vary based on specific location, size, and development potential. As of mid-2025, these prices reflect Chile's stable economic conditions and continued foreign investment interest.

What is the long-term forecast for the Chilean land market in terms of growth, regulation, and investment potential?

Chile's land market outlook for 2025-2030 shows moderate growth potential with increasing regulatory oversight.

Price growth projections indicate 3-7% annual appreciation in urban areas like Santiago, driven by economic stability and continued foreign investment. Southern regions may experience more modest growth or temporary declines as the market adjusts to increased supply and regulatory changes. Rural and agricultural land is expected to maintain steady value appreciation of 2-4% annually.

Regulatory developments focus on sustainable development and rural land protection. New legislation aims to prevent uncontrolled subdivision of agricultural land and preserve rural character, potentially limiting development opportunities but protecting long-term value. Environmental regulations continue tightening around protected areas and water resources.

Investment potential remains strong due to Chile's transparent legal system, stable democracy, and strong property rights protection. The country's position as a regional economic leader and gateway to other Latin American markets enhances its appeal to international investors. Currency stability and inflation control provide additional investment security.

Foreign investment is expected to continue driving market growth, particularly in tourism-related properties, agricultural ventures, and renewable energy projects. As we reach mid-2025, Chile maintains its position as one of Latin America's most attractive real estate investment destinations.

It's something we develop in our Chile property pack.

What taxes, closing costs, legal fees, and other mandatory or optional expenses should buyers expect when purchasing land in Chile?

Land purchases in Chile involve several mandatory fees and taxes that typically total 5-8% of the purchase price.

Expense Category	Cost Range	Payment Timing
Property Tax (Contribuciones)	~0.5% annually	Ongoing annual payment
Notary and Registration Fees	1-1.5% of purchase price	At closing
Legal Fees	~1% of purchase price	During transaction
Real Estate Broker Commission	2-3% if using agent	At closing
Translation and Notarization	$200-500	Before closing
Due Diligence and Surveys	$500-2,000	During purchase process
VAT (if applicable)	19% on certain transactions	At closing

Property tax (contribuciones) represents an ongoing annual expense of approximately 0.5% of the assessed property value. This tax funds local municipal services and infrastructure maintenance.

VAT may apply to certain commercial or new construction transactions at Chile's standard rate of 19%. Residential land purchases from individuals typically do not incur VAT, but commercial transactions often do.

Optional expenses include property insurance, which is recommended but not mandatory for land purchases. If financing is involved, banks may require additional fees for credit evaluation and loan processing.

Is it possible to buy land in Chile with cash as a foreigner, or are there mortgage options available—what are the interest rates, terms, and tips to improve your chances of approval?

Cash purchases represent the most common and straightforward option for foreign land buyers in Chile.

Most foreign buyers complete land transactions with cash due to the difficulty of obtaining mortgages without Chilean residency or established local credit history. Cash purchases eliminate financing complexity, reduce transaction time, and often provide negotiating advantages with sellers.

Mortgage options for non-residents are extremely limited, with most Chilean banks preferring to lend to residents with local employment and credit history. When available, mortgage interest rates typically run around 5.5% plus inflation adjustments, with loan terms rarely exceeding 15-20 years for foreigners.

Tips for improving mortgage approval chances include establishing Chilean residency status, opening local bank accounts and building credit history, providing substantial down payments (typically 40-50%), and considering purchases through Chilean corporations rather than individual ownership. Some banks offer better terms for larger real estate investments or commercial projects.

Alternative financing options include seller financing arrangements, where property owners provide direct financing terms, or using home equity from properties in your home country to fund the Chilean purchase. International private lenders sometimes offer foreign real estate loans, though at higher interest rates than local options.

Conclusion

This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.

Sources

1. Multilaw - Real Estate Guide Chile
2. Library of Congress - Chile Real Estate Laws
3. TheLatinvestor - Chile Real Estate Foreigner Tips
4. Becker Abogados - How to Buy Land in Chile
5. Land Portal - Chile Country Narrative
6. TheLatinvestor - Chile US Citizen Property Ownership
7. Southern Chile Properties - FAQ
8. Becker Abogados - Chile Property Investment Guide
9. Residencies.io - Chile Temporary Residency
10. Golden Harbors - Chile Residency by Investment