Can foreigners buy property in Chile?

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?

THE LATINVESTOR

A team specialized in real estate investing in LATAM countries

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 The LatinVestor, 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 Viña del Mar. 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.

Can foreigners legally buy property in Chile, and are there any restrictions compared to Chilean citizens?

Foreigners can legally buy property in Chile and enjoy virtually the same property rights as Chilean citizens.

The Chilean government welcomes foreign investment in real estate, with only two main restrictions that apply to specific locations. Border zones within 10 kilometers of international borders require special government permission for any foreign buyer. Coastal areas within 5 kilometers of the coastline, or properties on certain protected areas, need approval from the Undersecretariat of the Navy.

Citizens from neighboring countries including Argentina, Bolivia, and Peru face additional restrictions when purchasing border property and must secure a presidential decree. For all other property types including residential, commercial, agricultural, and rural land, foreigners can purchase freely without any special permits or limitations.

As of September 2025, foreign buyers represent approximately 15-20% of Chile's luxury property market, particularly in Santiago's premium neighborhoods and coastal resort areas.

Do rules vary depending on the buyer's nationality or country of origin?

Rules do not vary substantially based on the buyer's nationality, with one notable exception for neighboring countries.

Citizens of Argentina, Bolivia, and Peru face stricter requirements when purchasing property in border zones, requiring presidential approval through a more complex bureaucratic process. This restriction stems from Chile's border security policies and affects only properties within 10 kilometers of international boundaries.

For all other nationalities, including citizens from North America, Europe, Asia, and other Latin American countries, the same standard rules apply regardless of origin. The purchase process, documentation requirements, and legal rights remain identical whether you're from the United States, Germany, Japan, or Brazil.

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

Do you need residency or a specific visa type to purchase property in Chile?

No specific residency or visa is required to own property in Chile.

Foreigners can purchase real estate while visiting on a standard tourist visa, which allows stays of up to 90 days for most nationalities. Property ownership does not create any direct pathway to Chilean residency or citizenship, making it purely an investment decision rather than an immigration strategy.

You can maintain property ownership indefinitely without ever becoming a Chilean resident. Many foreign investors purchase vacation homes, rental properties, or investment land while remaining tax residents of their home countries. However, if you plan to spend significant time in Chile or generate substantial rental income, you may want to explore residency options for tax optimization purposes.

The separation between property ownership and residency rights provides flexibility for international investors who want exposure to Chilean real estate without committing to relocation.

Is it necessary to be physically present in Chile to complete the purchase process?

Physical presence in Chile is not required to complete a property purchase.

Remote property purchases are common and well-established in Chile's legal system. You can appoint a local legal representative through a notarized and consular-authenticated Power of Attorney to handle the entire transaction on your behalf. This representative can obtain your Chilean tax ID (RUT), sign contracts, and register the property title.

All documents not in Spanish must be professionally translated and notarized by your home country's Chilean consulate. Remote purchases typically take 6-10 weeks to complete, slightly longer than in-person transactions which usually finish within 4-6 weeks.

Many foreign investors successfully purchase Chilean properties entirely from abroad, especially for investment purposes in established markets like Santiago or Valparaíso. However, visiting the property in person before purchase is always recommended for due diligence, especially for rural or unique properties.

What is the full step-by-step process for buying property in Chile, and what documents are required?

The Chilean property purchase process follows eight clear steps with specific documentation requirements.

First, obtain a Chilean Tax ID (RUT) which is essential for any property transaction and can be processed in person or through your legal representative. Second, find and select your property using local real estate agents, online listings, or property visits. Third, hire a lawyer (highly recommended but not mandatory) to handle due diligence including title verification, property history checks, zoning compliance, and outstanding debt confirmation.

Fourth, conduct thorough due diligence by obtaining a "certificado de dominio vigente" (ownership certificate) and "certificado de hipotecas y gravámenes" (mortgages and liens certificate) along with municipal compliance documents. Fifth, sign a Promise to Purchase ("Promesa de Compraventa") before a notary, which is legally binding and details price, timelines, and penalties.

Sixth, complete the final sale through an "Escritura Pública" (final transfer deed) authorized by a notary public. Seventh, register ownership at the local Real Estate Registry, which legally makes you the property owner. Finally, pay all associated fees and taxes including registration, legal fees, and transfer taxes.

Document Category	Specific Requirements	Source/Provider
Buyer Identification	Valid passport, Chilean RUT (tax ID)	Government agencies
Financial Documentation	Proof of funds for transaction	Bank statements, asset verification
Legal Authorization	Power of Attorney (if purchasing remotely)	Notarized and consular-authenticated
Property Documentation	Property deeds, titles, survey documents	Supplied by seller
Compliance Certificates	Municipal certificates, tax payment proof	Local government offices

Do you need to hire a lawyer or notary, and what are the advantages or risks?

Hiring a lawyer is strongly advised while a notary public is legally required for contract authentication and registration.

A qualified lawyer handles due diligence, contract drafting, legal compliance, and can act as your representative through a Power of Attorney. Lawyers typically charge 1-2% of the property value and provide crucial protection by ensuring the property has a clear title, no hidden liens, proper zoning compliance, and complete legal documentation. They also navigate complex regulatory requirements and can identify potential legal issues before they become costly problems.

The risks of not hiring a lawyer include purchasing property with existing liens, zoning infractions, legal disputes, or incomplete documentation that could jeopardize your ownership rights. Without proper legal review, you might also face unexpected costs from undisclosed debts or compliance issues.

A notary public is legally required for contract authentication and property registration but cannot substitute for thorough legal review and due diligence. Notaries ensure documents are properly executed and registered but don't provide the comprehensive legal protection that a lawyer offers.

It's something we analyze in detail in our Chile property pack.

What are the taxes, fees, and other costs involved in buying and later selling property in Chile?

Property purchase and sale in Chile involves several specific taxes and fees that buyers should budget for.

When buying property, you'll pay a transfer tax of 0.2% of the property value at registration, lawyer fees averaging 1-2% of property value, and notary plus registration fees typically ranging from $500-2,000 depending on property price and region. Real estate agent commissions run 2-5% and are often split between buyer and seller. Document translation and notarization costs approximately $200-500 for foreign buyers.

When selling property, you'll face capital gains tax on the difference between your sale price and original purchase price, with detailed calculation rules that consider improvements and holding period. You'll also pay standard agent commissions and legal/notary fees similar to the purchase process.

Annual property ownership costs include property tax of 0.5-1.2% of fiscal value (which differs from market value) depending on municipality and property type. Rental income from your property is taxable in Chile, requiring annual tax filings with progressive rates typically ranging from 15-35% depending on income amount.

Can foreigners get a mortgage in Chile, and what are the typical conditions?

Foreigners can obtain mortgages from Chilean banks, but approval is more challenging than for local citizens.

Chilean banks prefer foreign borrowers who have local income, residency status, or a Chilean co-signer to reduce lending risk. Interest rates for foreign buyers typically range from 5-8% as of September 2025, generally higher than rates offered to Chilean citizens due to perceived additional risk factors.

To improve your chances of mortgage approval, establish a Chilean financial profile by opening a local bank account, providing robust proof of income and assets from your home country, and maintaining a relationship with a major Chilean bank. Some banks require a minimum down payment of 30-40% for foreign buyers compared to 20% for locals.

Many foreign investors choose to purchase properties with cash to avoid the complexity and uncertainty of the mortgage process, especially for investment properties or secondary homes where the additional interest costs might not justify the leverage.

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 fiscal implications of owning property in Chile?

Property ownership in Chile creates ongoing tax obligations that foreign owners must understand and comply with.

Annual property tax ranges from 0.5-1.2% of the property's fiscal value, which is typically lower than market value and varies by municipality and property type. Property taxes in Santiago average 0.8-1.0% while rural areas often have lower rates around 0.5-0.7%.

Rental income from Chilean properties is subject to Chilean income tax regardless of where you're a tax resident. You must file annual tax returns with Chilean authorities and pay progressive income tax rates ranging from 15-35% depending on total rental income. Professional property management companies can help ensure compliance with tax filing requirements.

Timely payment of all taxes is essential to avoid penalties and complications, especially when selling property. Outstanding tax debts can prevent property sales and create legal complications for ownership transfer.

Which areas are most popular with foreign buyers and have the best investment potential?

Foreign buyers concentrate in Santiago, Valparaíso region, and Chile's southern regions, each offering different advantages for investment and lifestyle.

Santiago remains the most popular destination for foreign property investment, particularly in upscale neighborhoods like Las Condes, Providencia, and Vitacura. These areas offer strong rental markets, modern infrastructure, and consistent capital appreciation. Santiago's high-density residential developments attract both local and international tenants, generating rental yields of 4-6% annually.

Valparaíso and Viña del Mar appeal to foreign buyers seeking coastal lifestyle properties, cultural attractions, and vacation rental opportunities. These markets show strong seasonal rental demand and yields of 5-7% for well-located properties. The region benefits from proximity to Santiago while offering beach access and cultural amenities.

Southern Chile and Patagonia attract investors focused on eco-tourism, adventure tourism, and long-term environmental appreciation. Lake District properties and Patagonian land offer unique investment opportunities with potential for eco-lodges, adventure tourism businesses, and luxury retreat developments.

It's an aspect we explore thoroughly in our Chile property pack.

What is the current breakdown of average property prices per city and region?

Chilean property prices vary significantly by region and property type, with Santiago commanding premium prices.

Santiago's prime neighborhoods range from $2,000-4,500 per square meter, with Las Condes and Providencia at the higher end and emerging areas like Ñuñoa and La Reina offering better value around $2,000-3,000 per square meter. Modern high-rise apartments in central Santiago average $3,000-4,000 per square meter as of September 2025.

Coastal markets in Valparaíso and Viña del Mar range from $1,500-3,000 per square meter, with oceanfront properties commanding premium prices. La Serena and northern coastal cities average $900-2,000 per square meter, offering more affordable coastal access.

Southern regions including the Lake District and Patagonia show wide price ranges from $1,000-2,500 per square meter, with significant premiums for unique features like lakefront access, mountain views, or large land parcels. Rural and agricultural properties often sell for much lower per-square-meter prices but require larger minimum purchases.

Region	Price Range (USD/m²)	Key Characteristics
Santiago Prime Areas	$3,000-4,500	Las Condes, Providencia, modern high-rises
Santiago Emerging Areas	$2,000-3,000	Ñuñoa, La Reina, good value locations
Valparaíso/Viña del Mar	$1,500-3,000	Coastal lifestyle, cultural amenities
La Serena/North Coast	$900-2,000	Affordable coastal access, growing tourism
Lake District/Patagonia	$1,000-2,500	Premium for unique features and views

What are the most common mistakes foreigners make when buying property in Chile?

Foreign buyers often make predictable mistakes that can be avoided with proper preparation and local expertise.

Failing to confirm clear title and legal status represents the most costly mistake, leading to disputed ownership or unexpected liens. Always conduct thorough due diligence including comprehensive title searches and verification of all property documentation. Ignoring restrictions on border zones, coastal areas, and protected regions can result in purchases requiring special permissions or being blocked entirely.

Not using a qualified local lawyer increases fraud risk and compliance failures, potentially costing far more than legal fees. Underestimating total transaction costs and ongoing tax obligations leads to budget overruns and cash flow problems. Many foreigners fail to properly register their property ownership, creating legal vulnerabilities.

Overpaying due to lack of local market knowledge is common among foreign buyers who don't understand regional price variations or negotiation customs. Believing that property ownership provides residency or citizenship rights creates unrealistic expectations about immigration benefits.

1. Conduct comprehensive due diligence with qualified legal assistance2. Budget for all transaction costs plus 6-12 months of carrying costs3. Understand local market pricing through professional valuation4. Ensure proper property registration and title documentation5. Research all local restrictions and zoning requirements6. Maintain realistic expectations about residency implications7. Establish relationships with reputable local professionals

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. The LatinVestor - Buy Land Chile
2. The LatinVestor - Foreigners Buy Land Chile
3. Life Abroad Hero - Chile Real Estate Guide
4. Hudson Real Estate - Foreigners Buying Guide
5. LinkedIn - Legal Insights Chile Property
6. CitizenX - Chile Citizenship Investment
7. Becker Abogados - Remote Property Purchase
8. Own Property Abroad - Chile Buying Guide