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Everything you need to know before buying real estate is included in our Chile Property Pack
Yes, foreigners can legally buy agricultural land in Chile with minimal restrictions.
Chile offers one of the most open agricultural land markets in Latin America for foreign investors, with the same property rights as Chilean citizens. The main limitations apply only to border areas and coastal zones, where special government approvals are required for security reasons.
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Foreigners can purchase agricultural land in Chile under their own name without establishing a local company, except within 10 km of borders and 5 km of coastlines which require special permissions.
Agricultural land prices range from USD 9,000 to USD 17,000 per hectare depending on location and productivity, with annual property taxes of 1.0% of fiscal value.
| Aspect | Details | Requirements/Costs |
|---|---|---|
| Legal Rights | Full ownership rights for foreigners | Chilean tax ID (RUT) required |
| Border Restrictions | 10 km from borders, 5 km from coast | Ministry approval needed |
| Land Prices | USD 9,000-17,000 per hectare | Varies by region and productivity |
| Annual Taxes | Property tax (Impuesto Territorial) | 1.0% of fiscal value |
| Transfer Costs | Registration and notary fees | 0.2% transfer tax + fees |
| Water Rights | Separate from land ownership | Must be acquired separately |
| Company Setup | Not required for purchase | Individual ownership allowed |
Do foreigners have the legal right to buy agricultural land in Chile?
Yes, foreigners have full legal rights to buy agricultural land in Chile with the same property ownership rights as Chilean citizens.
Chile's foreign investment laws allow non-residents to purchase agricultural land without any residency requirements or citizenship prerequisites. You can own land under your personal name or through a foreign company structure.
The Chilean Constitution guarantees property rights protection for all owners, regardless of nationality. This means your agricultural land investment receives the same legal protections and enforcement mechanisms available to local landowners.
As of September 2025, Chile maintains one of the most open agricultural land markets in Latin America for foreign investors. The government actively encourages foreign investment in the agricultural sector as part of its economic development strategy.
The only requirement is obtaining a Chilean tax identification number (RUT), which can be done through the tax authority or by appointing a legal representative in Chile.
Are there any restrictions on where foreigners can purchase land, like near borders or coastlines?
Yes, there are specific geographic restrictions for foreign land purchases within 10 kilometers of international borders and 5 kilometers of coastlines.
For border areas within 10 km of Argentina, Bolivia, or Peru, foreign nationals need approval from the Ministry of National Defense. Citizens from these neighboring countries face an outright prohibition unless they receive a special presidential decree exemption.
Coastal land within 5 km of Chile's Pacific coastline requires a favorable report from the Chilean Navy before purchase. This restriction exists because coastal areas are considered strategic national territory with potential security implications.
Indigenous territories and protected environmental areas may have additional restrictions or require special government review processes. These limitations aim to preserve cultural heritage and environmental protection zones.
Outside these restricted zones, foreign buyers can purchase agricultural land freely without additional geographic limitations or special permissions.
What types of agricultural land are available for purchase, and how are they classified?
| Land Type | Primary Crops/Use | Main Regions |
|---|---|---|
| Vineyard Land | Wine grapes, export wines | Central Valley, Maipo, Colchagua |
| Fruit Orchards | Apples, berries, stone fruits | Maule, O'Higgins, Metropolitan |
| Livestock Ranches | Cattle, sheep, dairy | Araucanía, Los Lagos, Magallanes |
| Cereal Farms | Wheat, rice, oats, corn | Central and Southern regions |
| Specialty Export Crops | Avocados, nuts, berries | Valparaíso, Central Valley |
| Mixed Farming | Diversified agriculture | Various regions |
| Forestry Land | Pine, eucalyptus plantations | Southern Chile, Araucanía |
How much does agricultural land typically cost in Chile, and what factors influence the price?
Agricultural land prices in Chile range from USD 9,000 to USD 17,000 per hectare for productive farmland in prime export regions as of September 2025.
In the Central Valley and southern macro-zones like Maule, Araucanía, and Los Lagos, high-quality agricultural land with established irrigation systems commands prices between USD 12,000 to USD 17,000 per hectare. These areas benefit from optimal growing conditions and proximity to export infrastructure.
Remote or marginal agricultural land in arid northern regions can cost significantly less, often below USD 9,000 per hectare or USD 40 to USD 120 per square meter. These lower prices reflect limited water access and challenging growing conditions.
Key price factors include location proximity to transportation infrastructure, climate suitability for export crops, soil quality and fertility ratings, existing irrigation systems and water rights, and regional demand for specific agricultural products.
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What taxes, fees, or ongoing costs come with owning farmland in Chile?
Agricultural land ownership in Chile involves an annual property tax of 1.0% of the fiscal value plus various one-time transfer costs.
The main ongoing cost is the "Impuesto Territorial" (property tax), calculated at 1.0% annually of the government-assessed fiscal value. This tax is payable in quarterly installments throughout the year. High-value properties may face additional surcharges beyond the base rate.
One-time purchase costs include a 0.2% transfer tax at registration, notary fees for document processing, and translation costs for foreign documents (typically USD 200 to USD 500). If purchasing from developers rather than individuals, a 19% VAT applies to the transaction.
Additional ongoing expenses may include irrigation system maintenance, agricultural insurance, and compliance costs for environmental or zoning regulations depending on land use.
Property tax payments support local municipal services and infrastructure that benefit rural landowners, including road maintenance and emergency services.
What are the legal steps and paperwork involved in buying agricultural land?
The agricultural land purchase process in Chile involves obtaining a tax ID, conducting due diligence, and completing notarial registration procedures.
- Obtain a Chilean tax identification number (RUT) through the tax authority (SII) or appoint a legal representative to handle this requirement
- Conduct comprehensive due diligence including title verification, land use compliance checks, environmental assessments, and water rights confirmation
- Negotiate purchase terms and execute a preliminary agreement outlining price, conditions, and timeline for completion
- Prepare all required documentation including foreign document translations, notarizations, and legal certifications
- Sign the final purchase deed at a Chilean notary office, which can be done through a power of attorney if you're not physically present
- Complete property registration with the Real Estate Registry to transfer official title and establish legal ownership
- Register for property tax obligations with local municipal authorities and obtain updated property documentation
Do I need to set up a local company or can I buy land under my own name as a foreigner?
Foreign individuals can purchase agricultural land in Chile under their own personal name without establishing a local company.
Chilean law allows direct individual ownership by foreign nationals, making company formation optional rather than required. You only need a Chilean tax identification number (RUT) to complete the purchase and registration process.
Both foreign individuals and foreign companies qualify equally for land ownership rights. Some investors choose to establish Chilean companies for tax planning, estate planning, or operational purposes, but this remains a strategic choice rather than a legal requirement.
Trust structures and other ownership vehicles are also permitted, providing flexibility for different investment strategies and inheritance planning needs.
The simplified individual ownership structure reduces setup costs, ongoing compliance requirements, and administrative complexity for straightforward agricultural land investments.
Are there limits on how much agricultural land a foreigner can own?
Chile imposes no explicit limits on the amount of agricultural land foreigners can own, except where national security or environmental regulations apply.
Foreign investors can legally accumulate unlimited agricultural land holdings throughout Chile without government approval or reporting requirements. This policy supports Chile's strategy to attract large-scale agricultural investment and modernize farming operations.
Environmental regulations and local zoning laws may affect land use rather than ownership limits. Protected areas, water management zones, and conservation districts may restrict development or agricultural activities regardless of ownership size.
National security considerations could theoretically limit very large land accumulations near sensitive border areas, but no specific acreage thresholds are published in current regulations.
Large agricultural operations may face additional regulatory oversight for environmental compliance, labor standards, and export certification requirements regardless of owner nationality.
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What permits or approvals might I need to use the land for farming, ranching, or other purposes?
Basic farming and ranching activities typically require compliance with agricultural zoning regulations but no special permits unless operating in sensitive areas.
Standard agricultural operations like crop cultivation, livestock raising, and farm infrastructure development generally proceed without additional government approvals beyond normal land use compliance. Registration with INDAP (Institute for Agricultural Development) may be required for accessing government subsidies or support programs.
Industrial-scale operations, environmental modifications, or activities in conservation areas may require specific permits from relevant ministries. Large livestock operations might need animal husbandry permits and environmental impact assessments.
Water usage permits become necessary for irrigation systems or water extraction beyond basic agricultural needs. These permits are issued by the National Water Directorate and may involve complex approval processes.
Export-oriented agricultural operations require certification for international trade compliance, food safety standards, and organic certification if pursuing premium market access.
How easy is it to get water rights or irrigation access with agricultural land in Chile?
Water rights in Chile are separate from land ownership and must be specifically acquired or transferred with the property.
Chile's water market allows water rights to be bought, sold, and transferred independently of land ownership. When purchasing agricultural land, you must verify whether existing water rights are included or need separate acquisition. Water rights are not automatically included with land purchases.
The National Irrigation Commission oversees irrigation infrastructure funding and water rights allocation. Large agricultural producers typically have easier access to water allocations and irrigation infrastructure compared to small-scale buyers.
Water scarcity is a significant challenge, particularly in central and northern regions experiencing frequent Water Scarcity Decrees (WSD). Regions like Maule and Coquimbo face recurring drought conditions affecting water availability and pricing.
New agricultural investors may face substantial challenges securing adequate water access, especially during drought periods when existing rights holders receive priority allocation.
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What are the risks or challenges of buying agricultural land as a foreigner in Chile?
The primary risks include water scarcity issues, title verification challenges, and regulatory changes affecting foreign ownership or land use.
- Water scarcity and drought conditions pose significant operational risks, particularly in central and northern Chile where Water Scarcity Decrees frequently limit irrigation access
- Title verification complexities require thorough due diligence to confirm clear ownership, resolve boundary disputes, and verify compliance with environmental and indigenous rights
- Political or regulatory changes could affect foreign ownership rights, tax obligations, or agricultural export policies impacting land values
- Zoning changes or protected area designations may restrict future land development or agricultural expansion plans
- Currency fluctuation risks affect investment returns when converting between Chilean pesos and foreign currencies for ongoing operations
- Local disputes over land boundaries, water rights, or community access may create ongoing legal or operational challenges
- Climate change impacts including changing precipitation patterns, extreme weather events, and shifting growing conditions for traditional crops
Where can I find reliable real estate agents, lawyers, or government offices to guide me through the process?
Professional support requires specialized real estate agents familiar with agricultural land transactions and lawyers experienced in foreign property acquisitions.
Look for real estate agencies that specifically handle rural and agricultural properties with experience in foreign client transactions. These specialized firms understand the unique due diligence requirements, water rights issues, and zoning considerations affecting agricultural land purchases.
Chilean lawyers specializing in real estate and foreign investment can handle RUT applications, due diligence processes, and complete purchases through power of attorney arrangements. Verify their experience with agricultural land transactions and foreign client representation.
Key government offices include the Internal Revenue Service (SII) for tax identification, INDAP for rural development programs, the National Irrigation Commission for water rights issues, and local notary offices for property registration.
Professional referrals from other foreign agricultural investors, Chilean agricultural associations, and international law firms with Chilean partnerships provide reliable starting points for building your professional team.
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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.
Foreign agricultural land ownership in Chile offers significant opportunities with minimal legal barriers compared to other Latin American countries.
Success requires careful attention to water rights, professional legal support, and thorough due diligence to navigate the unique aspects of Chilean agricultural land markets.
Sources
- The LatinVestor - Foreigners Buy Land Chile
- The LatinVestor - Buy Land Chile
- Library of Congress - Chile Property Law
- DIFROL - Border Area Property Procedures
- Universidad Nacional de Cuyo - Agricultural Classification
- Wikipedia - Agriculture in Chile
- Gateway to South America - Chile Farm Property Market
- Hudson Real Estate - Foreign Land Purchase Guide
- The LatinVestor - Chile Property Taxes
- Irrigation Leader - National Irrigation Commission