Can Canadians 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 Canadians legally own property in Chile?

Yes, Canadians can legally own property in Chile with nearly identical rights to Chilean citizens.

The Chilean constitution and foreign investment laws grant foreigners full ownership rights for residential, commercial, and agricultural properties. This means Canadians can buy apartments in Santiago, beachfront homes in Viña del Mar, or agricultural land in the Central Valley without significant legal barriers.

As of September 2025, Chile maintains one of the most open foreign ownership policies in Latin America. Unlike some countries that restrict foreign ownership to certain percentages or require local partnerships, Chile allows 100% foreign ownership of most properties.

The only limitations apply to specific strategic zones, which we'll cover in detail below. For the vast majority of properties that Canadians typically consider—urban apartments, suburban homes, vacation properties, and most commercial real estate—full ownership rights are guaranteed by law.

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

Are there restrictions on where foreigners can buy land in Chile?

Foreigners face minor restrictions only in border zones and certain coastal areas, affecting less than 5% of Chile's territory.

Properties within 10 kilometers of international borders with Argentina, Bolivia, and Peru require special government permission before purchase. Additionally, some coastal properties within 5 kilometers of the shoreline need authorization from the Chilean Navy, particularly in strategic port areas.

Indigenous land areas, primarily in the Araucanía region and parts of northern Chile, may have additional restrictions or require consultation with local Mapuche communities. However, these restrictions rarely affect prime real estate markets that attract foreign investment.

The major Chilean cities and resort areas—Santiago, Valparaíso, Viña del Mar, La Serena, and Pucón—fall outside these restricted zones. Most beachfront properties available to foreign buyers are located in unrestricted coastal areas or have already received necessary permissions.

Local zoning laws and municipal regulations can also impact property purchases, but these apply equally to all buyers regardless of nationality.

Do Canadians need to be residents or have a visa to buy property in Chile?

No, Canadians do not need Chilean residency or any specific visa to purchase property in Chile.

Foreign buyers can complete property transactions while visiting Chile on a tourist visa or even through legal representatives without being physically present in the country. This flexibility makes Chile particularly attractive for international real estate investment compared to countries with stricter residency requirements.

Property purchases can be executed through power of attorney, allowing Canadians to buy Chilean real estate entirely from Canada if they work with qualified local legal representation. The process requires proper documentation and notarization, but physical presence is not mandatory.

However, while owning property doesn't require residency, it also doesn't automatically grant residency rights. Property ownership can support applications for investor visas or temporary residency, but these are separate legal processes with their own requirements.

What documents are required for a Canadian to purchase property in Chile?

Document Type	Purpose	How to Obtain
Valid Canadian Passport	Identity verification	Government of Canada
Chilean Tax ID (RUT)	Mandatory for all property transactions	Chilean tax authority (SII)
Title Deeds (Escritura)	Proves seller's legal ownership	Property registry records
Title Report (Estudio de Títulos)	Verifies property is free of liens	Legal due diligence process
Purchase Agreement	Legal contract for property transfer	Drafted by lawyer, signed before notary
Proof of Payment	Evidence of purchase price payment	Bank transfers or certified funds
Tax Compliance Certificates	Confirms seller's tax obligations are current	Chilean tax authority

How does the property buying process in Chile usually work for foreigners?

The Chilean property buying process follows a structured legal framework that typically takes 30-60 days to complete.

First, buyers must obtain a Chilean tax identification number (RUT) from the Servicio de Impuestos Internos (SII). This process usually takes 1-2 weeks and requires a valid passport and proof of address. The RUT is essential for all legal and financial transactions in Chile.

Next, buyers should hire a qualified local lawyer to conduct due diligence on the property. This includes verifying clear title, checking for liens or encumbrances, confirming zoning compliance, and ensuring all property taxes are current. The lawyer will also draft the purchase agreement and coordinate with all parties.

The formal purchase agreement (escritura pública) must be signed before a Chilean notary public. Both buyer and seller (or their legal representatives) must be present for this signing. The notary verifies identities, witnesses the signatures, and ensures all legal requirements are met.

Finally, the property must be registered with the Conservador de Bienes Raíces (Real Estate Registry) in the corresponding municipality. This registration officially transfers ownership and protects the buyer's legal rights. Transfer taxes and registration fees are paid at this stage.

Is it necessary to hire a local lawyer or notary when buying property in Chile?

Hiring a local lawyer is strongly recommended for property purchases, while using a Chilean notary is legally mandatory.

Chilean law requires all property transfers to be executed before a notary public (notario), who serves as an impartial government official responsible for verifying the legality of the transaction. The notary confirms identities, witnesses signatures, and ensures compliance with legal procedures, but they do not provide legal advice to either party.

A qualified real estate lawyer provides essential services that the notary cannot: conducting comprehensive due diligence, reviewing contracts, identifying potential legal issues, and protecting the buyer's interests throughout the transaction. Lawyers typically charge $1,000-$3,000 USD for residential property transactions, depending on complexity and property value.

For foreign buyers unfamiliar with Chilean legal procedures, attempting to navigate the process without legal representation significantly increases the risk of costly mistakes, title problems, or regulatory compliance issues.

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

What taxes or fees must Canadians pay when buying property in Chile?

Canadian buyers face several taxes and fees during Chilean property purchases, typically totaling 1-3% of the property value.

The primary tax is the transfer tax (impuesto de timbres y estampillas), which amounts to 0.2% of the property's registered value, paid during property registration. For a $200,000 USD property, this equals approximately $400 USD in transfer taxes.

New properties may be subject to VAT (IVA) at 19% of the sale price, though this typically applies only to first-time sales from developers and not to resale properties between individuals. Used properties are generally exempt from VAT.

Additional costs include notary fees, legal fees, property registration costs, and due diligence expenses. Notary fees vary by property value but typically range from $300-$800 USD. Legal representation costs $1,000-$3,000 USD depending on transaction complexity.

Property appraisal fees, title insurance (if desired), and translation costs for documents can add another $500-$1,500 USD to the total transaction cost.

Can Canadians get a mortgage in Chile, or do they need to pay in cash?

Most Canadian buyers must pay cash, as Chilean banks rarely offer mortgages to non-resident foreigners.

Chilean financial institutions typically require borrowers to have local income, tax residency status, and established credit history within Chile before approving mortgage loans. Non-resident foreigners generally do not qualify for standard residential mortgage products offered by major Chilean banks.

Some international private banks or specialized lenders may offer financing solutions for high-net-worth foreign buyers, but these options usually require substantial down payments (50-70%), higher interest rates, and extensive financial documentation including proof of global assets and income.

Alternative financing options include seller financing arrangements, where the property owner agrees to accept payments over time, or securing financing through Canadian financial institutions using the Chilean property as collateral (though this is complex and not widely available).

Cash purchases remain the most straightforward and common approach for Canadian buyers in the Chilean real estate market, requiring buyers to have liquid funds available for the full purchase price plus associated costs.

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.

Are there annual property taxes for foreign property owners in Chile?

Yes, all property owners in Chile, including Canadians, must pay annual municipal property taxes called "contribuciones."

Property taxes in Chile start at approximately 0.5% of the assessed property value annually, though rates can vary by municipality and property type. The Chilean tax authority reassesses property values periodically, typically every few years, which can impact tax obligations.

Tax calculations are based on the fiscal value (avalúo fiscal) determined by government assessors, which may differ from market value. Properties valued below a certain threshold (approximately 13,000 UF or about $400,000 USD as of September 2025) often qualify for reduced tax rates.

Property taxes are payable in annual installments, typically with options for quarterly payments. Late payment incurs penalties and interest charges. Foreign owners must maintain current tax payments to avoid liens on the property and potential legal complications during future sales.

Additional municipal fees may apply for services like garbage collection, street lighting, and local infrastructure maintenance, varying by location and municipal regulations.

Can a Canadian inherit or sell their property in Chile without restrictions?

Canadians can freely inherit and sell Chilean property with the same rights as Chilean citizens, subject to standard legal procedures.

Property inheritance follows Chilean succession laws, which recognize both Chilean and foreign wills if properly executed and authenticated. Canadian heirs must present appropriate documentation, including death certificates, will verification, and proof of heir status, typically requiring notarization and apostille certification from Canadian authorities.

Property sales require compliance with standard Chilean procedures: clear title verification, tax compliance confirmation, and proper transfer documentation. Foreign owners must ensure all annual property taxes are current before sale completion.

Capital gains taxes may apply to property sales, calculated on the difference between purchase and sale prices, adjusted for inflation and improvements. However, primary residences and properties held for extended periods may qualify for exemptions or reduced rates.

The only restrictions apply to properties in border or coastal zones that required special permissions for original purchase—these same permissions may be required for subsequent transfers to new foreign buyers.

Does owning property in Chile give a Canadian any residency rights?

Property ownership alone does not automatically grant residency rights, but it can support certain visa applications.

Chilean immigration law separates property ownership from residency status, meaning property buyers cannot claim automatic residency based solely on real estate investment. Residency requires separate visa applications through Chilean immigration authorities.

However, property ownership can strengthen applications for investor visas or temporary residency if the investment meets minimum thresholds or connects to business activities. Properties used for rental businesses, tourism ventures, or other commercial purposes may qualify for investor visa consideration.

Temporary residency options include work visas, family reunification visas, or specific investment visas that consider real estate holdings as part of broader investment portfolios. Each visa category has distinct requirements, processing times, and documentation needs.

Long-term property ownership and sustained ties to Chile may eventually support permanent residency applications, but this requires meeting additional criteria beyond property ownership alone.

What are the potential risks or pitfalls Canadians should watch out for when buying property in Chile?

1. **Title and Legal Issues**: Incomplete due diligence can reveal hidden liens, disputed ownership, or irregular property documentation that could invalidate the purchase or create costly legal battles. 2. **Border and Coastal Zone Restrictions**: Properties near international borders or strategic coastal areas may require special government permissions that aren't immediately apparent during initial property searches. 3. **Zoning and Development Restrictions**: Local municipal regulations, indigenous land claims, or environmental protection zones can limit property use, renovation, or development potential. 4. **Market Volatility and Currency Risk**: Chilean peso fluctuations against the Canadian dollar can significantly impact property values and ongoing costs for foreign owners. 5. **Limited Financing Options**: The requirement for cash purchases means Canadians must have substantial liquid assets available, limiting leverage opportunities and increasing initial capital requirements. 6. **Ongoing Tax Obligations**: Annual property taxes, municipal fees, and potential capital gains taxes can accumulate over time, particularly if property values increase significantly. 7. **Property Management Challenges**: For non-resident owners, finding reliable property management, handling maintenance issues, and dealing with tenant problems from Canada can be complex and expensive. 8. **Legal Representation Quality**: Working with unqualified or inexperienced legal representatives can lead to improper documentation, missed deadlines, or inadequate contract protection.

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

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. Property Laws in Chile - LawGratis
2. Chile Real Estate for Foreigners - The LatinVestor
3. Foreigners Buying Land in Chile - The LatinVestor
4. Buying Real Estate in Chile - Immigration Chile
5. Foreign Investor Guide - Becker Abogados
6. Chile Investor Visa - Expat.cl
7. Buying Property in Chile Guide - Own Property Abroad
8. Real Estate Law Chile - Baker McKenzie