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
Are you considering investing in Chile’s real estate market? What are the legal steps, tax implications, and cultural differences you need to understand before taking the plunge? What challenges do foreign investors typically face, and how can you overcome them?
These are the questions we hear most often from foreign investors because we’re actively connected to this market. We’ve spent time working with local agents, developers, and investors, so we know what works—and what doesn’t. That’s why we’ve written this article: to provide a clear guide that answers the questions we get asked daily.
Our goal is to help you, as a foreigner, to navigate the property buying process with confidence. If you think there’s something we missed or want more details, let us know (please do!). Your input helps us refine and improve our advice for everyone.
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1) Be aware that Chile allows foreign property ownership, except near border areas
You might be surprised to learn that Chile has no restrictions on foreign ownership of property, except for areas near the country's borders.
While many countries have strict rules about foreigners buying land, Chile's legal framework explicitly allows foreign individuals and companies to own property. This is not common everywhere, especially when you look at neighboring countries like Argentina and Mexico, which have specific limits on foreign ownership of rural lands.
Chile's approach stands out as more open and welcoming to international investors. The Chilean government has confirmed this openness through official statements, emphasizing that restrictions are only near borders. This makes Chile an attractive destination for those looking to invest in real estate without the usual red tape.
Moreover, the real estate market in Chile has been thriving with foreign investment, particularly from countries like China. This trend has been supported by the lack of significant restrictions, making Chile an attractive destination for foreign buyers. The economic impact has been substantial, with foreign investment contributing to the growth of the real estate market and the country's competitiveness.
Foreign investors are drawn to Chile not just for its open policies but also for its stable economy and growing real estate market. The influx of international buyers has led to increased demand and development in urban areas, boosting local economies and creating new opportunities.
Chile's welcoming stance on foreign property ownership, combined with its economic stability, makes it a prime location for those looking to invest in real estate. The country's policies have made it a hotspot for international investors, contributing to Chile's reputation as a competitive market in the region.
Sources: Law Library of Congress, MAPFRE Global Risks, Baker McKenzie
2) Monitor Chile’s political and economic news closely, as the real estate market is heavily influenced by the country’s economic stability
The Chilean real estate market is deeply connected to the country's economic health.
Back in 2019, Chile faced social unrest, and the economy took a hit, causing residential property sales to plummet. By the first nine months of 2020, new home sales in Greater Santiago had dropped by 45% compared to the previous year. This clearly shows how political and economic events can shake up the real estate scene.
Then came the COVID-19 pandemic, which led to a 28.2% decrease in residential property sales in 2020. But as the economy started bouncing back in 2021, property prices in Greater Santiago surged by 12%. This bounce-back underscores how crucial economic recovery is for the real estate market.
For those eyeing property in Chile, it's wise to keep tabs on the country's political and economic news. Understanding these dynamics can give you an edge in making informed decisions.
Chile's real estate market is not just about numbers; it's about timing and context. When the economy is stable, property investments tend to be more secure, offering potential buyers a sense of confidence.
So, if you're considering buying property in Chile, remember that the market's pulse is closely tied to the nation's economic rhythm. Staying informed can help you navigate this dynamic landscape.
Sources: Global Property Guide, Propeterra
We have made this infographic to give you a quick and clear snapshot of the property market in Chile. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
3) Plan your buying and selling strategies in Chile around seasonal trends, as the property market is more active in summer months
In Chile, the property market heats up during the summer months, with more buying and selling activity.
During the summer, real estate transactions tend to increase, as people are more inclined to buy and sell homes. This trend is backed by a 2022 study that found hotter temperatures in summer, fall, and winter correlate with lower home prices, suggesting more deals are made when the weather is warm.
Real estate agencies in Chile have noticed that the demand for apartments and condos rises in major cities during summer. This is driven by urbanization, population growth, and the appeal of being close to amenities, which are more attractive when the sun is shining.
Professionals in the real estate sector report that buyer interest peaks in summer, likely due to the pleasant weather and the influx of tourists. The tourist season brings more people into the country, which can boost interest in properties among both locals and visitors.
Tourism statistics show that visitor numbers are higher in summer, which can influence property demand. This seasonal influx of tourists often translates into increased interest in real estate, as some visitors consider investing in a holiday home or rental property.
So, if you're thinking about buying property in Chile, keep in mind that summer is a busy time in the market, with more competition and potentially better deals.
Sources: PLOS Sustainability and Transformation, Statista
4) Be cautious with coastal properties in Chile, as natural disasters like earthquakes and tsunamis can impact their value
Buying a coastal property in Chile might seem appealing, but it's a risky venture due to natural disasters.
Chile is known for its stunning coastlines, yet it's one of the most earthquake-prone countries globally. The 2010 Maule earthquake, with a magnitude of 8.8, is a stark reminder of the potential destruction. Coastal areas are particularly vulnerable, and such events can significantly impact property values.
Besides earthquakes, tsunamis are another concern. The 1960 Valdivia earthquake, the largest ever recorded, triggered a massive tsunami. More recently, in 2015, a magnitude 8.3 earthquake led to a tsunami warning, causing damage and displacement along the coast.
These disasters often result in substantial insurance claims and payouts, as noted in the 2023 Climate and Catastrophe Insight Report by Aon. This financial impact can destabilize the property market, making it essential to weigh these risks carefully.
Investors should be aware that property values can fluctuate significantly due to these natural events. The allure of a coastal home must be balanced with the potential for sudden and severe financial loss.
Understanding the local landscape and history of seismic activity is crucial. Insider knowledge can be invaluable when assessing the true risks of coastal investments in Chile.
5) Consider investing in new developments in Chile, as locals often prefer new constructions over older homes
In Chile, new constructions are all the rage among homebuyers.
Chileans are snapping up new apartments, with sales jumping by 42.4% in early 2023. This shows a clear shift towards modern living spaces, which are in high demand.
Why the love for new builds? It's all about modern amenities and energy efficiency. People want homes that offer these perks, and new developments are delivering.
The Chilean Government is also playing a part with its “Let's Invest in Chile” plan. This initiative provides financial support to make buying new homes easier, pushing more people towards new constructions.
Investing in new developments can be more lucrative, as Chileans often prefer them over older homes. This preference is driving up sales and prices for new properties.
So, if you're thinking of buying property in Chile, consider the trend towards new constructions. It's a market where modern features and government incentives are making a big impact.
Sources: Global Property Guide, Gob.cl
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6) Take advantage of Chile’s relatively low property taxes for a financial edge in property investment
In Chile, property taxes are surprisingly low, making it a tempting spot for investors.
To give you an idea, Chile's property taxes only make up 1.1% of its GDP, which is quite a bit less than the OECD average of 1.8%. This means that compared to other countries, you'll pay less in property taxes here.
For urban properties, the tax rate is 1.4%, while residential properties have a rate of 0.98% on a portion of the cadastral value, and 1.143% on the rest. These rates are lower than what you'd find in many other places, making Chile a hot spot for property buyers.
According to the Global Property Guide, transaction costs in Chile are also on the lower side. The total roundtrip transaction cost ranges from 3.3% to 4.4%, which is a nice bonus for anyone looking to invest in real estate here.
These low costs mean that investing in Chilean real estate is more affordable than in many other countries, giving you more bang for your buck.
So, if you're considering buying property, Chile offers a financially attractive option with its low taxes and transaction costs.
Sources: Global Property Guide, IMF Staff Country Reports Volume 2023
7) Consider investing in student housing in Chilean university towns like Valparaíso and Concepción, as the rental market is strong there
Chile's rental market is thriving, especially in university towns like Valparaíso and Concepción.
These areas have a strong demand for housing, driven by students, young professionals, and families eager to live near educational institutions and job opportunities. In Valparaíso, for instance, the vibrant student life and cultural scene make it a hotspot for renters.
Rental yields in these towns range from 2.9% to 5.6%, indicating a moderate income potential. With the growing demand for housing, these yields might increase, making it a potentially lucrative investment. Concepción, known for its universities and tech industry, is seeing a steady influx of young professionals.
The demand for off-campus housing is notably high, as many students prefer renting accommodations outside of university dormitories. This trend is fueled by the consistent growth of the student population, further strengthening the rental market in these areas. In Valparaíso, the picturesque coastal views add to the appeal for students and young families alike.
Investors are eyeing these towns because of the potential for future growth in rental yields. The local governments are also investing in infrastructure, which could enhance property values over time. Concepción's expanding tech sector is attracting more professionals, boosting the rental market.
Understanding these dynamics can help you make informed decisions if you're considering buying property in Chile. The vibrant cultural and educational environment in these towns makes them attractive for long-term investment. With the right property, you could tap into a market that's poised for growth.
Source: Statista
8) Consider energy-efficient homes in Chile, as government subsidies can enhance their appeal for property flipping
The Chilean government is making it easier to invest in energy-efficient homes with subsidies for upgrades like solar heating and thermal insulation.
These incentives are part of a larger plan to cut energy consumption by 10% by 2030. If you're thinking about flipping properties, this could be a golden opportunity to make smart upgrades that pay off.
Why? Because homes with energy-efficient features often sell for 5-10% more than those without. Buyers love the idea of saving on energy bills and doing their bit for the planet.
Imagine a home with solar panels and top-notch insulation. Not only does it promise lower utility bills, but it also aligns with the growing trend of eco-friendly living.
Plus, the Chilean government is serious about this. Their Energy Efficiency Law, introduced in 2021, is a clear signal that energy-efficient homes are the future.
So, if you're eyeing the property market in Chile, consider these upgrades. They could make your investment more attractive and profitable.
Sources: Climate Action Tracker, World Economic Forum
We made this infographic to show you how property prices in Chile compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
9) Be ready to negotiate in Chile, as haggling over property prices is common and can secure better deals
In Chile, negotiating property prices is a common practice.
Despite challenges like the pandemic, the Chilean real estate market has been thriving. In the first half of 2023, residential property sales jumped by 12%, showing a strong market where haggling can be a smart move.
In bustling cities like Santiago, buyers are keen to negotiate due to high demand and limited supply. This makes negotiation a key strategy for anyone looking to buy property in urban areas.
Haggling isn't just a tactic; it's part of the culture in Chile. Both buyers and sellers see negotiation as a normal step in the buying process, making it easier to land a good deal if you're ready to negotiate.
Understanding this cultural norm can give you an edge. Being prepared to haggle can lead to better deals, especially in a market that's open to negotiation.
Source: Global Property Guide
10) Consider handling property transactions yourself in Chile to save on commissions, as using real estate agents is common but not mandatory
In Chile, you don't need a real estate agent to buy or sell property, which can save you some cash.
Typically, agents charge around 2% to 3% of the property's value as their fee. By going solo, you can keep that money in your pocket.
But, if you decide to handle things yourself, you'll need to understand the legal ins and outs of property transactions. It's wise to consult a local attorney to make sure everything's above board.
Thanks to the rise of technology, urban living trends and online tools have made DIY property transactions easier. You can find plenty of resources to help you search and manage properties without an agent.
Chileans often use real estate agents, but it's not a must. Skipping the agent means no commission fees, which is a big plus for many buyers.
Online platforms are a game-changer, offering easy access to property listings and management tools. This makes the process more accessible for those who prefer to go it alone.
Source: Southern Chile Properties
11) Understand Chile’s less regulated real estate market offers flexibility, but ensure thorough due diligence for a competitive edge
In Chile, real estate prices are largely dictated by supply and demand due to minimal government intervention.
This flexibility can be a double-edged sword, offering opportunities but also requiring you to stay informed about market trends. Chile's market is less regulated than many other countries, which means you have more room to maneuver, but you also need to do your homework.
Foreign investors will find Chile appealing because there are few restrictions on foreign ownership. You can buy property almost anywhere, except in certain areas near borders and coastlines. This openness makes Chile a hotspot for international buyers seeking investment opportunities.
For landlords, the lack of rent control laws in most areas means you can set rental prices based on market conditions. This is great if you're renting out property, but tenants should be prepared to negotiate terms to ensure fair agreements.
Buying and selling property in Chile is relatively straightforward, but the onus is on you to conduct thorough due diligence. Make sure all legal requirements are met, like registering the property in the public registry, to avoid future headaches.
Understanding these nuances can give you an edge in the Chilean real estate market. Due diligence is key to navigating this flexible yet demanding landscape.
Sources: Multilaw, Global Property Guide, Zonda
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12) Look for direct purchases from developers for potential discounts or incentives as an early buyer
Buying directly from developers can often lead to better deals.
In recent years, like 2023 and 2024, properties bought this way were up to 10% cheaper than those through agents. This price difference is a big draw for savvy buyers looking to save.
Developers sweeten the deal with special discounts and incentives. Early birds might snag reduced prices, free upgrades, or even attractive financing options. Imagine getting a 5% discount just for buying within the first six months of a property's launch.
Buyers often share stories of significant savings when purchasing directly. Some have saved as much as $10,000, bypassing the extra costs associated with real estate agents.
These savings aren't just about the initial purchase price. Developers sometimes offer perks like customization options that agents can't match, adding more value to your investment.
For those considering a property purchase, it's worth exploring direct deals with developers. You might find that the combination of lower prices and added incentives makes for a compelling investment opportunity.
Sources: Housing Finance Policy in Chile, Chilean Government Launches the “Let's Invest in Chile” Plan, Housing Market Trends to Watch in 2025
While this article provides thoughtful analysis and insights based on credible and carefully selected sources, it is not, and should never be considered, financial advice. We put significant effort into researching, aggregating, and analyzing data to present you with an informed perspective. However, every analysis reflects subjective choices, such as the selection of sources and methodologies, and no single piece can encompass the full complexity of the market. Always conduct your own research, seek professional advice, and make decisions based on your own judgment. Any financial risks or losses remain your responsibility.