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
If you're a US citizen thinking about buying a home in Chile in 2026, you're probably wondering whether it's even legal, what taxes you'll pay, and whether Chilean banks will give you a mortgage.
We've put together this complete guide to answer all of those questions using official Chilean government sources and reliable legal references.
We constantly update this blog post to make sure everything stays accurate and relevant.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Chile.
Can a US citizen legally buy residential property in Chile right now?
Can I buy a home in Chile as a US citizen in 2026?
As of early 2026, US citizens can legally purchase residential property in Chile and hold it in their own name, just like Chilean nationals do in most parts of the country.
The standard buying process involves signing a public deed (escritura publica) at a Chilean notary office, then registering that deed at the Conservador de Bienes Raices (the property registry) to officially transfer ownership.
This process is the same for Chileans and foreigners, though Americans will need to obtain a Chilean tax ID called a RUT before they can complete the transaction.
By the way, we've written a blog article detailing all the foreigner rights regarding properties in Chile.
Are there many Americans buying property and living in Chile in 2026?
As of early 2026, Americans represent a small fraction of Chile's foreign resident population, likely well under 1% of the total, since the largest foreign groups come from neighboring countries like Venezuela, Peru, and Colombia.
The neighborhoods in Chile with the highest concentration of American expats and property owners include upscale Santiago districts like Las Condes, Vitacura, and Providencia, as well as coastal areas around Valparaiso and Vina del Mar, and lifestyle destinations like Pucon in the Lake District.
The top three reasons Americans choose to buy property in Chile are the country's economic stability compared to other Latin American nations, the appealing climate and natural landscapes, and the relatively straightforward legal process for foreign buyers.
The American expat community in Chile appears to be growing modestly, driven by remote work flexibility, retirees seeking lower costs of living, and entrepreneurs attracted to Chile's business-friendly environment.
Do foreigners have the same buying rights as locals in Chile?
In most of Chile, foreign buyers including US citizens have essentially the same property rights as local Chilean buyers, and there is no special discrimination against Americans compared to other foreign nationalities.
The main exception involves properties located in Chile's border zones (within roughly 10 kilometers of international borders), where foreigners face restrictions under Decree Law 1939 and may need special authorization from DIFROL (the government agency overseeing border areas).
We cover all these things in length in our pack about the property market in Chile.
Can I buy property in Chile without a residence permit?
In Chile, you do not need a residence permit to buy property, and many Americans purchase homes while still living abroad with no Chilean visa at all.
The process for buying property in Chile while living abroad typically involves obtaining a RUT (tax ID) remotely, then either traveling to Chile to sign the deed in person or granting power of attorney to a local representative who can sign on your behalf.
Unfortunately, buying a home in Chile does not automatically grant you any visa or residency rights, so you'll need to apply for a visa separately if you want to live there long-term.
The main practical challenge non-resident buyers face is coordinating the paperwork and bank transfers from abroad, especially since Chilean banks may require in-person verification and moving large sums internationally involves compliance checks on both ends.
Can US citizens own land in Chile?
US citizens can own land outright in Chile through the standard ownership system called "dominio," which is recorded at the Conservador de Bienes Raices after signing the public deed.
Chile uses a freehold ownership model for residential property (not a leasehold system like some Asian countries), meaning you own the property outright rather than holding a long-term lease.
The specific geographic zones where foreign land ownership is restricted are the border areas (zona fronteriza), typically within about 10 kilometers of Chile's borders with Peru, Bolivia, and Argentina, where you may need government authorization from DIFROL depending on your nationality and the location.
Please note that we have a dedicated blog article about the land buying process in Chile here.
What documents will I need to buy in Chile?
The essential documents a US citizen needs to purchase property in Chile include a valid passport, a Chilean tax ID (RUT), proof of funds showing where your money comes from, and potentially a power of attorney if you're signing remotely.
Yes, a local tax identification number (RUT) is required for foreign buyers in Chile, and you can obtain one through the SII (tax authority) either online or at their offices, often with help from a local lawyer.
A local Chilean bank account is not strictly mandatory to complete a property purchase, but it becomes practically necessary for paying ongoing costs like property taxes (contribuciones), utility bills, and condo fees.
For proof of funds, Chilean banks and notaries typically want to see bank statements showing the source of your money, and while a local address isn't always required, having a reliable contact address in Chile makes banking and notifications much smoother.
We have a whole section dedicated to all the documents you need in our Chile property pack.
Can a foreign-owned company buy property in Chile?
Yes, foreign-owned companies can legally purchase residential property in Chile, as long as the company is properly registered and complies with Chilean corporate requirements.
Americans sometimes use Chilean company structures (like a Sociedad por Acciones or SpA) rather than US LLCs to hold property in Chile, typically when they want liability protection or have multiple owners involved.
Owning property through a company structure does not automatically lower your taxes in Chile, and in some cases it can actually increase your tax and compliance burden, so this decision requires careful planning with both a Chilean tax lawyer and a US CPA.
The main drawback of using company ownership for residential property in Chile is the added complexity and cost of maintaining the company (annual filings, accounting, potential corporate taxes), which often doesn't make sense for a single home purchase.
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What taxes and fees will I pay in Chile in 2026?
What are buyer taxes in Chile in 2026?
As of early 2026, Chile is relatively buyer-friendly because there is generally no property transfer tax at purchase, unlike many other countries where you might pay 2% to 10% just to transfer ownership.
The main tax components buyers may encounter are VAT (IVA at 19%) on some new-build properties from developers (usually built into the listed price), and a stamp tax (Impuesto de Timbres y Estampillas) of up to around 0.8% if you take out a mortgage.
These buyer tax rates apply equally to foreigners and locals in Chile, and there's no special surcharge for non-residents or for investment properties versus primary residences at the purchase stage.
If you want to go into more details, we also have a page detailing all the property taxes and fees in Chile.
What are other closing costs in Chile in 2026?
As of early 2026, buyers should budget roughly 1% to 3% of the purchase price for closing costs on a cash purchase in Chile (for example, on a $200,000 property, that's $2,000 to $6,000, or around 1.8 to 5.4 million Chilean pesos, or 1,850 to 5,550 euros).
The main closing cost categories in Chile include notary fees (often $200 to $500 depending on property value), Conservador de Bienes Raices registration fees (similar range), legal fees if you hire your own lawyer ($500 to $2,000 or more), and real estate agent commissions (typically 2% to 3%, though who pays varies by deal).
The most negotiable closing costs are usually the real estate agent commission and the scope of legal services, while notary and registry fees are more fixed based on property value and location.
The closing cost that tends to surprise foreign buyers the most in Chile is the real estate agent fee, because in some markets the seller pays it, but in Chile it can sometimes fall on the buyer or be split, so you need to clarify this upfront.
Are there hidden fees foreigners miss in Chile right now?
Foreign buyers commonly overlook $1,000 to $5,000 (roughly 900,000 to 4.5 million Chilean pesos, or 925 to 4,625 euros) in fees and costs they didn't initially budget for when buying property in Chile.
The top three hidden fees foreign buyers fail to budget for in Chile are currency exchange costs when transferring funds internationally (can be 1% to 3% of the amount), UF indexation adjustments if the deal is priced in UF (Chile's inflation-adjusted unit), and legal due diligence fees for a thorough title search (often $500 to $1,500 or 450,000 to 1.35 million pesos).
The ongoing annual costs foreign property owners often underestimate after purchase in Chile include property tax (contribuciones), which varies by assessed value but can run $500 to $3,000+ per year (450,000 to 2.7 million pesos, or 460 to 2,775 euros), plus condo fees (gastos comunes) in apartment buildings, which can easily be $100 to $500 monthly.
Getting surprised by hidden fees is one of the pitfalls people face when buying real estate in Chile.
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.
Can I get a mortgage as a US citizen in Chile in 2026?
Do banks lend to US citizens in Chile in 2026?
As of early 2026, yes, some Chilean banks do offer mortgages to US citizens, though the approval process is typically more demanding than for local borrowers, with stricter documentation requirements and more conservative terms.
US citizens generally receive similar treatment to other foreign nationals when applying for mortgages in Chile, meaning there's no special advantage or disadvantage compared to Europeans or other non-Chilean applicants.
The main reason some banks in Chile are hesitant to lend to American borrowers specifically is the complexity of US tax reporting requirements (like FATCA), which creates compliance headaches for foreign financial institutions dealing with US persons.
While exact approval rates aren't published, US citizens with strong documentation, stable verifiable income, and a significant down payment (30% or more) have a reasonable chance of approval at major Chilean banks.
There is a full document dedicated to mortgage for foreigners in our pack covering the property buying process in Chile.
What down payment do American people need in Chile in 2026?
As of early 2026, US citizens should plan for a minimum down payment of around 30% to 40% when seeking a mortgage in Chile (for example, on a $200,000 property, that's $60,000 to $80,000, or roughly 54 to 72 million Chilean pesos, or 55,500 to 74,000 euros).
The typical down payment range for foreign buyers in Chile runs from 30% on the low end (for strong applicants with local income or residency) up to 40% or more for non-residents with foreign income only.
Yes, offering a larger down payment (such as 40% or 50%) generally improves your mortgage terms in Chile, potentially getting you a lower interest rate and making approval more likely since the bank takes on less risk.
You can also read our latest update about mortgage and interest rates in Chile.
What interest rates do US citizens get in Chile in 2026?
As of early 2026, US citizens can expect mortgage interest rates in Chile to fall roughly in the range of 3.5% to 5.5% annually, typically for loans denominated in UF (Chile's inflation-adjusted unit).
Interest rates for foreign buyers in Chile are generally comparable to rates for local residents with similar profiles, though foreigners may end up at the higher end of the range due to perceived risk.
Most mortgages in Chile for foreign buyers use UF-denominated structures with rates that are effectively inflation-adjusted, and typical terms range from 15 to 25 years, with some banks offering fixed rates for the full term.
The single factor with the biggest impact on the interest rate a US citizen will be offered in Chile is usually the loan-to-value ratio: the more you put down, the better your rate is likely to be.
Can I use US income to qualify in Chile right now?
Chilean banks do sometimes accept US-sourced income for mortgage qualification, but they strongly prefer Chile-based income and will scrutinize foreign income more carefully.
Banks in Chile typically require American applicants to provide US tax returns (usually two to three years), employer verification letters, recent bank statements showing regular deposits, and sometimes employment contracts or proof of ongoing income.
If standard US documentation is insufficient, some banks may accept alternative verification like certified public accountant letters, notarized income declarations, or evidence of substantial liquid assets that reduce the bank's risk.
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How do US taxes interact with owning property in Chile?
Do I have to declare the property to the IRS from Chile?
Simply owning a property in Chile does not require you to file a special IRS form declaring that ownership, because the IRS explicitly states that directly owned foreign real estate is not a "specified foreign financial asset" for Form 8938 purposes.
The main IRS forms US citizens may need to file related to Chilean property are Schedule E (if you earn rental income), Form 1116 (to claim foreign tax credits), and potentially FBAR (FinCEN Form 114) if you have Chilean bank accounts exceeding $10,000 in total.
Reporting obligations typically kick in only when you earn rental income from the Chilean property or when you sell it and realize a capital gain, not from passive ownership alone.
Will I pay tax twice in the US and Chile in 2026?
As of early 2026, the risk of true double taxation on your Chilean property income or gains is relatively low thanks to the US-Chile income tax treaty, which entered into force in December 2023 and provides mechanisms to avoid paying full tax in both countries.
Yes, there is a tax treaty between the US and Chile, and it provides protections including reduced withholding rates on certain income and rules for determining which country has primary taxing rights on different types of income.
The Foreign Tax Credit (Form 1116) allows you to offset taxes you've already paid to Chile against your US tax liability on the same income, so you generally pay the higher of the two countries' rates rather than both added together.
Whether property taxes (contribuciones) paid in Chile are deductible on your US federal return depends on your specific situation, particularly whether the property is a rental or business asset, and this is definitely a question for your CPA.
Do I need FATCA reporting when buying in Chile?
FATCA (Form 8938) does not require you to report the Chilean property itself if you own it directly in your personal name, because foreign real estate is explicitly excluded from the definition of "specified foreign financial assets."
However, if you hold the property through a foreign company or open Chilean financial accounts related to the purchase, FATCA thresholds may apply: $50,000 for most US residents (higher for those living abroad) triggers Form 8938 filing for foreign financial assets.
FATCA reporting (Form 8938, filed with your tax return) is different from FBAR (FinCEN Form 114, filed separately): FBAR applies to foreign bank accounts totaling over $10,000 at any point during the year, so your Chilean bank account for paying property expenses could trigger FBAR even if FATCA doesn't apply.
Yes, consulting a US CPA before buying property in Chile is highly recommended, and you should specifically ask about FBAR and FATCA thresholds, rental income reporting, capital gains treatment, and whether holding the property through any structure changes your obligations.
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Chile. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Chile, we always rely on the strongest methodology we can … and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source | Why We Trust It | How We Used It |
|---|---|---|
| SII (Servicio de Impuestos Internos) | Chile's official tax authority and the source of truth for tax IDs. | We used it to explain why a RUT is essential for buying property in Chile. We also used it to ground our paperwork checklist in official requirements. |
| ChileAtiende | The government's citizen services portal explaining real procedures clearly. | We used it to describe the actual steps of buying: notary deed then Conservador registration. We used it to keep our buying process explanation accurate. |
| DIFROL | The official body managing foreigner rules in Chile's border zones. | We used it to explain the border-zone restriction that many buyers miss. We used it to clarify where foreign ownership requires extra authorization. |
| Banco Central de Chile | Chile's central bank with the most credible interest rate data. | We used it to ground our mortgage rate estimates in official statistics. We used it to avoid relying on promotional bank advertisements. |
| CMF Chile | Chile's financial market regulator with standardized mortgage data. | We used it to understand lending availability and mortgage market structure. We used it to verify which institutions actually offer foreigner mortgages. |
| PwC Tax Summaries | A major global tax firm's widely used cross-country reference. | We used it to confirm Chile has no transfer tax and to explain stamp tax on loans. We used it as a cross-check against Chilean official sources. |
| US Treasury | The official US government source for tax treaty status. | We used it to confirm the US-Chile tax treaty entered into force in December 2023. We used it to anchor our double-taxation discussion in official facts. |
| IRS Treaty Documents | The IRS page linking official treaty texts and related guidance. | We used it so readers can verify treaty provisions directly. We used it to keep our US tax section practical and accurate. |
| IRS Form 8938 FAQ | Official IRS guidance on foreign asset reporting requirements. | We used it to clarify that directly owned foreign real estate isn't reported on Form 8938. We used it to reduce confusion about FATCA compliance. |
| Baker McKenzie | A top-tier law firm's practical guide used by professionals. | We used it to sanity-check closing cost items like notary and registry fees. We used it to keep our cost estimates realistic. |
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