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Owning an apartment in Santiago comes with several tax obligations that significantly impact your investment returns.
Property taxes in Santiago are calculated based on the official assessed value (avalúo fiscal), which typically represents 60% of the market price, with annual rates ranging from 0.98% to 1.143% depending on the property value. For a typical apartment worth $165,000 USD, you can expect to pay around $930 annually in property taxes, plus quarterly municipal contributions.
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Property taxes in Santiago are calculated on 60% of market value, with rates of 0.98-1.143% annually, resulting in approximately $930 per year for a $165,000 apartment.
Additional costs include 1.5-3% in notary fees, 10-35% income tax on rental revenue, 25% capital gains tax on sale profits, and condo fees that often exceed property taxes.
| Tax Type | Rate/Amount | When Applied |
|---|---|---|
| Property Tax (Contribuciones) | 0.98-1.143% of assessed value | Quarterly payments |
| Notary & Registration Fees | 1.5-3% of purchase price | One-time at purchase |
| Rental Income Tax | 4-35% (or 10% withholding) | Annual on rental revenue |
| Capital Gains Tax | 25% of profit | Upon sale (exemptions apply) |
| Condo Fees (Gastos Comunes) | $1,000-3,800 annually | Monthly maintenance costs |
| New Home Tax Credit | ~$1,050 annual credit | 5 years for primary residence |
| Total Annual Burden | 1-2% of market value | Ongoing ownership costs |
What's the typical purchase price for an apartment in Santiago?
Apartment prices in Santiago average around $2,300-2,500 per square meter as of September 2025.
For a standard 60-square-meter apartment, you can expect to pay between CLP 150,000,000 to CLP 165,000,000, which translates to approximately $160,000-$165,000 USD at current exchange rates.
Prime neighborhoods like Las Condes, Providencia, and Vitacura command higher prices, often reaching $3,000+ per square meter, while emerging areas like Maipú or La Florida offer more affordable options around $1,800-2,200 per square meter.
These prices reflect Santiago's position as one of South America's most expensive real estate markets, driven by economic stability and growing international investment interest.
How is the official assessed value (avalúo fiscal) determined for your property?
The avalúo fiscal typically represents around 60% of the commercial market value of your Santiago apartment.
For an apartment purchased at $165,000 USD, the assessed value would likely be approximately $99,000 USD or CLP 90,000,000. This assessment is conducted by Chile's tax authority (SII) and serves as the base for calculating your annual property taxes.
The assessment considers factors like location, apartment size, building age, amenities, and recent comparable sales in your neighborhood. Properties are reassessed periodically, with major updates occurring every few years to reflect market changes.
It's something we develop in our Chile property pack.
What percentage rate applies for annual property tax on that assessed value?
Santiago property tax follows a progressive rate structure applied to the avalúo fiscal value.
The standard rates are 0.98% for the portion of assessed value under the threshold and 1.143% for amounts above it. Most Santiago apartments fall primarily under the 0.98% bracket for the majority of their assessed value.
Municipal variations exist, with prime districts like Las Condes and Providencia typically applying rates toward the higher end of the range, while outer districts may offer slightly lower effective rates.
These rates are subject to annual review by municipal authorities, though significant changes are uncommon and usually announced well in advance.
How much property tax do you pay quarterly and annually in pesos and dollars?
For a typical 60-square-meter apartment with an assessed value of CLP 90,000,000, your annual property tax would be approximately CLP 882,000.
| Payment Period | Amount (CLP) | Amount (USD) |
|---|---|---|
| Quarterly Payment | CLP 220,500 | $232 |
| Annual Total | CLP 882,000 | $929 |
| Monthly Equivalent | CLP 73,500 | $77 |
| As % of Market Value | 0.55% | 0.55% |
| Compared to US Property Tax | Below average | Below average |
These calculations assume an exchange rate of approximately 950 CLP per USD as of September 2025. Property taxes are paid quarterly, with due dates typically falling in April, July, October, and January.
Is there a minimum threshold below which no property tax is paid?
Yes, Chile maintains an exemption threshold for property taxes based on the avalúo fiscal value.
Properties with assessed values below approximately CLP 30,000,000-35,000,000 are exempt from paying property taxes. This exemption ensures that only about 23% of Chilean homes actually pay property taxes, protecting lower-value properties and primary residences.
The threshold is reviewed periodically, with recent reassessments in 2026 adjusting these limits to reflect inflation and market changes. Most apartments in Santiago's central districts exceed this threshold and thus incur property tax obligations.
This exemption applies regardless of the owner's nationality, making it particularly relevant for foreign investors considering smaller or more affordable properties in outer Santiago districts.
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Do newly built apartments qualify for any temporary tax exemptions?
Newly built apartments purchased as primary residences qualify for significant tax benefits in Santiago.
The government offers a tax credit of approximately CLP 1,000,000 per year for five consecutive years to buyers of new construction who register the property as their primary residence.
To qualify, you must obtain residency status, register the apartment as your principal home with municipal authorities, and maintain compliance with primary residence requirements throughout the benefit period.
This incentive effectively reduces your annual property tax burden to near zero for qualifying properties during the first five years, making new construction particularly attractive for foreign investors planning to relocate to Santiago.
Recent legal reforms in 2025 have adjusted some construction incentives, but primary residence benefits remain intact for individual buyers.
What are the notary and registration fees when purchasing an apartment?
Notary and registration costs typically range from 1.5% to 3% of the apartment's purchase price in Santiago.
For a CLP 150,000,000 apartment, expect to pay CLP 2,250,000-4,500,000 in combined notary and legal fees, which equals approximately $2,370-$4,740 USD.
These costs break down into notary fees (1-2% of property value) for document preparation and authentication, and registration fees (0.5-1% of property value) for official property title transfer with the Conservador de Bienes Raíces.
Additional expenses may include legal representation, property inspections, and municipal permits, though these are typically minor compared to the primary notary and registration costs.
Foreign buyers should budget for the higher end of this range due to additional documentation requirements and potential language translation needs.
How do municipal tax rates vary across Santiago districts?
Municipal property tax rates in Santiago range from 0.75% to 1.2% of assessed value, with variation based on district and property characteristics.
1. **Las Condes**: 1.0-1.2% (premium district with high services)2. **Providencia**: 1.0-1.15% (central, well-serviced area)3. **Vitacura**: 1.1-1.2% (upscale residential zone)4. **Santiago Centro**: 0.9-1.0% (historic downtown area)5. **Ñuñoa**: 0.8-0.95% (middle-class residential)6. **Maipú**: 0.75-0.9% (emerging suburban district)7. **La Florida**: 0.8-0.9% (affordable residential zone)Higher rates in premium districts reflect superior municipal services, infrastructure maintenance, and public amenities. These variations can significantly impact your annual tax burden, with differences of up to $300-400 annually for typical apartments.
It's something we develop in our Chile property pack.
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 additional taxes apply if you rent out your Santiago apartment?
Rental income from your Santiago apartment is subject to Chilean income tax at progressive rates ranging from 4% to 35% depending on your total annual income.
Foreign investors can opt for a simplified 10% withholding tax on gross rental income, which is often more favorable than the progressive rate structure. This withholding tax is automatically deducted and requires no additional filing.
Properties qualifying under DFL2 (affordable housing) regulations may benefit from rental income exemptions, but recent 2025 legal restrictions limit this to maximum two properties per owner and require specific compliance measures.
Monthly rental yields in Santiago typically range from 0.4% to 0.7% of property value, meaning a $165,000 apartment might generate $660-1,155 monthly, resulting in annual tax obligations of $792-4,158 depending on chosen tax structure.
Proper documentation of maintenance expenses, property management costs, and depreciation can reduce taxable rental income under the progressive rate system.
What capital gains tax percentage applies when selling your apartment?
Capital gains tax in Santiago is set at 25% of the profit when you sell your apartment.
The primary exemption applies if the property served as your principal residence for at least five consecutive years before sale, in which case no capital gains tax is owed.
For investment properties or shorter holding periods, the full 25% rate applies to the difference between purchase price (adjusted for inflation and improvements) and sale price.
Properties held for less than one year may face higher effective rates through different tax classifications, making longer-term investment strategies more tax-efficient.
Recent tax reforms maintain the 25% rate but have tightened documentation requirements and reduced available deductions for property improvements and transaction costs.
How do yearly condo fees compare to property tax amounts?
Annual condominium fees (gastos comunes) in Santiago typically range from CLP 960,000 to CLP 3,600,000, often exceeding property tax obligations.
| Building Type | Monthly Fees (CLP) | Annual Total (USD) |
|---|---|---|
| Basic Building (No Amenities) | 80,000-120,000 | $1,010-1,515 |
| Standard Building (Basic Amenities) | 150,000-200,000 | $1,895-2,525 |
| Premium Building (Full Amenities) | 250,000-300,000 | $3,160-3,790 |
| Luxury High-Rise | 300,000-450,000 | $3,790-5,685 |
| Property Tax (Comparison) | 73,500 | $929 |
Premium buildings with amenities like pools, gyms, concierge services, and parking can result in condo fees that are 2-4 times higher than annual property taxes. This makes understanding total ownership costs crucial for investment calculations.
It's something we develop in our Chile property pack.
What's the total effective tax burden as a percentage of your apartment's market value?
The combined annual tax burden for owning a Santiago apartment typically ranges from 1% to 2% of market value, depending on usage and income levels.
| Scenario | Annual Tax Burden | % of Market Value |
|---|---|---|
| Owner-Occupied (No Rental) | $930 + $2,500 fees | ~2.1% |
| Investment Rental (10% withholding) | $930 + $2,500 + $1,000 | ~2.7% |
| Investment Rental (Progressive tax) | $930 + $2,500 + $2,800 | ~3.8% |
| New Home (Primary residence) | $0 + $2,500 fees | ~1.5% |
| Sale After 3 Years (25% gains) | One-time: ~$12,500 | 7.5% of gains |
Property taxes represent the smallest component at approximately 0.55-0.75% of market value, while condo fees typically constitute 0.6-2% annually. Rental income taxation adds another 0.6-1.7% for investment properties.
Capital gains tax, while substantial at 25%, applies only upon sale and can be completely avoided through the primary residence exemption, making Santiago relatively tax-friendly for long-term residents compared to pure investment buyers.
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.
Santiago's property tax structure offers reasonable rates compared to other major Latin American cities, with the progressive system protecting smaller property owners while maintaining municipal service funding.
The combination of moderate property taxes, available exemptions for primary residences, and competitive rental yields makes Santiago an attractive destination for both relocation and investment purposes, particularly for those planning longer-term ownership strategies.
Sources
- The Latin Investor - Chile Price Forecasts
- The Latin Investor - Santiago Property
- Aparthotel Chile Analysis
- Global Property Guide - Chile Taxes and Costs
- The Latin Investor - Americans Buying Property in Chile
- AZ Legal - Tax Benefits for Home Purchases
- The Latin Investor - Santiago Apartment Buying Process
- Life Abroad Hero - Chile Real Estate Guide
- PWC Tax Summaries - Chile
- Expatistan - Santiago Cost of Living