Chile Real Estate: A Guide to Renting or Buying Property as a Foreigner

Renting Property in Chile

Finding a Rental Property

Foreigners looking to rent Real Estate Chile Properties can find properties through online platforms such as Portal Inmobiliario, Yapo.cl, and ComparaOnline. Working with a licensed real estate agent can be beneficial, especially for those unfamiliar with local rental laws. Many landlords also list properties in local newspapers or through word-of-mouth in expat communities.

Rental Agreements and Requirements

Most lease agreements in Chile are for twelve months, though short-term rentals are available in major cities. A security deposit equal to one to two months’ rent is usually required. Landlords may ask for proof of income or a Chilean guarantor, but alternatives such as prepaid rent or a higher deposit are sometimes accepted. Rent is typically paid monthly, and tenants are responsible for utilities such as electricity, water, gas, and internet. A rental contract should be signed and notarized for legal protection.

Average Rental Prices in 2024

Buying Property in Chile as a Foreigner

Can Foreigners Buy Property in Chile

Foreigners can buy property in Chile without restrictions. There are no residency requirements for property ownership, and foreigners have the same rights as Chilean citizens when purchasing real estate. However, properties located near international borders or in strategic military zones require special approval from the Chilean government.

Legal Requirements for Foreign Buyers

Foreign buyers must obtain a Chilean tax identification number, known as the Rol Único Tributario (RUT), which is issued by the Chilean Internal Revenue Service. This number is required for all real estate transactions. While it is not mandatory, it is recommended that foreigners hire a lawyer or notary to assist with the legal process, ensure the property has a clear title, and handle contract verification.

Steps to Buying Property in Chile

Finding the Right Property

Foreign buyers should work with a licensed real estate agent and conduct market research on property values in different cities. Properties in Santiago, Valparaíso, and Viña del Mar are popular for investment, while locations such as Patagonia attract those interested in rural properties.

Conducting Due Diligence

It is essential to check the property’s ownership history, outstanding debts, and zoning regulations. Buyers should obtain a certificado de dominio vigente (certificate of ownership) and certificado de hipotecas y gravámenes (certificate of mortgages and encumbrances) from the Chilean Real Estate Registry. These documents confirm that the seller has legal ownership and that the property is free of liens or legal issues.

Signing the Purchase Agreement and Paying the Deposit

A preliminary purchase and sale agreement, known as a promesa de compraventa, is signed, and a deposit of five to ten percent of the property price is typically required. This document outlines the terms and conditions of the sale, including the payment schedule and transfer process.

Finalizing the Transaction

Once all legal checks are completed, the final purchase contract, or escritura pública, is signed before a notary. The buyer then pays the remaining balance, and the property is officially registered with the Real Estate Registry. The entire process can take one to three months, depending on the complexity of the transaction.

Costs of Buying Property in Chile

Foreign buyers should budget for additional costs beyond the property price.

• Property Transfer Tax (Impuesto de Timbres y Estampillas): 0.2 to 0.8 percent of the purchase price
• Notary and Legal Fees: 1 to 2 percent of the property value
• Registration Fees: 0.5 to 1 percent of the property value
• Real Estate Agent Fees: 2 to 4 percent, typically split between buyer and seller
• Municipal Property Tax (Contribuciones): Varies based on location and property value

Mortgage Availability for Foreigners

Foreigners can apply for a mortgage in Chile, but most banks require applicants to have a Chilean residence visa and a local bank account. Interest rates typically range from four to eight percent annually. Many foreign buyers choose to finance their purchase through international banks or pay in cash to simplify the transaction.

Best Cities for Real Estate Investment in Chile

Santiago is the economic center of Chile, with high demand for rental properties and strong appreciation in property values. Valparaíso is a cultural and tourist hotspot, known for its colonial architecture and growing expatriate community. Viña del Mar offers luxury beachfront properties and is a preferred destination for both locals and foreign investors. Concepción is a commercial hub with affordable property prices and steady rental demand. Punta Arenas attracts buyers interested in remote, nature-focused living and eco-tourism investments.

Key Considerations for Foreign Buyers

Legal Restrictions

Foreigners can buy property in Chile without restrictions, except for properties located near military zones or international borders, which require government approval. Buyers should ensure that all transactions are conducted through reputable real estate agencies and legal professionals.

Investment Potential

Rental yields in Chile range from four to eight percent annually, making real estate an attractive investment option. However, property taxes, maintenance costs, and market fluctuations should be considered.

Frequently Asked Questions

Can foreigners buy land in Chile?

Yes, foreigners can buy land in Chile without restrictions, except in strategic or border areas, where special government approval is required.

Can foreigners rent out property in Chile?

Yes, foreign property owners can lease their property. Rental income is subject to Chilean tax laws, and landlords must register rental agreements with the tax authorities.

What is the minimum investment required for property in Chile?

Apartments in major cities start at approximately seventy-five thousand to one hundred thousand USD, while larger houses or commercial properties can exceed five hundred thousand USD.

Do I need to be in Chile to buy property?

No, foreign buyers can purchase property remotely through a power of attorney granted to a Chilean legal representative.

Does buying property in Chile grant residency?

No, property ownership does not automatically grant residency, but foreign investors can apply for a temporary residence visa if they meet financial requirements.

Are there risks in buying property in Chile?

Yes, potential risks include title fraud, zoning restrictions, and hidden debts on the property. Working with a lawyer and conducting due diligence can help minimize risks.

Conclusion

Chile offers strong real estate investment opportunities for foreigners, with relatively few restrictions on ownership. However, buyers must obtain a Chilean tax identification number, verify legal ownership, and register their property with the appropriate authorities. Working with a real estate agent and a lawyer ensures a smooth and secure property transaction.

Use our database to find visa facilitators, real estate agents, and recommended professionals. You will also have the ability to book a time to meet with our expats on the ground. These are individuals just like you who have gone through the immigration process and have been living in your desired country or city.

During these sessions, you can discuss every small detail related to the moving process. It’s like having a trusted friend everywhere you go. Whether you want to plan a short trip, need help finding an apartment, or you want some advice on moving to a particular city, they can help. This is a great way to meet someone with a similar background to help you achieve any of your goals.