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Last updated on 19/06/2026
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Two cities, very different vibes
Puerto Varas and Puerto Montt are in Chile's Lake District (Región de Los Lagos), about 1,000 kilometres south of Santiago. They are only 20 km apart (roughly a 30-minute drive) but the difference between them is striking.
Puerto Varas is the one everyone falls in love with. It sits on the shores of Lake Llanquihue with a jaw-dropping view of Volcán Osorno, has well-preserved German-heritage architecture, cute cafes, kuchen (German cake) shops, and a genuinely charming small-town feel. It is also a base for outdoor activities: hiking, kayaking, fly fishing, volcano climbing, and skiing on Osorno in winter.
Puerto Montt is the regional capital and it has a very different character. It is an industrial harbour city with all the urban services you need: hospitals, shopping centres, government offices... but not much aesthetic charm. Most people pass through Puerto Montt rather than aspire to live there.
Considering how close Puerto Montt and Puerto Varas are (20 minutes driving), I would 100% live in Puerto Varas, unless you absolutely value being close from your work. Puerto Montt is an harbour with an industrial vibe, which most won't like. There are limited restaurants, bars, things to do. Most expatriates will enjoy Puerto Varas better, except in January/February, the peak tourism season where it can be very crowded.
The weather situation
Let's be honest about this: it rains a lot. The Lake District has a temperate oceanic climate, which is a polite way of saying you will see a lot of grey skies and drizzle, especially from April to October. Summers (December to March) are beautiful: mild, green, with long daylight hours. However, winter is damp and cold enough that you will need proper heating. If you are coming from northern Chile or a Mediterranean climate, this will be a significant adjustment.
The upside of all that rain is that the landscape is spectacularly green. National parks like Vicente Pérez Rosales are right on your doorstep, and the combination of lakes, volcanoes, and temperate rainforest is genuinely world-class.
Where to live
In Puerto Varas itself, the centre puts the lake, the cafes, and most services within walking distance. It is small, so the supply of good apartments is limited and the ones with lake views go fast. Puerto Chico, the residential stretch along the costanera east of the centre, is quieter while keeping the lake at your doorstep, and it is where many families settle. Beyond town, rural properties (parcelas) on the roads toward Ensenada and Nueva Braunau give you space, privacy, and often a volcano view, but you will be driving for every errand.
It is also worth widening the search around the lake. Llanquihue, ten minutes up the shore, is an ordinary working town where housing is cheaper. Frutillar, about half an hour north, is the postcard German-heritage village with the Teatro del Lago concert hall. It is quieter than Puerto Varas and attracts an older crowd. And if work ties you to Puerto Montt, Pelluco on the city's eastern edge is its most pleasant sector, on the water with a row of good restaurants.
For families, the schooling follows the German heritage: Puerto Varas has German-heritage private colegios, including Colegio Germania del Verbo Divino, and there are further options in Puerto Montt. There is no full international school in the area, so if you need English-language education, look carefully before committing. Our education in Chile guide explains how the colegio system works.
Practical matters
Living costs are lower than Santiago. Whatever you choose, you will probably want a car. Public transport exists but is limited, and the best of the area (parks, lakes, trailheads) is spread out.
The German heritage is not just decorative. You will find it in the architecture, the food (the kuchen is excellent), and the annual Oktoberfest-style beer festival. There is a small but established expat community, and the locals tend to be welcoming.
Getting to Santiago requires either a 1.5-hour flight from Puerto Montt's airport or a rather heroic 12-to-14-hour overnight bus ride. Chiloé Island is accessible by ferry from Puerto Montt if you want to explore further south.
Who is this for?
Puerto Varas is ideal for nature lovers, retirees, and remote workers who do not mind the rain and want a beautiful, peaceful setting. It is a small town, so you need to be comfortable with limited nightlife, fewer restaurants, and a quieter social scene. If you need a big city, this is not it. However, if you want to wake up to a volcano reflected in a lake every morning, there are few better places in Chile.
Frequently asked questions about living in Puerto Varas and Puerto Montt
Living in the Lake District
Yes, if the trade-offs suit you. You get a small, charming town on Lake Llanquihue with a volcano view, German heritage, a small but established expat community, and world-class nature on your doorstep. In exchange you accept a lot of rain from April to October, limited nightlife and restaurants, and the need for a car. Nature lovers, retirees, and remote workers tend to love it, while people who need big-city energy do not.
For living, Puerto Varas, almost without exception. Puerto Montt is the regional capital and has the urban services: hospitals, shopping centres, the airport, government offices. But it is an industrial harbour city with little charm, so the usual arrangement is to live in Puerto Varas and drive the 20 minutes to Puerto Montt when you need something. The main caveat is January and February, when Puerto Varas gets crowded with tourists.
