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- Buying a property in Chile
Last updated on 19/03/2026
Who can buy
Buying real estate in Chile is relatively straightforward, even if you are not a Chilean citizen. The constitution guarantees foreigners the same property rights as Chileans. With proper planning and a good bilingual attorney (unless you are fluent in Spanish), the process can be hassle-free.
There are certain exceptions near national borders (within 10 km) and coastal areas. If you're looking at properties in these zones, ask a real estate attorney for specifics.
You don't need a visa or residency to buy. You do need a RUT (Rol Único Tributario) — a tax identification number for foreigners. You can get one at any SII (tax authority) office by showing your passport, accompanied by a guarantor.
One thing I hear regularly: people asking whether buying property helps their immigration process. It does not. There is no citizenship-by-investment program in Chile, and property ownership does not speed up or improve residency applications. If someone tells you otherwise, they are likely trying to sell you something.
The buying process
1. Title study (Estudio de Títulos)
Before you commit, your lawyer conducts a title study. This verifies that the seller is the legal owner, that the property is free of debts and liens, that the taxes are paid, and that there are no legal disputes or restrictions. In Chile, anyone can sign a sale contract — even without owning the property. I've seen this happen. The title study is what protects you.
2. Preliminary agreement (Promesa de Compraventa)
Once the title study is clean, you sign a preliminary agreement with the seller. This contract sets the sale price, conditions, and timeline. You pay an earnest money deposit, typically 5-10% of the purchase price. If you back out without a valid reason, you lose the deposit. If the seller backs out, they must return it (usually doubled, depending on the contract).
3. Final contract (Escritura Pública)
This is the formal deed of sale, signed before a notary (Notario Público). The buyer pays the balance, the seller transfers ownership, and the notary verifies identities and documentation. If there's bank financing, the bank participates in this step.
4. Registration
After signing, the notary submits the deed to the Conservador de Bienes Raíces (property registry). Registration takes a few weeks. Once complete, you are the legal owner.
The entire process — from signing the preliminary agreement to registration — takes 30-45 days for a cash purchase. With bank financing, expect 60-90 days.
Costs
Property buyers must pay the following in addition to the purchase price:
- Legal fees: 1-2% of the property value. Your lawyer handles the title study, contract review, and closing.
- Notary fees: around 0.1-0.2% of the property value.
- Property registration: around 0.2% of the property value.
- Property appraisal: USD 300-500 if you need a formal valuation (required for bank financing).
- VAT on new properties: 19%. This applies when you buy directly from a developer. It's a significant cost — on a property listed at 100 million CLP, you pay 19 million CLP in VAT on top.
- Agent commission: typically 2-4%, usually paid by the seller. Verify this before making an offer.
In total, budget 5-8% above the purchase price for a standard transaction. More if buying new construction (because of VAT).
Financing
Getting a mortgage as a foreigner is difficult in Chile. Banks require permanent residency, proof of stable income, and a 20-30% down payment. If you have temporary residency or no residency at all, most banks will decline your application.
Some developers offer direct financing for off-plan purchases, with more flexible requirements but higher interest rates. This can be an option if you want to buy without full bank financing, but read the terms carefully.
For most foreign buyers, especially non-residents, cash purchases are the most practical route. They're faster, you avoid financing contingencies, and sellers prefer them — which can give you negotiating leverage.
New construction vs. existing properties
New properties bought from developers are subject to 19% VAT. Existing properties sold between private parties are not. This makes a significant difference in your total cost.
New construction comes with builder warranties and modern standards (better insulation, earthquake-resistant design, modern amenities). But the VAT adds roughly a fifth to the price.
Existing properties avoid VAT and are located in established neighborhoods where you know what you're getting. They may need renovations, but the total cost (purchase + renovation) can still be lower than buying new.
What to watch out for
A few things I've seen go wrong over the years:
Unpermitted additions: Very common in Chile. If the actual built area doesn't match what's registered with the municipality, it can create problems for financing and future resale. Your lawyer should flag this during the title study.
Border zone properties: If the property is within 10 km of a national border, foreigners may face restrictions. This comes up in the south (near Argentina) and in the north (near Peru and Bolivia).
"Investment" scams targeting foreigners: Some operators market Chilean real estate as an investment or residency pathway to foreigners abroad. They overcharge, misrepresent yields, and sometimes sell properties that don't match the description. If you're buying from abroad, have an independent lawyer verify everything. Do not rely on the seller's lawyer.
Water rights for rural properties: If you're buying agricultural land or a property that relies on natural water sources, verify the water rights (derechos de aguas). A property near a river does not automatically have the right to use that water.
Frequently asked questions about buying property in Chile
Legal and Regulatory
Generally yes. The Chilean constitution guarantees foreigners the same property rights as citizens. There are restrictions near borders (within 10 km) and coastal zones (within 5 km) for national security reasons. Ask a real estate attorney if your target property is in one of these zones.
No. Non-residents can buy property in Chile. You need a RUT number (Chilean tax ID for foreigners), which you can obtain at any SII office. You do not need a visa or residency.
The RUN is the identity number for Chilean citizens and foreign residents — it is assigned when you get your Chilean ID card. The RUT is the tax number for non-residents conducting business in Chile, including property purchases. If you already have a RUN, it serves as your RUT.
No. There is no citizenship-by-investment program in Chile. Owning property does not speed up or improve your residency application. It can show a link with Chile when applying for citizenship, but that is years down the road.
Financial Considerations
Budget an additional 5-8% for legal fees (1-2%), notary fees (0.1-0.2%), property registration (0.2%), and appraisal (USD 300-500). If buying a new property from a developer, add 19% VAT on top of the sale price.
It is difficult if you are not a permanent resident. Banks require 20-30% down payment, proof of stable income in Chile, and extensive documentation. If you don't have permanent residency, most banks will decline. Some developers offer direct financing with more flexible terms but higher rates.
The annual property tax (Contribuciones de Bienes Raíces) is relatively low. The tax is based on the fiscal assessment value (avalúo fiscal), which is typically 50-70% of market value. Rates are 1% to 1.2% of the assessed value, with an exemption for the first 26,840,000 CLP. See our real estate taxes article for full details.
Yes. Capital gains are taxed at 10% for residents, with a lifetime exemption of 8,000 UF. Non-residents pay 35% on total gains with no exemption. Properties purchased before 2004 are exempt.
Practical Process
For cash purchases, 30-45 days from accepted offer to registration. With bank financing, 60-90 days. Complex titles, legal issues, or slow banks can extend this further.
Not legally required, but strongly recommended, especially if you don't speak Spanish. A real estate lawyer handles the title study, reviews the contract, and ensures you're not buying problems. Budget 1-2% of the purchase price for legal fees.
Yes. Many foreign investors use a Chilean SpA (Sociedad por Acciones) for tax or estate planning reasons. However, companies do not benefit from the 8,000 UF capital gains exemption and pay 27% corporate tax on gains. It depends on your situation — consult a tax advisor.
Do you want to go more in detail?
I wrote the Chile Handbook for Foreigners for anyone and everyone looking to move permanently and enjoy life in Chile. It's a 265-page book that goes over all aspects of relocating to Chile. Here is what you get:
✅ Practical tips based on 7-year relocation experience
✅ To-do lists to help you start
✅ Last updated in 2025
