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- Buying a property in Chile
13/01/2023, updated 11/08/2025
Buying procedure
Buying real estate in Chile is relatively straightforward, even if you are not a Chilean citizen. With proper planning and a good bi-lingual attorney (unless you are fluent in Spanish), buying your home here can be a hassle-free process. Here's what you will need to purchase a home or land in Chile:
- The formalized contract (escritura pública otorgada ante Notario and Escritura Pública). These two are lumped together because the contract is usually part of the Escritura Pública.
- The title report for the property (Estudio de Títulos).
- A RUT (Rol Único Tributario) if you are not a Chilean citizen and non-resident, or a RUN (Rol Único Nacional) if you are a Chilean citizen or a foreigner resident of Chile. The RUN is the equivalent of a Social Security number, and the RUT is a number used to keep track of foreigners for tax purposes.
Buying restrictions
For the most part, the Chilean constitution guarantees foreigners the same rights as Chilean citizens when buying and selling real estate. There are certain exceptions, such as in the case of national security areas. It is best to ask a real estate attorney for more details.
Buying costs
Property buyers must pay lawyers' and agents' fees in Chile. Usually, these add up to around 5% to 8% of the purchase price.
Detailed Cost Breakdown
- Legal fees: 1-2% of property value
- Real estate agent commission: 2-4% (usually paid by seller, but verify)
- Notary fees: 0.1-0.2% of property value
- Property registration: 0.2% of property value
- VAT on new properties: 19% (significant cost to consider)
- Property appraisal: 300-500 USD
- Title insurance: Optional but recommended
- Bank financing costs: If applicable
Step-by-Step Buying Process
1. Pre-Purchase Preparation
- Obtain RUT/RUN number
- Open Chilean bank account
- Arrange financing (if needed)
- Find a bilingual real estate lawyer
- Determine your budget including all costs
2. Property Search and Selection
- Research neighborhoods and property values
- Work with reputable real estate agents
- Visit properties and conduct due diligence
- Verify property titles and legal status
3. Making an Offer
- Submit written offer (Oferta de Compra)
- Negotiate terms and conditions
- Sign preliminary agreement (Compromiso de Compraventa)
- Pay earnest money deposit (usually 5-10%)
4. Legal Due Diligence
- Conduct title search (Estudio de Títulos)
- Verify property taxes are current
- Check for liens or encumbrances
- Confirm zoning and building permits
- Review building bylaws if applicable
5. Financing (if applicable)
- Apply for mortgage pre-approval
- Submit required documentation
- Obtain property appraisal
- Finalize loan terms and conditions
6. Final Contract and Closing
- Review final purchase contract (Escritura Pública)
- Sign before notary public (Notario)
- Transfer funds and pay all fees
- Register property in Property Registry
- Receive official property title
Financing Options for Foreign Buyers
Bank Mortgages
- Down payment: Typically 20-30% for foreigners
- Income requirements: Stable income verification
- Interest rates: Variable, currently around 3-6%
- Documentation: Extensive financial and legal documents required
Developer Financing
- Some developers offer direct financing
- Often more flexible terms for foreigners
- May include property management services
- Usually higher interest rates than banks
Cash Purchases
- Faster closing process
- Better negotiating position
- No financing contingencies
- Immediate ownership transfer
Property Types and Considerations
Apartments (Departamentos)
- Condominium fees: Monthly gastos comunes
- Building management: Professional administration
- Amenities: Gyms, pools, security common in new buildings
- Resale value: Generally better in prime locations
Houses (Casas)
- Land ownership: Fee simple ownership
- Maintenance responsibility: Full owner responsibility
- Privacy: More space and independence
- Security: May require additional security measures
New Construction vs. Existing Properties
- New properties: Subject to 19% VAT, modern amenities
- Existing properties: No VAT, established neighborhoods
- Warranty: New construction includes builder warranties
Getting Professional Help
Essential Team Members
- Bilingual real estate lawyer: For legal protection and documentation
- Real estate agent: Local market knowledge and property access
- Property inspector: Technical property evaluation
- Accountant: Tax implications and ongoing compliance
- Bank representative: Financing options and requirements
Choosing Professionals
- Verify credentials and experience with foreign clients
- Check references from other foreign buyers
- Ensure clear fee structures and service expectations
- Consider professionals who work together regularly
Frequently asked questions about buying property in Chile
Buying property in Chile can be a rewarding investment and lifestyle choice. With proper preparation, professional guidance, and understanding of the process, foreign buyers can successfully navigate the Chilean real estate market.
Legal and Regulatory
Generally yes, but there are some restrictions near borders (within 10km) and coastal areas (within 5km). National security considerations may apply in certain zones.
No, non-residents can buy property. You'll need a RUT number for tax purposes, which can be obtained specifically for property purchases.
RUN is for Chilean citizens and residents (like Social Security number). RUT is for non-residents conducting business in Chile, including property purchases.
Yes, Chile has strong property rights protections. Foreign ownership is constitutionally guaranteed with the same rights as Chilean citizens.
Financial Considerations
Budget an additional 5-8% of purchase price for legal fees, notary costs, registration, and other transaction costs. New properties also incur 19% VAT.
Yes, but requirements are stricter. You'll need 20-30% down payment, proof of income, and extensive documentation. Some banks specialize in foreign buyer mortgages.
Annual property tax (Contribuciones) is relatively low, typically 1-1.5% of assessed value. Properties over a certain value may pay additional luxury tax.
Yes, but there are exemptions for primary residences held over 4 years. Investment properties are subject to capital gains tax on profits.
Practical Process
For cash purchases, 30-45 days from accepted offer to closing. Financed purchases take 60-90 days. Complex titles or legal issues can extend timelines.
While not legally required, it's highly recommended, especially for foreigners. A bilingual real estate lawyer helps navigate legal requirements and protects your interests.
The title search reveals existing debts. These must be cleared at closing through escrow arrangements, ensuring you receive clear title.
Yes, many foreign buyers use Chilean corporations for tax advantages and estate planning. This requires additional legal setup and ongoing compliance.
Property Management
Monthly condominium fees covering building maintenance, security, and common areas. Costs range from 50-300 USD monthly depending on building amenities.
Not legally required but highly recommended. Earthquake insurance is particularly important in Chile. Fire and liability insurance are also advisable.
Yes, there are no restrictions on renting property you own. Consider tax implications and property management if you're not residing in Chile.
You'll need to transfer or establish accounts for electricity, gas, water, internet, and other services. Some may be included in condominium fees.
Investment and Common Challenges
Chile offers stable property markets with moderate appreciation. Prime Santiago locations have shown consistent growth, but returns vary by area and property type.
Established areas like Las Condes, Providencia, and Vitacura typically offer stable values. Emerging neighborhoods may offer higher growth potential but with more risk.
New construction offers modern amenities and warranties but includes 19% VAT. Existing properties avoid VAT but may need renovations. Consider total costs and personal preferences.
Hire a bilingual lawyer and consider using real estate agents who speak your language. All contracts and legal documents are in Spanish, so professional translation is essential.
Research crime statistics, visit at different times/days, check local amenities, and consider future development plans. Local real estate agents provide valuable neighborhood insights.
Properties with unclear titles, overly aggressive sales tactics, prices significantly below market, sellers reluctant to provide documentation, and properties in areas with legal disputes.
Do you want to go more in detail?
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✅ Practical tips based on 7-year relocation experience
✅ To-do lists to help you start
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