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- Selling property in Chile
13/01/2023, updated 11/08/2025
Selling property in Chile as a foreigner follows the same legal framework as Chilean citizens, but there are important considerations around taxation, timing, and process management that can significantly impact your success and financial outcomes.
Foreign Ownership Rights: Chile's constitution guarantees foreigners the same property rights as citizens, including the right to sell freely without nationality-based restrictions.
Understanding the Chilean Property Market
Market Characteristics
Chile's real estate market is considered one of the most stable in Latin America:
- Transparent legal system with strong property rights protection
- Mature financing market with established mortgage systems
- Professional services including real estate agents, lawyers, and appraisers
- Clear regulatory framework governing property transactions
Typical Buyers in Chile
Understanding your potential buyers helps optimize your selling strategy:
- Chilean families seeking primary residences
- Local investors building rental portfolios
- Foreign buyers looking for second homes or investments
- Developers seeking properties for redevelopment
Preparing Your Property for Sale
Property Valuation
Getting accurate pricing is crucial for successful sales:
Professional Appraisal Methods:
- Comparative Market Analysis (CMA): Recent sales of similar properties
- Income Approach: For rental properties, based on income potential
- Replacement Cost: Particularly relevant for unique properties
- Online Valuation Tools: Useful for initial estimates
Property Preparation Strategies
High-Impact Improvements:
- Deep cleaning and decluttering: Creates spacious, welcoming atmosphere
- Fresh paint: Neutral colors appeal to broader buyer base
- Minor repairs: Fix leaky faucets, replace broken fixtures
- Curb appeal: Garden maintenance, exterior cleaning
- Professional photography: Essential for online marketing
Avoid Over-Improvement:
- Major renovations rarely return full investment
- Personal taste improvements may not appeal to buyers
- Focus on maintenance and presentation over customization
The Selling Process Step-by-Step
Phase 1: Preparation (2-4 weeks)
- Property valuation and pricing strategy
- Document collection and legal review
- Property preparation and staging
- Marketing strategy development
- Professional team assembly
Phase 2: Marketing and Showing (4-12 weeks)
- MLS listing and online marketing
- Professional photography and virtual tours
- Property showings and open houses
- Buyer inquiries and preliminary negotiations
- Offer evaluation and counter-negotiations
Phase 3: Contract and Closing (4-6 weeks)
- Promissory contract (Contrato de Promesa)
- Due diligence period for buyer inspections
- Financing approval (if applicable)
- Final contract preparation
- Notary closing and ownership transfer
Tax Implications for Foreign Sellers
Capital Gains Tax Structure
Resident Sellers:
- Primary residence: Exempt if owned 4+ years
- Investment property: Subject to capital gains tax on profits
- Rate: Progressive, based on total income
Non-Resident Sellers:
- All properties: Subject to capital gains tax
- Rate: Fixed percentage (typically 35% on gains)
- Withholding: May be required at closing
Tax Optimization Strategies
- Timing of sale: Consider residency status changes
- Documentation: Maintain records of improvement costs
- Professional advice: Tax specialists can identify legal savings
- Payment structure: Installment sales may offer advantages
Legal Requirements and Documentation
Essential Documents for Sellers
Property Documentation:
- Property title (Escritura Pública)
- Property tax certificates (Certificado de Contribuciones)
- Municipal permits for any modifications
- Condominium certificates (if applicable)
- Utility clearances (water, electricity, gas)
Personal Documentation:
- Valid identification (passport for foreigners)
- Tax identification (RUT/RUN)
- Power of attorney (if selling remotely)
- Marriage certificates (if selling jointly owned property)
Working with Professionals
Essential Team Members:
- Real estate agent: Market knowledge and buyer access
- Real estate lawyer: Contract review and legal protection
- Tax accountant: Optimization of tax implications
- Notary: Official transaction closing
- Property inspector: Pre-sale condition assessment
Pricing Strategies and Market Positioning
Factors Affecting Property Value
Location Factors:
- Neighborhood prestige and safety
- Proximity to metro/transport
- Shopping and amenities access
- School districts (for family buyers)
- Future development plans
Property Factors:
- Condition and maintenance level
- Size and layout efficiency
- Parking availability
- Natural light and views
- Building amenities (security, pool, gym)
Common Pricing Mistakes
- Overpricing: Leads to extended market time and eventual price reductions
- Underpricing: Leaves money on the table
- Ignoring market conditions: Timing affects pricing flexibility
- Emotional pricing: Personal attachment doesn't equal market value
Marketing Your Property Effectively
Online Marketing Strategy
Digital Presence:
- Professional listing photos: High-quality, well-lit images
- Virtual tours: 360-degree or video walkthroughs
- Multiple platforms: Major real estate portals
- Social media marketing: Targeted advertising
- English-language marketing: For international buyers
Traditional Marketing
- Print advertising: Newspapers and magazines
- Signage: Professional "For Sale" signs
- Broker networks: Agent-to-agent referrals
- Open houses: Weekend showing events
Negotiation and Closing
Evaluating Offers
Key Factors to Consider:
- Offer price vs. asking price
- Buyer financing strength and pre-approval
- Contingencies and their likelihood
- Closing timeline and flexibility
- Earnest money deposit amount
Common Deal Structures
- Cash purchases: Faster, more certain, often lower price
- Financed purchases: Higher prices possible, longer timelines
- Owner financing: Creative structures for difficult markets
- Lease-to-own: Alternative for challenging sales
Managing Remote Sales
Power of Attorney Arrangements
If you're selling from abroad, you'll need legal representation:
Requirements:
- Chilean lawyer with power of attorney
- Notarized documents in your home country
- Document apostilling/legalization
- Clear communication protocols
- Detailed instruction documentation
Staying Involved Remotely
- Video conferencing for key meetings
- Digital document review and approval
- Regular progress updates from your team
- Electronic fund transfer arrangements
Common Challenges and Solutions
Market Conditions
Slow Markets:
- Adjust pricing based on current conditions
- Enhance presentation and marketing
- Consider rental as temporary alternative
- Be patient with realistic expectations
Fast Markets:
- Price aggressively to attract multiple offers
- Prepare for quick decisions
- Have documentation ready
- Consider best and final offer scenarios
Buyer Financing Issues
- Require pre-approval letters
- Understand Chilean mortgage processes
- Have backup offers when possible
- Consider seller financing options
Legal Complications
- Unclear titles: Resolve before listing
- Permit issues: Address proactively
- Neighbor disputes: Mediate or disclose
- Condominium problems: Work with building administration
Frequently asked questions about selling property in Chile
Legal and Tax Considerations
Yes, foreigners have the same rights as Chilean citizens to sell property. Your nationality doesn't impact the selling process or required documentation.
Capital gains tax applies to profits from property sales. Primary residences held over 4 years may be exempt. Non-residents face different rates than residents - consult a tax specialist.
If you're leaving Chile permanently, analyze whether selling before or after changing tax residency status offers better tax treatment. Timing can significantly impact your tax liability.
Required documents relate to the property, not your nationality: property title, property tax certificates, condominium certificates (if applicable), municipal permits, and identification documents.
Process and Timing
From listing to closing, expect 2-4 months for average properties. Luxury properties or those with complications may take 6+ months. Prime locations sell faster.
March-April is peak season as buyers return from summer holidays. October-November (spring) is also good. Avoid December-February when many Chileans are on vacation.
- Property valuation, 2) Prepare documentation, 3) Marketing/listing, 4) Negotiate offers, 5) Sign promissory contract, 6) Complete due diligence, 7) Final signing at notary, 8) Transfer ownership.
Not legally required, but highly recommended. Agents provide market knowledge, marketing reach, negotiation skills, and handle bureaucracy. Choose agents experienced with foreign clients.
Property Preparation and Pricing
Get professional appraisals, research comparable sales, consider unique property features, and factor in current market conditions. Overpricing delays sales; underpricing costs money.
Focus on high-impact, low-cost improvements: fresh paint, decluttering, minor repairs, garden maintenance. Major renovations rarely provide full return on investment.
Yes, but options depend on buyer financing. Cash buyers may accept unpermitted additions. Buyers using mortgages need bank approval, which typically requires proper permits.
Staging helps significantly. Chilean buyers appreciate well-presented properties. Clean, decluttered, and tastefully furnished spaces sell faster and for better prices.
Financial and Legal Protection
Highly recommended, especially for foreigners. Lawyers review contracts, ensure proper documentation, handle escrow arrangements, and protect your interests during the transaction.
Use escrow services, require bank guarantees for large transactions, and work with reputable notaries. Never transfer ownership before receiving confirmed payment.
Expect 3-6% of sale price for: real estate agent commission (2-4%), legal fees, notary costs, marketing expenses, and potential capital gains taxes.
Yes, through power of attorney arrangements. You'll need Chilean legal representation to handle the sale process, sign documents, and manage the transaction on your behalf.
Market Considerations and Challenges
Location is paramount, followed by property condition, size, amenities, parking availability, security, and proximity to metro/services. Natural light and views are highly valued.
Evaluate not just price but buyer financing strength, contingencies, closing timeline, and buyer reliability. Cash offers often win even if slightly lower than financed offers.
Reassess pricing, improve presentation, expand marketing reach, consider seasonal timing, or evaluate if market conditions require patience. Sometimes temporary rental is better than forced sale.
Chilean buyers are generally cautious, thorough in due diligence, and prefer move-in ready properties. They value security, good neighbors, and proximity to family/work.
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
