Border Zone Restrictions for Property in Aysen, Chile

TL;DR: DL 1939 restricts ownership of land within 10 km of the Argentine border, but only for nationals of neighboring countries. Private sales between private parties do not require DIFROL authorization. Non-neighboring foreigners face no restrictions.

Border zone restrictions in the Aysen Region are governed by Decreto Ley 1939 (1977), which limits ownership of fiscal (government-owned) land within 10 kilometers of the Argentine border. The most important fact for private property owners: sales of privately owned land between private parties are NOT subject to DIFROL (Direccion Nacional de Fronteras y Limites del Estado) authorization. However, nationals of neighboring countries (Argentina, in Aysen’s case) face outright prohibitions on acquiring certain border zone properties. Understanding these rules is critical because Aysen shares its entire eastern boundary with Argentina, and many desirable properties fall within the restricted corridor.

What does DL 1939 actually restrict?

DL 1939 prohibits the transfer of fiscal lands within 10 km of international borders to nationals of neighboring countries. For private land sales between private parties, DIFROL authorization is not required.

The law distinguishes between two scenarios:

Scenario	Restriction	DIFROL Approval Required?
Fiscal land sale to Chilean national	Allowed with state approval	Yes
Fiscal land sale to Argentine national	Prohibited	N/A (not allowed)
Private land sale to Chilean national	No restriction	No
Private land sale to non-neighboring foreigner	No restriction	No
Private land sale to Argentine national	Prohibited in border zone	Exemption possible

The prohibition extends beyond individual Argentine nationals. Companies where 40% or more of capital belongs to nationals of bordering countries (Argentina, in Aysen’s case), or where those nationals exercise effective control, also face restrictions.

The President of Chile can grant exemptions through a supreme decree for reasons of national interest, but these are rare and require detailed documentation submitted through the local municipality or provincial government.

Which towns in Aysen are affected?

Chile Chico, Cochrane, and sections of the Carretera Austral near the Argentine border fall within or near the 10 km border zone. Properties in these areas require careful verification.

Aysen’s entire eastern edge borders Argentina, making this region one of the most affected in Chile. The specific impact depends on your property’s exact location:

Chile Chico: Directly on Lago General Carrera at the Argentine border. Many properties here fall within the restricted zone
Cochrane: Located near the border corridor, some surrounding rural parcels are affected
Carretera Austral eastern sections: Properties along stretches running parallel to the border within 10 km
Paso-adjacent areas: Land near border crossings (Paso Huemules, Paso Ingeniero Ibanez, Paso Roballos) is more likely to be affected
Coyhaique: The regional capital sits well west of the border zone and is generally not affected

DIFROL publishes border zone maps that show the exact boundaries. For a definitive answer, request a certificate from the local municipality confirming your property’s status.

Does this affect foreigners who are not from neighboring countries?

No. Nationals of non-neighboring countries (the US, UK, Germany, Australia, etc.) face no border zone restrictions when buying or selling private property in Chile.

DL 1939’s restrictions apply specifically to nationals of countries that share a land border with Chile: Argentina, Bolivia, and Peru. Other foreign nationals are treated the same as Chilean citizens for private property transactions.

This distinction is important for sellers: if your property is in a border zone, your potential buyer pool excludes Argentine, Bolivian, and Peruvian nationals (unless they obtain a presidential exemption). For properties in Chile Chico or eastern Cochrane, this restriction can meaningfully reduce demand, since Argentine buyers represent a significant portion of interest in border-area properties.

For a comprehensive guide on selling property to foreign buyers, see our guide to selling property in Chile as a foreigner.

How do I check if my property is in a border zone?

Verify through three sources: DIFROL’s published maps, the local municipality, and the Conservador de Bienes Raices in Coyhaique.

Step-by-step verification:

Check DIFROL maps online: Visit the DIFROL border area page for maps showing declared border zones
Request municipal certificate: Your local municipality (Chile Chico, Cochrane, etc.) can issue a certificate confirming whether a specific property falls within the border zone
Review the property title: The Conservador de Bienes Raices de Coyhaique may have annotations on the title if previous transactions involved border zone review
Consult a local lawyer: For properties near the boundary of the 10 km zone, professional legal verification is worth the 2 to 5 UF cost

The full text of DL 1939 is available at BCN.

What if my buyer is Argentine and the property is in the border zone?

The sale is prohibited unless the President grants an exemption through a supreme decree. This process is slow, uncertain, and rarely used for private transactions.

Exemption requests must include:

Detailed property description and location
Purpose of the acquisition
Documentation proving the transaction serves the national interest
Submission through the local municipality or provincial government

In practice, most sellers of border zone properties focus their marketing on Chilean nationals and non-neighboring foreigners to avoid this complication entirely. The restriction does not apply if the Argentine buyer already holds Chilean nationality (dual citizens are treated as Chilean).

Does this affect the value of my property?

Yes. Border zone properties in Aysen sell at a discount of 5% to 15% compared to similar properties outside the restricted zone, primarily due to the reduced buyer pool.

The impact varies by property type:

Urban properties in Chile Chico: Moderate impact, since most local buyers are Chilean
Large rural parcels near the border: Significant impact, as international investors (particularly Argentine) represent a meaningful share of demand for agricultural and recreational land
Tourism-oriented properties: Lower impact, since tourism operators from non-neighboring countries are unaffected

For the complete overview of selling property in Patagonia, including all legal requirements and tax implications, see our guide to selling property in Patagonia.

Frequently asked questions

Can an American or European buy property in Aysen’s border zone?

Yes. DL 1939 restrictions apply only to nationals of countries bordering Chile: Argentina, Bolivia, and Peru. Citizens of the US, UK, Germany, Australia, and all other non-neighboring countries are treated identically to Chilean nationals for property purchases.

Do I need DIFROL approval to sell my private property in the border zone?

No. DIFROL authorization is required only for transfers of fiscal (government-owned) land. Sales of privately owned property between private parties do not require DIFROL approval, regardless of the property’s location within the border zone.

How do I check if my property is in the border zone?

Verify through three sources: DIFROL’s published maps at difrol.cl, a certificate from your local municipality confirming the property’s status, and the Conservador de Bienes Raices for any border zone annotations on the title. Professional legal verification costs 2 to 5 UF.

How much does the border zone classification reduce property value?

Border zone properties in Aysen sell at a discount of 5% to 15% compared to similar properties outside the restricted zone. The impact is greatest for large rural parcels where Argentine buyers represent a significant share of demand.

Can a dual Chilean-Argentine citizen buy border zone property?

Yes. Dual citizens who hold Chilean nationality are treated as Chilean for property transaction purposes. The restriction under DL 1939 does not apply to them, and no presidential exemption is required for the purchase.

Selling property in Aysen’s border zone? List your property with us and reach qualified buyers who meet all legal requirements.