Buying Property in Chile as a French Citizen: Complete Guide

Why French buyers look to Patagonia

French buyers have been quietly discovering Chilean Patagonia for over a decade. The appeal combines several factors that resonate strongly with French sensibilities: dramatic landscapes that rival the Alps and Pyrenees in grandeur, a food culture that values local ingredients and traditional preparation, and a pace of life that prioritizes quality over quantity.

From a financial perspective, Chilean property offers French buyers genuine portfolio diversification outside the eurozone. With property prices in Paris, Lyon, and the Cote d’Azur at historic highs, the cost of equivalent land and living space in Patagonia is remarkably accessible. A 5-hectare parcel with river access in the Aysen Region can cost less than a studio apartment in the 11th arrondissement.

For those approaching retirement or seeking a second home, Patagonia offers something increasingly rare in Europe: the ability to own significant land with genuine privacy, clean water, and functioning ecosystems, all within a stable legal framework that protects foreign property rights equally to those of citizens.

No SCI in Chile: structuring your purchase

French property investors are accustomed to using the SCI (Societe Civile Immobiliere) as a standard vehicle for real estate ownership. If you are a French buyer, understanding that Chile has no equivalent structure is essential before you begin your purchase.

What the SCI does in France

In France, the SCI provides three key benefits: tax transparency (income passes through to shareholders and is taxed at their individual rates), simplified succession (shares can be gradually transferred to heirs, reducing inheritance tax), and shared ownership management (multiple family members can hold interests with clear governance rules).

The SCI is deeply embedded in French property culture. Many French families hold their real estate through SCIs as a matter of course, and French notaires routinely set them up as part of standard property transactions.

Chile’s SpA (Sociedad por Acciones) as the closest alternative

Chile does not have a civil company structure equivalent to the SCI. The closest available vehicle is the SpA (Sociedad por Acciones), a flexible commercial company that can be formed by a single shareholder. An SpA can own property and has its own legal personality.

The SpA offers some of what the SCI provides: a corporate veil that separates personal and property liability, the ability to transfer ownership through share sales rather than property transactions, and a formal governance structure. For multi-generational planning, shares in a SpA can be transferred gradually, somewhat analogous to the SCI approach.

Key differences: SpA is commercial (not civil), no tax transparency

The fundamental difference is that the SpA is a commercial entity, not a civil one. This has direct tax consequences. An SpA is subject to Chile’s first category tax (27%) on its income, and distributions to shareholders trigger additional withholding tax. There is no “pass-through” treatment like the French SCI in its default regime.

This means the SpA does not replicate the SCI’s tax transparency. The overall tax burden of earning rental income through an SpA and distributing it to a French shareholder must be calculated carefully, considering both Chilean corporate and withholding taxes plus French personal income tax.

When to use an SpA vs. buying in your personal name

An SpA makes more sense when you plan to hold the property long-term with multiple family members, when you want to facilitate gradual ownership transfer to the next generation, or when the rental income from the property is significant and the corporate tax rate (27%) is more favorable than the non-resident individual rate (35%).

For a single-owner vacation property with minimal rental income, buying in your personal name is simpler, cheaper to maintain, and avoids the ongoing administrative costs of an SpA (annual accounting, tax filings, legal compliance). Most French buyers of Patagonian properties end up purchasing in their personal name.

France-Chile double taxation treaty

France and Chile have a convention for the avoidance of double taxation (convention fiscale) that has been in force since 2006. This treaty provides clear rules for how property income and capital gains are taxed across both jurisdictions.

How immovable property income is taxed

Under the treaty, income from immovable property located in Chile may be taxed by Chile. France also taxes your worldwide income but must grant relief under the treaty’s provisions. For rental income from a Chilean property, Chile applies its domestic non-resident rate (currently 35%), and France allows you to claim a credit for the Chilean tax paid.

Capital gains: 35% non-resident rate in Chile, French tax credit

When you sell a Chilean property, the capital gain is taxed at Chile’s non-resident rate of 35%. The treaty allows France to also tax the gain but requires a credit for Chilean taxes paid. Since France’s tax rate on real estate capital gains (19% plus social contributions of 17.2%, totaling 36.2%) is comparable to Chile’s rate, the credit mechanism generally works to prevent significant double taxation.

The French prelevement social (social contributions) applied to foreign property gains is an area of ongoing legal discussion. Verify with your conseiller fiscal how current French law treats social contributions on Chilean property gains.

IFI (Impot sur la Fortune Immobiliere): does Chilean property count?

This is a question that matters for wealthier French buyers. The IFI is France’s real estate wealth tax, applicable to individuals whose worldwide real estate assets exceed EUR 1,300,000. The question is whether Chilean property falls within its scope.

Under current French tax law, the IFI applies to all real estate assets held directly or indirectly by French tax residents, including property located outside France. If you are a French tax resident and own Chilean property (directly or through an SpA), that property should be included in your IFI declaration at its market value.

The France-Chile DTA does not specifically address wealth taxes on real estate, which means French domestic law applies. Consult your conseiller fiscal for the current treatment, as IFI rules and their international application continue to evolve.

Notarial systems: shared origins, practical differences

Both France and Chile follow the Latin notarial tradition, which creates a sense of familiarity for French buyers. However, the practical functioning of the two systems diverges in important ways.

Both follow the Latin notarial model

In both countries, the notaire/notario is a legally qualified professional appointed by the state to authenticate legal acts. The escritura publica in Chile has similar probative force to the acte authentique in France. Both systems require certain transactions (including property sales) to pass through the notarial process.

Chilean notary does not handle registration

In France, the notaire manages the entire property transaction from start to finish, including registration with the service de publicite fonciere. Many French buyers expect the same in Chile.

In Chile, the notary authenticates the deed but does not manage its registration. The buyer (or their lawyer) must separately present the signed escritura publica to the Conservador de Bienes Raices for inscription. This is a distinct step that requires its own timeline and follow-up.

No minutier system in Chile

French notaires maintain a minutier, a permanent archive of all deeds they have executed. These records are kept for 75 years, then transferred to departmental archives, providing a continuous chain of documentation for any property.

Chile has no equivalent centralized notarial archive system. While Chilean notaries keep records, the primary source of property ownership history is the Conservador de Bienes Raices. Due diligence therefore requires a title study (estudio de titulos) tracing inscriptions at the Conservador rather than reviewing a notarial archive.

Chilean notaries do not provide tax advisory services

In France, the notaire plays an active advisory role, calculating tax obligations, advising on structuring options, and ensuring fiscal compliance as part of the transaction. French buyers often rely heavily on their notaire for financial guidance.

Chilean notaries do not perform this function. They verify identities, confirm that documents are in order, and authenticate the signing. Tax advice, structuring recommendations, and fiscal compliance are handled separately by an abogado tributarista (tax lawyer) or contador (accountant). Budget for separate professional tax advice in Chile.

The buying process for French citizens

RUT via Chilean consulate in France or via power of attorney

The RUT (Rol Unico Tributario) is required before you can purchase property. French citizens can obtain it:

At the Chilean consulate in Paris (or the honorary consulates in other French cities)
In person at a SII office in Chile with your passport
Through a Chilean lawyer using a notarized power of attorney

Apostille (Convention de La Haye)

France and Chile are both parties to the Hague Apostille Convention. Documents executed in France (such as a power of attorney signed before a notaire) need only an Apostille from the competent French authority (typically the Procureur de la Republique at the Tribunal judiciaire) to be valid in Chile.

The power of attorney must be translated into Spanish by a sworn translator (traducteur assermente). Budget several weeks for the translation and Apostille process.

Transaction timeline and steps

Obtain your RUT through the consulate or a representative in Chile
Engage a Chilean lawyer with experience in foreign buyer transactions
Conduct due diligence: title study, lien checks, property tax verification, water rights
Sign the promesa de compraventa (5-10% deposit, binding preliminary contract)
Transfer funds from France to Chile through formal banking channels
Sign the escritura publica (final deed, balance payment)
Register at the Conservador de Bienes Raices (1-4 weeks for registration to complete)

The entire process from initial offer to completed registration typically takes 2 to 4 months, depending on due diligence findings and any border zone authorization requirements.

Inheritance considerations

French reserve hereditaire vs. Chilean legitima

Both France and Chile have forced heirship systems, but the proportions differ. French law reserves a portion for the children (reserve hereditaire): one-half for one child, two-thirds for two children, three-quarters for three or more. The remainder (quotite disponible) can be freely willed.

Chilean law reserves 50% as the legitima rigorosa (distributed equally among forced heirs), plus 25% as the cuarta de mejoras (which must go to certain heirs but can be distributed unevenly among them). Only 25% is freely disposable (cuarta de libre disposicion).

For a French buyer with two children, the difference is notable: French law allows one-third to be freely willed, while Chilean law allows only one-quarter. This matters when planning for a surviving spouse or non-family beneficiaries.

EU Regulation 650/2012 and professio juris

Under EU Regulation 650/2012, French citizens can choose French law to govern their succession through a professio juris clause in their will. This is particularly useful for unifying the treatment of your worldwide estate under a single legal system.

However, Chilean courts may apply Chilean law to immovable property on Chilean territory (lex rei sitae), regardless of your choice-of-law clause. This creates a potential conflict that must be managed through careful planning.

Practical tip: a Chilean will for Chilean assets

The recommended approach is to have two wills: a French testament for your French and EU assets (with a professio juris clause if desired), and a separate Chilean testamento for your Chilean property. Both wills must explicitly reference each other to avoid one accidentally revoking the other.

Have your notaire in France and your abogado in Chile review each other’s documents. The cost of this coordination is modest compared to the complications that arise from poorly planned cross-border succession.

Water rights and environmental regulations in Patagonia

For rural properties in the Aysen Region, water rights deserve special attention. Unlike in France, where water usage is generally tied to the property through administrative permits from the agence de l’eau, Chilean water rights (derechos de aprovechamiento de aguas) are entirely separate from land ownership.

You must verify that the property includes water rights for your intended use (domestic, agricultural, or commercial). If the property does not include water rights, you will need to acquire them separately, which involves its own market, registration process, and costs.

Chile’s 2022 Water Code reform introduced time-limited rights for new grants and environmental flow requirements. Your lawyer should verify the status, type, and conditions of any water rights associated with the property you are considering.

Your path to property in Patagonia

French buyers bring strong analytical skills and a cultural appreciation for quality of life to their property search in Patagonia. The key is recognizing where French assumptions about property law, notarial practice, and ownership structures do not translate directly to Chile.

With the France-Chile DTA providing a solid tax framework, and with proper professional guidance on both sides of the Atlantic, purchasing property in Chilean Patagonia is a well-established and transparent process.

Browse our current property listings across the Aysen Region, or contact our team to discuss how we can help you find the right property for your goals.