How to Buy Property in Chile as a Foreigner: Complete Guide

Chile: one of Latin America’s most foreigner-friendly countries for property purchase

If you are considering buying property in South America, Chile stands out as one of the most accessible and secure options for foreigners. Unlike other countries in the region that impose significant restrictions, surface limits, or residency requirements, Chile grants foreigners the same property rights as Chilean citizens.

This legal equality, combined with a transparent legal system, a stable economy, and a well-regulated real estate market, makes Chile a preferred destination for international investors. The country has strong institutions, reliable public registries, and an independent judiciary that protects property rights.

There is, however, one important exception: border zones. Properties located within 10 kilometers of the international border require authorization from the Ministry of National Defense before they can be purchased by foreign individuals or companies. This is particularly relevant in the Aysen Region, where many rural properties border Argentina. This is not a prohibition but rather an additional procedure that is generally approved within 3 to 6 months.

Getting your RUT: the essential first step

The RUT (Rol Unico Tributario) is Chile’s tax identification number. Without a RUT, you cannot buy property, open a bank account, or complete legal transactions. The good news is that obtaining one is relatively straightforward.

How to apply for a RUT as a foreigner

In person: Visit a Servicio de Impuestos Internos (SII) office with your valid passport. The process is free and usually completed the same day.
Online: If you have a Clave Unica (Chilean digital identity), you can apply through the SII website.
Through a representative: A lawyer with a notarized power of attorney can complete the process on your behalf if you cannot travel to Chile immediately.

The RUT is assigned permanently. Once you have it, it is yours for life with no need for renewal.

The purchase process step by step

Buying a property in Chile follows a formal process with three main stages. Each serves a specific function within the Chilean legal framework.

1. Promesa de compraventa (promise of sale)

This is a preliminary contract that formalizes the agreement between buyer and seller. It is signed before a notary and establishes:

The agreed price and payment terms
The amount of the deposit (earnest money, typically between 5% and 10% of the price)
The deadline for signing the final deed
Conditions that must be met (for example, obtaining a mortgage or border zone authorization)
Penalty clauses in case of non-compliance

The promise is legally binding. If either party withdraws without justification, they must pay the agreed penalties.

2. Escritura publica (public deed of sale)

This is the definitive contract that transfers property ownership. It is signed before a public notary and is the document that effectively transfers ownership from seller to buyer. This stage requires:

Title study (review of the property’s legal history over the past 10 years)
Certificate of mortgages, liens, and prohibitions
Certificate confirming property taxes are current
Property survey plan
RUT of both parties

3. Inscription at the Conservador de Bienes Raices

The signed deed is submitted to the Conservador de Bienes Raices (Real Estate Registry) of the corresponding municipality for registration. Only when the inscription is recorded does the transfer of ownership become legally complete. This process typically takes between 5 and 15 business days, depending on the office.

It is essential to understand that in Chile, property ownership does not transfer upon signing the deed. It transfers upon inscription at the Conservador.

Financing options

Mortgages for foreigners

Chilean banks do offer mortgages to foreigners, but generally with stricter conditions:

Permanent residency or at least temporary residency is required
The down payment is typically 20% to 30% of the property value
Interest rates are similar to those for Chileans, currently between 4% and 6% annually in UF (Chile’s inflation-adjusted currency unit)
Proof of stable income in Chile is required

Cash purchases

Most non-resident foreigners buy with cash, since accessing credit without residency is difficult. For international transfers, it is recommended to:

Use a bank experienced in international wire transfers
Factor in currency conversion costs
Plan ahead, as transfers can take several business days
Consult regulations from Chile’s Central Bank regarding foreign capital inflows

Costs beyond the purchase price

Before closing the deal, make sure to budget for all associated costs. Many first-time buyers are surprised by the additional expenses.

Item	Estimated cost
Notary fees	0.2% to 0.5% of the price
Conservador inscription	0.1% to 0.2% of the price
Real estate agent commission	2% + VAT (typically paid by the seller)
Stamp tax (impuesto de timbres)	0.2% for cash purchases, 0.8% with a mortgage
Title study	CLP $200,000 to $500,000 (approx. USD $200-500)
Bank fees (if using a mortgage)	Varies by bank

In total, a cash buyer can expect additional costs of approximately 1% to 2% on top of the property price.

Contribuciones: annual property tax

Contribuciones are the property tax that every owner pays semi-annually (April and October) based on the fiscal appraisal of the property. Key facts:

The general rate is 1.2% annually on the fiscal appraisal for residential properties
Properties with a fiscal appraisal below a certain threshold are exempt (currently around CLP $39 million for residential, approximately USD $40,000)
In the Aysen Region, many rural properties and moderately valued homes are exempt or pay low amounts
A typical house in Coyhaique valued at UF 3,000 to UF 5,000 may pay between CLP $100,000 and $400,000 annually in contribuciones (approximately USD $100-400)
Extensive rural land often has fiscal appraisals significantly lower than market value

Contribuciones can be checked and paid online through the Tesoreria General de la Republica website.

Common pitfalls and how to avoid them

Water rights (derechos de agua)

In Chile, water rights are separate from land ownership. This means that buying a property with a river running through it does not guarantee you the right to use that water. Always verify:

Whether the property has legally constituted water rights inscribed at the Conservador
The flow rate and type of right (consumptive or non-consumptive, permanent or contingent)
Whether the rights are current on patent payments (unused water rights incur an annual patent fee)

In the Aysen Region, where many rural properties depend on natural water sources, this point is critical.

Easements and access rights (servidumbres)

Many rural properties in Patagonia depend on easements for access to public roads. Before buying, confirm:

That a legally constituted transit easement exists and is inscribed at the registry
That the access road is passable year-round (especially in winter)
That there are no disputes with neighboring properties over road use

Zoning and land use

Municipal zoning plans (planos reguladores) define what can be built in each zone. A plot of land may be visually stunning but have restrictions that prevent your intended project. Check with the Direccion de Obras Municipales (Municipal Works Department):

Permitted land use (residential, agricultural, tourism, mixed)
Height and density restrictions
Environmental or heritage protection areas
Setback and minimum distance requirements

Indigenous land restrictions

In Chile, land belonging to indigenous communities or individuals carries special transfer restrictions under the Indigenous Law (Law 19,253). These properties can only be sold to persons of the same ethnicity or to CONADI (the indigenous development agency). A proper title study should identify this situation.

Why the Aysen Region is an excellent choice

The Aysen Region offers concrete advantages for foreign buyers:

Affordable prices: Price per square meter in cities like Coyhaique, Puerto Aysen, or Cochrane is significantly lower than in Santiago, Valparaiso, or southern regions like Los Lagos. You can find habitable homes starting at UF 2,000 (approximately USD $80,000) and attractive rural land from UF 500 (approximately USD $20,000).

Sustained tourism growth: The Carretera Austral continues to establish itself as one of the world’s most spectacular routes. This generates increasing demand for accommodation and tourism-oriented properties.

Unparalleled quality of life: Clean air, pure water, pristine nature, low population density, and welcoming communities. For those seeking a change of pace, Patagonia delivers.

Extreme zone benefits: The Aysen Region has special tax incentives and subsidies due to its classification as an extreme zone, which can reduce costs for residents.

Continuously improving infrastructure: Air connections, progressive paving of the Carretera Austral, and expanding internet and telecommunications services improve every year.

Practical tips for your purchase

Hire a local lawyer: An attorney experienced in Aysen real estate understands the region’s particularities, from border zones to water rights. Do not cut corners on legal counsel.
Visit the property in person: Photos do not show the state of the road in winter, the actual sun exposure, or the relationship with neighbors. Try to visit in different seasons if possible.
Verify the property boundaries: In rural properties, actual boundaries sometimes do not match the registered plans. A surveyor can confirm the exact limits.
Check for liens and encumbrances: The Certificate of Mortgages, Liens, and Prohibitions from the Conservador shows whether the property has debts, seizures, or other legal charges.
Plan your fund transfer logistics: If the money is coming from abroad, start the banking process weeks in advance. International wire transfers can be delayed and carry significant fees.
Consider the tax implications in your home country: Many countries require you to declare foreign property holdings. Consult a tax advisor in your country to avoid surprises.
Think long term: Patagonia is a slow but consistent appreciation market. Do not expect quick profits, but count on a solid investment backed by a real asset in one of the most beautiful places on Earth.

Conclusion

Buying property in Chile as a foreigner is an accessible, legal, and well-structured process. With proper preparation, a good legal team, and due diligence, you can become a property owner in Chilean Patagonia and gain access to one of South America’s most promising real estate markets.

If you have questions about available properties in the Aysen Region, browse our properties for sale catalog or contact us directly for personalized guidance.