Chile's New President and What It Means for Property Investors (2026)

TL;DR: Chile’s new president Jose Antonio Kast is pushing corporate tax cuts, deregulation, and a pro-business agenda that could benefit property investors. But he lacks a congressional majority, so the biggest reforms still need negotiation. Chile’s fundamentals for foreign property buyers remain strong regardless of who is in office.

On March 11, 2026, Jose Antonio Kast was inaugurated as Chile’s president after winning with 59% of the vote. He is the most conservative president Chile has elected since the return to democracy in 1990, replacing Gabriel Boric’s left-wing government. The shift is significant, and property investors (both Chilean and foreign) are paying attention.

This article breaks down what the new administration means in practical terms for anyone buying, holding, or considering property in Chile, with particular attention to the Aysen Region and Patagonia.

The political context

Chile has been through a turbulent political cycle. The 2019 social unrest, two rejected constitutional referendums, and a sharp left-right oscillation in the presidency have tested the country’s institutions. The fact that Chile navigated all of this through democratic processes (not coups or constitutional crises) is itself a signal of institutional stability.

Kast’s election represents a correction toward the right after Boric’s term, which introduced higher taxes on mining, expanded social programs, and proposed significant regulatory changes. Whether you view this as a positive shift or a concerning one depends on your politics, but for property investors the relevant question is narrower: what specific policies affect real estate and foreign investment?

Tax reforms that matter for property owners

The Kast administration has signaled several tax changes that directly affect property economics.

Corporate tax cut: 27% to 23%

The proposed reduction in the corporate tax rate from 27% to 23% is the headline policy. For property investors operating through a Chilean company (sociedad), this lowers the tax burden on rental income and development profits. The administration also plans to restore full tax integration, meaning taxes paid at the corporate level are fully credited against personal income taxes. This eliminates the double taxation that existed under the previous system.

Capital gains tax changes

The government has discussed eliminating certain capital gains taxes, though the details remain in development. Any reduction in capital gains taxation would directly benefit property sellers, particularly those holding land that has appreciated significantly. For context on the current system, including the existing 8,000 UF exemption for primary residences, see our overview of capital gains and property taxation.

What has NOT changed

Foreigners in Chile continue to have the same property rights as Chilean citizens. There are no foreign ownership quotas, no residency requirements for purchasing property, and no special taxes on foreign buyers. This has been true for decades and is reinforced by Chile’s 55 bilateral investment treaties (31 currently in force), including the US-Chile Free Trade Agreement active since 2004. Chile also maintains 34 free trade agreements covering 66 economies. None of this is under threat from the new administration, which is more likely to expand rather than restrict foreign investment protections.

Deregulation and environmental policy

In his first week, Kast suspended 43 environmental regulations. This is the most directly relevant policy shift for rural land and development in regions like Aysen.

What this could mean for property development

Fewer environmental regulations could reduce the permitting burden for rural construction, agricultural projects, and tourism development. For buyers looking at large parcels of land in Patagonia, this potentially shortens the timeline and reduces costs for development approvals.

The risks to consider

Environmental deregulation is politically contentious and could face legal challenges or reversal. Patagonia’s appeal to both Chilean and international buyers is closely tied to its pristine environment. Policies that threaten environmental quality could, paradoxically, undermine the very thing that makes the region attractive for investment. Buyers should also be aware that regional regulations, municipal ordinances, and protected area designations operate independently of the national regulations that were suspended.

For properties in the Aysen Region specifically, the border zone restrictions under DL 1939 remain unchanged and are not affected by the new administration’s deregulation efforts.

Government spending cuts and economic outlook

The administration plans to cut approximately $3 billion in government spending during 2026. GDP growth is projected at 2.2% for the year, a moderate figure that reflects both global headwinds and domestic transition.

Impact on property markets

Government spending cuts can have mixed effects on regional property markets. Reduced public investment in infrastructure (roads, utilities, connectivity) could slow development in remote areas. On the other hand, a more stable fiscal position and lower taxes could attract private investment that compensates.

In the Aysen Region, the special tax benefits that run until 2035 remain in effect. These incentives, which include income tax credits and other fiscal advantages for businesses operating in the region, were established by law and are not subject to annual budget decisions. For investors considering Patagonia as a destination, these regional incentives add a layer of fiscal benefit independent of national policy.

The congressional reality

One critical caveat: Kast does not hold a congressional majority. His coalition controls enough seats to govern but not enough to pass major reforms unilaterally. Tax cuts, deregulation bills, and spending changes all require legislative approval, and many will need negotiation with centrist or opposition legislators.

This means investors should expect the direction of travel (pro-business, lower taxes, less regulation) without assuming every proposed reform will pass in its original form. Chilean politics has a history of moderation through institutional checks, and that pattern is likely to continue.

Pro-business cabinet

The cabinet includes ministers drawn from corporate boards and business lobbies, signaling that the administration’s pro-business orientation is not just rhetorical. For foreign investors, having a government that actively courts investment and understands business concerns can simplify regulatory interactions, even when specific legislation is still pending.

What this means for different types of buyers

Foreign investors buying residential property

The fundamentals are unchanged and favorable. Chile’s legal framework for foreign property ownership is one of the most open in Latin America. The new administration is unlikely to restrict this and may further simplify the process. If capital gains tax reductions pass, the exit economics improve.

Buyers considering rural land in Patagonia

The deregulation push and pro-development stance could create a more favorable environment for land purchases and rural projects. However, patience is warranted. Many proposed changes require congressional approval, and Patagonia’s specific regulatory environment (including border zone rules and protected areas) operates on multiple levels.

Chilean investors and developers

The corporate tax cut and restored tax integration are the most directly beneficial policies. If you operate through a sociedad, the effective tax rate on property income drops meaningfully. The spending cuts may reduce some public subsidies, so factor that into development projections.

Frequently asked questions

Can foreigners still buy property freely in Chile under the new government?

Yes. Foreigners have the same property rights as Chilean citizens, and this is protected by decades of legal precedent plus 55 bilateral investment treaties. The Kast administration is pro-foreign investment and has given no indication of restricting property purchases by foreigners. If anything, the regulatory environment is becoming more accommodating.

Will the tax cuts definitely happen?

The corporate tax reduction from 27% to 23% and the restoration of full tax integration are high priorities for the administration, but they require congressional approval. Kast’s coalition does not have a legislative majority, so some negotiation and potential modification is expected. Most analysts anticipate some version of the tax reform will pass, though the final numbers may differ from the initial proposal.

How does the political change affect property prices?

Political transitions in Chile have historically had limited direct impact on property prices, particularly outside Santiago. In regions like Aysen, property values are driven more by infrastructure development, tourism growth, and land scarcity than by national politics. The pro-business orientation may increase investor confidence over time, but do not expect sudden price movements tied to political events.

Should I wait to buy or act now?

There is no strong reason to time a purchase around the political cycle. Chile’s property market moves on fundamentals, not election results. If a property meets your criteria at a fair price, the political environment is neutral to slightly favorable for buyers. The potential tax benefits, if enacted, would reward those who are already invested rather than those who waited.

The bottom line

Chile’s new president represents a clear shift toward pro-business, pro-investment policy. For property investors, the direction is positive: lower taxes, less regulation, and an administration that actively welcomes foreign capital. The constraints are real (no congressional majority, political opposition, legal challenges to deregulation), but the institutional framework that makes Chile attractive for property investment remains intact and is likely to strengthen.

The smartest approach is to focus on fundamentals (location, price, legal clarity, development potential) while treating the political shift as a tailwind rather than the primary reason to invest. Chile was a strong destination for property buyers before this election, and it remains one now.