Guide for Foreign Buyers

Buying property in Chile as a foreigner

Chile is one of the most open countries in Latin America for foreign real estate investment. Under Chilean law, foreigners enjoy virtually the same property rights as Chilean citizens. There is no special foreign-buyer tax, no residency requirement, and no limit on the number of properties you may own. The legal framework for property ownership is grounded in Chile’s Constitution and the Civil Code (Codigo Civil), both of which protect private property rights regardless of the owner’s nationality.

The only significant exception applies to properties located within designated border zones (zonas fronterizas), where an additional authorization from the Ministry of National Defense (Ministerio de Defensa Nacional) is required. This is not a prohibition: it is an administrative procedure, and the vast majority of applications are approved. We cover this process in detail below.

Chile’s stable legal system, strong rule of law, and well-established property registry (Conservador de Bienes Raices) make it one of the safest countries in the region for real estate transactions. The Aysen Region in particular has seen growing interest from international buyers drawn by its pristine landscapes, low population density, and relative affordability compared to other Patagonian destinations.

Basic requirements

Before purchasing property in Chile, a foreign buyer needs to complete three foundational steps: obtaining a tax ID, opening a bank account (recommended), and optionally appointing a legal representative.

1. RUT (Rol Unico Tributario): your Chilean tax ID

The RUT is Chile’s universal tax identification number, issued by the Servicio de Impuestos Internos (SII, the Chilean IRS equivalent). You cannot sign a property deed, pay taxes, or conduct most financial transactions in Chile without one.

How to obtain your RUT:

In person at an SII office: Visit any SII office in Chile with your valid passport. The nearest offices for the Aysen Region are in Coyhaique and Aysen. You will fill out Form F-4415 (Inscription in the RUT and/or Start of Activities).
Online via the SII website: Foreign nationals can apply online at sii.cl. You will need a scanned copy of your passport and, in some cases, a Chilean contact address.
Through a legal representative: If you are not in Chile, your attorney can obtain the RUT on your behalf using a notarized and apostilled power of attorney (poder notarial).

Documents required:

Valid passport (original or legalized copy)
Proof of address (Chilean or foreign, depending on the method)
Completed Form F-4415

The RUT is issued at no cost and is valid indefinitely. Processing time is typically immediate for in-person applications and 5 to 10 business days for online requests.

Source: SII, RUT Application

2. Chilean bank account

While not strictly mandatory (you can transfer funds directly to a notary’s escrow account), having a Chilean bank account simplifies many aspects of the purchase and ongoing property ownership: paying property taxes, receiving rental income, covering utility bills, and managing maintenance expenses.

Options for foreigners:

CuentaRUT at BancoEstado: Chile’s state bank offers a basic account (CuentaRUT) to foreigners with a valid RUT and Chilean visa or tourist card. This is the simplest option, with no monthly fees and basic debit card functionality. See BancoEstado, CuentaRUT for Foreigners.
Full checking account: Private banks such as Banco de Chile, Santander, and BCI offer checking accounts to foreign nationals, though they typically require proof of income, a Chilean address, and sometimes a minimum balance. Requirements vary by bank and change frequently, so contact the bank directly for current terms.
Foreign currency account: Some Chilean banks offer accounts in USD, which can be convenient for managing exchange rate exposure.

Practical note: Opening a bank account is considerably easier if you are physically present in Chile. Remote account opening is possible at some institutions but involves additional documentation and longer processing times.

Source: BancoEstado, CuentaRUT for Foreigners

3. Legal representative (power of attorney)

If you cannot be present in Chile for every step of the purchase process, you can appoint a legal representative through a notarized power of attorney (poder notarial or mandato). This allows your attorney or another trusted person to act on your behalf for specific actions: signing the preliminary contract, attending the deed signing, registering the property, and handling tax filings.

Types of power of attorney:

General power of attorney (poder general): Broad authority to act on your behalf in all matters. Less common for property transactions due to its wide scope.
Special power of attorney (poder especial): Limited to specific acts, such as purchasing a particular property. This is the recommended option for most buyers.

Legalization requirements:

If the power of attorney is granted outside Chile, it must be:

Notarized in your country of origin
Apostilled under the Hague Convention (if your country is a signatory), or authenticated through the consular chain
Translated into Spanish by an official translator if issued in another language

Your Chilean attorney can guide you through this process to ensure the document meets all local requirements.

Border zones: DFL 1,939, Article 7

This is the single most important legal distinction for foreign buyers in Chilean Patagonia. Understanding it will save you time, money, and potential frustration.

What is the border zone rule?

Under Decree with Force of Law 1,939 of 1977, Article 7 (Decreto con Fuerza de Ley 1,939, Articulo 7), foreign nationals and foreign-owned companies are prohibited from acquiring real property within a strip of territory extending 10 kilometers from the international land border and 5 kilometers from the coastline, unless they first obtain authorization from the President of the Republic, acting through the Ministry of National Defense.

This rule was established for national security purposes and applies uniformly across Chile, not just in Patagonia. However, it has particular relevance in the Aysen Region because of the region’s extensive border with Argentina and its long, complex coastline.

Key points:

The restriction applies to both direct purchases and indirect acquisitions (for example, buying shares in a company that owns border-zone property)
It covers land purchases, mining concessions, and water rights within the designated zone
Chilean citizens purchasing property in border zones face no such restriction
Foreign nationals with permanent residency (residencia definitiva) in Chile are still subject to this requirement
The authorization is property-specific: you must apply separately for each transaction

Source: BCN, DFL 1,939

Why does this rule exist?

The border zone restriction dates to a period of heightened geopolitical tension in South America. While relations between Chile and its neighbors are now stable and cooperative, the legal framework remains in effect. In practice, the authorization process functions as a review mechanism rather than a barrier to foreign ownership. Approval rates are high, and the process is well-established with clear procedures.

Aysen Region communes and border zone status

The Aysen Region (Region de Aysen del General Carlos Ibanez del Campo) comprises 10 communes (comunas). Each commune’s exposure to border zone restrictions depends on its geography: proximity to the Argentine border and coastal boundaries.

The following table summarizes the border zone status of each commune. “Full” means the entire commune is within the restricted zone. “Partial” means some areas are affected and others are not. “None” means the commune has no border zone restrictions.

Commune	Border Zone Status	Notes
Coyhaique	Partial	Urban center is generally unaffected. Rural areas east toward the Argentine border require authorization.
Aysen	None	Coastal commune oriented toward the Pacific. No border zone restrictions.
Chile Chico	Full	Borders Argentina directly along Lago General Carrera. All property purchases by foreigners require authorization.
Cochrane	Partial	Eastern rural areas near the border are affected. The town center is generally outside the restricted zone.
Lago Verde	Full	Located along the Argentine border. Authorization required for all foreign purchases.
Cisnes	None	Coastal commune facing the Pacific. No border zone restrictions.
Guaitecas	None	Island commune in the Pacific. No border zone restrictions.
Rio Ibanez	Partial	Areas near the Argentine border are affected, particularly east of the Carretera Austral.
Tortel	Partial	Some eastern areas may be within the border zone. The village of Caleta Tortel itself is coastal.
O’Higgins	Full	Remote commune bordering Argentina. Authorization required for all foreign purchases.

Important: Even within communes marked “partial,” the exact boundary of the restricted zone depends on precise geographic measurements. Your attorney should verify the border zone status of any specific property before you commit to a purchase. The Ministry of National Assets (Ministerio de Bienes Nacionales) and the Instituto Geografico Militar (IGM) can provide official boundary determinations.

Source: Ministry of Defense

Ministry of Defense authorization process

If the property you wish to purchase falls within a designated border zone, you will need to obtain authorization before the sale can be registered. Here is what to expect.

How to apply

Prepare the application: Your Chilean attorney will draft a formal request (solicitud) addressed to the Ministry of National Defense. The application is submitted through the regional government (Intendencia Regional or Delegacion Presidencial Regional) in Coyhaique.
Required documents:
- Completed application form
- Copy of your passport and RUT
- Certificate of current ownership (certificado de dominio vigente) for the property
- Property survey or plat map (plano del predio) showing its location relative to the border
- Title deed of the property (copia de la escritura)
- Proof of the purchase price and source of funds
- Statement of purpose (intended use of the property)
- If applicable, corporate documents for any foreign-owned entity
Review process: The application is reviewed by the Ministry of National Defense, which may consult with the Armed Forces (Fuerzas Armadas) and the Direccion de Fronteras y Limites del Estado (DIFROL) regarding the property’s strategic significance.
Decision: The authorization is granted by presidential decree (decreto supremo), which is published in the Official Gazette (Diario Oficial).

Timeline and costs

Processing time: 3 to 6 months is typical, though it can extend to 8 months or more in complex cases
Government fees: The application itself has minimal filing fees. The main cost is your attorney’s professional fees for preparing and following up on the application
Attorney fees: Budget approximately CLP 500,000 to 1,500,000 (roughly USD 500 to 1,500) for legal representation through the authorization process, though this varies by complexity and attorney

Approval rates and practical considerations

The vast majority of authorization requests are approved. Denials are rare and typically involve properties with direct strategic or military significance. Standard residential and agricultural properties are routinely approved.

While waiting for authorization, you can sign a preliminary contract (promesa de compraventa) with a clause making the sale conditional on obtaining the Ministry of Defense authorization. This protects both parties: the buyer secures the property, and the seller has assurance of the buyer’s commitment.

Detailed tax obligations

Foreign property owners in Chile are subject to the same tax rules as Chilean nationals, with some additional considerations for non-residents.

Property tax (contribuciones)

All real estate in Chile is subject to a semi-annual property tax known as contribuciones, based on the fiscal appraisal (avaluo fiscal) determined by the SII. This appraisal is typically well below market value.

Key details:

Residential properties are taxed at an effective rate of approximately 1.0% to 1.2% of the fiscal appraisal per year
Properties with a fiscal appraisal below a certain threshold (approximately 150 UF for agricultural properties, approximately 225 UF for non-agricultural properties) are exempt
Payment is due in April, June, September, and November each year
You can pay online through the SII website, at banks, or through automatic bank debits

Many properties in rural Aysen have low fiscal appraisals, resulting in modest tax bills, often just a few tens of thousands of Chilean pesos per year.

Source: SII, Property Tax

Rental income tax for non-residents

If you rent out your property and are not a Chilean tax resident, your rental income is subject to a withholding tax. The tenant or property manager is responsible for withholding and remitting this tax to the SII.

Key details:

Non-residents are subject to a 35% income tax on Chilean-source income (Article 60 of the Income Tax Law)
However, deductible expenses (property tax, maintenance, depreciation, management fees) can significantly reduce the taxable base
If you become a Chilean tax resident (domiciled or residing in Chile for more than 183 days in a 12-month period), you are taxed on a progressive scale from 0% to 40%

Capital gains tax

When selling a property in Chile, the profit (difference between the sale price and the acquisition cost, adjusted for inflation) is subject to income tax.

Key exemptions and rules:

Primary residence exemption: If the property is your primary residence and the gain does not exceed 8,000 UF (approximately USD 280,000 as of early 2026), the capital gain is exempt from tax. This exemption applies once in a lifetime and requires that you have owned the property for at least one year.
Non-primary residence: Gains are taxed as regular income. For non-residents, the 35% rate applies.
Properties acquired before 2004: Special transitional rules may apply. Consult your tax advisor.

Source: SII

Double taxation treaties

Chile has an extensive network of double taxation agreements (convenios para evitar la doble tributacion) that may affect how your Chilean property income and gains are taxed in your home country. Notable treaties relevant to foreign buyers include:

Country	Treaty Status
United States	Not in force (signed but not ratified)
United Kingdom	In force
Canada	In force
Australia	In force
Spain	In force
France	In force
Germany	In force
Brazil	In force
Mexico	In force

Important for US buyers: As of early 2026, the Chile-US double taxation treaty has been signed but not ratified. US taxpayers can generally claim a foreign tax credit for Chilean taxes paid, but should consult a cross-border tax specialist.

For buyers from countries with active treaties, the general rule is that income from real estate (both rental income and capital gains) is taxable in the country where the property is located (Chile), with credit given in the home country to avoid double taxation.

International fund transfers

Transferring funds into Chile for a property purchase involves both Chilean and home-country regulations. Proper planning ensures a smooth transaction and avoids delays.

Banco Central de Chile regulations

Chile’s Central Bank (Banco Central de Chile) regulates foreign exchange transactions. For property purchases, the key requirements are:

Formal Exchange Market: Transfers above USD 10,000 must be processed through the Mercado Cambiario Formal (formal exchange market), which includes all Chilean banks and authorized exchange houses
Chapter XIV compliance: Foreign investments in Chilean real estate should be documented under Chapter XIV of the Central Bank’s Compendium of International Exchange Regulations. This documentation is important because it creates a record of the foreign origin of the funds, which is necessary if you later want to repatriate the proceeds from a sale.

Anti-money laundering requirements (Ley 19,913)

Chile’s anti-money laundering law (Ley 19,913) requires financial institutions to verify the origin of funds. When making a large transfer for a property purchase, you should be prepared to provide:

Proof of the source of funds (bank statements, investment account records, proof of sale of another property, etc.)
Explanation of the purpose of the transfer (property purchase, with details)
Supporting documentation such as the preliminary contract or purchase agreement

Both Chilean banks and your home-country bank may request this documentation. Having it ready in advance can prevent delays of days or even weeks.

Practical steps for transferring funds

Open a Chilean bank account before initiating the transfer, if possible
Coordinate with your notary: The notary handling the deed can provide you with escrow account details for the deposit
Use a bank wire transfer (SWIFT): This is the standard method. Ensure you include the correct beneficiary bank SWIFT/BIC code and account number
Expect exchange rate costs: The spread between buying and selling rates can be significant. For large amounts, negotiate the rate with your bank or use a foreign exchange broker
Allow 3 to 5 business days for the international transfer to settle
Keep all receipts and confirmations: You will need these for your Chapter XIV filing and for your home-country tax records

Expanded practical tips

1. Hire a local attorney with Aysen experience

Real estate law in the Aysen Region presents unique challenges: irregular rural titles, water rights complexities, border zone requirements, and indigenous land considerations. A Santiago-based attorney may be technically competent but unfamiliar with local realities. Seek an attorney based in Coyhaique or one who regularly handles transactions in the region.

2. Conduct a comprehensive title study (estudio de titulos)

Title irregularities are more common in rural Patagonia than in urban Chile. A thorough title study should cover at least the last 10 years of ownership transfers and check for overlapping claims, water rights, easements (servidumbres), mining concessions, and indigenous land claims. Your attorney should review records at the local Conservador de Bienes Raices and the SII.

3. Verify border zone status before signing anything

Before signing even a preliminary contract, confirm whether the property falls within a border zone. This can be verified through the regional office of the Ministry of National Assets or by consulting IGM maps. If authorization is required, factor the 3 to 6 month timeline into your purchase planning.

4. Visit the property in person, ideally in winter

Patagonia’s winters are cold, wet, and windy. A property that looks idyllic in January (summer) may reveal issues in July: poor road access, flooding, inadequate heating infrastructure, or lack of sunlight. If you are buying a rural property, visit during the most challenging season to understand what you are committing to.

5. Understand water rights (derechos de aprovechamiento de aguas)

In Chile, water rights are separate from land ownership. If you need water for agricultural use, livestock, or even a reliable domestic supply on a rural property, verify that the property includes registered water rights at the Direccion General de Aguas (DGA). Acquiring water rights separately can be expensive and time-consuming.

6. Budget for the full cost of ownership

Beyond the purchase price, factor in: notary and registry fees (approximately 1% to 2% of the purchase price), attorney fees, property tax, annual maintenance, insurance, and, if applicable, the Ministry of Defense authorization. For remote properties, access and infrastructure costs (road maintenance, generators, satellite internet) can be significant.

7. Consider the implications of non-residency

If you will not be living in Chile, arrange for a trusted local contact or property management service to handle day-to-day matters: paying utility bills, responding to municipal inquiries, maintaining the property, and managing tenants if applicable. In rural Aysen, finding reliable property management can be challenging, so establish this arrangement before closing.

8. Plan your exit strategy

Before purchasing, consider how you would sell the property if your circumstances change. Rural Patagonian properties can have longer selling times than urban properties. Ensure your Chapter XIV documentation is in order so you can repatriate funds without complications. Understand the capital gains tax implications in both Chile and your home country.

Sources

All information in this guide is based on current Chilean law and regulations as of February 2026. Laws and procedures can change. Always verify current requirements with a qualified attorney before making any purchase decisions.