Buying property in Chile as a foreigner: a complete legal guide for non-residents

Buying property in Chile as a foreigner is perfectly possible and increasingly common. Chile offers legal stability, a solid property registration system, and the ability to repatriate capital abroad — making it an attractive destination for international real estate investment. However, the process has specific legal requirements that are essential to understand before taking any steps. This guide covers everything you need to know if you live outside Chile and want to purchase property here.

1. Can a foreigner buy property in Chile?

The general answer is yes. Chilean law does not restrict non-resident foreigners from acquiring real estate. Law 20.848 establishes that foreign investors are subject to the same legal framework as Chilean nationals, without arbitrary discrimination.

The key exception: if the property is located in a border or frontier zone, the foreign buyer requires express presidential authorization, processed through the Ministry of the Interior. Without this authorization, the transaction is null and void. Always verify the property's location before proceeding with any negotiation.

2. The Chilean RUT: a mandatory requirement

This is one of the most surprising requirements for foreign buyers: before signing the purchase deed, you must have a Chilean tax identification number (RUT). Notaries and Property Registrars (Conservadores de Bienes Raíces) are legally required to request it, and a passport number is not a valid substitute.

How to obtain it without traveling to Chile? There are two options:

• Through a representative or attorney-in-fact in Chile, who can apply for the RUT at the Chilean tax authority (SII) with the appropriate powers of attorney and duly apostilled or legalized documentation.

• Through an authorized banking institution, under SII Resolution N°42/2025, which allows accredited financial institutions to obtain the RUT on behalf of the foreign investor.

3. Signing from abroad: the power of attorney and its requirements

If the buyer cannot travel to Chile to sign the deed, they must grant a special power of attorney to a representative acting on their behalf. There are critical details to get right:

• The power of attorney must be executed as a public deed (escritura pública), as the purchase of real estate is a formal legal act that requires it.

• If granted outside Chile, the document must be apostilled or legalized and subsequently registered before a Chilean notary.

• In some cases, the Property Registrar may additionally require judicial certification of the foreign instrument's legality.

The representative's powers must be broad enough to cover: signing preliminary agreements and deeds, making payments, accepting delivery, and all other acts necessary to complete the transaction.

4. The purchase process in Chile

The basic legal structure is as follows:

1. Public deed (escritura pública) before a Chilean notary — without this step, the sale has no legal existence.

2. Registration at the Property Registrar (Conservador de Bienes Raíces) corresponding to the property's location — this is the act that legally transfers ownership.

Before reaching the deed stage, it is common to sign a preliminary purchase agreement (promesa de compraventa). This contract must clearly define the payment schedule, penalties for non-compliance, conditions for refunding payments, and all relevant deadlines.

5. Due diligence: check everything before you buy

Purchasing without a professional title search is one of the most costly mistakes a buyer can make, especially from abroad. A thorough review should cover at minimum:

• Who the current registered owner is according to the Property Registrar.

• Any mortgages, liens, usufructs, or easements.

• Existing prohibitions or restrictions on transfer.

• Outstanding property tax debts (contribuciones).

• For apartments: common area fees and any significant arrears.

• For houses: building permits and municipal completion certificates.

• For off-plan purchases: the developer's track record, guarantees, delivery milestones, and exit conditions.

  
  

6. Payment methods and banking compliance

Banks and local participants apply strict anti-money laundering and counter-terrorism financing policies. You will need to demonstrate the origin of your funds and provide documentation supporting your identity and financial situation.

It is advisable to define in advance how and when payments will be made (international wire transfer, Chilean bank account, certified bank draft, etc.) and coordinate this with the attorney handling the transaction.

7. Tax considerations

At the time of purchase:

• VAT (19%): applies only if the seller is a habitual real estate developer or construction company. Purchases from private individuals are not subject to VAT.

• Stamp Tax (Impuesto de Timbres y Estampillas): applies if the purchase is financed through a mortgage loan (general rate of 0.8% on the loan amount). Note that Chilean banks rarely grant mortgage financing to non-residents without demonstrable income in Chile.

During ownership:

• You will be required to pay property tax (contribuciones de bienes raíces), calculated based on the fiscal valuation and intended use of the property.

• If you rent out the property, that income is considered Chilean-source income and may trigger tax obligations in Chile.

At the time of sale:

• Capital gains up to 8,000 UF are not considered taxable income, provided certain conditions are met: the seller must be an individual, there must be no habitual trading activity, the transaction must be between unrelated parties, and at least one year must have passed between purchase and sale.

• Any gain above 8,000 UF is subject to first-category income tax and withholding tax for non-residents.

• If a double taxation treaty exists between Chile and your country of residence, it should be analyzed to determine how the tax burden is allocated between both jurisdictions.

  
  

8. Repatriation of capital

Law 20.848 guarantees foreign investors the right to remit abroad both the invested capital and net profits, once all Chilean tax obligations have been fulfilled.

Key takeaways

Before purchasing property in Chile from abroad, make sure you have covered these five critical points:

1. Obtain a Chilean RUT before reaching the deed stage.

2. Verify whether the property is in a border zone, which requires special authorization.

3. Structure the power of attorney correctly, with apostille and sufficient powers.

4. Check VAT applicability depending on the type of seller.

5. Plan for future taxation from the outset, especially if you intend to rent or sell.

If you need guidance through this process, our real estate law and foreign investment teams are available to support you at every stage.

Frequently asked questions about buying property in Chile as a foreigner

Can a non-resident foreigner buy property in Chile? Yes. Chilean law does not restrict non-resident foreigners from acquiring real estate. The only relevant exception applies to properties located in border zones, where express presidential authorization is required.

Do I need a Chilean RUT to buy property in Chile? Yes, it is a mandatory requirement. Notaries and Property Registrars are legally required to request it. A passport number is not a valid substitute. It is possible to obtain a RUT without traveling to Chile, either through a local representative or through an authorized banking institution.

Can I buy property in Chile without being physically present? Yes, through a special power of attorney granted to a representative in Chile. That power must be executed as a public deed, apostilled or legalized if granted abroad, and registered before a Chilean notary.

What taxes do I pay when buying property in Chile as a foreigner? It depends on the seller. If it is a real estate developer or habitual construction company, the purchase may be subject to VAT (19%). If it is a private individual, no VAT applies. Additionally, if you finance the purchase with a mortgage, the Stamp Tax applies (0.8% on the loan amount).

What happens if I rent out my property in Chile? Rental income is considered Chilean-source income and may generate tax obligations in Chile for non-resident owners. It is important to plan for this before making the purchase.

Can I sell the property later and take the money out of Chile? Yes. The law guarantees foreign investors the right to remit abroad their invested capital and profits, once Chilean tax obligations are fulfilled. Additionally, capital gains up to 8,000 UF are not considered taxable income, provided certain legal requirements are met.

At Varela Abogados, we support individuals, families, and companies throughout the entire property acquisition process in Chile — from title searches to deed signing and post-purchase management. If you have questions about your specific situation, contact us at varelaabogados.cl.

The information contained in this article is for general informational purposes only. It does not constitute legal advice and does not replace consultation with an attorney regarding your specific situation. For guidance tailored to your case, we invite you to contact our team directly.