Buying Property in Chile

Chile is a beautiful country bordered by the Andes Mountains to the east and the Pacific Ocean to the west. It has the world’s driest desert in the north and a 2,700 mile coastline that boasts some of the world’s loveliest beaches. The country is becoming a big draw for people who want to live in an economically stable country.

Foreigners who are not residents but want to buy property have to apply for a RUT (Rol Unico Tributario) at the National Tax Office. This is a number given to you for tax purposes. It allows you to buy real estate or conduct any other transaction that involves public records.

It is a good idea to work with both a real estate agent and an attorney when you buy property in Chile. They can help you with the formalized contract and the Title Report for the property, two things you will need in order to purchase it. Chilean law is very exacting as to the structure of formalized contracts so an attorney is essential to the process of buying property.

Property prices are typically 5-10% higher than the seller actually wants in order to leave room for negotiation. It is traditional for both buyer and seller to share the majority of expenses involved in your purchase; all in all, you’ll pay about $7,000 in fees and expenses when buying a $100,000 property.

Once you find property you’ll sign a buy-sell agreement that is legally binding so be absolutely sure that it’s the property you really want.  After that, a notary has to verify that all taxes have been paid and will notify the Chilean Tax Bureau.  If all is well a tax certificate will be issued so that you can buy the property.

Chile does have a VAT (value added tax) that you will be charged when you purchase property.  At this time it is 19% and your real estate agent will charge about 2% as their commission.