How to buy a property in CHILE
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Any individual or corporate body may acquire and possess real estate in Chile whether or not they are residents. However, there are some restrictions regarding land near the country’s borders. Chile has solid legal protection for property rights, including secured investments in real property.
All sale agreements should be notarized before registration. Failure to register a property transfer makes the contract void. The whole process of registering a property can be completed in around 20 to 41 days.
A lawyer is usually contracted to conduct due diligence on the property’s legal history. He is also responsible for obtaining copies of the property titles, the Certificado de Vigencia and the Encumbrance certificate (Certificado de Hipotecas y GravÃ¡manes y de Interdicciones y Prohibiciones de Enajar). After which, he obtains evidence of complete payment of land tax from the Treasury (Servicios de TesorerÃas) from the Servicio de Impuestos Internos.
The sale of real estate is not subject to VAT, except for the first sale of homes built by a construction company, which is subject to VAT at 18%. You need to be aware of several fees when purchasing real estate.
As a buyer, you can expect to pay between 2% and 3% of the purchase price, payable when the agreement becomes unconditional.
Lawyer’s fees are around 1% of the property value.
Stamp duty is levied at around 0.20% to 0.30%, depending on the property’s location. Stamp duty is levied at 0.20% in Santiago, Valparaíso and Viña del Mar. Stamp duty is levied at 0.30% in other cities.
Notary fees are generally around 0.10% of the property value.
Buying real estate in Chile: Purchasing procedure
Buying real estate in Chile is relatively straightforward, even if you are not a citizen. Buying your home here can be hassle-free with proper planning and an excellent bilingual attorney (unless you are fluent in Spanish).
Here’s what you will need to purchase a home or land in Chile:
- The formalized contract (escritura pública otorgada ante Notario and Escritura Pública). These two are lumped together because the contract is usually part of the Escritura Pública.
- The title report for the property (Estudio de Títulos).
- A RUT (Rol Único Tributario) if you are a non-citizen non-resident, or a RUN (Rol Único Nacional) if you are a Chilean citizen or resident of Chile. The RUN is equivalent to a Social Security number, and the RUT is a number used to keep track of foreigners for tax purposes.
Buying restrictions in Chile
For the most part, the Chilean constitution guarantees foreigners the same rights as Chilean citizens when buying and selling real estate. There are exceptions, such as in the case of national security areas (i.e. close to national borders). It is best to ask a real estate attorney for more details.
Contact the Gateway to South America team to learn about the best investment opportunities in the region. The company is a benchmark for foreign investors wishing to invest in Argentina, Brazil, Chile, Paraguay, Peru and Uruguay, providing expert advice on property acquisition and investment tours.
Post available in: English