Over recent decades, the housing market in Chile has seen steady growth, making it one of the most lucrative real estate markets in Latin America. Thus, it has become popular among investors to buy property in Santiago, including among those whose primary intention is to incorporate a company in Chile, or otherwise do business unrelated to real estate. In certain cases, it may be a profitable alternative to renting.
Chile is Latin America’s fourth-largest economy, recording a gross domestic product (GDP) of USD$335 billion in 2023. The Andean nation also ranked first among Latin American nations in the United Nations’ Human Development Index (HDI) in 2022, and it has one of the highest rates of university graduates in the region. This creates a good market to buy property in Santiago.
In 2023, Chile received USD$21.7 billion in foreign direct investment, reaffirming its position as one of the most popular destinations for foreign investment in Latin America. Chile has multiple free-trade agreements (FTAs) in force with top economies in the Americas, Asia, and Europe. The South American country is also part of the Pacific Alliance, a regional economic bloc that also includes Colombia, Mexico, and Peru. Whether you are in the process of purchasing real estate in the Chilean capital or are still exploring your options, read on to learn how to buy property in Santiago.
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What you need to know before you buy property in Santiago
Investing in Santiago’s real estate market is a popular choice among foreign business executives performing commercial operations in the country for a long period of time, because property prices in Chile — and especially in its key urban areas — have increased considerably over recent decades, providing a good return on investment (ROI) for many investors.
Moreover, buying property in Santiago is straightforward, and foreign citizens do not necessarily need to live in the city or have a residence permit at the time of purchase. Meaning that even with just a tourist visa, you can buy property in Santiago.
However, keep in mind that foreigners who enter the country as tourists and wish to buy property must first obtain a Chilean Tax Identification Number (Registro Único Tributario – RUT) from the Internal Revenue Service (SII).
How to buy property in Chile in 5 steps
To buy a property in Santiago, you must follow five key steps:
Step 1: Contact a reliable agent
Engaging with an experienced real estate agent is a wise decision to buy property in Chile, especially if you are unfamiliar with the market. In this way, you will be able to count on that company’s auditing of the properties it is selling. Note that the average commission for a real estate agent is around 2 percent of the property’s value, plus the amount equal to the Value Added Tax (VAT).
Step 2: Choose your property
The real estate agent will provide you with a host of property options to look at, based on your needs and budget, and will be available to take you around to visit them, as well as to suggest alternative options.
Step 3: Sign purchase agreement
Once the property has been chosen, you and the seller — be it a person or a real estate agency — must sign a purchase agreement, known as a ‘promesa de compra venta’ in Spanish. This document describes the conditions under which a property is sold and bought, as well as the penalties that will be imposed in the event that one of the parties breaches its duty.
Step 4: Legalize the purchase agreement:
You must legalize the purchase agreement before a local notary public.
Step 5: Register the purchase agreement
Once the purchase agreement is signed and legalized, you must register it with the Chilean Real Estate Custodian. The cost of this process will depend on the value of the property.
Note that if you register the purchase agreement of a new property, the SII will issue a tax identification number for the collection of property taxes.
Get expert legal advice before you purchase real estate
While the real estate agent that you deal with will be invested in guaranteeing your compliance with all regulations and norms, it pays to have the peace of mind of having a local expert acting in your best interests. Because, regardless, you are going to want to consult with a lawyer in Chile before completing the purchase, so it makes sense to contract them beforehand and have them engaged in the entire process.
FAQs on how to buy property in Santiago
Yes, although they will need to obtain a Chilean Tax Identification Number (Registro Único Tributario – RUT) from the Internal Revenue Service (SII).
Yes, because property prices in Chile — and especially in its key urban areas such as Santiago — have increased considerably over recent decades, providing a good return on investment (ROI) for many investors.
It is not a legal necessity, although we strongly advise doing so. You are going to want to consult with a lawyer in Chile before completing the purchase, so it makes sense to contract them beforehand and have them engaged in the entire process.
No, but again, we strongly recommend doing so. Engaging with an experienced real estate agent is a wise decision to buy property in Chile, especially if you are unfamiliar with the market. In this way, you will be able to count on that company’s auditing of the properties it is selling. Note that the average commission for a real estate agent is around 2 percent of the property’s value, plus the amount equal to the Value Added Tax (VAT).
Biz Latin Hub can help you buy property in Santiago
At Biz Latin Hub, our multilingual team of corporate legal specialists has extensive experience helping foreign business executives to buy property in Santiago and is equipped to successfully represent you during the acquisition process, while providing ongoing advice to comply with local regulations. With our complete portfolio of high-quality accounting, commercial representation, and tax advisory services, we can be your single point of contact to ensure the success of your business venture in Chile, as well as any of the other 15 countries across Latin America and the Caribbean where we are present.
Contact us now for personalized assistance or a free quote.
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