Bali VS Chile: pros and cons

Before investing in real estate, it is necessary to assess not only the potential profit, but also the associated risks and legal aspects of ownership.

Let's consider two popular destinations: Bali and Chile.

• Ease of Transaction

In both countries, it's possible to complete the purchase and sale transaction remotely, which simplifies the process for foreign investors.

• Legal Aspects of Ownership

In Chile, foreign investors have the right to acquire real estate under the same conditions as local residents, with full ownership rights. In Bali, foreigners can typically lease land for a long term (usually 30 years) with the option to extend, as direct land ownership by foreigners is restricted.

However, in recent years, joint ventures and long-term lease arrangements have become increasingly common in Bali, allowing investors to effectively utilize real estate.

• Tax Implications

In Chile, up to two apartments are exempt from property tax, which is a significant benefit for investors acquiring a small number of properties. Furthermore, rental income is not taxed regardless of residency status, making rental investments particularly attractive.

In Bali, a 10% tax is applied to rental income, which is a standard rate for most countries in the region.

• Investment Protection

In Chile, investors are additionally protected by mandatory insurance against risks associated with unfinished construction projects.

In Bali, there is no such mandatory mechanism, but the growing real estate market and the active participation of international entrepreneurs increase the reliability of projects.