Real estate in Chile: an investment with real growth and solid protection

Chile is one of the most attractive countries for real estate investment in Latin America. Over the past 15 years, the real estate market here has demonstrated impressive growth, as confirmed by official data.

1. Leading Real Estate Price Growth Worldwide

• According to the Global Property Guide, Chile holds the 1st position globally for real growth in real estate prices over the last 15 years.
• Nominal price growth — 275%.
• Inflation-adjusted growth — 111%. This means that buying real estate in Chile is a profitable investment that preserves and increases capital.

2. Favorable Tax Conditions

• No capital gains tax when selling real estate by a resident if held for more than 1 year.
• No rental income tax on up to 2 apartments with an area of up to 140 sq.m. — for residents and non-residents.
• Registration tax for a property — only 0.2–0.3% of the cadastral value (about $150 for a price of $200,000).

3. Protection of Investments from Inflation with UF

All real estate in Chile is sold in UF — a conditional calculation unit, which is indexed with inflation. The UF rate has been growing for over 30 years and from 2013 to 2023 increased by 53%, or an average of 5% per year. This allows for reliable protection of investments from devaluation.

4. High Rental Income from Real Estate

The rental market is stable and attractive to investors:

• Long-term rentals bring about 5% per annum in foreign currency.
• Short-term rentals through services, for example, Airbnb, provide income exceeding 10% per annum.

5. Opportunity to Obtain a Residence Permit, Permanent Residence, and Citizenship

Owning real estate in Chile provides grounds for obtaining a temporary resident visa under the “rentier” program — for 2 years. This significantly facilitates the subsequent obtaining of permanent residence and citizenship.

6. Full Ownership for Foreigners

• There is no difference in rights between citizens and foreigners when buying real estate and land (proportionally to the area).
• There is no need to use complex rental schemes instead of ownership.
• Real estate can be purchased without obtaining residency.

7. Convenience of Remote Purchase and Payment

• Obtaining a tax identification number remotely through a representative.
• Selection, booking, and signing of the contract — remotely by power of attorney.
• Payment for real estate is possible by SWIFT bank transfer, cryptocurrency through an official exchanger, or in rubles under an agency agreement.

8. Investment Security in Under-Construction Real Estate

According to Law No. 19.932 of 2004, developers are required to insure buyers’ advances at the construction stage with accredited insurance companies. This money cannot be lost. In addition, criminal liability is established for fraud in the field of real estate construction. Well-known developers in Chile have been operating for 25+ years, and market leaders — for more than 70 years.