How to invest in Chilean real estate and obtain a temporary residence permit?
Investing in Chilean real estate is becoming increasingly attractive: the country is demonstrating stable economic growth, a transparent tax system, and openness to foreign investors.
In this article, we will explain why Chile should be considered as an investment destination, what opportunities it offers, and how buying a home can be a step toward obtaining a residence permit.
Why Chile is a promising destination for investors
Compared to well-known destinations such as Turkey and the UAE, Chile remains relatively unknown to the general public. However, it is here that housing prices have risen by 260% in nominal terms over the past 15 years. Adjusted for inflation, the increase was more than 100%.
This trend is largely explained by a combination of stable demand, limited supply, and well-thought-out government policies in the areas of construction and taxation.
Major cities, including the capital Santiago, continue to develop, and popular coastal areas such as Viña del Mar and Concepción are being built up more and more actively. However, due to the country's geography — a narrow strip of land between the ocean and the Andes — housing supply remains limited. This pushes prices up and makes real estate liquid.
Advantages for investors and tax conditions
Chile offers a number of tax breaks for residents who own properties up to 140 square meters in size. In such cases, it is possible to avoid rental income tax if no more than two properties are rented out.
There is also no capital gains tax on the sale if the property has been owned for more than a year. Maintenance costs are minimal: for example, the tax on an oceanfront apartment costing $150-200 thousand will be only $200 per year.
At the same time, the apartments themselves are usually offered with a finished interior, a ready-made kitchen and bathroom, and the complexes include swimming pools, gyms, recreation areas, coworking spaces, and landscaped courtyards.
Mortgages and government support in Chile are mainly available to citizens of the country. Foreigners more often use direct investment or purchase at the construction stage.
How buying real estate is related to obtaining a residence permit
One of the most popular options for obtaining a temporary residence permit in Chile is to apply for a visa under the “rentier” category. To do this, you need to confirm a stable income from renting real estate in the amount of $1,000 per person per month (or $2,000 for a family of three). Moreover, you can rent out housing both in Chile and in another country — the only important thing is to confirm your sources of income.
Buying property in Chile itself isn't a must, but it can make the process easier, especially if the rental income comes from that country. After two years of temporary residency, you can apply for permanent residency, and after five years, you can apply for citizenship. You don't have to give up your current passport — Chile allows dual citizenship.
Where to buy and how much it costs
Santiago and coastal cities remain the most popular locations among foreign buyers. In prestigious areas of the capital, a square meter costs $4–5 thousand, and on the coast — about $3–4 thousand. For $150–200 thousand, you can buy an apartment by the ocean with good infrastructure.
It is important to note that, unlike in some other countries, buying a home in Chile means owning not only the property itself, but also a share of the land on which it stands.
The largest developers — Vimac, Kant, Almagro, Deisa, and others — work with both finished properties and projects under construction. In many cases, it is sufficient to pay 15% of the total amount to reserve a property, with the remainder payable upon completion of construction. All payments are insured. This approach minimizes risk and provides flexibility for investors.
Yield: rental and resale
With a smart strategy, investing in real estate in Chile can bring up to 20% per year. Of that, 4–5% is income from long-term rentals, 10% is from short-term rentals through services like Airbnb, and another 10% is from the property's value going up.
It is especially profitable to invest during the construction phase. For example, by investing $20–30 thousand at the start, you can resell the contract a year later with a profit of $10–30 thousand if demand for the property has increased. Such contract transfers are completely legal and common practice.
During the tourist season, which lasts from November to March, prices for renting apartments by the ocean increase by 2–2.5 times. At the same time, the investor can either rent out the property independently or transfer it to an agency or management company, which takes a commission of up to 40% of the income.
How the transaction works
You can buy a property in person or remotely. Money is transferred in pesos, but many developers accept payments in dollars via SWIFT, and some even accept cryptocurrency. The first step is to obtain a temporary tax number, without which the transaction cannot be completed. An agency usually helps with this.
After selecting a property, a contract is signed, the money is deposited, and the transaction is formalized by a notary through a document called an “escritura.” The developer then hands over the keys, and a transfer of ownership document is signed. Registration of ownership takes about a month.
If the property is resold before construction is completed, an agreement on the transfer of rights is concluded — in practice, this is a simple and transparent process involving the developer.