CHILE.

 

Residence Permit / Citizenship through Real Estate Purchase

Purchasing real estate itself does not grant a residence permit, but Chile offers the possibility of Permanent Residence when opening a business, renting housing, or confirming passive income.

After 1 year of a temporary residence permit, one can apply for Permanent Residence.

After 5 years of permanent residence — for citizenship.

Real estate can be part of the document package for an investment residence permit.

Language

The official language is Spanish. English is encountered in the business environment, but knowledge of Spanish (or the assistance of a local representative) is necessary when concluding transactions.

Visa Regime

Chile's visa regime is based on nationality, with many citizens able to enter for up to 90 days visa-free for tourism by having a valid passport and a return ticket. Those who need a visa or wish to stay longer must apply in advance through a Chilean consulate or online, depending on the purpose of their visit, such as for work, study, or temporary residency. Visitors are also often required to show proof of sufficient funds, and longer stays require specific permits like a "Permanencia Transitoria". 

Standard of Living (2025)

The most stable economy in Latin America according to the World Bank and IMF.

Santiago ranks among the top 3 cities in the region in terms of quality of life.

Developed medicine, strong banking system, democratic government.

High level of safety compared to neighboring countries (lower crime rate, developed infrastructure).

Economy. Currency

Currency: Chilean Peso (CLP), sensitive to commodity markets. After weakening by ~15% in 2023, it stabilized in 2024-2025 (850-900 CLP/USD) against the backdrop of the Central Bank's tight policy.

Inflation: decreased from 12% (2022) to 4.2% (2024); forecast for 2025 — 3-3.5%. One of the most stable indicators in Latin America.

GDP: growth of 2.4% (2023), 2.9% (2024), expected 3.2% in 2025. The economy recovered after the decline in 2021-2022.

Structure: exports of copper, lithium, agriculture, fish, finance, IT, tourism. 60+ free trade agreements (USA, EU, China, etc.).

Tourism: 4.4 million foreign visitors in 2024, forecast for 2025 — 5+ million. The coast and Patagonia are popular.

Real Estate: price growth in 2023-2024 — 6-8% in Santiago, up to 10% in coastal areas. Drivers — urbanization, digital migration, growth of the middle class.

Rental: stable demand for long-term rentals, especially in Santiago and Viña del Mar. Furnished apartments are in demand.

FDI: 21.7 billion USD in 2023, 15.3 billion USD in 2024, 2.3 billion USD — in the first 2 months of 2025. Leading sectors — real estate, mining, technology. Foreigners are allowed to own properties and businesses without restrictions.

Risks: currency volatility, commodity dependence, political processes — so far without critical impact on the market, but require monitoring.

 

Purchase, Ownership, Rental, and Sale of Real Estate in Chile: Taxes and Fees

Property Rights

Foreigners can acquire residential and commercial real estate 100% in personal or corporate ownership. There are no restrictions on locations or types of properties.

Stamp Tax (mortgage document tax):

0.066% per month, maximum 0.8% per annum; indefinite contracts — 0.332%.

Registration Expenses:

• Notarial and legal services (~0.1–0.5%), agency fees — ~1–2%
• Total registration costs — approximately 2–3% of the value

Annual Property Tax (Contribuciones):

0.98% on the first portion of the value and 1.2–1.4% on the amount exceeding it; exemption for properties < ~50,000 USD.

Rental Income Tax:

• Progressive scale: 0–40%
• Deductions are possible: depreciation, maintenance, utilities
• Short-term rentals may be subject to VAT (19%)

Tax on Sale (Capital Gains Tax):

Chilean residents can once exempt up to 300,000 USD of profit from tax, provided ownership for more than 1 year

Non-residents do not benefit from this exemption: profit is subject to tax

in most cases — effectively 15–20%,

with perfect documentation — at a rate of 10%,

if the profit is included in the total annual income — up to 40%

Chile. Summary

Chile is one of the most stable, liberal, and structurally mature markets in South America. There is no hype or quick deals here, but there is transparency, legal protection, economic predictability, and accessibility for foreigners.

The real estate market operates according to Western standards: transactions are registered, taxes are predictable, and rights are protected. The investor acquires a calm, understandable, and manageable asset. This is a jurisdiction where capital can be stored legally, reliably, and with moderate returns — especially in conditions of turbulence in other markets.

ROI:

• 4–6% long-term rental (Santiago, coastal cities) 
• up to 7–8%short-term rental (in tourist areas, with professional management)

Risk:

Low-Medium.

• The macroeconomy and political system are stable.
• Risks lie in weak liquidity, currency fluctuations, and the language barrier.
• With proper preparation — they are manageable.

Taxes:

• Upon Purchase: 2–3% (notary, registration, fees)
• On Ownership: up to 1.4% per year (property tax, with a progressive rate)
• On Rental: up to 40% (on a progressive scale, with the possibility of deductions)
• Upon Sale: capital gains tax (from 10% to 40%, depending on residency status and profit)

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