Private property rights have always been strongly protected in Chile, both for foreigners and Chilean people. Expropriation is unusual as property rights and contracts are highly respected, even if the government is constitutionally permitted to take property—including that of foreign investors—for the sake of the people or the country. It is improbable that your property will be taken by the state or any other party. Tourists can acquire real estate in Chile. However, to pay the relevant taxes on your purchase, you will need to visit the Chilean Tax Service (SII) to get an RUN card or tax ID. This works solely for the purchase of real estate or vehicles. To get an official RUT that entitles you to several perks like opening a bank account, you must apply for residence.
Finding a property in Chile
It can take the greatest effort to find a nice house in Chile. This nation lacks an MLS system. You may see every property up for sale in a certain area by using a multiple listing service. In Chile, real estate agents are not subject to regulations, so if you want to work with one, proceed with care. Portal Inmobiliaro and other websites are good places to look for houses in Santiago. If you would rather purchase real estate in a certain area, you may look via Yapo.cl, where the majority of the homes are offered by owners. If you choose this course of action, you must, of course, be proficient in Spanish to bargain and be aware of typical values.
Putting up a bid
You should research to find out what the prevailing rates are for comparable homes since it might be difficult to make an offer and come to an agreement on a price. This might be challenging since there is no open judicial system in Chile to look up real estate deals. The majority of the time, everything is done by word of mouth, so if your Spanish isn’t up to par, you may want to think about hiring a translator to assist. To give more consistent pricing, real estate listings are usually expressed in Unidad de Fomento (UF), a kind of money linked to the Chilean peso but adjusted for inflation.
Locating legal representation and signing the agreement
Finding a capable and trustworthy attorney would be the next step. This is an additional scenario when referrals and personal connections might be crucial. To protect yourself against sellers who could back out or change their minds about the selling price, you might want your attorney to draft a formal promissory agreement. Your lawyer will want to look up titles after the arrangements are finalized. To begin looking into the history of the property, your lawyer will want the tax number, the owner’s last name, or a copy of the current title. The act of searching the title ensures that the property is free from liens or restrictions, has no outstanding taxes, and is clear to be sold. The total cost of title searches may range from a percentage of the purchase price (up to 1%) to flat fees of between $500 and $1,000.
Transferring funds
Once everything is in order and the property is clean, you’ll need to set up the money transfer. You won’t normally be able to create a personal bank account unless you already have permanent status in Chile. A non-resident finds it very hard to get a mortgage; most international buyers pay cash. The Chilean Central Bank must authorize the money before it can be received and deposited into an escrow account. Lawyers may sometimes help with this process, but they will often need to provide evidence proving the source of the money. Larger brokerages often provide higher conversion rates, however, banks typically charge 1% for transfers and currency exchange.
Signing the deed
After settling the money transfer, you may schedule a time with the seller to sign the deed in front of the notary. It is common to place the purchase money in escrow or “custody” with the notary until the new title is registered. The notary charge (typically between $200 and $400) must be paid when both parties sign, after which you may pick up the stamped copies of the deed the next day.
Real estate conservator
The final step is to have the stamped document from the notary registered at the Conservador de Bienes Raíces, also known as the inscription office. Typically, the cost to inscribe or document the property comes out to a little around 0.5% of the total cost. The new title will be registered and you will be the property’s legal owner after a period of five to twenty-five days.
You may also find these articles helpful
Options of becoming a citizen of Chile