Do I have to live in Chile to be able to invest?

No, you do not need to be in Chile, and you do not need to have a visa or a residency in Chile. Any individual or corporate entity can acquire and own real estate in Chile regardless of residence status, except near country boundaries. Chile has strong legal protection of property rights and offers a secure environment for international buyers. You can enter Chile with a tourist visa to view properties. From a tax point of view, it is advisable to request a RUT number (the Chilean tax number) from the tax office to fulfill tax obligations related to the property. This simple procedure can be carried out in any tax office, accompanied by a guarantor. Foreign direct investment has been strong, with $11.8 billion flowing into Chile by September 2024, reflecting a 5% increase from the historical average.

Where should I buy? What is your recommendation for a first investment in Chile?

It all depends on your profile, your experience as an investor and the amount of capital you want to allocate to this first investment. If you are already used to investing in a certain type of real estate assets, it is better to carry out a comparative study to check if Chile presents opportunities in the type of asset you know. If not, or if you are a private investor, we recommend investing in small 1- to 2-bedroom apartments in well-located areas. The upside potential is lower, but the risk on resale is limited, should you have to liquidate your portfolio. If you have a longer investment horizon, agricultural land and water rights can be good options.

What is the most profitable type of investment in Santiago?

When considering rental investments, the annual gross profitability levels are the following, considering a long-term (one year or more) unfurnished lease (updated for 2024-2025):

Residential: 4.1 to 5.7% in Santiago (city average 4.75%), with national average at 4.73%
Other major cities: Concepción (5.47%), Antofagasta (6.16%), Viña Del Mar (3.92%)
Offices: 6 to 8%
Commercial: 10 to 12%

However, the level of profitability strongly depends on the purchase price of the property, and how you use it. A small furnished apartment in a central area can generate a gross profitability of 15 to 20% if it is rented short-term to tourists and correctly managed. In addition, there are other types of investments that can provide higher levels of profitability. It all depends on how much capital you have and how much risk you are willing to take. Feel free to contact us for a detailed list of options based on your situation.

Can I get a loan from a Chilean bank to finance my investment in Chile?

Obtaining a bank loan is difficult in Chile if you are not a permanent resident. See our article about financing for more information

How to optimize my investment from a tax point of view?

It is difficult to answer this question, as the tax optimization of an investment must be part of a global strategy to optimize your financial situation and assets. Depending on the case, it may be preferable to hold the property directly, or via a company. However, the following two points should be noted:

The sale of a property is subject to VAT at the rate of 19%, if the sale is made within a year of purchase, or if the tax authority considers that you are a usual seller (there is no clear definition of « usual seller », but if you make several buy or sell transactions a year, you are at risk being considered so)
Real estate capital gain is taxed since the beginning of 2017. However, you have a franchise if you own the property in your own name.

See our article about taxes on real estate assets for all details.

What is the current market outlook for 2025?

Chile's real estate market is showing positive signs for 2025. The economy is projected to grow by 2.5% in 2025, with an expected 10.6% increase over the next five years. The real estate market is projected to expand by 4.82% from 2024 to 2029, reaching a market volume of USD2.48 trillion by 2029.

Current Market Conditions (2024-2025):

Average rental yields in Santiago: 4.75% (range 4.1-5.7%)
Property taxes remain competitive: urban properties at 1.4%, residential at 0.98%
Strong foreign investor interest from the US, Europe, and China
Two-bedroom apartments in Greater Santiago rent for approximately USD380-500/month

Challenges to Consider:

Dwelling permits in Greater Santiago dropped 42.2% in 2024 due to higher construction costs
Elevated mortgage rates affecting local buyer demand
Housing loan growth at historical lows

Despite short-term challenges, Chile remains attractive for foreign investors due to its economic stability, transparent legal system, and strong property rights protection.

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Real estate investing in Chile: Frequently Asked Questions