Why Chile Real Estate?
Chile is one of Latin America’s most stable and affluent countries, with excellent infrastructure, shopping, public transportation and services. These conveniences make the cost of living in Chile higher than in most other Latin American countries, though less than in North America. The Chile real estate for sale as well as the property for rent are priced higher than most of Latin America; but, are still reasonably priced for the value. (To see Chile real estate listings please scroll down the page.)
Prices and rents for Santiago real estate for homes, land, condos, and apartments are 30-40% higher than the rest of Chile.
- The World Bank ranks Chile’s economy as upper-middle income, with sustained growth of over 5%.
- With the world’s driest desert in the north, and the south a remote area of lakes, forests and glaciers, most of Chile’s 17 million people live in the relatively small Central Valley.
- Housing in the major urban areas therefore continues to be in high demand, keeping rental income stable and sales prices steadily rising.
Chile Real Estate Market
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- Residential real estate prices are increasing by around 5% per year.
- Real house prices in Chile grew by 30% from 2004 to 2015. Yet have leveled of from 2016 to 2017.
Taxes, Doing Business, and Property Investments in Chile
- Buyers’ costs: approximately 3.4%
- Total real estate transactions costs: approximately 5.5%
- International investors can buy and hold real estate in Chile, with or without residency. Some restrictions apply near the international borders.
Chile taxes non-residents on all income earned in Chile under two categories:
1. First Category Tax (FCT) is the basic tax on income after expenses, and is credited against the AT, below. FCT rates are scheduled to increase as follows:
- 2015: 22.5%
- 2016: 24%
- 2017: 25%
2. Additional Tax (AT) is added on to FCT and property taxes (below) to bring the total withholding tax for non-residents to 35%.
Property taxes are credited toward the AT, contributing to the 35% total tax package. Rates are as follows:
- On urban properties, 1.2% of the value assessed by the municipality
- On rural properties, 1% of the municipally assessed value
- On owner-occupied residential properties, the tax rate is 1% on part of the municipally assessed value, not exceeding a certain limit, and 1.2% on the remaining part.
- Properties valued below a certain level are not subject to property tax.
- Capital gains tax is charged like other income, under FCT rates cited above.
- Capital gains tax applies only to sales of apartments owned for fewer than four years, and other real estate owned for less than one year.
- Capital gains are taxed as income at the FCT rates cited above.
- Chile’s 19% value-added tax (VAT) applies to real estate leases, but not property sales.
Landlord and Tenant Laws in Chile
- Landlord tenant laws are neutral between the two parties, and treat nationals and foreigners equally.
- Landlords and tenants are free to set rent amounts, but if it’s not in writing, the courts will consider the rent to be whatever the tenant says it is.
- Tenants cannot waive their rights, no matter what a lease contract might say.
[Source: Chilean Chamber of Construction]
Real Estate Markets of Interest in Chile Real Estate
Santiago, the capital and largest city with 6 million people, dominates Chile’s government, business and cultural life. Some of the more popular areas for Santiago Chile real estate are Providencia, Las Condes and Vitacura. There are also beautiful golf course communities as well as historic neighborhoods such as Belle Vista, Barrio Italia, and Centro.
Valparaiso, with nearly 1 million people, is a picturesque and historic port city about an hour from Santiago. Built on hills overlooking the Pacific, the town is known for its colorful houses and funiculars that carry people up the steep hillsides. The port is a major industry, offering international access for goods entering South America.
Viña del Mar, adjacent to Valparaiso, is a modern beach resort of nearly 300,000 that attracts vacationers to its high rises apartments, restaurants and clubs. There are a few areas around Viña that are popular for beach houses and apartments such as Reñaca and Concon.
Pucón and Villarrica Lake – In the heart of Chile’s “Lake Country”. In the summer you can boat on the many lakes and in the winter you can ski on volcanoes.
Chile Patagonia – This is some of the most spectacular real estate on the entire planet. Unspoiled land with gorgeous mountains, ancient forests, rivers, lakes and fjords.
Living in Chile
Almost 90% of Chileans live in towns or major cities, and about a third in the capital and economic hub, Santiago de Chile.
In Santiago, you can drink a coffee at Starbucks while checking your email, shop in upscale malls and drive a highway system that automatically charges tolls to your credit card. Or take Santiago Subway system known as the Metro. It is the safest and most modern subway system in Latin America. On a clear day, Santiago offers stunning views of the Andes Mountains.
The most popular beach escape on the coast near Santiago is Viña del Mar, a high-rise resort on the white sand beach just south of Valparaiso. Other smaller beach towns dot the nearby coast, some with luxury homes on the cliffs overlooking the sea.
The Andes provide another popular day trip from Santiago, especially during ski season. One ski resort is only 45 minutes from Santiago. Or you can travel south and ski in Pucon.
Chile Location and Geography
Chile is a long, narrow country in southern South America between the Pacific Ocean to the west and the Andes Mountains to the east. It borders Peru, Bolivia and Argentina. Easter Island and some smaller islands are included in Chilean territory.
Regions in Chile:
Central Valley – Agriculture is concentrated in the arable areas from Santiago to Patagonia in one large central valley where fruits, berries, nuts, and vegetables are produced for export and domestic markets. The farmland in Chile is world renown.
Wine Country – truly spectacular wine country in Chile. The vineyards are wine producing areas surround Santiago with Santa Cruz being the heart of red wine country and Casablanca being the heart of white wine country.
Northern Chile is home to the Atacama Desert, the driest in the world, and rich in minerals including copper.
Southern Chile stretches all the way to Antarctica, encompassing ancient forests, volcanoes, lakes, fjords and glaciers. Patagonia land is reasonably priced and in high demand.
Among the islands governed by Chile are Easter Island and Robinson Crusoe Island.
[Source: For more information Wikipedia Chile]
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