Chile: Guide to Buying Costs and Procedures
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Total transaction costs very low in Chile
How high are realtors’ and lawyers’ fees in Chile? What about other property purchase costs?
Transaction Costs |
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| Who Pays? | ||
| Lawyer’s Fees | 1% - 2.5% | buyer |
| Stamp Duty | 0.2% - 0.3% | buyer |
| Transfer Tax | 0.1% | buyer |
| Agents Fees | 2% 2% |
buyer seller |
| Costs paid by buyer | 3.3% - 4.9% | |
| Costs paid by seller | 2% | |
| ROUNDTRIP TRANSACTION COSTS | 5.3% - 6.9% | |
| See Footnotes Source: Global Property Guide |
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How difficult is the property purchase process in Chile?
Any individual or corporate body may acquire and possess real estate in Chile whether or not they are residents. However, there are some restrictions regarding land located near the boundaries of the country. Chile has strong legal protection for property rights, including secured investments in real property.
All sale agreements should be notarized before registration. Failure to register a property transfer makes the contract void. The whole process of registering a property can be completed in around 31 days.
A lawyer is contracted usually to conduct due diligence of the property’s legal history. He is also responsible for obtaining copies of the property titles, the Certificado de Vigencia and the Encumbrance certificate (Certificado de Hipotecas y Gravámanes y de Interdicciones y Prohibiciones de Enajar). After which, he obtains an evidence of complete payment of land tax from the Treasury (Servicios de TesorerÃas) from the Servicio de Impuestos Internos.
The signing of the public deed is done after the payment of 0.1% of the property price. The registration of the public deed at the Real Estate office is completed upon payment of 0.2% or 0.3% of the property value as Stamp Taxes. The bigger cities of Santiago, Valparaiso and Viña el Mar charge 0.2% while the other cities require 0.3% stamp tax payments.
The sale of real estate is not subject to VAT, with the exception of the first sale of homes built by a construction company, which is subject to VAT at 18%.
Footnotes to Transaction Costs Table
The round trip transaction costs include all costs of buying and then re-selling a property – lawyers’ fees, notaries’ fees, registration fees, taxes, agents’ fees, etc.
Chile - more data and information
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