How high are realtors´ and lawyers´ fees in Chile? What about other property purchase costs?
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 20 to 40 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 GravÃ¡manes 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 ImpuestosInternos.
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 20%.
What are the costs like when purchasing a property in Chile?
|Stamp Duty||0.2% - 0.3%||buyer|
|Real Estate Agent´s Fee||2%
|Costs paid by buyer||3.30% - 3.40%|
|Costs paid by seller||2%|
|ROUNDTRIP TRANSACTION COSTS||5.30% - 5.40%|
| See Footnotes
Source: Global Property Guide
Footnotes to Transaction Costs Table
Stamp duty is levied at around 0.20% to 0.30%, depending on the location of the property. Stamp duty is levied at 0.20% in the cities of Santiago, Valparaiso, and Viña del Mar. Stamp duty is levied at 0.30% in other cities.