Chile’s property market is widely recognized as one of the most transparent and secure in Latin America. While the legal framework is robust, it is highly formalized, requiring strict adherence to administrative procedures. When selling property in Chile as a non-resident, you have the same rights to sell property as a citizen, but you must navigate specific tax and procedural requirements.
1. The Legal and Regulatory Framework
In Chile, real estate transactions are governed by the Civil Code and managed through a rigorous public registry system.
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The “Public Deed” Requirement: Under Chilean law, a sale is only legally valid if executed as a public deed (escritura pública) before a Chilean Notary Public. Private contracts are insufficient; the entire transaction must be formalized and recorded.
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Conservador de Bienes Raíces (CBR): The final stage of any sale is the registration at the Real Estate Registrar (Conservador de Bienes Raíces) in the jurisdiction where the property is located. Ownership is only officially transferred once the deed is registered here.
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Remote Transactions: You do not need to be physically present in Chile. You can grant a Power of Attorney (PoA) to a local lawyer or trusted representative. This document must be notarized and apostilled in your country of residence to be valid for use in Chile.
2. Documentation Requirements
To finalize a sale, you must provide a complete file to your notary and legal representative:
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RUT (Rol Único Tributario): If you purchased property in Chile, you already have a Chilean tax identification number. Ensure this is active and updated.
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Title Deed (Título de Dominio): Evidence of your ownership, which your lawyer will verify through a Estudio de Títulos (title study) to ensure the property is free of liens, mortgages, or legal disputes.
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Tax Records: Evidence that all territorial taxes (contribuciones) are paid up to date.
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Identification: A valid passport.
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Language Support: All legal proceedings must be conducted in Spanish. If you are not proficient, engaging a lawyer or a bilingual agent to manage the process and provide translation is standard practice.
3. Financial Considerations and Repatriation
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Capital Gains Tax (CGT): This is a critical area for non-residents. As of 2026, Chilean tax residents benefit from a lifetime exemption of 8,000 UF (approx. USD 280,000) on gains; however, non-residents are generally subject to a 35% tax on the total capital gain with no such exemption. Consult a Chilean tax accountant to understand how your specific residency status affects your liability.
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Repatriation: There are no restrictions on repatriating proceeds from a property sale. Funds are typically held in escrow by the notary (via a vale vista or certified bank draft) and released once the title is successfully registered under the buyer’s name.
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Typical Costs: Budget 3%–6% of the sale price for total transaction costs, which include agent commissions (usually 2%–4% + 19% VAT), legal fees (approx. 1%), and notary fees.
4. Preparing for Sale: A Checklist
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Verify Your RUT: Ensure your tax identification number is active with the Servicio de Impuestos Internos (SII).
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Appoint Local Counsel: A specialized real estate solicitor is essential for managing the title study and acting as your proxy.
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Perform a Title Check: Have your lawyer confirm there are no outstanding encumbrances that could cause the Conservador to reject your registration.
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Promissory Contract (Promesa de Compraventa): Once you have a buyer, sign this agreement to lock in the price and conditions, typically involving an earnest money deposit of 5%–10%.
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Coordinate Tax Obligations: Ensure all property-related taxes are settled to prevent delays at the registry office.
Disclaimer: This guide is for informational purposes. Tax laws and real estate regulations are subject to change. Always consult with a qualified Chilean attorney or tax professional regarding your specific situation.
Are you currently in the process of gathering your property’s legal documentation, or are you looking for guidance on finding a reputable lawyer in Chile to act as your representative?
