Taxes and fees

Buying land in Chile involves several one-time transaction costs and ongoing annual taxes. The most significant for foreign non-residents is the 35% Impuesto Adicional on rental income — but for land purchased for personal use or capital appreciation, annual carrying costs are very low.

Transaction costs (one-time)

Notarial fee (escritura)	~0.2–0.5% of sale price. Statutory, set by the Arancel Notarial.
CBR registration fee	~0.2–0.4% of sale price. Paid to the Conservador de Bienes Raíces upon inscription.
Stamp duty (Impuesto de Timbres)	Applies only if financing is involved. Cash purchases typically exempt.
Legal fees (abogado)	Negotiated, typically 1–2% of sale price. Budget for this — it's essential.
Chilelands success fee	Disclosed in account terms. Paid by seller at closing.

Annual costs (ongoing)

Contribuciones (property tax)	1–1.2% of the fiscal valuation (avalúo fiscal) per year, paid quarterly. Rural land often has low avalúo values — annual tax on a 10-hectare plot can be under USD 200.
Water rights (if applicable)	A small annual fee if the parcel includes registered water rights (derechos de agua).

The 35% Impuesto Adicional — what it means for you

If you are a non-resident of Chile and you earn rental income from Chilean property, the Chilean tax authority (SII) withholds 35% of gross rental income at source. This is the Impuesto Adicional — an additional withholding tax on income earned in Chile by non-residents.

What it does NOT affect: land you purchase for personal use, appreciation, or future sale. Capital gains from a sale of property held for more than one year are exempt for most individuals under the ingreso no renta provision. Consult a Chilean tax accountant (contador) for your specific situation.

Double taxation treaties: Chile has treaties with several countries (Canada, Spain, UK, among others) that may reduce your effective withholding rate. Check whether your country of residence has a CDI (Convenio para evitar la Doble Imposición) with Chile.

Capital gains on sale

If you sell the land at a profit, gains may be subject to Chilean income tax. The rules distinguish between properties acquired before and after August 2020, and between resident and non-resident sellers. This is an area where professional tax advice is not optional.