Buying Property in Chile as a Swiss Citizen: Complete Guide

Switzerland and Chile: a strong bilateral relationship

Switzerland and Chile enjoy one of the most developed bilateral frameworks of any European country with Chile. This goes beyond diplomatic ties: the legal and financial infrastructure connecting the two countries provides Swiss property buyers with protections that are genuinely stronger than those available to most other European nationalities.

The 2025 Bilateral Investment Treaty

In 2025, Switzerland and Chile signed a new Bilateral Investment Treaty (BIT) that replaced the earlier agreement. This treaty provides Swiss investors with protections including fair and equitable treatment, protection against expropriation without prompt and adequate compensation, free transfer of funds related to investments, and access to international arbitration for investment disputes.

For property buyers, this means that if Chile were to enact measures that effectively deprive you of your property rights (regulatory expropriation, discriminatory treatment, or restrictions on repatriating sale proceeds), you have recourse to international arbitration under the treaty. While the likelihood of such events in Chile is low given its stable institutional framework, the BIT provides an additional layer of security that German, French, and Spanish buyers do not have at this level.

Switzerland-Chile DTA for property income and capital gains

The double taxation agreement between Switzerland and Chile, in force since 2010, provides clear rules for the taxation of immovable property income. Under the treaty, income from property located in Chile (rental income) may be taxed by Chile. Switzerland also taxes worldwide income but applies the exemption with progression method to avoid double taxation, as explained in detail below.

For capital gains on the sale of immovable property, Chile has primary taxing rights under the treaty. The gain is subject to Chile’s non-resident rate (currently 35%), and Switzerland applies its domestic relief mechanism.

No reverse Lex Koller: Chile places no restrictions on Swiss buyers

Swiss buyers know the Lex Koller well: the federal law that limits the acquisition of residential real estate in Switzerland by persons abroad. Chile has no equivalent. A Swiss citizen buys Chilean property under exactly the same conditions as a Chilean: no prior authorization, no quotas, no obligation to reside in the country, and no limit on the number of properties. The only administrative requirement is obtaining a RUT, the Chilean tax number described later in this guide. Our general guide for foreigners buying in Chile covers the full framework.

The one relevant exception is border zone land. Decree Law 1,939 prohibits citizens of neighboring countries (Argentina, Bolivia, and Peru) from acquiring Chilean border land. This nationality restriction does not affect Swiss citizens. However, many properties in the Aysen Region sit within 10 kilometers of the Argentine border, where acquisition by foreigners requires a prior authorization that your lawyer must obtain and that can take several months. We explain the details in our article on border zone restrictions in Aysen.

How Chilean property affects your Swiss taxes

This is the most complex area for Swiss buyers, and the one where professional advice is most essential. Swiss taxation of foreign real estate involves several interacting concepts that vary by canton.

Exemption with progression (Satzbestimmung)

Switzerland uses the exemption with progression method for foreign real estate income. This means your Chilean rental income or imputed rental value is exempt from Swiss income tax, but it is included in the calculation of your tax rate on your remaining Swiss income.

In practice: if your Chilean property generates CHF 20,000 in annual rental income, that income is not taxed in Switzerland. However, your Swiss taxable income is taxed at the rate that would apply if the CHF 20,000 were added to it. If you earn CHF 100,000 in Switzerland, your Swiss income is taxed at the rate applicable to CHF 120,000, even though only CHF 100,000 is actually subject to Swiss tax.

This progression effect is modest for taxpayers with low foreign income relative to Swiss income, but it can be meaningful for retirees or part-time workers whose Swiss income is already in a lower bracket.

Imputed rental value (Eigenmietwert) for self-used foreign properties

If you use your Chilean property yourself rather than renting it out, Switzerland imputes a rental value (Eigenmietwert) for the purpose of calculating your tax rate under the Satzbestimmung. The imputed rental value is based on what the property could reasonably earn if rented to a third party.

Each canton has its own methodology for determining Eigenmietwert for foreign properties. Some cantons use a percentage of the property’s market value, others use comparable rental rates. The Swiss Federal Tax Administration provides general guidelines, but the cantonal tax authority makes the final determination.

This is not a tax you pay directly, but it increases the rate at which your Swiss income is taxed. Declare your Chilean property to your cantonal tax authority and provide a reasonable estimate of its rental value.

Cantonal variations

Swiss taxation is highly cantonal, and the treatment of foreign property varies across cantons. Some examples of how this can affect your situation:

Vaud: Applies a wealth tax rate of approximately 0.6% (cantonal and communal combined) on worldwide assets, including foreign real estate. Foreign property is exempt from wealth tax but included in the rate calculation (Satzbestimmung for wealth tax).
Geneva: Similar approach with slightly different rates (approximately 0.45% combined cantonal and communal wealth tax). Geneva is known for more aggressive assessment of foreign property values.
Zurich: Uses a more conservative approach to Eigenmietwert for foreign properties. Wealth tax rates are lower than in Vaud or Geneva.
Bern: Follows the federal guidelines closely. Moderate cantonal tax rates.

Your cantonal tax authority is the definitive source. Discuss your planned purchase with your Treuhander or Steuerberater before completing the transaction so you understand the full Swiss tax implications.

Mortgage interest allocation between Swiss and foreign assets

If you have a mortgage on your Swiss residence and also own a Chilean property, there are allocation rules for mortgage interest deductions. Switzerland generally allocates mortgage interest proportionally between Swiss and foreign assets based on their relative values.

This means that part of your Swiss mortgage interest deduction may be allocated to your Chilean property and therefore lost for Swiss tax purposes (since the Chilean property income is exempt under Satzbestimmung, the corresponding expenses are also excluded). The larger your Chilean property is relative to your total real estate portfolio, the more significant this allocation effect becomes.

AEOI (Automatic Exchange of Information)

Switzerland and Chile participate in the AEOI (Automatic Exchange of Information) framework. This means Chilean financial institutions report information about Swiss-held accounts to the Swiss Federal Tax Administration, and vice versa. Ownership of a Chilean bank account (which you may need for property management, tax payments, or rental income collection) will be visible to Swiss tax authorities.

Full transparency is the only appropriate approach. Declare all Chilean assets and income on your Swiss tax return. The days of undeclared foreign assets are long past, and the penalties for non-compliance under Swiss tax law are severe.

Chilean taxes for Swiss property owners

Annual property tax (contribuciones)

Chile levies an annual property tax (contribuciones de bienes raices) based on the fiscal valuation (avaluo fiscal) of the property, which is determined by the SII and is typically lower than market value. The rate varies:

Residential properties: Approximately 1.0% to 1.2% of the fiscal valuation
Agricultural land: Approximately 1.0% of the fiscal valuation
Properties with fiscal valuation below a threshold (approximately CLP 40 million, updated annually) are exempt

For many rural properties in the Aysen Region, the fiscal valuation is quite low, resulting in modest annual tax obligations. Contribuciones are paid in four quarterly installments.

Capital gains: 35% non-resident rate, DTA credit mechanism

When you sell a Chilean property as a non-resident, the capital gain is subject to a 35% tax rate. The gain is calculated as the difference between the sale price and the acquisition cost (adjusted for inflation using the Unidad de Fomento index).

Under the Switzerland-Chile DTA, Chile has primary taxing rights on this gain. Switzerland exempts the gain under the Satzbestimmung method but includes it in the rate calculation for your remaining Swiss income.

Rental income taxation

Rental income from Chilean property earned by non-residents is subject to a 35% withholding tax. If you manage the rental through a Chilean administrator, they are responsible for withholding and remitting the tax. If you manage it directly, you must file Chilean tax returns.

The buying process for Swiss citizens

RUT application

You need a RUT (Rol Unico Tributario) before you can purchase property. Swiss citizens can obtain this:

At the Chilean embassy in Bern or the consulate in Zurich/Geneva
In person at a SII office in Chile with your passport
Through a Chilean lawyer using a notarized power of attorney

Power of attorney and Apostille

If you will not be present for all steps of the transaction, grant a power of attorney (pouvoir/Vollmacht) to a Chilean lawyer. The document must be:

Notarized by a Swiss Notar (the process varies by canton; in some cantons, such as Geneva, the notaire is a public official; in others, such as Zurich, notarization is done by a Friedensrichter or Notar)
Apostilled by the competent cantonal authority (Staatskanzlei in most German-speaking cantons, Chancellerie d’Etat in French-speaking cantons)
Translated into Spanish by a certified translator

Both Switzerland and Chile are parties to the Hague Apostille Convention, so the Apostille is sufficient without further consular legalization.

Currency transfer: CHF to CLP via formal banking channels

Switzerland’s banking system provides robust international transfer capabilities, but the transfer of significant sums to Chile requires attention to compliance requirements on both sides.

Chilean regulations require that foreign currency transfers exceeding USD 10,000 equivalent pass through the Mercado Cambiario Formal (formal exchange market), with reporting to the Banco Central de Chile. From the Swiss side, your bank will conduct standard due diligence on large international transfers under FINMA regulations.

Document the transfer meticulously: bank statements, exchange rates at the time of transfer, proof of the source of funds. This documentation establishes your cost basis for future capital gains calculations in both Chile and Switzerland.

Transaction steps

Obtain your RUT through the embassy, consulate, or a Chilean representative
Engage a Chilean lawyer experienced with foreign buyers and familiar with European concerns
Conduct due diligence: title study (estudio de titulos), lien certificates, property tax status, water rights, border zone status
Sign the promesa de compraventa (deposit of 5-10%, binding preliminary contract)
Transfer purchase funds from Switzerland to Chile through formal banking channels
Sign the escritura publica (final deed, balance payment)
Register at the Conservador de Bienes Raices (1-4 weeks)

CHF, CLP and UF: how properties are priced

Chilean properties are listed in two denominations, and neither is the Swiss franc. Lower-value properties are usually priced in Chilean pesos (CLP). Higher-value properties are priced in UF (Unidad de Fomento), an inflation-indexed unit of account whose peso value is published daily by the Central Bank. In 2026, one UF equals approximately CLP 39,000 to 40,000, which is roughly CHF 35 to 40 depending on the exchange rate of the day.

For a Swiss buyer this has two practical consequences. First, your CHF budget goes through a double conversion (CHF to USD or CLP, then CLP to UF), so compare your Swiss bank’s spreads against specialized currency services before transferring. Second, since a price agreed in UF is paid in pesos at the value on the day of payment, and months can pass between the promesa de compraventa and the escritura, the final amount in CHF moves with the exchange rate. If the currency mismatch concerns you, discuss the timing of the conversion with your bank or transfer in tranches.

The Aysen market in numbers: what your franc buys

Our portal currently lists around 1,740 properties for sale in the Aysen Region: 576 land parcels, 547 houses, 299 lots, and 231 farms, plus cabins, lodges, and commercial properties.

Farms (agricultural and livestock estates, the closest equivalent to an alpine holding) range from under UF 1,000 to UF 150,000 for the largest estancias, with a median around UF 21,800, roughly CHF 800,000. Measured by surface, most larger farms trade between UF 30 and UF 600 per hectare, with a median close to UF 100 per hectare: about CHF 3,500 to 4,000.

The comparison with the Alps is striking. In the resort communes of Valais or Graubunden, building land frequently exceeds CHF 1,000 per square meter, which is more than CHF 10 million per hectare, and even Swiss agricultural land, with prices regulated under rural land law, costs several francs per square meter. For the price of a few square meters of building land in Verbier or St. Moritz, you buy a full hectare in Aysen.

For smaller budgets, land parcels (rural lots typically of 5,000 m2 or more) have a median around UF 2,300, about CHF 85,000. Most of the market’s liquidity is concentrated around Coyhaique, the regional capital, where the median house for sale is around CLP 90,000,000, also close to CHF 85,000. These are figures from our inventory as of mid-2026 and they move with the market, but the order of magnitude is stable: Aysen offers Patagonian scale at a fraction of the alpine cost per hectare.

Inheritance planning across Swiss and Chilean law

Swiss forced heirship (Pflichtteil) vs. Chilean legitima

Both Switzerland and Chile have forced heirship systems that limit your testamentary freedom. Under Swiss law (as reformed in 2023), the Pflichtteil reserves 50% of the estate for children (previously 75%) and, if there is no will, the surviving spouse receives a statutory share. The available portion (frei verfugbare Quote) has increased to 50%.

Chilean law is more restrictive: 50% goes to forced heirs as legitima rigorosa, 25% as cuarta de mejoras (must go to certain heirs but distribution is flexible), and only 25% is freely disposable.

For Swiss buyers, this means that Chilean succession law may be significantly more restrictive than what you are accustomed to under the revised Swiss system.

Cantonal variations in inheritance tax

Swiss inheritance tax varies dramatically by canton. Some cantons (Schwyz, Obwalden, most of Inner Switzerland) have no inheritance tax at all for direct descendants and spouses. Others (Vaud, Geneva, Neuchatel) levy inheritance tax on bequests, though spouses and direct descendants often benefit from substantial exemptions.

Chilean property is generally subject to Chilean inheritance tax regardless of cantonal rules. Chile taxes inheritances and gifts at progressive rates (up to 25% for large estates). The interaction between Chilean inheritance tax and your cantonal inheritance tax (if any) depends on your canton’s specific rules for crediting foreign taxes.

Cross-border estate planning recommendations

The recommended approach for Swiss buyers is:

Two separate wills: A Swiss will for Swiss and international assets, and a Chilean will for Chilean property, each drafted to avoid revoking the other
Professio juris: Consider choosing Swiss law to govern your succession (where permitted), though Chilean courts may still apply Chilean law to Chilean real property
Early planning: Discuss your Chilean property purchase with your Treuhander, Notar, and a Chilean abogado before completing the transaction, not after
Life insurance: Consider whether a Swiss life insurance policy could help equalize inheritances if Chilean forced heirship constrains your options

Patagonia-specific considerations

Water rights (separate from land title)

In the Aysen Region, water rights (derechos de aprovechamiento de aguas) are legally separate from land ownership. Owning land next to a river does not give you the right to use that water. If you plan to use water for domestic, agricultural, or commercial purposes, verify that the property includes water rights or budget to acquire them separately.

Chile’s 2022 Water Code reform introduced time-limited grants for new water rights and environmental flow requirements. Your lawyer should verify the type, volume, status, and conditions of any associated water rights.

Earthquake insurance and building codes

Chile is seismically active, and Patagonia is no exception. Chilean building codes require seismic-resistant construction, and most residential properties are built accordingly. However, earthquake insurance is not mandatory for individuals (it is mandatory for properties with mortgage financing).

For Swiss buyers accustomed to comprehensive building insurance through the cantonal Gebaude-versicherung system, this is an adjustment. Consider obtaining earthquake insurance privately, particularly for higher-value properties.

Remote property management

If you will not be living at the property full-time, consider how it will be managed. The Aysen Region is sparsely populated, and finding reliable local property management can require effort. Establish a relationship with a local caretaker or property management service before you close the purchase, not after.

Maintenance requirements in Patagonia are specific to the climate: heavy rainfall, strong winds, occasional freezing temperatures, and isolation. Properties need regular inspection, particularly roofing, drainage, and access roads.

Residency in Chile for Swiss citizens

Buying property does not require residency, and Swiss citizens do not need a visa to enter Chile as tourists: they receive a permit of up to 90 days, which can be extended. Many Swiss owners simply visit their property seasonally under that regime.

If you want to settle, temporary residence applications are filed with the Servicio Nacional de Migraciones, and since 2021 they can also be submitted from abroad before traveling. The routes most used by property buyers are the rentista visa, designed for applicants who can document stable passive income (pensions, rental income, dividends), and the investor visa, tied to an economic activity or investment in Chile. Temporary residence is typically granted for one to two years and then opens the path to permanent residency. Swiss AHV/AVS pensions are paid without difficulty to residents in Chile, and the two countries also maintain a social security agreement that coordinates their pension systems.

The Swiss presence in Chile

Chile has a well-established Swiss community. Swiss colonization of southern Chile began in the late 19th century, when families from several cantons settled in the Araucania, and today several thousand registered Swiss citizens live in the country. Switzerland maintains an embassy in Santiago with a consular section, plus honorary representations in the regions, and community life includes institutions such as the Colegio Suizo de Santiago and active Swiss clubs.

For a buyer this has practical value: it is feasible to find advisors and contacts in Chile who speak German or French and understand both systems, and consular matters (legalizations, passports, registrations) can be handled without leaving the country. Remember to register with the Swiss representation if you relocate permanently.

Frequently asked questions

Can a Swiss citizen buy property in Chile without restrictions?

Yes. Chile applies no nationality restriction to Swiss buyers comparable to the Lex Koller: you buy on equal terms with Chileans, with no prior authorization and no residency requirement. You only need a RUT, which you can obtain through the Chilean embassy in Bern, at a SII office in Chile, or through a lawyer with a notarized power of attorney. The one caveat is land within 10 kilometers of the Argentine border, common in Aysen, where purchases by foreigners require a prior authorization that takes a few months.

What taxes does a Swiss buyer pay on a Chilean property?

In Chile you pay the annual contribuciones (around 1% of the fiscal valuation, with many rural properties exempt due to low valuations), a 35% tax on rental income as a non-resident, and 35% on the capital gain when you sell. In Switzerland, the double taxation agreement in force since 2010 and the exemption with progression method prevent you from paying twice: the Chilean income is not taxed in Switzerland, but it raises the rate applied to your Swiss income, and the property is declared for cantonal wealth tax under the same logic.

Can I buy property near the Argentine border in Aysen?

Yes. The prohibition in Decree Law 1,939 on border land applies to citizens of neighboring countries (Argentina, Bolivia, and Peru), not to Swiss citizens. When the property lies within 10 kilometers of the border, which is common in Aysen, a prior authorization is required for foreign acquirers. The process typically takes 3 to 6 months, so build that timeline into the promesa de compraventa.

Do I need Chilean residency to buy and hold a property?

No. You can buy, rent out, and sell Chilean property while remaining a resident of Switzerland, and visit the country as a tourist for up to 90 days per entry. If you decide to settle, the most common routes are the rentista visa (documented passive income such as pensions or rents) and the investor visa, both processed through the Servicio Nacional de Migraciones and convertible later into permanent residency.

Moving forward with confidence

Swiss buyers benefit from one of the strongest bilateral frameworks available for investing in Chilean property. The combination of the 2025 BIT, the comprehensive DTA, and Switzerland’s own transparent tax system creates a solid foundation for a well-structured purchase.

The complexity lies primarily on the Swiss side: cantonal tax variations, Satzbestimmung calculations, and Eigenmietwert determinations require professional guidance from a Treuhander or Steuerberater familiar with foreign real estate. On the Chilean side, a competent abogado experienced with European buyers will handle the transaction efficiently.

Explore our available properties across the Aysen Region, or contact us to discuss your goals and how we can help you find the right property in Patagonia.