Foreign investors who hold or are acquiring property in Chile face a materially altered regulatory environment. Chile's legislature has introduced amendments to the country's real estate and urban planning legislation, with key provisions entering into force in 2025. Owners who do not review their positions promptly risk non-compliance, title complications, and blocked conveyancing transactions.
Chile's updated real estate legislation imposes new due diligence, disclosure, and registration requirements on foreign property owners and non-resident purchasers. The changes affect property transfer procedures, land register entries, and the notarial deed process. Affected parties should complete a compliance review within 90 days of the relevant provision's effective date.
This alert summarises the core regulatory change, identifies which owners and investors are affected, and sets out five immediate action items for international clients and their counsel.
What changed – the regulatory development and effective date
Chile's amended urban planning and real estate legislation introduced a consolidated set of requirements for property ownership and transfer by foreign nationals and foreign-controlled legal entities. The changes took effect progressively through 2025, with the most operationally significant provisions active from the second quarter of that year.
The core shift concerns how foreign ownership is recorded in Chile's Conservador de Bienes Raíces (land register). Previously, the land register tracked ownership in relatively general terms. Under the updated rules, entries must now reflect the ultimate beneficial owner of the property, including where the legal owner is a Chilean or foreign corporate vehicle. This mirrors beneficial ownership transparency standards that have become standard across OECD jurisdictions.
A second change tightens the notarial deed process for cross-border property transfers. The escritura pública (notarised public deed) required to execute a Chilean property transfer must now include an enhanced disclosure section identifying the foreign purchaser's tax residency. Source of funds, and. There, applicable, the identity of the controlling shareholders of any acquiring company. Notaries are required to verify this information before the deed is executed.
Third, urban planning legislation now restricts certain categories of foreign ownership in designated border zones and environmentally sensitive areas. These restrictions are not new in concept, but the 2025 amendments extend the list of restricted zones and clarify the administrative process for obtaining prior authorisation where it is required.
The tax implications of these changes are significant. Amended provisions in Chile's tax legislation link property transfer reporting to the Servicio de Impuestos Internos (Chilean Internal Revenue Service). So that capital gains, withholding obligations. Additionally, annual property tax assessments are now cross-referenced against land register data. Foreign owners whose title deed information is inconsistent with tax filings face potential reassessment. For a detailed treatment of the tax dimension, see our analysis of tax law matters in Chile.
Who is affected – threshold criteria and business categories
The new rules apply to a broad range of foreign principals. The following categories face the most direct compliance exposure.
- Non-resident individuals who hold residential or commercial property in Chile directly in their own name.
- Foreign-controlled companies – whether incorporated in Chile or abroad – that own Chilean real property as an asset on their balance sheet.
- Investment funds and family offices with Chilean real estate holdings, where the ultimate beneficial owners are non-Chilean nationals or entities.
- Parties to pending conveyancing transactions – both buyers and sellers – where the transfer has been agreed but the notarial deed has not yet been executed under the new disclosure regime.
The threshold for enhanced scrutiny is tied to the beneficial ownership test rather than to the value of the property. There is no minimum asset value below which the rules do not apply. Any foreign principal with a registrable interest in Chilean real property falls within scope.
Owners who acquired property before the effective date are not grandfathered. The land register update obligation applies retrospectively to existing holdings. This is the most operationally consequential aspect of the reform for passive holders who have not transacted recently and may not be monitoring Chilean regulatory developments.
For a full assessment of how the property regulation changes interact with your specific ownership structure, contact our team at Ferraz & Whitmore's real estate practice in Chile.
To receive an expert assessment of your Chilean property holdings and compliance exposure, contact us at info@ferrazwhitmore.com.
What to do now – immediate actions and compliance timeline
Foreign owners and their advisers should treat the following five steps as immediate priorities.
1. Audit existing title deeds and land register entries. Retrieve current entries from the relevant Conservador de Bienes Raíces and verify that the registered owner information accurately reflects the current beneficial ownership structure. Discrepancies between the title deed and the actual ownership chain must be corrected before any future transfer or financing transaction can proceed cleanly.
2. Conduct a structured due diligence review. For each Chilean property asset, prepare a due diligence file that documents: the chain of title. The beneficial ownership at each level of the holding structure, the source of acquisition funds. Additionally, any outstanding encumbrances or administrative restrictions. This file will be required by notaries under the new disclosure rules and should be ready before any conveyancing process is initiated.
3. Assess exposure in restricted zones. Check whether any property falls within a border zone or environmentally sensitive area newly designated under the 2025 urban planning legislation. Where prior authorisation is required, the application process can take several months. Beginning this process early is critical. Failure to hold the requisite authorisation can render a property transfer void.
4. Align tax filings with updated land register data. Engage a tax adviser to cross-reference the updated land register entries with existing Servicio de Impuestos Internos filings. Where capital gains positions, annual tax assessments, or withholding obligations have been calculated on the basis of outdated ownership data, amended filings may be necessary. The window for voluntary correction is preferable to a regulator-initiated reassessment.
5. Review pending transactions and update transaction documents. Any sale, purchase, or financing transaction that was structured before the 2025 amendments must be reviewed. The enhanced disclosure requirements for the notarial deed may require additional representations and warranties from the parties. Transaction counsel should also verify whether any border zone or zone restriction affects a property that is currently under a purchase agreement. Clients engaged in cross-border real estate transactions may also wish to review comparable developments in other jurisdictions. our alert on real estate regulation in the United States addresses similar beneficial ownership trends in the US market.
The compliance deadline for land register updates is tied to the date of the next registrable event affecting each property – whether a transfer, mortgage, or other encumbrance. In practice, owners who take no action until their next transaction will find that the corrective process delays completion. Acting now avoids that friction.
About Ferraz & Whitmore
Ferraz & Whitmore is an international law firm based in Lisbon, advising business clients across 46 jurisdictions. Our real estate practice covers property acquisition, conveyancing, title deed review, and land register compliance for foreign investors operating in Chile and across Latin American markets. We work with international entrepreneurs, institutional investors, and in-house legal teams who require coordinated legal support across civil law systems. Engaging a lawyer in Chile with cross-border experience is particularly important where beneficial ownership rules intersect with tax reporting and urban planning restrictions. As a law firm in Chile and across the Americas, we combine local regulatory knowledge with the perspective of an internationally oriented practice. Our attorneys have advised on property transfer matters in both common law and civil law jurisdictions, and our Lisbon base provides direct access to EU regulatory frameworks for clients with parallel European holdings. To discuss your specific situation in Chile, contact us at info@ferrazwhitmore.com.
Disclaimer: This publication is provided for informational purposes only and does not constitute legal advice. The information herein should not be relied upon as a substitute for professional legal counsel tailored to your specific circumstances. Ferraz & Whitmore assumes no liability for actions taken or not taken based on the contents of this material. For advice regarding your particular situation, please contact info@ferrazwhitmore.com.