REal estate tax question

Buying, Selling, Building, Tax issues, anything regarding real estate or properties in Chile.
Forum rules
NO DISCUSSION OF SPECIFIC REAL ESTATE AGENTS BY NAME, LINK, OR RECOMMENDATION ANYWHERE ON THE CHILE FORUM.
Huelshoff
Rank: Chile Forum Full Member
Posts: 38
Joined: Mon Sep 16, 2013 12:52 pm
Location: New Orleans, LA, USA

REal estate tax question

Post by Huelshoff » Sat Apr 14, 2018 10:03 pm

I'm looking at a property near Carburga. I currently live in the States, and won't buy until I can visit it. I'm also getting a local set of eyes on it before I decide to fly down to look at it myself. I'm retiring in a year, and plan on using this as a semi-permanent residence.

I have two questions that I am hoping to get your collective wisdom about. The seller tells me that when he put a house on it six or seven years ago he did not register it with Chilean tax authorities. I expect, then, that if I do buy it I'll have to pay those back taxes. Is there any way to estimate what those might be? Second, the closest place with internet access (land line, I guess) is several klicks down the road. Does anyone have an idea what it might cost to run the line up to the property? Are there other options?

I've been trying to get through to Spencer Global to ask these and other questions, but have had no luck getting responses via email.

User avatar
Gloria
Rank: Chile Forum Citizen
Posts: 4280
Joined: Sat Jan 20, 2007 12:30 pm
Location: Región de los Ríos

Re: REal estate tax question

Post by Gloria » Sun Apr 15, 2018 9:57 am

The reasons most chileans do not want to get involved with "registering" their property is due to the lengthy process and naturally the expenses are high. I did it and can testify to it. I would walk away from the deal if I were you. You maybe opening a "box of chocolates....not knowing what you gonna get" type of a situation, more so if there is a language barrier. There are properties all over the south to pick and choose so don´t get discouraged.
I'm from the generation of common sense, wisdom and unfiltered answers. Anótese, comuníquese, publíquese, archívese.
Please remind me the reasons why I decided to come back!

User avatar
fraggle092
Rank: Chile Forum Citizen
Posts: 1230
Joined: Fri Mar 28, 2008 6:35 pm
Location: In Chile

Re: REal estate tax question

Post by fraggle092 » Sun Apr 15, 2018 1:10 pm

Huelshoff wrote:
Sat Apr 14, 2018 10:03 pm
The seller tells me that when he put a house on it six or seven years ago he did not register it with Chilean tax authorities. I expect, then, that if I do buy it I'll have to pay those back taxes.
Another can of worms, especially if was built without authorization on agricultural land.
Gloria wrote:
Sun Apr 15, 2018 9:57 am
I would walk away from the deal if I were you.
So would I.
Après moi, le déluge

Julito
Rank: Chile Forum Citizen
Posts: 105
Joined: Sun Apr 19, 2015 5:39 pm
Location: Villarrica

Re: REal estate tax question

Post by Julito » Sun Apr 15, 2018 1:43 pm

So would I.... plus everybody else who's followed this forum for years. Only be interested in fully documented properties.

User avatar
Gloria
Rank: Chile Forum Citizen
Posts: 4280
Joined: Sat Jan 20, 2007 12:30 pm
Location: Región de los Ríos

Re: REal estate tax question

Post by Gloria » Sun Apr 15, 2018 4:22 pm

In fact my suggestion would be to stay away from properties that have so called "houses", "sheds" or any type of construction on it. Dealing only with the land is less stressful, faster and straightforward. And for the love of God..... do not let someone else do the dealing for you or send any money to anyone. If possible get some free time to go around, talk to the locals and only then make "educated" decisions. If you don't have that luxury then wait. Don't rush. Buying land is time consuming and one of the biggest investment of your life other than your funeral.
I'm from the generation of common sense, wisdom and unfiltered answers. Anótese, comuníquese, publíquese, archívese.
Please remind me the reasons why I decided to come back!

Julito
Rank: Chile Forum Citizen
Posts: 105
Joined: Sun Apr 19, 2015 5:39 pm
Location: Villarrica

Re: REal estate tax question

Post by Julito » Sun Apr 15, 2018 5:16 pm

Not necessarily Gloria. If a house on land is fully documented then the buying process is similarly simplified, at least that was my experience. I stipulated from the outset that I was not interested in even looking at undocumented properties, "So don't waste yours and my time". It certainly narrowed down the field and after deciding on which to buy things moved forward to closure without any grief then or since.

Huelshoff
Rank: Chile Forum Full Member
Posts: 38
Joined: Mon Sep 16, 2013 12:52 pm
Location: New Orleans, LA, USA

Re: REal estate tax question

Post by Huelshoff » Sun Apr 15, 2018 5:35 pm

Thank you all for your comments. At this point I'm just trying to get some more info on taxes and internet access, to get a gestimate of what more this property might cost me. I appreciate the caution behind your advice, and the tip about zoning. I know that I will have to hire a lawyer and have the title fully searched before purchasing, and I won't start that before seeing the place myself. Thus my question about the extra costs.

Gloria, would you mind saying a bit more about what you went through? You can pm me if you prefer, or I can do the same. Thanks.

User avatar
Gloria
Rank: Chile Forum Citizen
Posts: 4280
Joined: Sat Jan 20, 2007 12:30 pm
Location: Región de los Ríos

Re: REal estate tax question

Post by Gloria » Sun Apr 15, 2018 6:11 pm

Will answer you soon in the forum so we can all learn but I need time to gather the papers. It has been a while.....
I'm from the generation of common sense, wisdom and unfiltered answers. Anótese, comuníquese, publíquese, archívese.
Please remind me the reasons why I decided to come back!

at46
Rank: Chile Forum Citizen
Posts: 378
Joined: Fri Sep 20, 2013 6:13 pm
Location: Vancouver/Santiago

Re: REal estate tax question

Post by at46 » Sun Apr 15, 2018 10:10 pm

For internet you can call the companies operating in your area and ask if they can install service at your address. And for mobile internet look up coverage maps on the companies' websites.

ghibli
Rank: Chile Forum Full Member
Posts: 49
Joined: Mon Jan 30, 2017 2:18 pm

Re: REal estate tax question

Post by ghibli » Mon Apr 16, 2018 7:37 am

I agree with everyone that trying to buy a property which has not been registered is a very bad idea. Also, please be wary of properties which are inheritances. Under chilean law, every member of the family who inherits must sign off on a transfer document. I don't recall the name of the document but your attorney will Know. Naturally, the seller may tell you that all is in order, but months can go by without the receipt of all the documents required. I wasted the best part of a year in this kind of a situation. Eventually it became clear that one sibling had not and would not sign. Part of the problem is the fees. Some chilenos are amazingly stingy about paying fees. It could be 10.000 CLP, i.e. about $14 US, and they will not pay. Same is true for divorce situations.
That said, there are some beautiful properties out there if you are patient. The process is slow. Don't expect to close in a few weeks. The notaries can be very slow. Good luck.

bobserb
Rank: Chile Forum Citizen
Posts: 115
Joined: Tue Jun 05, 2007 10:30 am
Location: San Antonio

Re: REal estate tax question

Post by bobserb » Mon Apr 16, 2018 8:08 am

Huelshoff wrote:
Sun Apr 15, 2018 5:35 pm
Thank you all for your comments. At this point I'm just trying to get some more info on taxes and internet access, to get a gestimate of what more this property might cost me. I appreciate the caution behind your advice, and the tip about zoning. I know that I will have to hire a lawyer and have the title fully searched before purchasing, and I won't start that before seeing the place myself. Thus my question about the extra costs.

Gloria, would you mind saying a bit more about what you went through? You can pm me if you prefer, or I can do the same. Thanks.
When you ask tax question you have to provide size and the price of the house?

Huelshoff
Rank: Chile Forum Full Member
Posts: 38
Joined: Mon Sep 16, 2013 12:52 pm
Location: New Orleans, LA, USA

Re: REal estate tax question

Post by Huelshoff » Mon Apr 16, 2018 9:54 am

Its on a lot that is 5200 m2, selling for CLP 45 million.

Post Reply