Farm land.

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Mahmoud
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Farm land.

Post by Mahmoud » Thu Jun 13, 2019 3:46 pm

Hi,
I once read that Chilean government facilitates investment in agriculture in the south. I searched for exact prices but found many old ones. What is the exact price per acre for lands in the south please? Any advise regarding agriculture?

Thank u all.

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41southchile
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Re: Farm land.

Post by 41southchile » Thu Jun 13, 2019 5:24 pm

Mahmoud wrote:
Thu Jun 13, 2019 3:46 pm
Hi,
I once read that Chilean government facilitates investment in agriculture in the south. I searched for exact prices but found many old ones. What is the exact price per acre for lands in the south please? Any advise regarding agriculture?

Thank u all.
Not sure where you read that, but no not really, you maybe able to get a few million pesos back for applying fertilizer but no more than about 10kUSD , apart from that, nothing really that facilitates investments In agriculture. In Chile they work in hectares the price of land varies from 1000USD per hectare to over 50 thousand per hectare it depends on many many things , you need to be a little more specific the south is a big place.
Ignorance more frequently begets confidence than does knowledge: it is those who know little, not those who know much, who so positively assert that this or that problem will never be solved by science. - Darwin

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admin
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Re: Farm land.

Post by admin » Thu Jun 13, 2019 7:11 pm

perhaps in say 1900's, not really today beyond some small scale programs for small farmers.
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mem
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Re: Farm land.

Post by mem » Thu Jun 13, 2019 8:03 pm

Mahmoud wrote:
Thu Jun 13, 2019 3:46 pm
Hi,
I once read that Chilean government facilitates investment in agriculture in the south. I searched for exact prices but found many old ones. What is the exact price per acre for lands in the south please? Any advise regarding agriculture?

Thank u all.
The one benefit from the government are the non-urban properties...IE rural/agricultural don't have property tax. Maybe I am wrong or that has changed, but it is a pretty great benefit that avoids the "state imposed rent" on properties you actually own that typically applies

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41southchile
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Re: Farm land.

Post by 41southchile » Thu Jun 13, 2019 8:18 pm

mem wrote:
Thu Jun 13, 2019 8:03 pm
Mahmoud wrote:
Thu Jun 13, 2019 3:46 pm
Hi,
I once read that Chilean government facilitates investment in agriculture in the south. I searched for exact prices but found many old ones. What is the exact price per acre for lands in the south please? Any advise regarding agriculture?

Thank u all.
The one benefit from the government are the non-urban properties...IE rural/agricultural don't have property tax. Maybe I am wrong or that has changed, but it is a pretty great benefit that avoids the "state imposed rent" on properties you actually own that typically applies
They do have property tax, nearly everything has property tax now, and they rose substantially after the infinite wisdom of the NM.
There are some small exceptions but the govt will extract their pound of flesh no matter what.
The one advantage of agriculture though is taxes you pay, its renta presunta, so you only pay a percentage of the govt valuation of your land (like 10 percent) instead of actually what you make off the land provided you make less than 9000 UFs in income per year. (250 million) As govt valuation are a lot lower than commercial valuation the savings can be substantial compared to someone owning a shop for example.
Ignorance more frequently begets confidence than does knowledge: it is those who know little, not those who know much, who so positively assert that this or that problem will never be solved by science. - Darwin

proger
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Re: Farm land.

Post by proger » Thu Jun 13, 2019 10:12 pm

from what ive understand no more than 5 hetareas in rural land is free from property tax

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Re: Farm land.

Post by admin » Fri Jun 14, 2019 9:32 am

proger wrote:
Thu Jun 13, 2019 10:12 pm
from what ive understand no more than 5 hetareas in rural land is free from property tax
not true, and way more complicated than that. for example, plenty of parcels of half hectare in the country pay property tax even though the have no house and are still zoned rural agriculture.
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proger
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Re: Farm land.

Post by proger » Fri Jun 14, 2019 8:51 pm

nice good to know

mem
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Re: Farm land.

Post by mem » Sat Jun 15, 2019 1:11 pm

I havent heard of the 5 hectare rule. I have heard of the 1 hectare rule without a house where apparently the property tax is 0%.

So a more pointed question...is it true that there could be 1 hectare rural properties with no house somewhere in rural Chile with 0% property tax?

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41southchile
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Re: Farm land.

Post by 41southchile » Sat Jun 15, 2019 1:23 pm

mem wrote:
Sat Jun 15, 2019 1:11 pm
I havent heard of the 5 hectare rule. I have heard of the 1 hectare rule without a house where apparently the property tax is 0%.

So a more pointed question...is it true that there could be 1 hectare rural properties with no house somewhere in rural Chile with 0% property tax?
Hi haven't heard of that rule but doesn't sound very likely, considering the half hectare lots I sell incur a property tax, normally about 17 to 25 thousand pesos per quarter or less than 150 USD annually , still not a huge amount.
It normally takes at least a year after the sale before they start charging.
In fact in some instances in rural areas you pay less property tax if there is a dwelling on the property as opposed to an empty lot, that's why a lot of people put on a small 4 by 4 meter shack or pergola or something on their parcelas . Somewhere without a property tax seems very unlikely.
Ignorance more frequently begets confidence than does knowledge: it is those who know little, not those who know much, who so positively assert that this or that problem will never be solved by science. - Darwin

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Re: Farm land.

Post by admin » Sat Jun 15, 2019 2:08 pm

mem wrote:
Sat Jun 15, 2019 1:11 pm
I havent heard of the 5 hectare rule. I have heard of the 1 hectare rule without a house where apparently the property tax is 0%.

So a more pointed question...is it true that there could be 1 hectare rural properties with no house somewhere in rural Chile with 0% property tax?
yea i own one that is tax exempt, with a house on it.

turns out president pinera owns one too. :lol:

there is a convoluted formula, that involves property, community economic disadvantage, special acts of congress that are specific to various regions, etc, etc; which, all is often meaningless, when it takes sometimes decades for the tax authority to get around reassesing property values. even then the formula is not based on market value, and they can only increase the tax rate at 10% a year until they reach the new rate. which by that time, the market has more than run away from whatever magical number they decided to use.
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Re: Farm land.

Post by admin » Sat Jun 15, 2019 2:31 pm

think i told this story before, but seems relevant to the conversation.

friend / client calls us up in a panic one day because she got a tax bill out of the blue for the first time, and was terrified that she was behind on her taxes and was going to loose her house. she had never gotten one, and the bill was unintelligible accounting gibberish just glancing at it.

so we pulled the records and had a look. it was jist that they finally got around to reassesing the value of the property.

we helped her buy the house like 10 years ago. the house is about 20 or 30 years old. frutillar bajo, prime private mature condominium, that has been there like more than 30 years. a private appraisal right now, would easy peg that house and 5000 square meters, at north of 350 million pesos. hell, just the land alone is north of 150 million market value. she has won first place in the garden club of fruitar competion two times, and second place once. they had to make her a judge, to keep her from entering again. she paid 120 million at the time.

how much do you think the government thinks it is worth now?

40 million pesos,
and they still have it listed with no house, even though all building permits are correct and have been completed for over 20 years. as i recall her tax was like 40,000 pesos a year.

i thought that was kind of a head scratcher as to how they came up with that number. then i had a look at google maps. google had a satilites shot up until recently that was like 20 years old. it did not show the condominium at all. just a farmers field. they had recently updated the images, showing lots in a farmers field; but the houses still did not show. those lazy bastards at the IRS never even went to look in person. they were just googling it.
Spencer Global Chile: Legal, relocation, and Investment assistance in Chile.
For more information visit: https://www.spencerglobal.com

From USA and outside Chile dial 1-917-727-5985 (U.S.), in Chile dial 65 2 42 1024 or by cell 747 97974.

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