REal estate tax question

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Huelshoff
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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.

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fraggle092
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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.
Bienvenidos a Chaqueteo City.

Après moi, le déluge

Julito
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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.

Julito
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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
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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.

at46
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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
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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
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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
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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.

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admin
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Re: REal estate tax question

Post by admin » Mon Apr 16, 2018 11:49 am

Sorry, been really busy recently.

Not registering with the tax authority could mean a lot of things, but in general would be illegal or at least is a major red flag. It may or may not be fixiable, but that can only be determined with a title search. In most situations it is fixiable. It just might take a bit more work.

In general, it is a very bad idea to try and hunt for land online in chile. You kind of need to see it for yourself.

If you can resend your message, it will get to the top of my inbox as i dig out from the recent backlog.
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.

Huelshoff
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Re: REal estate tax question

Post by Huelshoff » Mon Apr 16, 2018 1:15 pm

Thanks. I'm sending you an email at law@spencerglobal.

picalena
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Re: REal estate tax question

Post by picalena » Thu Apr 19, 2018 11:08 am

Huelshoff wrote:
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.

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 will reiterate what everyone else says. If you are planning to semi-reside in a house near Caburgua and you are from NOLA, you are probably going to really regret your decision for a billion reasons. To answer your specific question, you will not have internet to speak of and you will not be able to afford getting the line run up to your property, assuming anyone actually ever shows up to do it. And frankly, that will be the least of your frustrations.

cheers,
pl
A woodsman was once asked, “What would you do if you had just five minutes to chop down a tree?” He answered, “I would spend the first two and a half minutes sharpening my axe.” - Dubious source on the internet

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