• General regime of prior authorization from DIFROL for State properties in the Border Zone

The Ministries, agencies and institutions of the State Administration, whether centralized or decentralized, including the Municipalities, must request prior authorization from DIFROL to sell, lease or grant concessions, permits or authorizations and, in general, enter into any act or contract, with respect to national assets for public or fiscal use, or that form part of the patrimony of said institutions, which are located totally or partially in border areas of the national territory.

Only legal acts referring to properties located in the border area that have the character of national property for public use, that belong to the Treasury or to other State institutions, are subject to this obligation.

The sale, the lease, as well as the celebration of other acts and contracts referring to properties belonging to individuals, located in the border area, are not subject to this prior authorization from DIFROL, in accordance with the provisions of art. 5 of the decree with force of law No. 83 of 1979, of the Ministry of Foreign Affairs.

Without prejudice to this rule, there are prohibitions for obtaining public land, whether owned, leased or under any title, in the border and coastal strips, by Chilean natural or legal persons, in the manner established in art. 6 of Decree Law No. 1,939 of 1977.

Regarding the prohibition for nationals of bordering countries to acquire the domain and other real rights or to exercise the possession or possession of real estate located totally or partially in the zones of the national territory declared bordering, the current regulations contemplate the possibility of obtaining authorization from the President of the Republic by supreme decree, after a report from the National Defense Staff and DIFROL.

In the following paragraph, the legal norm that raises the aforementioned prohibition and the current procedure to obtain the authorization of the President of the Republic are detailed.

• Prohibition of the acquisition of real rights over real estate by foreigners

As provided by art. 7 of Decree-Law No. 1,939 of 1977, nationals of neighboring countries are prevented from acquiring ownership and other real rights or exercising possession or possession of real estate located totally or partially in the areas of the national territory declared border.

This prohibition extends to companies or legal persons with their main headquarters in the neighboring country, or whose capital belongs 40% or more to nationals of the same country or whose effective control is in the hands of nationals of those countries.

The President of the Republic, employing a supreme decree based on reasons of national interest, may expressly exempt nationals of bordering countries from this prohibition, and authorize them to acquire or transfer the domain or other real rights or exercise the possession or possession of one or more specific properties, located in border areas.

In the latter case, the interested party must require the President of the Republic’s authorization, submitting his request to the Municipality or Provincial Government corresponding to the place where the property is located. The application and its background will be submitted in triplicate and must contain: