Real Estate in Border Zones

Borders Directorate
Coordination Unit

With regard to real estate located in border zones, there are no procedures that individuals are required to carry out directly with DIFROL. For these purposes, DIFROL coordinates with the relevant public agencies.

The following information describes the authorization regime and restrictions applicable to real estate located in border zones:

1

General Requirement for Prior DIFROL Authorization for State-Owned Real Estate in Border Zones

Ministries, agencies and institutions of the State Administration, whether centralized or decentralized, including Municipalities, must obtain prior authorization from DIFROL before selling, leasing or granting concessions, permits or authorizations and, in general, before entering into any act or contract concerning national assets for public use, State-owned property, or property forming part of the assets of such institutions, when such property is located wholly or partially within border zones of the national territory.

This requirement applies only to legal acts concerning real estate located within a border zone that constitutes a national asset for public use, belongs to the Treasury, or belongs to another State institution.

The sale, lease or execution of other acts and contracts involving privately owned real estate located within a border zone is not subject to prior authorization by DIFROL, pursuant to Article 5 of Decree with Force of Law No. 83 of 1979 of the Ministry of Foreign Affairs.

Notwithstanding the foregoing, restrictions apply to the acquisition of State-owned land, whether through ownership, lease or any other legal title, within border and coastal strips by Chilean natural persons or legal entities, in accordance with Article 6 of Decree Law No. 1,939 of 1977.

With regard to the restriction applicable to nationals of neighboring countries concerning the acquisition or transfer of ownership and other real rights, or the exercise of possession or holding of real estate located wholly or partially within areas of the national territory declared to be border zones, current legislation provides for the possibility of obtaining authorization from the President of the Republic by means of a Supreme Decree, following reports from the National Defense General Staff and DIFROL.

The following section describes the legal provision establishing this restriction and the procedure currently in force for obtaining authorization from the President of the Republic.

2

Restriction on the Acquisition of Real Rights over Real Estate by Foreign Nationals

Pursuant to Article 7 of Decree Law No. 1,939 of 1977, nationals of neighboring countries are prohibited from acquiring or transferring ownership and other real rights, or from exercising possession or holding, over real estate located wholly or partially within areas of the national territory declared to be border zones.

This restriction also applies to companies or legal entities whose principal place of business is located in a neighboring country, whose capital is owned by 40% or more by nationals of that same country, or whose effective control is held by nationals of those countries.

Notwithstanding the foregoing, the President of the Republic may, by means of a Supreme Decree based on reasons of national interest, expressly exempt specific nationals of neighboring countries from this restriction and authorize them to acquire or transfer ownership or other real rights, or to exercise possession or holding over one or more specified properties located within border zones.

In such cases, in accordance with Decree No. 232 of 1994, the interested party must request authorization from the President of the Republic by submitting an application to the Regional Intendancy or Provincial Governor's Office corresponding to the location of the property.

Information and Documents Required for the Application

The application and supporting documents must be submitted in triplicate and must include, at a minimum, the following information:

01

Applicant identification.
Name or corporate name, nationality, address and marital status of the applicant or applicants, as well as their profession or occupation.

02

Legal act and intended purpose.
A precise description of the legal act concerned and the purpose for which the property is intended to be used. Where applicable, the corresponding investment project must also be submitted.

03

Personal and legal documentation.
Criminal record certificate for the applicant or applicants, together with documentation proving their identity and nationality. In the case of legal entities, documentation proving their legal existence must also be provided. All such documents must be duly legalized or apostilled.

04

Identification of the property.
Information concerning the property's surface area, boundaries and location within the corresponding municipality, province and region.

05

Property plan.
A plan of the property approved by the competent authority, including a graphical indication of its location within the relevant area.

06

Certificates issued by the Real Estate Registrar.
Certificates of registration and current ownership, mortgages and encumbrances, restrictions and prohibitions, and any litigation affecting the property, issued by the corresponding Real Estate Registrar (Conservador de Bienes Raíces).