Methods of payment:
There are several ways in which a foreigner can pay for his land in Freedom Orchard (yes, a foreigner can hold title to Chilean property). Some are more cumbersome than others, but thanks largely to American financial rules and worries about drugs and terrorism, we all have to put up with certain inconveniences.
- Bring cash. Declare it with customs at the airport and save the form that you fill out. We will then take the form, cash and you to the bank, where you will make a further declaration of source of funds and deposit the cash into our account. We offer a two per cent discount off the purchase price, up to a maximum of USD$2,000, for customers who elect this option.
- Bring traveler’s checks in denominations of $1,000 USD, 1,000 British Pounds or 1,000 Euros. Declare them with customs at the airport and save the form that you fill out. We will then take the form, and take you to the notary, where you will make a further declaration of source of funds. We offer a one per cent discount off the purchase price, up to a maximum of USD$2,000 for customers who elect this option. Traveler’s checks are safer to travel with since they can be replaced if lost or stolen. But it can be inconvenient to acquire and sign a pile of traveler’s checks!
- Bring gold coins in denominations of one ounce pure, from major producers like Canada, Australia, New Zealand or Singapore. United States and South African coins are acceptable but not preferred since they are not pure. If you choose to declare the gold with customs at the airport, you risk having to pay a tax of up to 40% on the coins—especially if minted in a country without a free trade agreement with Chile (that is one reason why carrying coins from Chile, Canada, Singapore and New Zealand is preferred). Because the gold market is so thin in Chile and there are additional transactions costs for us to complete a sale using gold, customers receive no discount for gold and their gold will be credited at the spot price of gold on the day of payment less a haircut of one-half of one per cent. If you happen to have Chilean 100 pesos gold coins (0.5886 ounces of gold per coin) minted from 1926 to 1980, we will credit you for the gold without a haircut. If you would like us to receive other kinds of gold coins as payment, a three percent haircut will be required.
- A wire transfer can be made to an offshore account. Please contact us if you prefer this option. When the land purchase is completed in Chile, $10,000 USD in cash (or equivalent in other currency) will be required to buy the land in Chile to show a “reasonable” sales price. That cash amount will be deducted, obviously, from the amount sent to the offshore account.
- We can attempt to charge a credit card, for those who have high limits, for all or part of the purchase price. There is a 2% fee for all card carriers in this service except in the case of American Express in which we charge 4% of the purchase price additional. We recommend that buyers have a backup plan in place in case the credit card purchase does not go through.
- A wire transfer can be sent to our account in Chile. This is the most cumbersome option since, at a minimum, the customer is required to get a notarized letter of good standing from his bank, or banks if there are multiple transfers of funds, acquire the certificate of notary from the county clerk (USA) which attests to the notary’s authenticity, and send the documents to the Chilean consulate that has appropriate jurisdiction along with a US$12 money order and prepaid FedEx envelope to send the document to us in Chile (only clients with login get the address). Please send us a request for banking information.
USA residents: Find the Chilean Consulate which has jurisdiction over your state and address to send paperwork to by clicking this link: http://www.chile-usa.org/consular.htm
A mixture of any of the aforementioned purchase methods is acceptable. Once in Chile, the purchaser must get a tax ID number from the SII office in Providencia, Santiago in order to complete the land purchase. We handle this errand with the client (who must be present with his passport) which usually takes less than two hours.