How to obtain your Foreign Investor RUT in Chile

To obtain a foreign investor RUT in Chile, which allows you to make investments, engage in business activities, and take advantage of the opportunities available in the country, you must follow a process through the Internal Revenue Service (SII). The following explains the basic steps and related procedures.

Obtaining a Foreign Investor RUT

1. Appoint a Legal Representative in Chile

You must appoint a legal representative residing in Chile to act on your behalf for tax and legal matters. This representative may be an individual or a legal entity and will be responsible for requesting the RUT from the SII.

2. Obtaining the RUT from the SII

The legal representative must complete the RUT application through the SII website. They should log in with their RUT and credentials and access the "Inscription and RUT Number Assignment" section. For an individual investor, select "Individual Foreign Investor" and choose "Foreign Investor" under "Taxpayer Type."

The representative must provide their contact details, the foreign investor's personal information, and upload required documentation, including a notarized power of attorney authorizing the representative to act on the investor's behalf. The foreign investor's Tax ID (tax identification code) from their country of residence is mandatory to complete the process.

3. Documents Required for the Online SII Application

The representative must upload the following documents:

• A copy of the foreign investor's passport or identification document.
• A notarized power of attorney, apostilled or legalized as appropriate (if issued abroad).
• For a foreign legal entity, the company’s articles (deed) of incorporation duly legalized.

4. RUT Processing Time and In-Person Presentation

Once documentation is submitted and verified, the SII typically assigns a RUT within 5 to 10 business days. This number is essential for economic or tax activity in Chile, such as purchasing property, investing in businesses, and opening bank accounts.

The SII offers electronic processing for foreign investor registration, but in some cases the legal representative may need to appear in person, depending on the circumstances.

5. Starting Business Activities (optional)

If the foreign investor wishes to begin business activities in Chile, they must formally declare the start of activities with the SII, which may require additional documents. This process can take a few days or weeks depending on document submission and SII review.

Designating a Representative in Chile

If you appoint a representative in Chile to carry out legal or tax procedures (such as obtaining an investor RUT), follow a formal process that varies by country of residence and the action you plan to undertake. The general procedure is:

1. Draft a Power of Attorney

Draft a power of attorney granting a person in Chile the authority to act on your behalf. The document should detail specific actions the representative may perform, such as obtaining a RUT, making investments, or representing your interests in Chile. There are two main types:

• General Power of Attorney: Grants broad authority for multiple legal actions.
• Special Power of Attorney: Grants authority for specific, limited actions.

2. Authenticate the Power of Attorney in Your Country

If you are outside Chile, sign the power of attorney before a notary public in your country, then legalize or apostille it as required:

• Legalization: For countries not in the Apostille Convention, the document must be legalized by your Ministry of Foreign Affairs and the Chilean Consulate.
• Apostille: For Hague Convention members, the document can be apostilled by the competent authority, and no further consular legalization is required.

3. Legalize the Power of Attorney in Chile

Once the apostilled or legalized document arrives in Chile, submit it to the Chilean Ministry of Foreign Affairs for validation, then register it with a Chilean notary so it becomes legally valid in the country. The representative can then use the power of attorney to act on your behalf.

4. Granting a Power of Attorney in Chile (If You Are in Chile)

If you are in Chile, present your foreign passport to a notary and grant the power of attorney directly to your Chilean representative without the need for legalization or apostille.

5. Powers of the Representative

The representative can perform actions outlined in the power of attorney, such as obtaining a RUT, representing you before the SII, opening an investment account at a bank’s brokerage, making commercial or investment transactions (including purchasing property), and handling legal or judicial procedures as authorized. Draft the power of attorney clearly and specifically to avoid misunderstandings.

Transferring Funds and Opening Bank Accounts

Yes, you can open a bank account in Chile with an investor RUT, though options and requirements vary by bank and often depend on residency. Below are common alternatives for foreigners.

Special Requests

Some banks offer special accounts for foreigners with an investor RUT. These accounts may have restrictions and limited functionality, primarily to facilitate investment transactions. Opening such an account typically involves a detailed compliance review and may require a guarantee deposit; approval is not guaranteed.

Opening an Investment Account

The most common option is to open an investment account with a bank's brokerage firm rather than a checking account. After obtaining the investor RUT, you can open this account by providing:

• A valid passport
• A completed and signed NCG 380 contract
• KYC documentation
• Signed FATCA form
• Signed PEP (Politically Exposed Person) form

This account typically takes about a week to open and allows you to transfer funds from abroad to the bank’s stockbroker, who will allocate the funds to your investor RUT. Some stockbrokers offer a simplified process and may manage the RUT registration directly, but obtaining the RUT yourself via a legal representative provides more independence in choosing your stockbroker.

Withdrawing Funds and Using a Vale Vista

1. Withdrawing Funds from the Stockbroker

To withdraw funds from your investment account for a real estate purchase, the stockbroker may request documents proving the intended use, such as a draft of the purchase deed or a promise contract. The investor must sign the instruction to move the funds.

If you have a checking account, the stockbroker can transfer funds directly to it. If not, the stockbroker will transfer funds to the bank account it operates with so the bank can issue a vale vista (bank draft) in the investor’s name.

2. Financing Your Project with a Vale Vista

A vale vista is a bank document guaranteeing payment of a specific amount and is commonly used for secure real estate transactions in Chile. Additional considerations include:

• Banks require information to issue a vale vista: the seller's name, the purchase price as stated in the deed, the purchase deed or promise contract, the foreign investor’s identification, and the investor's RUT.
• Banks charge a fee to issue the vale vista, depending on the amount and their policies.
• Transferring funds from the stockbroker to the bank can take 1–2 business days; the vale vista is typically issued within a few hours once the funds are available.
• The vale vista can be delivered to the investor, their legal representative, or the seller per instructions.
• Both bank and stockbroker must comply with anti-money laundering regulations and may request documents about the origin and final destination of funds.
• Although investment account funds may be in U.S. dollars, the vale vista must be issued in Chilean pesos for real estate transactions.
• The vale vista is delivered to the seller (often with notarial instructions) at the deed signing before the notary.

This procedure enables a foreign investor to move funds from an investment account through the bank to formalize a real estate purchase in a transparent manner.

How Produncan Lands Can Assist You

At Produncan, we guide you through each step of the investment process in Chile. We assist with appointing a reliable legal representative, preparing required documentation, and interacting with banks and tax authorities so you can focus on investment decisions.

From obtaining your investor RUT to opening investment accounts and coordinating transfers, our team provides practical support to help ensure compliance and efficiency throughout the process.

For assistance with obtaining a foreign investor RUT, please contact us here. For legal advice and details on services we offer, find out more here.