Why invest in Patagonia?
An introduction to Chilean Patagonia
Patagonia is a geographic region located in the extreme south of South America, covering territories of Argentina and Chile. It is known for its vast expanse of natural landscapes of spectacular beauty and unique diversity.
Chilean Patagonia, located between the Lakes Region and Magallanes, is characterized by its diversity of landscapes, climates, ecosystems and cultural heritage, exemplified in its gaucho traditions that are still alive today.
Its geographic territory is distinguished by snow-capped mountain ranges, lush ancient forests, glaciers, ice fields, deep fjords, vast plains of green pastures and crystal clear waters.
Its enormous lands populated by forests, fjords and snowdrifts are responsible for the sinking and dismemberment of the coast and the Andes mountain range, resulting in small islands and channels, which then give way to the extensive Patagonian pampas.
Living in remote, cold and unpopulated areas on the edges of the continent has resulted in low population density.
Patagonia is home to a rich flora and unique wildlife habitats, including endemic species such as the huemul, condor and puma.
One of the most iconic places is Torres del Paine National Park, where you will find imposing mountains, glaciers and intense turquoise lakes. The place is considered one of the natural wonders of Chile and the world.
In general, Patagonia is an ideal place for nature and adventure lovers, offering a variety of outdoor activities such as trekking, horseback riding, climbing, kayaking, sailing and fishing amidst some of the most beautiful landscapes on earth.
Patagonia to live in
Many residents of Chilean Patagonia value the tranquility and connection to nature that the region offers. Life here can be more relaxed and less technology-centric than in larger urban areas.
However, due to the explosion of telecommuting and the ease of access to solar panels and satellite internet, many people are now leaving the cities and moving to rural areas to connect and work remotely, while enjoying nature and a healthier, less stressful life.
In Patagonia you can now have that perfect mix of being far away, but at the same time very well connected!
Living in Patagonia can be a unique and enriching experience for those who enjoy life in nature and are willing to adapt to a distinctive climate and lifestyle.
Produncan through its real estate agency invites you to discover Patagonia, where the connection with nature will inspire you to live in harmony and enjoy every day to the fullest.
Why invest in Patagonia
Worldwide interest in preserving, investing and living in Chilean Patagonia has driven immense local and international demand for large and small tracts of land; Today everyone wants to be part of this magical and unexplored place, from companies looking for attractive returns to individuals seeking refuge from global uncertainty.
There are those who believe that at some point a global catastrophe could occur and in that scenario, Chile would present itself as a small but stable country, and with a Patagonia rich in natural resources, everyone would want to be there. In addition, in the event of a nuclear war, they say that air currents would prevent radiation from affecting the Patagonian region, making it even more attractive.
For its part, Chilean Patagonia has notoriously lower costs than similar areas in the world, such as New Zealand or some parts of North America, being up to ten times cheaper.
As a result, local and foreign individuals are acquiring small pieces of land as an investment or refuge, and in parallel, investors have readjusted their portfolios away from the volatility of the financial markets and are looking for real estate that is protected against inflation and experiences high capital appreciation.
There are several reasons to consider investing in Patagonia. In Produncan Lands we present the most relevant ones:
- Natural Resources: Patagonia has a great diversity of natural resources, including oil, gas, fisheries, green hydrogen, timber, fresh water and hydroelectric power, among others. This may offer investment opportunities in sectors such as energy, mining and fishing. In addition, there is the option to participate in the issuance of carbon credits for international markets.
- Tourism: Patagonia is known for its impressive natural landscapes, such as glaciers, mountains, lakes and wildlife. These attractions can generate investment opportunities in the tourism sector, such as hotels, restaurants and recreational activities.
- Infrastructure: In recent years, investments have been made in improving Patagonia’s infrastructure, which has improved access to the region. In addition, there are projects underway to improve roads, airports and ports, which may open up opportunities for infrastructure investments.
- Land value appreciation: Land value appreciation in Patagonia is growing at a dizzying rate.
- Political stability: Chile is a democratic and politically stable country. This provides a secure and stable environment for investments.
- Tax incentives: Chile offers tax incentives and incentive programs for companies investing in the region, which can reduce the cost of investment and increase profitability.
In summary, Patagonia offers an attractive environment for investment in sectors such as natural resources, tourism and infrastructure, with a stable policy framework and tax incentive programs.
However, at Produncan Lands we suggest that before investing you conduct a thorough research to evaluate specific risks and opportunities.
Corporate Tax Incentives
In Chile, there are some tax incentives for companies investing in Patagonia. Some of them are described below:
Land tax exemption: Companies investing in Patagonia may apply for a land tax exemption for a period of 10 years. This benefit applies to companies that invest in real estate located in the Aysén and Magallanes regions.
Special credit for investment: The Chilean government offers a special credit for companies investing in Patagonia. This loan covers up to 50% of the total investment costs in construction projects, acquisition of machinery and equipment, among others.
Donations Law: Companies investing in Patagonia can avail themselves of the Donations Law, which allows income tax deductions of up to 50% of contributions made to development projects in Patagonia.
Magallanes Development Fund: This fund was established to promote the economic development of the Magallanes Region and is intended to finance investment projects and promote job creation. Companies investing in Patagonia can apply to this fund to receive financing and other support.
It is important to mention that these tax incentives are subject to certain conditions and requirements, so it is recommended that interested companies inform themselves in detail about them. In addition, the information contained herein is valid as of the date of its creation and is subject to change or update.
