This is the sit of the presidency. Chile's presidents live in their own houses during their presidential periods, and only use the palace as a work place and for formalities. This palace was reconstructed and slightly modernized after 1973 when much of it burned following an air bombing raid during the Military Coup that deposed Salvador Allende and in which he died by his own hand in a confusing situation. The palace is open to the public.
Wikipedia article:
http://en.wikipedia.org/wiki/Palacio_de_La_MonedaCategory:
palace government landmark santiago chile presidente presidency