About 26 kilometers north of Puerto Varas is the charming town of Frutillar, on the banks of Llanquihue Lake. You’ll want to visit Frutillar Bajo, the section of town right by the lake rather than Frutillar Alto, a largely residential area. The draw here is the German ambiance with carved-wood architecture, German pastry shops and restaurants near Calle Philippi serving German dishes, wines and beers. The Museo Colonial Alemán (the German Colonial Museum) recounts the history of the area’s settlement while concerts at the newly opened Teatro del Lago are accompanied by Instagram-ready views.