This work investigated the electrical, dielectric, and magnetic properties of ferrofluids containing Fe3O4 nanoparticles and their composites with chitosan (30–100 cP and 100–300 cP), relevant to magnetic hyperthermia. The nanoparticles were synthesized by coprecipitation and characterized using impedance spectroscopy, X-ray diffraction, scanning microscopy with X-ray microanalysis, Mössbauer spectroscopy, and calorimetry. The study showed that the chitosan coating altered the textural properties of Fe3O4, reducing the specific surface area from 76.3 m2/g to 68.9–72.5 m2/g. The zeta potential and particle size showed strong pH dependence. Impedance measurements showed that the conductivity of ferrofluids was frequency- and temperature-dependent, with both metallic and dielectric conductivity observed. The complex dielectric permittivity exhibited Maxwell–Wagner–Sillars interface polarization. Calorimetry revealed that specific absorption rate (SAR) ranged from 11.4 to 23.4 W/g, depending on the chitosan concentration and type, while the chitosan coating reduced SAR by 12–40%. These results confirm that the electrical and dielectric parameters of ferrofluids significantly influence their thermal capabilities, which is important for optimizing magnetic hyperthermia therapy when energy dissipation is considered in bio-heat models.