A temporary VAT exemption is proposed for the sale of new residential properties, effective from the second month following the publication of the law, for a period of 12 months.

• To access this benefit, the following requirements must be met:
  • The subject matter of the sale must be a residential property, that is, a property built and intended for habitation, regardless of its value, surface area, or number of units. Storage units and parking spaces are included, provided they are transferred in the same transaction.
  • The sale must correspond to the first transfer of the property. Sales between related companies are excluded from this benefit.
  • The housing must have, as of the date of publication of the law, the final or partial certificate of occupancy granted by the competent Municipal Works Directorate.
  • The sale must be formalized in a public deed executed within one year from the first business day of the second month following the publication of this law. Deeds executed after this deadline also qualify, provided that a promise to purchase agreement was entered into during the exemption period
• This exemption does not affect the seller’s right to claim input VAT credits on goods and services used in the construction of the property, which may be offset against output VAT from other taxable transactions.
  
  Alternatively, the seller may choose to have the remaining tax credit form part of the cost of the property or be deducted as an expense.
• The proportionality of the established tax credit regarding common-use assets will not be affected when the acquisition of goods and services is intended for the construction, development, and/or commercialization of the housing unit.

Effective date: 12-month period commencing on the second month following the law’s publication.

The inclusions in color correspond to amendments submitted to the original Bill, as approved by the Chamber of Deputies.

• A 100% exemption from real estate tax is established for the primary residence of owners over 65 years of age.
• Primary residence is defined as the property constituting the habitual residence and principal domicile of the taxpayer, which must coincide with their registered electoral address. Additionally, parking spaces and storage units located at the same address as the primary residence shall be considered part of it, provided they are intended for a use related to the habitation of the exemption beneficiary.
• It may only be used for one property throughout the national territory.
• In the case of co-ownership, the exemption will apply if all co-owners are individuals and the resident owner holds at least 50% of the property. In the event of succession due to the death of a spouse or civil partner, a 25% ownership interest suffices.
• This benefit extends to mixed-use properties, provided that the residential area represents at least 50% of the total built surface.
• To access this benefit, the taxpayer must file a sworn statement with the Tax Authority confirming that the property constitutes their habitual residence, within the timeframe and in the manner established by the Tax Authority by resolution.
• Improper use of this benefit is subject to a fine of 300% of the evaded tax and disqualification from claiming the benefit for 10 years.

Effective date: January 1 of the year following the publication of the law.

The inclusions in color correspond to amendments submitted to the original Bill, as approved by the Chamber of Deputies.

• The Bill proposes a 5% sole tax applicable on the gross rental income derived from economic housing units (viviendas económicas) with a built area not exceeding 90 square meters per unit.
• Parking spaces and storage units located at the same address as the housing unit and included in the relevant temporary use or enjoyment agreement may also be considered for purposes of this benefit. The dimensions of such assets shall not be factored into the calculation of the affordable housing unit’s floor area.
• In the case of individuals, the benefits currently in force remain unchanged with respect to the first two economic housing units. However, from the third unit onwards, they may opt for the sole income tax at a rate of 5%.
• Legal entities may elect to be subject to the regime from the first economic housing unit, whereas sole proprietors may only do so from the third unit onwards.
• Taxpayers opting for this new regime must have as their exclusive business purpose the lease, temporary use or enjoyment, or exploitation under any title of economic housing units that meet the requirements established in the Bill.
• Those who elect to be subject to this regime, must notify the Chilean IRS and remain subject to it for a minimum period of 5 consecutive tax years. If the taxpayer elects to exit the regime, they will not be permitted to re-enter it thereafter.

Effective date: January 1, 2027

The inclusions in color correspond to amendments submitted to the original Bill, as approved by the Chamber of Deputies.