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. 

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

• 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.
• 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 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.
• 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, rental income will be mandatorily subject to the aforementioned 5% sole tax, which shall be exclusive of any other tax regime.
• For legal entities and individuals who have allocated economic housing units to their sole proprietor, the regime is optional. In this regard, 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.
• In both cases, taxpayers opting into 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