Property tax in Chile

It is important to note, that in Chile property will not be charged with tax for rental income if the facilities is smaller than 140 m2. For properties with an area over 140 m2 taxes are charged only in case of its profitability being over than 11% per year.

Real Estate taxes (land, buildings, facilities) in Chile are proportional to the cadastral value of the property and is paid at the rate of 0% and 1% of the cadastral value of a year, depending on the area and real estate type. For the majority of residential property located within the city limits the amount of tax is 1% per year of the cadastral value. For agricultural areas up to 1 ha of property taxes are not paid. Also, the income resulting from the rental of real estate related to DFL2 law do not pay income taxes.

The DFL2 law

The properties included in the DFL 2 law are all residential.

Properties in the DFL-2 are exempt from income tax, that is, if the income obtained by renting the property is not taxed (up to a certain number of properties).

In addition, the properties in the DFL2 pay only half of the Real Estate taxes for 20 years

Agricultural areas up to 1 ha are not charged with taxes.

If the residential real estate has a usable area of 30 m2 the property will not be taxed.

Other betting on Real Estate tax

Agricultural plots without residential buildings – 0%

Agricultural areas with residential buildings – 1% yearly of the cadastral value or 0,5% for Real Estate less 140 m2 .– 0.5% per year

Living quarters (houses, apartments) with a usable area of 30 m2 in the city area – 0%

Offices – 1% per year