1.- SENIOR CITIZENS
Property tax exemption for people over 65
- Benefit: 100% exemption from property tax (impuesto territorial) on the primary residence.
- Requirements: The regulations will set out the conditions for accessing this benefit. Initially, they would relate to the person’s habitual residence and electoral domicile.
2.- MUNICIPALITIES
- Common Municipal Fund (Fondo Común Municipal): CLP $110,000 million.
- Compensation for direct municipal revenue: CLP $80,000 million.
- Annual calculation of the amounts is the responsibility of the SII (Servicio de Impuestos Internos – Chile’s Internal Revenue Service); transfers are made by the Treasury (Tesorería General de la República).
- Municipalities are required to provide information and reduce permit processing times.
3.- RESIDENTIAL LEASING
New 5% single tax on rental income
- Applies to: Gross rental income from the third DFL No. 2 housing unit onward (a tax-benefit residential category), of up to 90 m².
- No change: The first two DFL No. 2 housing units retain the current tax regime.
- May also opt in: Certain legal entities whose exclusive business purpose is leasing this type of housing
4.- NEW HOUSING
Transitional benefits for new housing
- VAT exemption: For one year, on the first sale of new housing units with final or partial building completion approval (recepción) issued before the law’s publication.
- DFL No. 2 benefit: For new housing units of up to 140 m² acquired within the following twelve months, whose rental income could become subject to the 5% single tax.
