The short answer: Law 21.850, published in Chile's Official Gazette on 17 October 2026, opens time-limited tax windows. Two of them matter to people outside Chile: new homes sold without VAT for one year from 1 December 2026, and gifts to children at half the tax, also from 1 December 2026. The offshore asset regularisation is only for taxpayers resident in Chile, and the corporate tax rate falls to 23% from 2029.
What the law is
Law 21.850, "for national reconstruction and economic and social development", was published in Chile's Diario Oficial on 17 October 2026. It is a broad tax and economic package. This guide covers only the parts that matter to foreign buyers and investors and to Chileans living abroad, and says plainly where a measure does not apply to them.
The dates
- 1 December 2026: the VAT exemption for new homes and the 50% gift-tax reduction open, each for one year.
- 1 January 2027: the offshore asset regularisation opens for twelve months; the property-tax exemption for over-65s takes effect.
- 17 June 2027: last day for companies to elect the 10% substitute tax on accumulated profits.
Buying a new home without VAT
Chile charges VAT on the first sale of new homes by developers. Under the fourth transitional article, for one year from 1 December 2026 the seller can opt to sell without VAT when all of these are met:
- It is a home, of any value or size, including parking spaces and storage units sold in the same deed.
- It is the first sale after final municipal approval (recepción definitiva). Sales between related companies do not count.
- The final municipal approval is dated before 17 October 2026. Homes approved later are excluded.
- The deed is signed within the year, or later if it follows a promise of sale granted by public deed or notarised instrument within the year.
The law does not require the buyer to be resident or Chilean. It also reaches back: purchases deeded from 22 April 2026 that paid VAT can qualify, with the developer claiming the refund from the tax authority and passing it back to the buyer. If you bought a new home in Chile since April, it is worth checking your deed. See how we handle a purchase from abroad.
Gifts to children abroad at half the tax
Chile taxes gifts under Law 16.271 on a progressive scale from 1% to 25%, and a gift normally needs court approval (insinuación). Under the first transitional article, gifts signed by public deed within one year from 1 December 2026 pay half the tax, once per donor, without court approval, when they go to the donor's forced heirs or beneficiaries of the cuarta de mejoras — children, spouse and the other relatives the Civil Code recognises.
The provision sets no residency requirement for the person receiving the gift, so a parent in Chile can give property or company shares to a child living abroad; the child will need a Chilean tax number. The donor files a sworn statement with the tax authority, can give away no more than 50% of their net worth and must keep assets worth at least twice what they give, and the notary will not authorise the deed until the tax is paid. A gift to a spouse under this regime is irrevocable, and if the child sells within three years the tax cost of the asset is the lower of the donor's and the child's. Whether the gift is also taxed where the child lives is a question for an adviser in that country.
Offshore asset regularisation: residents only
The third transitional article lets taxpayers domiciled, resident, established or incorporated in Chile declare undeclared assets and income held abroad, acquired before 1 January 2026, for twelve months from 1 January 2027, paying a single 10% tax, or 7% if they bring the assets into Chile and keep them invested there for at least five years. Owning real estate in Chile counts as keeping the investment in the country.
It is not available to foreigners who are not resident in Chile. It is relevant to people who have moved to Chile, or Chileans who returned, with savings left abroad: regularising and buying a property here can be one operation.
For investors with a Chilean company
The first-category (corporate) tax rate falls from 27% in 2026 to 25.5% in 2027, 24% in 2028 and 23% from 2029 (sixth transitional article). Companies with accumulated taxable profits can elect a single 10% substitute tax on them until 17 June 2027. For a company that holds rental property in Chile, the lower rate changes the comparison with owning in your own name — see buying through a company.
Property tax for over-65s
From 1 January 2027, individuals aged 65 or over are exempt from property tax (contribuciones) on their main home (article 10). It applies to one home only, the one where the owner habitually lives, through an annual sworn statement — so it does not cover a holiday home owned by someone who lives abroad.
By Felipe Andrés Solar Rojas, partner · Published 18 October 2026 · Last reviewed 18 October 2026
Heads the real estate, wealth structuring and company advisory practice at Iriarte & Solar. His work runs through Chilean notaries, the Conservadores de Bienes Raíces, the Internal Revenue Service and municipal works departments. Full profile (in Spanish).
Source: Law 21.850, published in the Diario Oficial de la República de Chile No. 44,576-B of 17 October 2026: article 10 and the first, third, fourth, sixth and eleventh transitional articles. The tax authority (SII) will issue resolutions with the procedure and forms. This guide describes the law at the date of last review; it is not legal or tax advice for a specific matter. Read the full guide in Spanish.