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Chile – Property Taxes

In Chile, property tax, also known as “municipal property tax” or “property tax”, is levied on the value of the property and is paid annually to the municipality where the property is located. The rate of property tax varies depending on the municipality and the type of property. For example, the property tax rate for residential properties in Santiago, Chile’s capital city, is 0.75% of the property’s value.

Capital Gains Tax (CGT)

When a property is sold, the capital gains tax (CGT) is levied on the difference between the sale price and the acquisition cost. The CGT rate in Chile is 25% for individuals and 35% for companies. However, there is an exemption for the CGT if the property is the main residence of the seller and has been held for at least five years.

Inheritance Tax

In Chile, inheritance tax is levied on the value of the property inherited. The tax rate varies depending on the relationship between the deceased and the inheritor, with a higher rate for non-relatives. For example, the inheritance tax rate for a child inheriting from a parent is 2%, while the rate for a non-relative inheriting from a deceased is 15%.

Gift Tax

In Chile, gift tax is levied on the value of the property gifted. The tax rate varies depending on the relationship between the giver and the receiver, with a higher rate for non-relatives. For example, the gift tax rate for a parent giving a gift to a child is 2%, while the rate for a non-relative giving a gift is 15%.

Tax on Property Income

In Chile, if a property is rented out, the income generated from the rental is subject to income tax. The tax rate is the same as the individual’s income tax rate. For example, if the individual’s income tax rate is 20%, the rental income tax rate is also 20%.

Tax Advantages in Buying a House in Chile


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Mortgage Interest Deduction

In Chile, mortgage interest paid on a property can be deducted from the individual’s income tax. This can provide significant tax savings for homeowners with mortgages.

Primary Residence Exemption
In Chile, if a property is designated as the primary residence of the owner, the capital gains tax is not levied when the property is sold, as long as the property has been held for at least five years. This can provide significant tax savings for homeowners who sell their primary residence.

Tax Relief for First-Time Homebuyers
In Chile, first-time homebuyers may be eligible for tax relief, such as a reduction in the property transfer tax, which is levied on the sale of a property. This can provide significant savings for first-time homebuyers.


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