Taxes paid by real estate in Chile

One of the issues that most concern to people when you make deals with real estate, is the taxation of real estate in Chile. Chilean law provides several benefits for real estate owners. The most important of these is the law DFL-2. Incomes proceeds from rent of apartments, houses for rent, belonging to the DFL-2, not pays income tax in Chile, this law is applicable to all residential real estate whose living space is not more than 140 m2 and some commercial real estate (Act DFL2).

What is the law DFL2 - tax subsidies in Chile

1. Exemption from income tax. Upon receipt of the proceeds from the rental of such property, proceeds are not taxable.
2. When buying real estate is not older than 2 years, the tax paid for the design part.
3. When buying a new real estate tax on the seals and stamps is not paid entirely.
4. When a hereditary transfer of such real estate, it will automatically be exempt from inheritance tax (Inheritance Tax).
5. Lodging DFL2 pays only half the property tax for up to 20 years from the date of service of the facility.

Real estate contributions

• Unlike most countries, Chile has a low property tax. Excluding tax benefits for new housing DFL-2 standard property tax in Chile is 0.35% of the estimated annual cost of housing, housing for over 20 years, tax is 0.75% per annum. Property tax subject to only a residential area. For comparison, property tax in Spain is 2%.
• Country land, up to one hectare property tax is not paid.
• Also in Chile, there are subsidies for the purchase of a new residential property, up to US$ 8.000, subsidies up to 60% of cost in purchase of historic real estate and several agricultural subsidies.

More information on agricultural benefits and government subsidies in Chile

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