Eligible homeowners aged 65 or older can claim a 100% property tax exemption on their primary residence from 1 January 2027. Applicants must submit a sworn statement to the tax authority by 31 December 2026 and meet the residency and ownership requirements.
Chile’s tax authority (SII) announced on 11 November 2026 that homeowners aged 65 and over will stop paying property tax on their main home from January 2027.
The new exemption applies to the owner’s primary residence under Law 21.850, which forms part of the National Reconstruction and Economic and Social Development Law.
Owners who want the benefit must apply by 31 December 2026. More than 200,000 property owners who currently pay this tax could qualify.
Who qualifies
A natural person aged 65 or older can receive a 100% exemption on their primary residence. The applicant must be up to date on property tax contributions and municipal sanitation fees. A co-owner must hold at least 50% of the property rights. Parking spaces and storage units linked to the home at the same address are also covered.
How to apply
Applicants file a sworn statement with Chile’s Internal Revenue Service (SII). They log in with their tax identification number or ClaveÚnica, then complete the “Real Estate Application Submission” form. They can also file in person at a regional office. The statement is needed only once. After that, the exemption renews automatically as long as the conditions stay in place. A filing made by 31 December 2026 takes effect on 1 January 2027 and appears in the property tax instalments for the first half of 2027.
Rules and penalties
SII Deputy Director of Valuations Pablo Muñoz says the exemption ends when the home stops being the primary residence, when the parking or storage units are no longer used with it, or when the property is sold. Owners must report these changes to the SII. Other properties the owner holds remain taxable, though they may qualify for the Senior Citizen Benefit (BAM), which the SII assigns each year automatically.
Anyone who gives false information faces a fine of 300% of the evaded tax. They also lose the right to claim the exemption for 10 years.
Inheritance cases
If the owner dies, the heirs may claim the exemption for 3 years from the date of death, or until they sell the home, whichever comes first. A surviving spouse or civil partner aged 65 or older who lives in the home keeps the exemption until death or sale.
The benefit does not apply if the owner bought the property from a spouse or civil partner, an ascendant or descendant up to the second degree of consanguinity, or a company or community in which any of these people hold a direct or indirect stake of 10% or more.
This rule applies when the purchase happened within 3 years before the sworn statement was filed.
