On January 1st, 2027, Chile’s new general reassessment process for non-agricultural real estate will come into effect. This is a periodic procedure carried out by the Chilean Internal Revenue Service (SII, for its initials in Spanish) to update the tax-assessed values of residential, commercial, industrial, and other urban properties, which serve as the basis for calculating property taxes.
How is the tax-assessed value calculated?
The tax-assessed value considers, among other factors, the value of the land and the value of the buildings located on the property.
In the case of buildings, the SII generally relies on information derived from specialized studies on construction costs and building values. These studies are typically publicly available and may be reviewed by taxpayers.
Regarding the land, the process is more complex. The SII divides the country into different homogeneous zones, grouping together areas that share similar characteristics, such as land use, level of urban development, connectivity, available infrastructure, and the predominant use of the properties. Based on an analysis of real estate transactions carried out within those zones, the SII determines unit values per square meter, which are then used to calculate tax-assessed values.
However, one of the main concerns raised in recent years is that, while the SII provides a general explanation of this methodology, it does not fully disclose the specific parameters, supporting data, and methodologies underlying the values ultimately assigned to each zone.
More transparency
While the SII publishes and explains the references used to value buildings, there is growing demand for greater transparency regarding the data and parameters used to determine land values.
Therefore, recent measures promoted by both the SII and other public bodies have pursued to strengthen the traceability and understanding of the property assessment process.
In recent months, several initiatives aimed at increasing the transparency of the property assessment process have been announced. Among the most notable is the agreement reached between the SII and the Taxpayer Ombudsman Office (DEDECON, for its initials in Spanish), which seeks to improve the availability of information regarding both the assessment process and the data used in its development.
These efforts are complemented by provisions recently incorporated through new tax legislation, which pursue the same objective: strengthening access to information and facilitating a better understanding of the elements that influence the determination of tax-assessed values.
In addition, the SII recently reorganized its Property Valuation Division, creating new specialized units. Among them is the Cadastral Valuation Department, which has been expressly assigned with promoting transparency, enhancing the reliability of valuation processes, and ensuring the proper disclosure of the information used in assessments.
Why is this important for property owners and investors?
The tax-assessed value of a property is not only relevant for determining property taxes. It may also have significant implications for tax audits, estate planning, real estate asset valuation, and investment project assessments.
What can taxpayers do if they believe their assessment is incorrect?
Taxpayers have mechanisms available to review and challenge tax-assessed values when they believe they do not accurately reflect the property’s actual characteristics or contain errors in their determination.
Given that the reassessment will take effect on January 1st, 2027, property owners are advised to review the new valuations once they are published by the SII. The deadlines for challenging them are limited and begin to run following the official publication of the assessment rolls.
An administrative reconsideration request must be filed within 30 days following the end of the public exhibition of the assessment rolls, while a claim before the Tax and Customs Courts may be filed within 180 days after that.
The grounds for filing a claim are expressly limited by law. They include errors in the recorded land area or building surface, inaccuracies in other factors affecting the assessment, the incorrect application of classification tables, and calculation or transcription errors. The mere fact that the tax-assessed value exceeds the property’s market value is not, by itself, a valid ground for challenge, although it may indicate the existence of one of the said errors.
For further information, please contact our Tax Compliance and Accounting Team.
Content updated as of October 2026.
José Luis Campino
Associate, Tax Team, Fischer y Cía.