General procedure for reappraisal of non-agricultural real estate and means of contesting appraisals

by | Apr 11, 2022

On January 1st, 2022, the non-agricultural real estate reassessment process came into effect.

This process, which is carried out massively and simultaneously every 4 years, reaches a total of 7,486,473 real estates, of which 74%, that is 5.5 million, correspond to properties for residential use, while 26% remaining, that is 1.98 million corresponds to commercial properties, warehouses, unbuilt sites, among others.

The purpose of the process is to collect the capital gains or losses that these real estates have experienced in the last 4 years, associated with the improvement or implementation of new services such as subway stations, highways and hospitals, or to the detriments experienced in the environment such as be the generation of vacant lots. In particular, the following are considered relevant factors: (i) Behavior of the real estate market; (ii) road infrastructure and urban equipment; (iii) public investment; (iv) category of buildings; and (v) land use.

In this regard, the Territorial Tax Law establishes a procedure in relation to the implementation of the reassessment process, by virtue of which, although as of January 2022 it is possible to obtain a fiscal valuation certificate with the update of the current values , is during March 2022 the period in which the Internal Revenue Service will begin to communicate through the sending of informative letters (and its publication on the website www.sii.cl) the detail and updating components of the new values.

Likewise, article 6 of the Territorial Tax Law establishes that an exhibition of roles must be carried out in a visible place of the respective Municipality for a period of 30 days, a fact that must be communicated through a newspaper of local circulation.

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