Property taxes, also known as the territorial tax, are a tax levied on the ownership of real estate in Chile and constitute an important source of funding for municipalities. Their regulation is primarily contained in Law No. 17,235 on Territorial Tax.

Which properties are subject?

Not all properties are subject to this tax, as the law establishes exempt amounts and specific benefits. For these purposes, real estate is classified into two main categories:

• Agricultural properties: primarily intended for agricultural, livestock, or forestry activities.

• Non-agricultural properties: including residential properties, offices, commercial premises, warehouses, land, and all other properties that do not fall within the agricultural category.

How are property taxes calculated?

The basis for calculating property taxes is the property’s assessed value (avalúo fiscal), as determined by the Chilean Internal Revenue Service (SII, for its initials in Spanish).

To determine the assessed value, the SII considers various factors, including:

• The location of the property.
• The fiscal value of the land.
• The built area.
• The type and quality of the constructions.
• The purpose or use of the property.
• The physical and economic characteristics of the surrounding area.

Once the assessed value has been determined, the applicable rate is applied according to the property’s category and use. Additional surtaxes or surcharges may also apply where appropriate.

How often is the assessed value updated?

The SII carries out general revaluation processes every four years to update the assessed values of land and buildings.

In the case of agricultural properties, the latest revaluation entered into force in 2024. Law No. 21,806 extended the validity of these assessed values through December 31st, 2028.

For non-agricultural properties, the most recent revaluation took effect in 2022 and was originally scheduled to remain in force until 2026. However, it has been postponed until January 1st, 2027. During 2026, the current assessed values remain in force, subject to the adjustments applicable according to changes in the Consumer Price Index (IPC, for its initials in Spanish).

What are the applicable property tax rates?

Agricultural properties are subject to an annual tax rate of 0.4%.

For non-agricultural properties, the applicable rate depends on the property’s use. Non-residential properties are generally subject to an annual rate of 1.042%. Residential properties benefit from an exempt threshold and are subject to graduated rates on the taxable portion of their assessed value.

Undeveloped lots, abandoned properties, and gravel pit sites located in urban areas may be subject to a rate of 1.23% and an additional surtax equivalent to 100% of the assessed tax, resulting in an effective burden of approximately 2.46%. The application of these charges depends on the property’s location, classification, and specific characteristics.

When are property taxes due?

Property taxes are payable in four annual installments, due on the last days of:

• April.
• June.
• September.
• November.

What is the Real Estate Wealth Surtax?

Certain property owners may also be subject to the Real Estate Wealth Surtax. This tax is calculated based on the aggregate assessed values of all real estate owned by the same taxpayer as of December 3st of the preceding year. It includes an exempt threshold of 670 Annual Tax Units (UTA, for its initials in Spanish) and, once that threshold is exceeded, progressive rates apply, reaching up to 0.425%.

Advisory on assessed values and property taxes

At Fischer y Cía., we advise property owners and businesses on reviewing the assessed values of agricultural, residential, commercial, and other types of real estate.

We also represent clients before the SII and the competent courts in proceedings to seek reductions of assessed values, eliminate improper surtaxes or surcharges, apply available exemptions, and secure the recognition of statutory limitations on outstanding property tax liabilities, where applicable.

For more information, please contact our Tax team or contact us through our Communications Form.

Content updated as of August 2026.