Countries › Chile › Guide › 11. Real estate and land › The property tax surcharge on large holdings in Chile (sobretasa de impuesto territorial): who pays, how holdings are added up, marginal bands and rates, accrual and exclusions

The property tax surcharge on large holdings in Chile (sobretasa de impuesto territorial): who pays, how holdings are added up, marginal bands and rates, accrual and exclusions

Last verified: 2026-10-26 · Status: Changing

Owners whose Chilean property assessments add up to more than 670 UTA in the law, applied by the SII at 827 UTA (about CLP 690 million or US$700,000 at the December 2025 UTA) after the 2022 reappraisal, pay an extra annual tax on the excess. The marginal rates are 0.075, 0.15 and 0.425 percent, the total includes the residential exempt amounts, and the bands will rise again with the 1 January 2027 reappraisal. Property of Pro Pyme companies used in their business and pension fund real estate is excluded.

USD figures use the Central Bank exchange rate of CLP 986.58 per US dollar published in the Diario Oficial for 23 October 2026 (CVE 2891564). UF figures use the SII value of CLP 41,221.08 for 26 October 2026, UTM figures the October 2026 value of CLP 72,151 and UTA figures the December 2025 value of CLP 834,504. Conversions are for orientation only.

Key facts

Surcharge threshold in the law	670 UTALey Nº 17.235 art. 7 bis, as of 2026-10-26 · in force
Surcharge threshold applied by the SII after the 2022 reappraisal	827 UTALey Nº 17.235 art. 7 bis Nº 3, as of 2026-10-26 · in force
Marginal surcharge rates	0.075 / 0.15 / 0.425 %Ley Nº 17.235 art. 7 bis Nº 3, as of 2026-10-26 · in force
Top surcharge rate	0.425 %Ley Nº 17.235 art. 7 bis Nº 3, as of 2026-10-26 · in force
Surcharge threshold in pesos for 2026 (827 UTA at December 2025 UTA)	690134808 CLPLey Nº 17.235 art. 7 bis Nº 3, as of 2026-10-26 · in force

The rule

1. A surcharge accrues on the total fiscal assessment of all real estate owned by the same individual, legal entity or entity without legal personality, as registered in the Conservador, in the part exceeding 670 UTA. Co owners count only their share. Exempt assessments under the Cuadro Anexo or special laws are excluded, but the general residential and agricultural exempt amounts of art. 2 are included in full. The SII may audit the source of funds used to buy real estate and assess the value of acts and contracts used to acquire it.Ley Nº 17.235, text set by DFL Nº 1 of 1998, art. 7 bis added by Ley Nº 21.210 (Diario Oficial 24 February 2020) and amended by Ley Nº 21.420 (Diario Oficial 4 February 2022), Art. 7 bis Nº 1 and Nº 2, 2020-02-24 official text · verified 2026-10-26

2. The surcharge is marginal: 0.075 percent on the band above 670 and up to 1,175 UTA, 0.15 percent above 1,175 and up to 1,510 UTA, and 0.425 percent above 1,510 UTA. The bands rise by the same percentage as non agricultural assessments at each reappraisal; after the 2022 reappraisal the SII applies them at 827, 1,450 and 1,863 UTA. The UTA is converted at its value in December of the year before payment.
Cost to do it: At the December 2025 UTA of CLP 834,504 the bands start at CLP 690,134,808, CLP 1,210,030,800 and CLP 1,554,680,952 (about US$699,522, US$1,226,490 and US$1,575,829).Ley Nº 17.235, art. 7 bis as amended by Ley Nº 21.420; SII, Sobretasa de impuesto territorial, Art. 7 bis Nº 3, 2022-02-04 official text · verified 2026-10-26 · changed: Ley Nº 21.420 (Diario Oficial 4 February 2022) raised the top rate from 0.275 to 0.425 percent; the SII applies 0.425 percent from 2023.

3. The surcharge accrues on 1 January on the property registered to the taxpayer on 31 December of the prior year and is the full year's surcharge, so a sale during the year does not reduce it. It is billed with the property tax rolls and paid on the same dates as the property tax (art. 22), with the total assessment indexed under art. 9. It can be challenged under art. 123 of the Código Tributario, or under art. 149 when the challenge concerns an individual assessment. It has the same tax treatment as property tax; where properties have mixed uses, credits or deductions apply in proportion to the assessments.Ley Nº 17.235, art. 7 bis, Art. 7 bis Nº 4 and Nº 5, 2020-02-24 official text · verified 2026-10-26

4. Excluded from the surcharge: real estate of taxpayers under the Pro Pyme regime of art. 14 letter D) of the income tax law, to the extent used in the business; real estate in which pension funds invest under art. 45 letter n) of DL Nº 3.500; and property subject to art. 27 of Ley Nº 17.235 (fiscal, municipal or public land held by concessionaires or occupants).Ley Nº 17.235, art. 7 bis, Art. 7 bis Nº 1, second and third paragraphs, 2020-02-24 official text · verified 2026-10-26

Total fiscal assessment	Surcharge a year
CLP 690,134,808 (US$699,522)	CLP 0 (US$0)
CLP 1,000,000,000 (US$1,013,603)	CLP 232,399 (US$236)
CLP 2,000,000,000 (US$2,027,205)	CLP 2,799,503 (US$2,838)
CLP 5,000,000,000 (US$5,068,013)	CLP 15,549,503 (US$15,761)

Annual surcharge by total fiscal assessment, 2026 (bands 827, 1,450 and 1,863 UTA at CLP 834,504)

Worked example

A family office holding real estate assessed at CLP 2,000,000,000 in total pays CLP 2,799,503 a year of surcharge (US$2,838): CLP 389,922 on the first band, CLP 516,975 on the second and CLP 1,892,606 on the excess, on top of ordinary property tax.

Step by step

Add up the assessments of every property registered to the same owner at 31 December, including the residential exempt amounts.
Check whether a holding vehicle qualifies for the Pro Pyme exclusion for business use property.
Plan sales and purchases around 31 December, since the surcharge is fixed on that date's registrations.
Expect higher bands and new assessments from the 1 January 2027 reappraisal.

Common traps

Splitting property among related entities does not by itself avoid the surcharge: the SII can audit acquisitions and source of funds under art. 7 bis Nº 2.
Selling in January does not reduce that year's surcharge.
The statutory 670, 1,175 and 1,510 UTA bands are not the ones applied today; use the SII bands.

Sources

← Property tax in Chile (impuesto territorial or contribuciones): rates, residential exemption, assessments, quarterly payment, vacant lot surcharge and the new exemption for owners aged 65 and overVAT on real estate in Chile: sales by habitual sellers, the land deduction, furnished and commercial leases, and the 2026 to 2027 temporary exemption on new homes →