Countries › Chile › Guide › 11. Real estate and land › Tax on rental income from Chilean property: individuals, companies, non resident landlords, DFL Nº 2 homes and the new 5 percent single tax from 2027

Tax on rental income from Chilean property: individuals, companies, non resident landlords, DFL Nº 2 homes and the new 5 percent single tax from 2027

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

Rent from non agricultural property earned by resident individuals is exempt from first category (corporate) tax and is taxed only in the personal progressive tax, while companies pay corporate tax on it as part of their results. Non resident landlords pay 35 percent additional tax on the rent per the contract, without deductions. Homes under the DFL Nº 2 housing plan give individuals tax free rent on up to two units, and from 1 January 2027 owners may elect a 5 percent single tax on gross rent from the third small DFL Nº 2 home onward.

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

First category tax on non agricultural rent of individuals	Exempt textDL Nº 824 art. 39 Nº 3, as of 2026-10-26 · in force
Additional tax on rent paid to non residents	35 %DL Nº 824 art. 60, as of 2026-10-26 · in force
Optional single tax on gross rent from third and later DFL Nº 2 homes up to 90 m2	5 %Ley Nº 21.850 art. 3 (DFL Nº 2 art. 24 bis), as of 2026-10-26 · pending
Maximum built area of a DFL Nº 2 home	140 m2DFL Nº 2 art. 1, as of 2026-10-26 · in force
DFL Nº 2 homes per individual with income tax benefits	2 unitsDFL Nº 2 art. 1, as of 2026-10-26 · in force

The rule

1. First category tax applies to income from real estate. Owners or holders taxed on full accounting are taxed on effective income; the owner or usufructuary of agricultural land may credit the property tax paid against it. Taxpayers without full accounting who lease, sublease or otherwise assign the use of real estate are taxed on the effective rent shown by the contract without any deduction, including improvements, property tax and other outlays agreed to benefit the lessor; they may also credit property tax except when leasing to a spouse, civil partner, close relatives or related parties. Construction and real estate companies may credit property tax paid on units built for sale from the final reception.Decreto Ley Nº 824, Ley sobre Impuesto a la Renta, Art. 20 Nº 1 letters a), b) and c), 1974-12-31 official text · verified 2026-10-26

2. The effective rent from non agricultural real estate obtained by individuals is exempt from first category tax, so a resident individual landlord pays only global complementario (progressive personal tax) on it.Decreto Ley Nº 824, Art. 39 Nº 3, 1974-12-31 official text · verified 2026-10-26

3. Individuals and foreign entities without residence or domicile in Chile pay 35 percent additional tax on Chilean source income not taxed under art. 58 and art. 59, which includes rent from Chilean property; whoever pays or remits income subject to additional tax must withhold at the applicable rate.
Cost to do it: 35 percent of the rent: CLP 350,000 on a monthly rent of CLP 1,000,000.
Example: A non resident individual rents a Santiago apartment for CLP 1,000,000 a month: additional tax of CLP 4,200,000 a year on CLP 12,000,000. / About US$4,257 a year on rent of about US$12,163.Decreto Ley Nº 824, Art. 60 first paragraph and art. 74 Nº 4 first paragraph, 1974-12-31 official text · verified 2026-10-26

4. Homes built under the DFL Nº 2 housing plan (viviendas económicas, up to 140 square metres built per unit) give individuals, for a maximum of two homes (the two acquired first if they own more), rents that are not counted for global complementario or additional tax and are exempt from category taxes; a fiscal property tax exemption for 20, 15 or 10 years depending on size (up to 70, 70 to 100 and 100 to 140 square metres) that does not cover the municipal share; and exclusion from inheritance and gift tax where the deceased or donor built or first acquired the home. Legal entities cannot use these benefits.DFL Nº 2 of 1959, Plan Habitacional, text set by Decreto Nº 1.101 of 1960 (Diario Oficial 18 July 1960), as amended, Art. 1, art. 14, art. 15 and art. 16, 1960-07-18 official text · verified 2026-10-26

5. From 1 January 2027, individuals owning three or more DFL Nº 2 homes may elect, for the third and later homes of up to 90 square metres built that they lease to unrelated parties, a single 5 percent income tax on gross rent with no deductions; parking and storage at the same address leased together qualify. Companies, and sole proprietorships from the third home, may elect the same 5 percent tax if leasing such homes is their exclusive business, opting in on the start of activities notice; they pay monthly provisional payments of one twelfth of the rate, file an annual return, cannot claim the VAT refund of art. 27 bis, and leave the regime for good if they earn other income. For new DFL Nº 2 homes of up to 140 square metres bought from unrelated parties within twelve months of 17 October 2026, the 5 percent option applies to their rent from 1 January 2027.
Cost to do it: 5 percent of gross rent: CLP 600,000 a year on CLP 12,000,000 of rent.
Example: About US$608 a year on rent of about US$12,163.Ley Nº 21.850 (Diario Oficial 17 October 2026), adding art. 24 bis and art. 24 ter to DFL Nº 2 of 1959, Art. 3; fifth and eighteenth transitory articles, 2026-10-17 official text · verified 2026-10-26 · changed: New optional 5 percent single tax on gross rent from small DFL Nº 2 homes, in force 1 January 2027 (Ley Nº 21.850 of 17 October 2026).

Landlord	Treatment	Tax
Resident individual, ordinary home	Exempt from first category; rent enters progressive global complementario	Depends on bracket
Resident individual, one of first two DFL Nº 2 homes	Not taxed	CLP 0
Individual, third DFL Nº 2 home up to 90 m2, from 2027, electing the single tax	5 percent of gross rent	CLP 600,000 (US$608)
Non resident individual or foreign company	35 percent additional tax	CLP 4,200,000 (US$4,257)
Chilean company under the general regime	Rent is part of taxable profit (27 percent corporate tax), with final taxes on distribution	Depends on result

Tax on CLP 12,000,000 of annual rent from an unfurnished apartment (about US$12,163)

Worked example

A resident professional owns three DFL Nº 2 apartments of 55 square metres. Rent from the first two (by acquisition date) is tax free; from 2027 the owner can elect the 5 percent single tax on the third, paying CLP 600,000 a year (about US$608) on CLP 12,000,000 of rent instead of adding it to progressive personal tax.

Step by step

Check whether each home is a DFL Nº 2 vivienda económica (the building permit deed and size) and its acquisition date.
Register the lease in writing with notarised signatures (Ley Nº 18.101 art. 20), which also supports the effective rent shown to the SII.
Non resident landlords: arrange a local agent and the 35 percent withholding and monthly payment.
Furnished or equipped rentals are also subject to VAT (see real-estate/vat-on-real-estate).

Common traps

The DFL Nº 2 benefits are capped at two homes per individual, counted by acquisition date, not by the owner's choice.
The 5 percent regime is gross: no deduction of interest, property tax or common expenses.
Rent from related parties cannot carry the property tax credit for non accounting landlords.
A company electing the 5 percent regime must lease such homes as its only business.

Sources

← Tax on selling Chilean real estate: the 8,000 UF lifetime exemption, holding periods, the 10 percent option, related party sales, non resident sellers and buyer withholdingLeasing urban property in Chile (Ley Nº 18.101): scope, notice periods, fixed term leases, eviction procedure, the 2022 fast track monitorio claim for unpaid rent and early restitution →