Countries › Chile › Guide › 11. Real estate and land › 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 withholding

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 withholding

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

An individual, resident or not, who sells Chilean real estate held over one year pays no tax on gains up to a lifetime total of 8,000 UF (about CLP 330 million or US$334,000), with the gain measured against indexed cost and declared improvements. Residents choose for the excess between progressive personal tax and a 10 percent single tax; non residents pay 35 percent additional tax, collected through a buyer withholding of 10 percent of the price or 35 percent of the gain. Companies pay corporate tax on gains as ordinary income.

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

Lifetime exempt gain on real estate for individuals	8000 UFDL Nº 824 art. 17 Nº 8 b) ii), as of 2026-10-26 · in force
Optional single tax on the excess for resident individuals	10 %DL Nº 824 art. 17 Nº 8 b) iii), as of 2026-10-26 · in force
Holding period for the exemption	1 yearDL Nº 824 art. 17 Nº 8 b) iv), as of 2026-10-26 · in force
Holding period for property from subdivisions or new buildings	4 yearsDL Nº 824 art. 17 Nº 8 b) iv), as of 2026-10-26 · in force
Additional tax on a non resident's taxable gain	35 %DL Nº 824 art. 17 Nº 8 b) iii) and art. 60, as of 2026-10-26 · in force
Buyer withholding on payments to a non resident seller	10 % of priceDL Nº 824 art. 74 Nº 4, as of 2026-10-26 · in force

The rule

1. For individuals selling Chilean real estate, or rights in co owned real estate, not assigned to a sole proprietorship, the price up to the tax cost is not income; the cost is the acquisition value plus declared improvements that increased value, indexed to consumer prices from the month before acquisition or improvement to the month before sale. Improvements count only if made by the seller or a third party, owned by the seller and declared to the SII for the fiscal assessment before the sale.Decreto Ley Nº 824, Ley sobre Impuesto a la Renta, as replaced by Ley Nº 21.210 (Diario Oficial 24 February 2020), Art. 17 Nº 8 letter b) i), 2020-02-24 official text · verified 2026-10-26

2. The part of the gain that does not exceed, across all sales and properties of the taxpayer, a total of 8,000 UF (at the UF of the last day of the year of the sale) is not income. The excess is taxed with global complementario (residents) or additional tax (non residents) on a received basis, or, for individuals domiciled or resident in Chile, at the seller's option with a single substitute 10 percent tax. These rules apply only if more than one year passes between acquisition and sale; for property arising from a subdivision of land or from building apartments or floors (including storage and parking), the period is four years from acquisition or construction. Holding periods are counted from the dates of registration in the Conservador.
Cost to do it: 8,000 UF is about CLP 329,768,640 (about US$334,254).
Example: Resident seller, indexed gain CLP 400,000,000, no prior use of the exemption: CLP 329,768,640 exempt, CLP 70,231,360 taxed; with the 10 percent option the tax is CLP 7,023,136. / Gain about US$405,441; exempt about US$334,254; 10 percent tax about US$7,119.Decreto Ley Nº 824, as replaced by Ley Nº 21.210, Art. 17 Nº 8 letter b) ii) to iv), and final paragraph of art. 17 Nº 8, 2020-02-24 official text · verified 2026-10-26

3. Where the seller sells to a partnership or closely held corporation in which it participates, to its spouse, civil partner or relatives up to the second degree in the direct line, to a related party under art. 8 Nº 17 of the Código Tributario, or to its directors, managers or principal executives or entities they control, the gain is taxed with final taxes on an accrued basis. The SII may also reassess a sale price clearly above market value for similar property, taxing the difference under art. 21.Decreto Ley Nº 824, Art. 17 Nº 8, paragraphs after letter m), 2020-02-24 official text · verified 2026-10-26

4. Anyone who pays or remits to a non resident the proceeds of a sale covered by art. 17 Nº 8 letter b) must withhold a provisional 10 percent of the total paid, without deduction, or 35 percent of the gain if it can be determined; the seller may ask the SII in advance to determine the gain (answer within 20 business days, deemed accepted if silent), and no withholding applies if the seller proves that the taxes were paid directly, that the amount is non taxable or exempt, or that there was a loss. The buyer that fails to withhold without such proof is liable for the tax.
Cost to do it: Non resident seller, price CLP 600,000,000, gain CLP 400,000,000: provisional withholding of CLP 60,000,000 (10 percent of price) or CLP 24,580,976 (35 percent of the gain above the exemption, if determined in advance).
Example: About US$60,816 withheld on a price of about US$608,162, credited against the final 35 percent additional tax of about US$24,915.Decreto Ley Nº 824, Art. 74 Nº 4, third to fifth paragraphs, 2020-02-24 official text · verified 2026-10-26

5. Heirs selling inherited real estate may credit against the tax on the gain the inheritance tax paid on that property, in proportion to its value in the net inheritance, indexed to consumer prices.Decreto Ley Nº 824, Art. 17 Nº 8 letter b) vi), 2020-02-24 official text · verified 2026-10-26

Seller	Taxable part	Tax	USD
Resident individual, 10 percent option	CLP 70,231,360	CLP 7,023,136	US$7,119
Non resident individual, additional tax	CLP 70,231,360	CLP 24,580,976	US$24,915
Individual, held one year or less (no exemption, final taxes)	CLP 400,000,000	Progressive or 35 percent	Depends on bracket or residence

Tax on an indexed gain of CLP 400,000,000 (8,000 UF exempt = CLP 329,768,640 at the 26 October 2026 UF)

Worked example

A non resident individual bought an apartment in 2018, registered in the Conservador in 2018, and sells it in 2026 with an indexed gain of CLP 400,000,000. The first 8,000 UF is non taxable; the excess bears 35 percent additional tax. The buyer withholds 10 percent of the price unless the seller obtains an SII determination of the gain in advance. Any relief under a double tax treaty depends on the treaty; see taxes/tax-treaties.

Step by step

Keep purchase deeds, registration dates and invoices for improvements, and declare improvements to the SII before selling.
Track how much of the 8,000 UF lifetime exemption has been used.
Non resident sellers: file the SII request to determine the gain before the withholding deadline to avoid a 10 percent withholding on the gross price.
Buyers paying a non resident: withhold and pay under art. 74 Nº 4 and art. 79, or document the exemption.

Common traps

The 8,000 UF exemption is per individual for life, not per property or per year.
Holding periods run from registration in the Conservador, not from the promise contract or the deed.
Selling to your own company or a relative removes the received basis and the 10 percent option: the gain is taxed on accrual.
Companies get no exemption; their gains are ordinary taxable income.

Sources

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