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Local and other taxes in Chile: the municipal business licence, property tax and its surcharges, and stamp tax on loans

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

Every business pays a yearly municipal licence (patente) of 2.5 to 5 per thousand of its tax equity, between 1 and 8,000 UTM, in July and January, split between the municipalities where it has premises according to staff numbers. Real estate pays property tax (contribuciones) at 1.042 percent a year on non residential property, with a lower 0.893 percent band for homes, plus a 0.025 percent fiscal surcharge and a progressive surcharge on large holdings. Loans and other credit documents bear stamp tax of 0.066 percent per month up to 0.8 percent, or 0.332 percent when payable on demand.

USD figures use the Central Bank exchange rate of CLP 986.58 per US dollar published in the Diario Oficial of 23 October 2026 (Ley Nº 18.840 art. 44). Tax units use the SII values of UTM CLP 72,151 and UTA CLP 865,812 for October 2026 and UF CLP 41,221.08 for 26 October 2026. Conversions are for orientation only.

Key facts

Municipal business licence, minimum rate on tax equity	2.5 per thousandDL Nº 3.063, art. 24, as of 2026-10-26 · in force
Municipal business licence, maximum rate on tax equity	5 per thousandDL Nº 3.063, art. 24, as of 2026-10-26 · in force
Municipal business licence, annual maximum	8000 UTMDL Nº 3.063, art. 24, as of 2026-10-26 · in force
Municipal business licence, annual minimum	1 UTMDL Nº 3.063, art. 24, as of 2026-10-26 · in force
Property tax rate, non agricultural non residential property	1.042 %DS Nº 437 of 2022, art. 1, as of 2026-10-26 · in force
Property tax rate, homes, lower band	0.893 %DS Nº 437 of 2022, art. 2, as of 2026-10-26 · in force
Fiscal surcharge on highest non agricultural rate	0.025 %Ley Nº 17.235, art. 7, as of 2026-10-26 · in force
Top rate of surcharge on large total real estate holdings	0.425 %Ley Nº 17.235, art. 7 bis, as of 2026-10-26 · in force
Stamp tax on credit operations, per month	0.066 %DL Nº 3.475, art. 1 Nº 3, as of 2026-10-26 · in force
Stamp tax on credit operations, cap	0.8 %DL Nº 3.475, art. 1 Nº 3, as of 2026-10-26 · in force
Stamp tax on credit operations payable on demand	0.332 %DL Nº 3.475, art. 1 Nº 3, as of 2026-10-26 · in force

The rule

1. Every profession, trade, industry, commerce or other secondary or tertiary profit making activity pays a municipal licence. The yearly licence is between 2.5 and 5 per thousand of the taxpayer's tax equity, with a minimum of 1 UTM and a maximum of 8,000 UTM; each municipality sets its rate within that range. Equity is the initial declared capital for new activities or the equity in the balance sheet at the prior 31 December. Taxpayers not required to keep a balance sheet pay 1 UTM.
Cost to do it: Between 1 UTM (CLP 72,151) and 8,000 UTM (CLP 577,208,000) a year at the October 2026 UTM.
Example: On tax equity of CLP 2,000,000,000, the licence is CLP 5,000,000 to CLP 10,000,000 a year depending on the municipality. / On US$2,027,205.09 of equity, about US$5,068.01 to US$10,136.03.Decreto Ley Nº 3.063, Ley de Rentas Municipales (consolidated by Decreto Nº 2.385 of 1996), Art. 23 and art. 24, 2008-07-04 official text · verified 2026-10-26

2. The licence covers 1 July to 30 June and may be paid in full or in two equal instalments in July and January. A business with branches, offices or other premises in several municipalities pays the total licence proportionally among them according to the number of workers in each, based on a declaration filed every May with the municipality of the head office.
Cost to do it: Administrative cost of the May declaration.Decreto Ley Nº 3.063, Art. 25 and art. 29, 2008-07-04 official text · verified 2026-10-26

3. From November 2026, municipalities send the Treasury each March a list of taxpayers in arrears on licences and cleaning fees, and the Treasury collects them with its tax collection powers, including retaining them from annual income tax refunds. Ley Nº 21.850 also opens a regularisation procedure, with full condonation of interest and fines if its conditions are met, for unpaid municipal charges accrued in the three years before 1 January 2026.
Cost to do it: Unpaid licences can now be offset against income tax refunds.Ley Nº 21.850, amending Decreto Ley Nº 3.063, Art. 31 (new art. 47 bis to 47 quáter of DL 3.063); tenth transitory article, 2026-10-17 official text · verified 2026-10-26 · changed: Ley Nº 21.850 (Diario Oficial 17 October 2026) moved collection of overdue municipal licences and cleaning fees to the General Treasury and opened a regularisation window for older debts.

4. Property tax rates in the law are 1 percent a year for agricultural property, 1.4 percent for non agricultural property, and 1.2 percent for homes up to a threshold with 1.4 percent above it, reduced by decree when a reappraisal raises total collection by more than 10 percent. For the current reappraisal, Decreto Supremo Nº 437 of 2022 fixed 1.042 percent for non agricultural property and, for homes, 0.893 percent on the part of the taxable value up to the amount set by SII resolution and 1.042 percent above it, from 1 January 2022. A fiscal surcharge of 0.025 percent applies on the highest non agricultural rate.
Cost to do it: On a warehouse with a taxable value of CLP 986,580,000, about CLP 10,526,809 a year at 1.042 percent plus the 0.025 percent surcharge.
Example: CLP 10,526,809 on CLP 986,580,000 of taxable value. / About US$10,670 a year on US$1,000,000 of taxable value.Ley Nº 17.235 (consolidated by DFL Nº 1 of 1998); Decreto Supremo Nº 437 of 2022, Ministerio de Hacienda, Ley Nº 17.235 art. 7; DS Nº 437 art. 1 and art. 2, 2022-04-12 official text · verified 2026-10-26

5. A progressive surcharge applies to the total taxable value of all real estate owned by the same person above 670 UTA: 0.075 percent up to 1,175 UTA, 0.15 percent up to 1,510 UTA and 0.425 percent above, with the brackets increased at each reappraisal by the same percentage as non agricultural values. Property used in the business of Pro Pyme companies, pension fund real estate and certain other assets are excluded.
Cost to do it: Up to 0.425 percent a year on the part of total holdings above the top bracket.Ley Nº 17.235, as amended by Ley Nº 21.420, Art. 7 bis Nº 1 to Nº 3, 2022-02-04 official text · verified 2026-10-26

6. Promissory notes, bills of exchange, loans and any other document containing a money credit operation, including dematerialised ones, bear stamp tax of 0.066 percent of the amount per month or fraction between issue and maturity, capped at 0.8 percent. Documents payable on demand or without maturity pay 0.332 percent. Extensions and renewals are taxed again on the same scale.
Cost to do it: Up to 0.8 percent of the principal, usually charged to the borrower.
Example: A 12 month loan of CLP 986,580,000 pays CLP 7,813,714; a loan of 13 months or more pays the 0.8 percent cap, CLP 7,892,640. / On US$1,000,000: US$7,920 for 12 months, US$8,000 at the cap.Decreto Ley Nº 3.475, Ley de Timbres y Estampillas, Art. 1 Nº 3 and art. 2, 2014-09-29 official text · verified 2026-10-26

Term	Rate	Tax	Tax in CLP
3 months	0.198 percent	US$1,980	CLP 1,953,428
6 months	0.396 percent	US$3,960	CLP 3,906,857
12 months	0.792 percent	US$7,920	CLP 7,813,714
13 months or more	0.800 percent	US$8,000	CLP 7,892,640
On demand or no maturity	0.332 percent	US$3,320	CLP 3,275,446

Stamp tax on a US$1,000,000 credit operation by term (DL Nº 3.475 art. 1 Nº 3; CLP at 986.58 per US dollar).

Worked example

A Chilean SpA with tax equity of CLP 2,000,000,000 (US$2,027,205.09) and offices in two Santiago municipalities with 30 and 10 workers declares its staff split each May. If both municipalities charged 5 per thousand, the licence of CLP 10,000,000 would be apportioned by staff, broadly 75 and 25 percent, under the criteria of the regulation, and paid in July and January.
The same SpA borrows US$1,000,000 for two years from a foreign bank. Stamp tax at the 0.8 percent cap is US$8,000 (CLP 7,892,640), separate from the 4 percent withholding on interest.

Step by step

Obtain the municipal licence before starting operations at each premises (see entities and start here).
Each May, declare tax equity and staff by premises so the licence is apportioned correctly.
Pay the licence in July and January; unpaid licences are now collected by the Treasury.
For owned property, check the SII taxable value and pay contributions in the instalments the SII sets; review whether total holdings exceed the surcharge brackets.
Price stamp tax into financing: 0.066 percent per month up to 0.8 percent, or 0.332 percent for demand loans.

Common traps

The licence base is tax equity, so a well capitalised holding or subsidiary pays even with little activity, up to 8,000 UTM.
Branches in several municipalities split one licence by staff count; a missing May declaration leads to disputes between municipalities.
Rolling over short loans repeatedly retriggers stamp tax on each renewal.
The 1.042 and 0.893 percent property rates last only for the current reappraisal period and change by decree after each reappraisal.

Sources

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