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Property taxes in Santiago in 2025 comprise several mandatory fees and ongoing obligations that every property owner must understand before investing. The Santiago real estate market operates under Chile's comprehensive tax framework, which includes purchase taxes, annual territorial taxes, rental income taxes, and capital gains obligations.
From transfer taxes of 0.2% on purchases to annual territorial taxes ranging from 0.98% to 1.4% based on fiscal assessments, Santiago property owners face a structured but manageable tax environment. Understanding these exact rates, payment schedules, and exemptions is crucial for calculating your total cost of ownership in Chile's capital city.
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Santiago property taxes in 2025 include a 0.2% transfer tax on purchases, annual territorial tax (Impuesto Territorial) ranging from 0.98% to 1.4% of fiscal value, notary and registration fees totaling 1.5-3% of purchase price, and capital gains tax on sales exceeding 8,000 UF lifetime exemption.
Property owners pay territorial taxes in four quarterly installments (April, June, September, November) with early payment discounts available, while rental income is taxed at progressive rates up to 40.5% and late payments incur 1-1.5% monthly interest penalties.
| Tax Type | Rate/Amount | When Applied |
|---|---|---|
| Transfer Tax (Impuesto de Transferencia) | 0.2% of purchase price | At purchase closing |
| Notary & Registration Fees | 1.5-3% of purchase price | At purchase closing |
| Territorial Tax (Impuesto Territorial) | 0.98% - 1.4% of fiscal value | Annually (4 quarterly payments) |
| Rental Income Tax | 0% - 40.5% progressive rates | Annual income tax return |
| Capital Gains Tax | Up to 40.5% on profits above 8,000 UF | Upon property sale |
| VAT on New Properties | 19% (from developers only) | New construction purchases |
| Luxury Property Surcharge | 1.4% (properties above ~$530,000 USD) | Annual territorial tax |
What are all the mandatory taxes and fees for buying, owning, renting out, and selling residential property in Santiago in 2025?
Santiago property owners face four main categories of taxes and fees throughout the property lifecycle.
For purchases, you'll pay the Transfer Tax (Impuesto de Transferencia de Bienes Raíces) at 0.2% of purchase price, notary fees ranging from 0.1% to 1.5%, property registration fees at the Conservador de Bienes Raíces typically 1-1.5% of purchase price, and legal fees around 1% of purchase price. If buying from a developer, you'll also pay 19% VAT on new constructions.
During ownership, the annual Territorial Tax (Impuesto Territorial) applies at rates from 0.98% for residential properties under the exemption threshold to 1.4% for luxury properties, plus potential luxury property surcharges for properties with fiscal values exceeding approximately $530,000 USD. Municipal service charges for waste collection, street lighting, and fire services are typically included in the territorial tax.
For rental income, you'll pay progressive income tax rates from 0% to 40.5% under the Global Complementary Tax (Impuesto Global Complementario), with deductions allowed for mortgage interest, repairs, management fees, and local property taxes. Short-term furnished rentals may be subject to 19% VAT if operated commercially.
Upon sale, capital gains above the 8,000 UF lifetime exemption are taxed at progressive rates up to 40.5%, with inflation adjustments allowed on acquisition costs and holding period exemptions available for properties held more than one year.
What are the exact transfer tax rates and fixed fees for property purchases in Santiago in 2025?
Santiago property purchases in 2025 incur a standard 0.2% transfer tax on the total purchase price, paid to the Chilean tax authority.
Notary fees range from 0.1% to 1.5% of the property value, typically averaging 1% for standard transactions, and are usually paid by the buyer unless otherwise negotiated. Property registration fees at the Conservador de Bienes Raíces cost between 1-1.5% of the purchase price, covering the legal transfer of ownership rights.
Legal fees typically cost around 1% of the purchase price and vary by lawyer, while property appraisal fees range from CLP 200,000 to CLP 500,000 per transaction. Due diligence and survey fees typically cost between CLP 500,000 to CLP 2,000,000 depending on property complexity.
Broker commissions, if used, typically range from 2-3% of the purchase price and can be negotiated between buyer and seller. For new properties purchased directly from developers, buyers must pay 19% VAT, but this doesn't apply to resale properties between individuals.
Total transaction costs typically range from 5-8% of the property value when combining all mandatory and optional fees.
Are there extra municipal or document fees due at closing in Santiago in 2025?
Santiago property closings in 2025 do not require separate municipal closing taxes beyond the standard transfer tax and registration fees.
The main document fees are included within the notary fees and registration costs at the Conservador de Bienes Raíces. Chile currently doesn't impose separate stamp duties or documentary taxes for residential property transfers, unlike some other countries.
Municipal governments in Santiago don't charge additional closing fees or transfer taxes at the local level. All property transfer taxes are collected by the national tax authority (Servicio de Impuestos Internos) through the standard 0.2% transfer tax.
However, buyers should budget for potential additional costs like property appraisals, legal due diligence, survey fees, and any required property inspections, which are service fees rather than government taxes.
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What is the annual property tax system in Santiago in 2025, including assessment methods and rates?
Santiago's annual property tax is called the Impuesto Territorial (Territorial Tax), also known as Contribuciones de Bienes Raíces.
The tax is assessed on the cadastral value (avalúo fiscal) determined by the Chilean tax authority (SII), not on market prices. This fiscal assessment is typically lower than market value and gets reassessed every 3-4 years during official revaluation processes, with the most recent revaluation taking effect in January 2025.
Tax rates depend on property type and fiscal value: residential properties with fiscal values up to CLP 56,846,995 (as of 2025) are exempt from territorial tax. Properties above this threshold pay 0.98% annually for standard residential properties, while luxury properties and non-residential urban properties pay higher rates up to 1.4%.
Properties with total fiscal values exceeding approximately $530,000 USD face additional surcharges, and non-agricultural properties in urban areas classified as vacant lots, abandoned properties, or extraction sites pay a 100% surcharge on the standard rate.
The fiscal assessment is adjusted semi-annually based on the Consumer Price Index (IPC) from the previous semester to account for inflation.
When are territorial tax payments due in 2025, and what installment options exist?
Santiago territorial tax payments in 2025 are due in four quarterly installments with specific deadlines.
The payment schedule is: First installment due April 30, 2025; Second installment due June 30, 2025; Third installment due September 30, 2025; Fourth installment due November 30, 2025. Property owners can pay online through the Treasury General website (TGR), at bank branches, Sencillito locations, Caja Vecina, or ChileAtiende offices.
Early payment discounts are occasionally offered, typically around 5% if the full annual amount is paid by March, though specific discount percentages and deadlines vary each year and should be verified with the SII.
Property owners can choose to pay individual quarterly installments, pay multiple installments together, or pay the full annual amount in advance. Additional replacement installments (cuota 6 and cuota 7) or supplementary installments (cuota 9 and cuota 0) may be issued for property modifications, changes in use, or corrections to assessments.
Payments can be made 24 hours a day online, and confirmation receipts are provided immediately via email for electronic payments.
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What late-payment penalties and interest apply to territorial taxes in 2025?
Late territorial tax payments in Santiago incur immediate interest and penalty charges starting from the day after the missed deadline.
Interest typically accrues at rates between 1-1.5% per month on the overdue amount, compounded monthly. There are no grace periods - penalties begin accumulating the day after the payment deadline passes.
Minimum penalty fines usually start at around CLP 10,000 or 5% of the unpaid bill, whichever is higher, though exact amounts can vary based on the total debt amount. The interest rate and penalty structure can be adjusted annually by the tax authority.
Property owners with multiple overdue installments face escalating penalties, and prolonged non-payment can result in property liens or forced sale procedures. The Chilean tax authority has collection powers including asset seizure for persistent tax delinquency.
Payment agreements (convenios de pago) can be arranged with the Treasury General for property owners experiencing financial difficulties, potentially reducing penalties and allowing installment payment of overdue amounts.
What service-related charges apply to Santiago properties in 2025?
Santiago property service charges in 2025 are typically included within the territorial tax rather than charged separately.
Municipal services including waste collection, street lighting, and fire services are funded through the territorial tax system. Approximately one-third of territorial tax collections remain with local municipalities, while two-thirds go to the Common Municipal Fund for redistribution to lower-income municipalities.
For multi-family buildings and condominiums, property owners pay additional monthly administration fees called "Gastos Comunes" which typically range from CLP 1,000 to CLP 3,000 per square meter monthly, depending on building amenities and management services.
Standalone houses generally don't face separate municipal service charges beyond what's covered in the territorial tax. However, property owners may need to arrange private services like security, landscaping, or maintenance depending on their location and preferences.
Building administration fees for condominiums cover services like elevator maintenance, common area cleaning, security personnel, building insurance, and reserve fund contributions for major repairs.
What income taxes apply to rental properties in Santiago in 2025?
Rental income from Santiago properties in 2025 is taxed under Chile's progressive personal income tax system called the Global Complementary Tax (Impuesto Global Complementario).
Tax rates range from 0% to 40.5% based on total annual income, with rental income added to other income sources to determine the applicable tax bracket. Resident property owners pay these progressive rates, while non-resident owners may face different withholding requirements.
Deductible expenses include mortgage interest payments, property repairs and maintenance costs, property management fees, local territorial taxes (contribuciones), and other legitimate rental-related expenses. Property owners must maintain proper documentation for all claimed deductions.
Long-term residential rentals are typically exempt from VAT, but furnished short-term rentals operated commercially may be subject to 19% VAT. Property owners operating formal rental businesses may need to register for VAT and issue proper invoices.
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Are there surcharges for second homes, vacant properties, or luxury units in Santiago in 2025?
Santiago currently doesn't impose specific surcharges for second homes or vacation properties as of 2025.
However, luxury properties with fiscal values exceeding approximately $530,000 USD face higher territorial tax rates up to 1.4% instead of the standard 0.98% rate. This threshold is based on fiscal assessment values, not market prices.
Vacant urban lots, abandoned properties, and extraction sites (pozos lastreros) face a 100% surcharge on the standard territorial tax rate, effectively doubling their annual tax burden. This surcharge aims to encourage development and productive use of urban land.
Short-term rental properties don't face specific tax surcharges, but they may be subject to 19% VAT if operated as commercial businesses and could face local municipal restrictions or licensing requirements depending on the specific district within Santiago.
There's ongoing political discussion about implementing vacant property taxes nationwide, but no such tax has been enacted as of 2025. Property owners should monitor legislative changes as housing policy remains an active area of government attention.
What capital gains taxes apply when selling Santiago properties in 2025?
Santiago property sales in 2025 can trigger capital gains taxes under specific circumstances and thresholds.
Individual property owners enjoy a lifetime exemption of 8,000 Unidades de Fomento (UF) for capital gains from real estate sales. Any gains above this cumulative lifetime threshold are subject to taxation at progressive rates up to 40.5% under the Global Complementary Tax.
Capital gains are calculated as the sale price minus the inflation-adjusted acquisition cost. The acquisition cost can be adjusted based on the Consumer Price Index (IPC) to account for inflation between purchase and sale dates. Deductible costs include original purchase price, notary fees, registration costs, and legitimate improvement expenses.
Properties held for more than one year (or four years for apartment buildings or subdivided land) generally qualify for more favorable treatment and avoid being classified as habitual trading. Sales within these timeframes or habitual property trading can result in gains being taxed as business income at up to 27% corporate rates.
Properties acquired before January 1, 2004 and sold after January 1, 2017 enjoy unlimited capital gains exemptions. Non-residents may face different tax rates and withholding requirements on capital gains.
What ownership exemptions and reliefs are available in Santiago in 2025?
Santiago property owners can access several exemptions and reliefs in 2025, primarily for territorial taxes.
The primary residence exemption applies to residential properties with fiscal values below CLP 56,846,995 (as of first semester 2025), which are completely exempt from territorial taxes. This threshold is adjusted semi-annually based on inflation.
Senior citizens who meet economic vulnerability criteria can receive reductions of 50% or 100% on territorial tax payments. The rebate applies to the last two installments of one year and the first two installments of the following year. Full exemption applies to seniors with annual incomes at or below 13.5 UTA (approximately CLP 10.9 million in 2025), while 50% reductions apply to those with incomes up to 30 UTA.
Properties covered by DFL-2 housing programs must still pay territorial taxes unless their fiscal value falls below the standard exemption threshold. Educational institutions, religious properties, and certain public service buildings may qualify for special exemptions.
New construction purchases from individuals (not developers) are exempt from VAT, though purchases from developers include 19% VAT. Property owners can deduct territorial tax payments from their Global Complementary Tax when declaring rental income.
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Can you provide worked examples for properties priced at CLP 90 million, CLP 225 million, and CLP 450 million?
Here are detailed cost calculations for three property price points in Santiago, assuming current exchange rates and tax structures.
For a CLP 90 million property (~$100,000 USD): Transfer tax costs CLP 180,000 (0.2%), notary and registration fees total CLP 1,350,000 (1.5%), legal fees add CLP 900,000 (1%), and broker commission reaches CLP 2,700,000 (3%). Annual territorial tax amounts to approximately CLP 882,000 (0.98%), payable in four quarterly installments of CLP 220,500 each. If renting for CLP 9 million annually, rental income tax could reach several million pesos depending on total income. Capital gains on sale after holding more than one year would likely fall within the 8,000 UF exemption.
For a CLP 225 million property (~$250,000 USD): Transfer tax increases to CLP 450,000, with notary and registration fees totaling CLP 3,375,000. Legal fees cost CLP 2,250,000 and broker commission reaches CLP 6,750,000. Annual territorial tax rises to approximately CLP 2,205,000, split into quarterly payments of CLP 551,250. Rental income tax on CLP 22.5 million annual rent could be substantial based on progressive rates. This property value may approach luxury property tax thresholds.
For a CLP 450 million property (~$500,000 USD): Transfer tax reaches CLP 900,000, while notary and registration fees total CLP 6,750,000. Legal fees cost CLP 4,500,000 and broker commission hits CLP 13,500,000. Annual territorial tax climbs to approximately CLP 4,410,000 due to luxury property rates, requiring quarterly payments of CLP 1,102,500. This property definitely qualifies for higher 1.4% territorial tax rates and potential luxury surcharges. Rental income tax on CLP 45 million annual rent would be significant, and capital gains above the 8,000 UF lifetime exemption would face full taxation.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Santiago's property tax system in 2025 provides a structured framework with predictable costs for property investors.
Understanding the four-quarter payment schedule, exemption thresholds, and progressive tax rates helps property owners plan their annual budgets and maximize available deductions and reliefs.
Sources
- SII - Impuesto Territorial Reavalúo 2025
- Contribuciones de Bienes Raíces - Impuesto Territorial
- Chilean Tax System - Santander Trade
- TGR - Pago de Contribuciones
- Taxes on Foreigners' Real Estate Rental Income in Chile
- Chile Corporate Income Determination - PwC
- Real Estate Laws and Regulations Report 2025 Chile
- ChileAtiende - Pago de Contribuciones de Bienes Raíces
-Santiago Real Estate Market Analysis
-Santiago Property Price Forecasts
-How Much Does an Apartment Cost in Santiago
-How Much Does Real Estate Cost in Santiago
-How Foreigners Can Buy Property in Santiago
-Santiago Housing Market Trends
-Is Now a Good Time to Buy in Santiago