Aysen Tax Benefits for Property Owners: What Expires in 2035

TL;DR: Region XI (Aysen), Region XII (Magallanes), and the Province of Palena receive special tax incentives that expire in 2035. Combined with Chile’s standard 8,000 UF capital gains exemption and some of the lowest land prices in the country ($600 to $3,200 per acre), Patagonia remains one of the most tax-efficient places to own property in Chile. But the clock is ticking on several of these benefits.

Owning property in Chilean Patagonia comes with a set of tax advantages that most of Chile does not enjoy. These benefits were designed to encourage settlement and investment in the country’s remote southern regions. They apply to Region XI (Aysen), Region XII (Magallanes), and the Province of Palena in Region X. The problem: many of these incentives have expiration dates, and the most significant ones run out in 2035.

This article breaks down the current tax landscape for property owners in Aysen, explains what is changing, and outlines what you should plan for before these benefits disappear.

Property taxes in Aysen: lower than the national average

Annual property taxes in Chile are called “contribuciones.” They are calculated as a percentage of the property’s fiscal value (avaluo fiscal), which is the government’s assessed value. In Aysen, the effective rate ranges from 0.8% to 1.4% of fiscal value, depending on the property type and value bracket.

The key detail: fiscal value is typically much lower than market value. A property selling for CLP $150 million might have a fiscal value of CLP $40 million. At a 1% rate, annual contribuciones would be CLP $400,000 (roughly USD $420), a fraction of what the same market-value property would cost in taxes in Santiago or Valparaiso.

Example calculation:

Item	Amount
Market value	CLP $150,000,000
Fiscal value (avaluo fiscal)	CLP $40,000,000
Annual contribuciones (1.0%)	CLP $400,000
Monthly equivalent	CLP $33,333

Properties with fiscal values below a certain threshold (updated annually by the SII) are exempt from contribuciones entirely. Many rural parcels in Aysen fall below this threshold. For the first half of 2026 that threshold is CLP 60,030,710 for residential property, and the rate applies only to the portion of the fiscal value above it. Rates, surcharges, and how to look up your own fiscal value are covered in our guide to annual property tax in Chile.

The special zone benefits: what they include and when they expire

Chile’s extreme zone (“zona extrema”) legislation grants several tax and economic benefits to Aysen, Magallanes, and Palena. These include:

Corporate and business tax reductions

Businesses operating in these regions can access reduced tax rates and special credits. With President Kast’s proposed corporate tax cut from 27% to 23% nationally, plus the restoration of full tax integration and the potential elimination of some capital gains taxes, businesses in Aysen could see compounding benefits. For details on how the new administration’s proposals affect property investors, see our analysis of the 2026 policy changes.

Zona franca proximity

While the zona franca (duty-free zone) operates primarily in Punta Arenas (Magallanes), its economic effects spill into Aysen. Reduced costs on imported goods and construction materials can lower the cost of building and renovating property in the region.

Infrastructure and development incentives

Government programs subsidize infrastructure development in extreme zones. Road improvements, telecommunications, and public services in Aysen have all received accelerated investment under this framework.

The critical date: Many of these benefits are legislated through 2035. After that, they require congressional renewal. There is no guarantee they will be extended, and the political landscape in 2035 is impossible to predict today.

Capital gains: the 8,000 UF exemption applies everywhere

The 8,000 UF capital gains exemption is not specific to Aysen. It applies nationwide. But it is especially relevant for Patagonia property owners because of the region’s price trajectory.

The exemption works like this: if you are a natural person (not a company), and you meet five specific conditions, gains up to 8,000 UF (approximately USD $300,000 in March 2026) across all property sales in your lifetime are tax-free.

Given that Aysen land prices remain between $600 and $3,200 per acre, many buyers can acquire substantial parcels and still have plenty of headroom under the 8,000 UF limit when they sell. A property purchased for CLP $30 million that sells for CLP $80 million generates a gain of CLP $50 million (roughly 1,300 UF), well within the exemption.

What happens above 8,000 UF?

Gains exceeding the lifetime 8,000 UF limit are taxed under one of two regimes the seller can choose. Rates can reach up to 40% depending on the seller’s income bracket. This is where planning matters, particularly for owners of multiple properties. Both regimes, their requirements, and worked cases are in our capital gains tax guide for Chilean property.

Transaction costs: what buyers and sellers actually pay

Beyond annual taxes, every property transaction in Chile involves a set of fixed costs:

Cost	Typical Range	On a CLP $100M property
Notary fees	0.3% to 0.4%	CLP $300,000 to $400,000
Legal fees	~1%	CLP $1,000,000
Agent commission	1% to 2%	CLP $1,000,000 to $2,000,000
Total	2.3% to 3.4%	CLP $2,300,000 to $3,400,000

These costs are relatively low by international standards. There is no transfer tax or stamp duty on residential property sales in Chile.

Foreign buyers: equal rights, higher rental tax

Foreigners have the same property rights as Chilean citizens for residential purchases. There are no foreign ownership quotas, no special permits, and no restrictions on resale. Chile’s 55 bilateral investment treaties provide additional legal protections for foreign investors. For a complete walkthrough of the buying process, see our guide for foreign buyers. If you need the step-by-step version covering documents, the RUT, and powers of attorney, see the permanent foreign buyers guide.

The one significant difference: non-resident rental income. If you own property in Aysen but live abroad and rent it out, rental income is taxed at a flat 35%. This is considerably higher than the progressive rates that Chilean residents pay (which can be as low as 0% for income below certain thresholds). This rate applies regardless of where the rent is deposited.

Planning tip: Some foreign owners structure their stays to qualify as tax residents (spending 183+ days per year in Chile), which can reduce their effective rental income tax rate significantly.

Mortgage rates and financing

Current mortgage interest rates in Chile range from 4.0% to 4.7% in UF terms. Because mortgages are denominated in UF (Unidades de Fomento, an inflation-adjusted unit), the real cost of borrowing remains relatively stable regardless of inflation fluctuations.

For Aysen properties specifically, securing a mortgage can be more challenging than in urban areas. Banks are cautious about rural and semi-rural properties. Expect:

Higher down payment requirements (often 20% to 30%)
Longer appraisal timelines
Fewer banks willing to lend on raw land

Many Aysen transactions, particularly for rural parcels, are completed in cash or with seller financing.

What changed since March 2026

This September 2026 update does not alter the legal sections of the article: they still describe the framework as it stood at original publication, and the 2035 horizon has not moved. What we did update are the market numbers. The UF rose from roughly CLP 38,000 in March to CLP 40,885.63 on September 9, 2026 (daily Central Bank value via mindicador.cl), so the 8,000 UF cap is now worth about CLP 327,085,040, up from roughly CLP 304 million in March. The dollar equivalent still hovers around USD $300,000. The $600 to $3,200 per acre figures quoted above are the historical March 2026 reference; the next section replaces that reference with per-property-type medians computed from today’s active listings.

What these benefits are worth in pesos: September 2026 data

To ground the article in real numbers we took the portal’s full inventory as of September 9, 2026: 971 visible for-sale listings across 19 Patagonian localities. We dropped 49 with implausible prices (under UF 50 or over UF 200,000, the same filter our price estimator uses) and converted everything to UF at the day’s rate so that listings priced in pesos and in UF could be pooled. Here is the result for the Aysen Region (17 localities, 916 listings) and for Coyhaique specifically (363 listings):

Type	Active listings (Aysen Region)	Median asking (region)	Active listings (Coyhaique)	Median asking (Coyhaique)
Houses	232	UF 3,669 (CLP 150,000,000)	105	UF 5,981 (CLP 244,500,000)
Land (parcelas)	316	UF 1,468 (CLP 60,000,000)	139	UF 1,600 (CLP 65,400,000)
Farms (campos)	128	UF 13,634 (CLP 557,400,000)	34	UF 11,500 (CLP 470,200,000)
Lots (terrenos)	186	UF 3,412 (CLP 139,500,000)	62	UF 5,034 (CLP 205,800,000)

Important: these are asking prices from active listings, not closing prices. In Aysen the final price is usually negotiated down, and the house median blends urban homes in Coyhaique with village houses in small localities. Treat them as orders of magnitude, not appraisals.

Example 1: property tax on a median-priced Coyhaique house

Median asking price: CLP 244,500,000. If the fiscal value lands at 30% of market value (the typical Aysen range is 25% to 40%), the fiscal value is CLP 73,350,000. Subtracting the CLP 60,030,710 exempt amount leaves CLP 13,319,290 subject to tax. At the rounded 1% rate used above, the annual bill is about CLP 133,000, or roughly CLP 11,000 per month. If the fiscal value comes in at 25%, the bill drops to about CLP 11,000 per year; at 40% it rises to about CLP 378,000. In all three scenarios that is under 0.2% of the asking price per year, a fraction of what a house of the same value pays in Santiago.

Example 2: a median parcel in the region

Median asking price: UF 1,468, about CLP 60,000,000. A fiscal value between 25% and 40% gives CLP 15,000,000 to CLP 24,000,000, far below the exempt amount. If the parcel is classified as residential or non-agricultural, contribuciones are CLP 0. If it is classified as agricultural, the 1.0% rate applies to the taxable fiscal value with a different exempt amount: the worst reasonable case would be about CLP 240,000 per year. Check the fiscal value certificate before buying so you know which category you are in.

Example 3: a median farm and the cumulative cost through 2035

Median asking price: UF 13,634, about CLP 557,400,000. Farms are taxed as agricultural land at 1.0% of the taxable fiscal value. With a fiscal value at 25% (CLP 139,350,000) the bill is around CLP 1,390,000 per year, or 0.25% of the asking price. Over the nine years remaining until 2035 that adds up to about CLP 12,500,000, close to 2.2% of the purchase price. It is a low carrying cost for land at this scale, but budget for it because it does not go away if the farm produces no income.

Example 4: how much headroom the 8,000 UF cap leaves

The cap is cumulative and denominated in UF, so inflation does not erode it. If you buy the median Coyhaique parcel today at UF 1,600 and sell it in 2035 after 60% real appreciation, the exit price would be UF 2,560 and the gain UF 960: only 12% of the cap. If you also buy the regional median house at UF 3,669 and sell it at UF 5,500, the gain is UF 1,831, another 23%. Both sales together use UF 2,791 and leave UF 5,209 of headroom. This is exactly what makes Patagonia attractive for individual investors: entry prices are low enough that several sales fit inside the exemption.

Example 5: transaction costs on the median house

Applying the 2.3% to 3.4% range from the cost table, buying the median Coyhaique house (CLP 244,500,000) means CLP 5,623,500 to CLP 8,313,000 in notary, legal, and agent fees. It is the one cost that no regional exemption touches, so it weighs most in a short-horizon deal.

What the 2035 sunset means for these numbers: examples 1 to 3 rely on low fiscal values and the SII exempt amount, which are not extreme zone benefits and do not lapse in 2035. Example 4 relies on the national 8,000 UF exemption, which also has no expiry date. What does expire in 2035 are the business and infrastructure incentives described above. For an individual owner, the main 2035 risk is not a jump in property tax but the region losing part of the investment momentum that has supported demand and prices. This section is informational and is not tax advice.

What to do before 2035

The 2035 expiration of extreme zone benefits creates a planning window. Here is what property owners and prospective buyers should consider:

Buy before benefits expire, not after. Properties purchased while incentives are active will have been acquired in a more favorable tax environment. This matters for cost basis calculations.
Structure ownership carefully. If you plan to hold property through 2035 and beyond, consult a Chilean accountant about whether individual or corporate ownership better suits your situation, especially given the proposed corporate tax changes.
Track your 8,000 UF lifetime usage. If you own multiple Patagonia properties, plan the order and timing of sales to maximize the capital gains exemption. Our investment guide for Patagonia covers portfolio strategy in more detail.
Monitor legislative developments. Chile’s congress may extend, modify, or allow the extreme zone benefits to lapse. Stay informed.
Review your tax residency. The 35% non-resident rental tax makes residency planning critical for foreign owners who rent their properties.

Frequently asked questions

Do I pay property tax if I own raw land in Aysen?

It depends on the fiscal value. Many rural parcels in Aysen have fiscal values below the SII’s exemption threshold, meaning zero annual contribuciones. Improved properties (with structures) typically exceed the threshold and do owe contribuciones at 0.8% to 1.4% of fiscal value.

Can a foreigner get a mortgage for property in Aysen?

Technically, yes. Chilean banks can lend to foreigners with a Chilean RUT (tax ID) and legal residency. In practice, financing rural Aysen property is difficult. Most banks prefer urban collateral. Expect to pay 20% to 30% down, and the process takes longer than for properties in Santiago or Concepcion.

What happens to my property taxes if the extreme zone benefits expire in 2035?

If the benefits are not renewed, property tax rates in Aysen could align with national rates, which are slightly higher. The exact impact depends on future legislation. However, because fiscal values in Aysen are already low relative to market prices, the practical increase in annual tax may be modest.

Is Aysen subject to border zone restrictions for foreign buyers?

Parts of Aysen fall within Chile’s border security zone, which restricts foreign nationals from purchasing property within certain distances of international borders. These restrictions require authorization from the Ministry of National Defense. Not all Aysen properties are affected, but parcels near the Argentine border often are. Check the specific property’s location before making an offer.

How much property tax would I pay on a median-priced house in Coyhaique?

Using the September 2026 median asking price (CLP 244,500,000) and a fiscal value at 30% (CLP 73,350,000), only CLP 13,319,290 sits above the CLP 60,030,710 exempt amount. At 1% per year that is about CLP 133,000 annually, or close to CLP 11,000 per month. If the fiscal value comes in at 25% the bill drops to about CLP 11,000 per year, and at 40% it reaches about CLP 378,000. The exact figure depends on the fiscal value shown on your SII certificate, not on the price you paid. You can look it up free of charge with the property’s rol number on sii.cl before signing.

Should I buy a parcel in Aysen now or wait to see what happens in 2035?

It depends on what you plan to do with it, not only on the tax calendar. The benefits that matter most to an individual owner (low fiscal values, the property tax exempt amount, and the 8,000 UF capital gains exemption) do not lapse in 2035. What expires are the business and infrastructure incentives, whose effect on a single parcel is indirect. In favor of buying now: the regional median parcel is listed at UF 1,468 (about CLP 60,000,000), usually pays CLP 0 in property tax, and leaves almost the entire 8,000 UF cap available for a future sale. Against: asking prices come from active listings, not closings, and bank financing for rural land remains scarce. If you will use or rent the land, the nine years to 2035 are a reasonable window; if the purchase is pure speculation on the sunset date, there is no basis for assuming a price jump.

Disclaimer: Tax laws change. The information in this article reflects regulations as of March 2026. Chile’s tax code is subject to reform, and the proposed changes under the current administration have not all been enacted. Always consult a Chilean accountant or tax attorney (contador auditor) before making decisions based on tax considerations. The SII website (sii.cl) is the authoritative source for current rates and rules. Market data (listing counts and medians) was refreshed on September 9, 2026 from the portal’s active listings.