Chile Annual Property Tax (Contribuciones): Rates, Exemptions & How to Pay

If you own property in Chile (or you are thinking about buying), you are going to encounter the word contribuciones everywhere: on listing details, in closing cost estimates, in your annual budget. It sounds intimidating. The good news? If you are buying in Patagonia, there is a solid chance you will pay very little, or nothing at all.

Contribuciones is the common name for Chile’s Impuesto Territorial (territorial tax), the annual property tax levied on all real estate in the country. This guide explains how it works, what you will actually pay, and how to stay current, with specific attention to the Aysen Region and foreign owners.

What are contribuciones?

Contribuciones is Chile’s annual property tax, administered by the SII (Servicio de Impuestos Internos, Chile’s tax authority) and collected by the TGR (Tesoreria General de la Republica, the national treasury).

The tax is calculated on the avaluo fiscal (fiscal assessed value) of each property, not on market value. The SII determines the avaluo fiscal through periodic reassessments. Every property in Chile has one, and you can look it up for free at sii.cl.

Key facts:

• The tax applies to all real estate: houses, apartments, land, commercial, agricultural
• Foreign owners pay exactly the same rates as Chilean nationals
• Payment is divided into four quarterly installments
• The tax is an obligation of the property itself, not the owner. Unpaid contribuciones create a lien on the property

Tax rate brackets (as of 2026)

Chile uses progressive brackets based on the total avaluo fiscal. Rates differ between non-agricultural (urban) and agricultural (rural) properties.

Non-agricultural properties (residential, commercial, industrial)

As of the first semester of 2026:

Avaluo fiscal bracket	Tax rate (annual)
Up to CLP $214,395,361	0.893%
Portion above CLP $214,395,361	1.042%

The residential exemption threshold is CLP $60,030,710 (approximately UF 1,507). If your property’s avaluo fiscal is at or below this amount, you pay zero contribuciones.

For properties above the threshold, the tax applies only to the portion exceeding the exempt amount. A property valued just above the threshold pays very little.

Agricultural properties (rural land)

Avaluo fiscal bracket	Tax rate (annual)
All assessed value	1.0%

Agricultural properties also have their own exemption thresholds, generally lower than the non-agricultural exemption. Many small rural parcelas in the Aysen Region have very low assessed values and pay minimal or zero contribuciones.

High-value property surcharge (sobretasa)

Owners whose combined fiscal valuations across all properties exceed 670 UTA (approximately CLP $450 million as of 2026) face a progressive surcharge under Article 7 bis of the Territorial Tax Law:

Combined avaluo fiscal	Surcharge rate
Up to 670 UTA	0%
670 to 1,175 UTA	0.075%
1,175 to 1,510 UTA	0.15%
Above 1,510 UTA	0.275%

This surcharge is calculated on the total sum of all your properties, not on each property individually. Unless you hold a large portfolio, it will not affect you.

There is also a standard fiscal surcharge of 0.025% on all taxable properties and a 100% surcharge on unbuilt urban lots and abandoned properties.

Avaluo fiscal vs. market value

One of the most important things to understand: the avaluo fiscal is almost always significantly lower than market value. In practice, the fiscal assessment typically represents 30% to 60% of what a property would sell for on the open market.

The SII conducts periodic reassessments (reavaluo) to update fiscal values. The non-agricultural reassessment originally scheduled for January 2026 has been postponed to January 2027, meaning current assessed values remain in effect through December 31, 2026. Agricultural reassessments follow their own cycle (the most recent was in 2025).

How to check your avaluo fiscal

You can look up any property’s fiscal assessment online, for free:

1. Go to sii.cl
2. Navigate to Servicios Online, then Avaluos y Contribuciones de Bienes Raices
3. Search by ROL number (the property’s tax identifier, found on your deed or prior tax receipts), by address, or by RUT (tax ID) of the owner
4. The system shows the current avaluo fiscal, the property category, and the quarterly contribution amount

You do not need a Chilean RUT to look up a property by ROL number or address. Buyers: do this before you make an offer.

The DFL-2 exemption

DFL-2 (Decreto con Fuerza de Ley No. 2, from 1959) provides additional benefits for residential properties classified as “economic housing.” DFL-2 properties enjoy:

• 50% reduction in contribuciones for a period that depends on the property’s size:
  • Up to 70 m2: 20 years
  • 71 to 100 m2: 15 years
  • 101 to 140 m2: 10 years
• Properties over 140 m2 do not qualify for DFL-2 benefits

The DFL-2 benefit is limited to two properties per person, based on the oldest acquisitions. A third DFL-2 property would not receive the benefit.

This exemption is separate from the general residential exemption threshold. A property can benefit from both: the general exemption on the first CLP $60 million of assessed value, plus the DFL-2 reduction on the remainder.

Aysen Region specifics

The Aysen Region (Region XI) has some of the lowest property values in Chile, which directly translates to low contribuciones. Here is what makes the region distinctive:

• Most residential properties in smaller towns (Coyhaique, Puerto Aysen, Chile Chico, Cochrane) have fiscal assessments near or below the exemption threshold. Many homeowners pay zero
• Rural parcelas classified as agricultural often have assessed values of UF 200 to UF 500, resulting in annual contribuciones of CLP $0 to CLP $100,000 (roughly USD $0 to $110)
• Lakefront or river-access properties with higher market values may still have modest fiscal assessments, since reassessments lag behind market appreciation
• New construction gets reassessed once the building permit is finalized and the SII updates its records, which can take 1 to 2 years

Worked examples

Example 1: House in Coyhaique (avaluo fiscal UF 2,000)

Assumptions as of April 2026: 1 UF = CLP $39,842, 1 USD = approximately CLP $910.

Item	Value
Avaluo fiscal	UF 2,000 = CLP $79,684,000
Residential exemption	CLP $60,030,710
Taxable base	CLP $79,684,000 - CLP $60,030,710 = CLP $19,653,290
Tax rate	0.893%
Annual contribuciones	CLP $19,653,290 x 0.893% = CLP $175,504
Per quarter	CLP $43,876 (approximately USD $48)

This house, likely worth CLP $150 to $200 million on the open market, pays roughly USD $193 per year in property tax. That is less than many US homeowners pay per month.

Example 2: Rural parcela (avaluo fiscal UF 300)

Item	Value
Avaluo fiscal	UF 300 = CLP $11,952,600
Agricultural exemption threshold	Below threshold
Annual contribuciones	CLP $0

A rural parcela with a fiscal assessment of UF 300 pays zero contribuciones. Many rural lots along the Carretera Austral, near lakes, or in remote areas fall into this category.

How to pay contribuciones

Online payment at TGR

The easiest method for both residents and foreign owners:

1. Go to tgr.cl/contribuciones
2. Enter the property’s ROL number (you can pay without logging in)
3. View outstanding installments
4. Pay by Chilean bank transfer, credit card, or debit card

You can also pay through your bank’s online portal if you have a Chilean bank account. Most banks list contribuciones under “pagos de servicios.”

2026 payment deadlines

Installment	Deadline
First quarter (cuota 1)	April 30, 2026
Second quarter (cuota 2)	June 30, 2026
Third quarter (cuota 3)	September 30, 2026
Fourth quarter (cuota 4)	November 30, 2026

You can pay all four installments at once or each one individually by its deadline.

In-person payment

You can also pay at TGR offices, CajaVecina (BancoEstado network, available in small towns across Aysen), or major Chilean banks (BancoEstado, Banco de Chile, Santander, BCI).

What happens if you do not pay

Unpaid contribuciones accrue interest at 1.5% per month (18% annually). The TGR can initiate a judicial collection process, and the debt creates a lien on the property. In extreme cases of prolonged non-payment (years), the property can be auctioned at a public tax sale, though this is rare.

When buying a property, always verify that contribuciones are current. Your lawyer should check for outstanding debts as part of standard due diligence.

Foreign owners: what you need to know

If you are a foreign national owning property in Chile:

• Same rates, same rules. There is no additional tax or surcharge for foreign owners
• You need a RUT (Chilean tax ID) to appear on a property deed. You receive one during the purchase process
• You can pay online from abroad using the TGR website with a credit card, even without a Chilean bank account
• Tax residency does not matter for contribuciones. Whether you live in Chile or not, the tax is the same
• Your property manager or lawyer can pay on your behalf if you prefer not to manage it directly

Frequently asked questions

Can I deduct contribuciones from my income tax?

Yes. If you rent out your property, contribuciones paid during the year can be credited against the rental income tax. If the contribuciones exceed the rental income tax, the excess is not refundable. For properties you use personally (not rented), there is no deduction.

Are contribuciones the same as the municipal patente?

No. Contribuciones (Impuesto Territorial) is the national property tax paid to TGR. The patente comercial is a separate municipal business license fee. If you operate a rental business (such as a cabana or lodge), you may owe both.

Do contribuciones change when I buy a property?

Not immediately. The avaluo fiscal and contribuciones stay the same regardless of the sale price. The SII will only update the assessment at the next scheduled reassessment cycle or if you make significant improvements that trigger a new assessment.

What if I disagree with my avaluo fiscal?

You can file a formal objection (reclamo) with the SII within 180 days of a reassessment notification. The process requires documentation supporting a lower valuation. In practice, most property owners in the Aysen Region have no reason to contest their assessments, since fiscal values already run well below market prices.

How do contribuciones compare to property taxes in the US or Europe?

Chilean contribuciones are significantly lower. A typical Chilean home assessed at CLP $80 million (market value perhaps CLP $200 million, around USD $220,000) might pay USD $190 per year. A comparable home in the United States could easily pay USD $2,000 to $5,000 annually. The combination of low fiscal assessments and moderate rates makes Chile one of the more affordable countries for property ownership.

Related guides

Planning a property purchase or managing your Chilean real estate taxes? These guides cover related topics:

• Capital Gains Tax on Property in Chile: understand what you will owe when you sell
• Selling Costs in Chile: the full breakdown of fees, taxes, and commissions
• What is UF?: Chile’s inflation-indexed unit used in all property transactions
• Foreign Buyers Guide: step-by-step process for purchasing property as a non-Chilean
• Mortgages in Chile: financing options for residents and foreign buyers

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Information in this guide reflects Chilean tax law as of April 2026. The non-agricultural reassessment originally scheduled for 2026 has been postponed to 2027, so current assessed values and thresholds remain in effect through December 31, 2026. Contribuciones brackets and exemption thresholds are adjusted semi-annually by the Consumer Price Index (IPC). Always verify current figures at sii.cl and tgr.cl. This guide is for informational purposes and does not constitute tax advice.