Summary
- Chile’s Law No. 21,850, published on 17 October 2026, grants a one-year VAT exemption from 1 December 2026 for the first sale of qualifying new housing.
- The exemption covers dwellings that obtained final municipal approval before the law’s publication, and the seller keeps its input VAT credit.
- The same law gradually reduces the corporate income tax rate to 23% and restores full integration between corporate and final taxes.
Extended article
Because the input VAT credit is preserved, the measure works in practice like a zero rate for qualifying new homes. Developers should identify eligible units by municipal approval date and adapt invoicing and VAT returns for sales during the exemption year.
The law applies from 1 November 2026 and also contains transitional measures, including a voluntary regime for regularising undeclared foreign assets and a temporary payment facility for tax debts.
Source
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